E-commerce in Hungary was worth 2.2 billion EUR in 2019 (estimated YoY increase for 2020 was 30%) with industry leaders such as eMAG, Media Markt, Tesco and Alza.hu contributing most significantly. Electro/IT have been the number one driving e-commerce segment and continues to be so. Other products in high demand range from food and personal care (strongly boosted by 2020), fashion, home and decor, hobby, toys and DIY.
In terms of industry leaders, there is no “the winner takes it all” situation in Hungary. The e-commerce market is largely in the hands of a dozen biggest players without having a dominant one. According to GKI digital, the top 10 traders accounted for 35% of total turnover in 2019.
Based on online traffic data, Hungary’s largest web store is eMAG with 1.3 million visitors (in 2018) and products in more than 1,500 categories. Not that long ago, this giant merged with the second strongest industry leader, emag.hu. Both sites maintain their brand separate, occupying first and second position in the top 10. Technical department store chain Media Markt is on the bronze position as it is one of the original e-commerce players.
With electro being historically the strongest segment, 220volt offers 20 000 products from segments such as electronics, computers, smartphones, DIY, housing, and gardening. iPon and Aqua focus solely on electronics. Libribookline, a popular online bookstore, keeps growing sustainably.
Tesco has been the main driver in the FMCG online sector for years, but with the pandemic Auchan Online and SPAR grocery delivery services took their piece of the customer pie.
Alza.hu and Mall.hu too earned their place in that leading dozen. There are other foreign-owned businesses such as Rohlik (Kifli.hu), Favi and Glami claiming their space on the Hungarian market as well as long term national players such as Olcsobbat.hu, Praktiker (the largest DIY store) or PCX (electro).
Hungarian e-commerce market is largely concentrated around Budapest and its surroundings. This focus is another reason CEE e-commerce players chose Hungary: it makes logistics that much easier. The biggest players run their businesses from Budapest or in case of a number of exporters – from abroad. Besides cutting costs in logistics, many stores coming from The Czech Republic or Slovakia can also hire bilingual employees from southern Slovakia.