Where Do Poles Shop: E commerce Industry Trends In Poland
The e-commerce industry has drastically changed the way we shop. The gigantic rise of the big players in this industry like Amazon has established the fact that people are now looking to shop online rather than visiting the local stores.
In Poland, the sale of goods through digital platforms like mobiles, computers, tablets etc. has also risen; just like everywhere else in the world. The e-commerce sales for 2017 in this nation amounted to 7.2 billion euros and may reach a trillion by the end of this year. The biggest YoY boast came in 2016 when it reached 6.1 billion euros from 5.1 billion euros in 2015. The major credit for such a jump goes to the online shopping trends and the penetration of mobile phones and internet into the heart of the nation.
Although the online retail share is mere 3.3%, which is less than half of the European average, there is plenty of room for growth in Poland. In this market, the number of users is expected to reach 21 million by 2022, in which Poles aged between 25 to 35 will form the major chunk.
Let’s take a look at some of the factors which will affect the industry in 2018-2019:
GDPR
It has been more than a month since the European Union rolled out this regulation. All business owners, irrespective of the size of the enterprise, will have to adhere to the rules and regulations of this new law. Laws related to data protection and processing, personal data security etc. are the important factors in this regulation that all business owners will have to adhere to.
E-commerce without borders
Following the global trend, Polish e-commerce will also expand across geographical borders. Polish will continue to buy from foreign online stores where they would find products and services at cheaper prices and better deals. China will continue to remain a favourite destination for online shopping with companies like Alibaba becoming a hot destination. Amazon, Ikea and other international brands will also be constituting a major chunk.
A big hug to Artificial Intelligence
AI will continue to be a game changer. This technology is not only for the big players in the game but also for small and medium business owners. In the fast-moving consumer goods area, AI, Augmented Reality and Virtual Reality will continue to allure people. These allow for greater personalization, offer a completely new shopping experience and helps companies analyze consumer buying pattern better.
Mobiles will continue to grow
If a Polish business owner hasn’t customized his website and business for the mobile platform, then he will be brutally murdered.
As depicted in the graph above, mobiles and tablets are used for nearly 55% of all sales in the e-commerce sector. This percentage is expected to grow to 65% by 2020 and definitely much more by 2022.
Social media marketing
More number of people are logging onto social media platforms. Hence, the Polish e-commerce owners need to tap onto these platforms if they wish to grow. The millennials have a different buying pattern: they prefer animation and video over text, social media over TV and radio, and have a short attention span. However, the middle-aged Poles and senior citizens still prefer to see lucrative ads and deals on TV, billboards and on the radio. The marketing managers need to cater to these two classes separately in order to survive.
Poland going cashless
Cashless payments in Poland are growing exponentially and consumers are looking to pay through the online wallets and cards.
The graph above clearly shows that direct debit from the bank account was the preferred choice. Another emerging trend is the Cash on Delivery method where a buyer can pay after receiving the product at their doorstep via cash or card. This data emphasis that Polish e-commerce business owners need to cater to this group and start with digital payments.
In this closed world due to globalization, e-commerce store owners cannot thrive alone. Not only will the digitization of business help in generating more revenue through sales, but will also enable the business owners to sell their products in other countries.
