Czech republic is well known for its beautiful scenery: old Prague or its mountains. Nowadays, its “online“ space is becoming more popular, especially for shopping.
According to a new research by JP Morgan Bank, the Czech e-commerce market has the biggest predicted compound annual growth rate (CAGR) in the old continent over a period between now and 2021. With a CAGR of 16%, it is on top, and leaves behind big e-markets such as the UK, France, and Germany. The Czech e- commerce market size is 4.4 billion Euros in 2019. According to web ceska-ecommerce.cz, Czech e-commerce has a retail share of 10.2% of turnover, which is 1.1% more than in the previous year.
The fast growth of e-commerce could be related to the fast increase in the number of e-shops. Ceska-eCommerce.cz says that there are now 41,781 e-shops, a +3.5% change compared to the previous year, and it expects 44,194 e-shops at the end of 2019. During the last few years also the number of purchases of grocery increased rapidly. According to ACOWARE, every seventh Czech will be buying grocery online during 2019.
Czechs are changing their shopping habits. Mobile shopping has already a 55% share. Cash payments are still representing 45% of online transactions.
What could be the reason for the popularity of online shopping? 47% say it is easy, also for product and price comparison. 19% mention the ease of the purchasing process. Other reasons are: bigger assortments, lower prices, and saving time. On the other hand 42% Czechs are afraid of online shopping because they can’t “ touch it“ (the product).
The large number of e-shops makes the market very competitive. It is important to be unique and offer something different to be successful. E-shops need to excel in providing easy and fast solutions for customers (for example by mobile apps) . An e-shop also needs to excel in providing enough information for decision making and thus save the valuable time of the customer. High quality product information can reduce the need to “touch it“.
Read further: News, e-commerce, Fast growth, online shopping
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