In the first quarter of this year, the e-commerce sector saw significant growth due to the closure of offline stores. While consumers will return to offline shopping habits after the quarantine, the online market will continue to grow. Companies that had not yet considered websites are now investing in online sales promotion.
During the pandemic, the e-commerce sector proved to be a real lifeline for the retail market. Unity Group predicts that in 2020, Polish e-commerce will reach a value between 100-120 billion PLN, with an annual growth rate exceeding 20% in the coming years. For comparison, last year, online sales in Poland amounted to about 50 billion PLN, and as early as January this year, the sector’s value was expected to grow to 70 billion PLN in 2020.
According to a survey conducted by Deloitte (an international network of consulting and auditing companies) in May this year, 55% of respondents believe that consumer buying behavior will not change significantly and will be accompanied by the development of e-commerce. At the same time, consumers will still make purchases in shopping centers. Experts argue that shopping habits have become so deeply rooted that people will look for ways to return to their old habits.
New Prospects for Online Business in Poland
A survey conducted by Research&Grow on March 18-19 revealed that after restrictions were imposed due to the risk of virus infection, about 30% of Poles increased their number of online transactions. Fear plays an important role in the e-commerce market—according to an Inquiry report, about 64% of respondents fear crowds and gatherings, and 42% are concerned about low safety and hygiene standards.
The number of people willing to shop online in Poland is growing, especially in the food industry. Stores are launching online offerings, even those that hadn’t considered it before (such as Żabka, Kaufland, or Stokrotka).
The company Audiomagic (a supplier of audio equipment) states that the increase in online sales in Poland was influenced by:
- the closure of stores (consumers were cut off from traditional shopping methods),
- the increase in time people spent online.
The current situation has strongly affected society’s shopping habits. An important factor for online businesses in Poland is that during the quarantine, there were no reports of issues with online purchases, e-store bankruptcies, or online fraud.
Thus, it can be concluded that online stores in Poland and other countries will also benefit from recent events in the future. Buyers confirm that online stores offer lower prices, save time, and sometimes cover transportation costs.
Adam Kubarski, president of the footwear company Akardo, believes that the beginning of the pandemic and the related isolation brought uncertainty to every business. The crisis pushed entrepreneurs to analyze their businesses, optimize costs, and look for new prospects, including opening an online store in Poland.
Polish Companies’ Focus on Online Sales
The pandemic has been a real test for the HoReCa industry and the tourism market. Companies that invested in online business in Poland before the epidemic and the closure of most stationary businesses were automatically in a better position. As Lukasz Wichłacz, head of Coffeedesk, states, an important part of the product range, apart from coffee, includes home preparation accessories. As a result, during the crisis, the company saw growth in B2C online sales. In the B2B sector, the effects of the closure of the HoReCa industry were compensated by the increased sales of products to other e-commerce businesses.
Leszek Menchkowski, president and owner of Dobry Hotel, states that e-commerce has played a leading role in the hotel business for many years. Customers have long been booking hotel stays online. Dobry Hotel has been investing in the development of online sales channels for many years. Bookings are possible through the hotel’s own websites and through partner websites. Since the restart of the hotel business, there has been slow but gradual growth in bookings.
Marta Bassani-Prusik, director of Investment Products at the Mint, says that opening online stores has allowed them to maintain a leading position in the physical gold investment market in Poland. During the isolation period, when buyers couldn’t buy bars offline, they purchased them online, and in April this year, there was a tenfold increase in gold sales compared to the average month last year.
Will Poles Return to Old Habits?
According to observations by marketing agencies GfK Polonia and Infuture.Institute, there shouldn’t be any radical changes in Polish consumers’ approach to in-store shopping.
According to research, before the quarantine, online purchases of clothing and footwear accounted for 19%, during the quarantine this percentage decreased to 17%, but now it has returned to 19%.
Daily consumer goods – before the pandemic 11%, during the pandemic the percentage increased to 15%, now it is returning to 11%. Experts believe that online sales in Poland will continue to grow, but not necessarily as quickly as some stock market companies had anticipated.
The consulting agency AXI IMMO states that companies that don’t use e-commerce will need to adapt their strategies to online business. In Poland, this could affect logistics and supply chain optimization. Companies will be interested in improving security in this sector, and the Republic of Poland, due to its proximity to Europe and good transport infrastructure, will become the main beneficiary of this situation.
Development of Online Business in the Republic of Poland
According to Deloitte analysts, after the quarantine, buyers will try to minimize contact with both products and other people. Comfortable and safe purchases will be provided by contactless technology, such as a virtual storefront showing available products in the store. By browsing it, the customer can decide whether to enter.
With contactless shopping, product scanning technology will be useful, such as an app on the phone that will allow customers to scan and pay for products themselves, without needing to contact store staff.
Stores will consider further improving or automating the service process, including the BOPIS (Buy Online, Pick-up In Store) process, which allows customers to order products online and pick them up in the store.
The forced digitalization of the crisis is not only the significant growth of online sales in Poland but also the growing popularity of cashless payments. The crisis reduced the number of cash transactions and significantly strengthened the electronic payments market. In the first quarter of 2020, Mastercard recorded a 40% increase in the use of contactless payments worldwide.
In the new post-coronavirus reality, mobile phones will be used more widely for mobile payments, using them as mobile wallets, and also for tracking the movement of people and goods.
Based on the above, we can conclude that the world has changed, and we need to adapt to the new reality. Entrepreneurs must review their business approach and implement online tools. If you are planning to enter the online market or open an online store in Poland, leave a request on the Uniconsulting website, and we will discuss your idea.
