The problems of large e-shops can be existential
E-commerce has had to deal with a drop in sales since the beginning of this year. Several factors are responsible for this – the end of pandemic measures and the transfer of some people to brick-and-mortar stores, the war in Ukraine or inflation and the associated price increase. Large e-shops, which were forced to hire new employees and stock thousands of products during the pandemic period, are suffering in particular.
Ivo Mrena, country manager of Shoptet for Slovakia, thinks that small and e-shops that are flexible and can quickly adapt to customer behavior can benefit from the current situation. In an interview for TREND, he further explained how e-commerce will develop and what will be the biggest trends in the near future.
How does the war in Ukraine or inflation currently affect e-commerce?
The effects of the war in Ukraine were, unfortunately, only short-lived, and only at the beginning of the invasion. As for inflation, the one here with us, it seems that it will be for some time. On the other hand, it does not only concern e-commerce, but all spheres of economic life and especially the whole world. It is not just our local or regional problem. E-commerce has slowed down a bit, but we expect its growth this year as well.
Which segments within e-commerce are the most and least resistant to external influences?
The price increase is widespread, it cannot be said that any segment has been spared. Rather, it is that consumer behavior and preferences change over time. And they are influenced by a number of factors, for example current needs or even a good mood. The strongest segments continue to be home and garden, electronics and clothing.
Don’t overlook
The big players in e-commerce are having problems. They lack funds, lay off workers and can’t get rid of inventory
Small and medium-sized enterprises are the backbone of the economy
How are big players compared to small e-shops? What are the biggest differences in such crises?
Alza or Mall or others are big names that are attractive in the media. But the economy does not depend on them. On the contrary, small and medium-sized entrepreneurs were
and they are still the backbone of the economy. Only, unfortunately, they stand in the shadow of those big names. Small and medium-sized have always been adaptable, forced to find their own way.
In addition, they do not have a significant budget for marketing, do not use influencers and do not have huge warehouses. Their advantage is precisely that they are mostly narrow-profile. Specialization makes their target group different and more stable and loyal.
How is e-commerce in other countries similar to Slovakia?
Culturally and socioeconomically, all surrounding countries are similar. Slovakia is slowly starting to rank among the top countries in e-commerce, the Czech Republic is certainly further, but, on the contrary, Hungary, for example, lags behind us.
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