Market Trends of Austria E-commerce Industry
This section covers the major market trends shaping the Austria E-commerce Market according to our research experts:
Significant Growth in E-Commerce is Expected due to digital transformation
- Digitalization is a tremendous opportunity for the current Covid -19 situation. It is revolutionizing the world of the profession, business structures, and value chains, as well as innovation and market structures. Most industries are switching toward using digital modes of retailing for their business. According to World Dank Data, approximately 88% of Austria's population is using the internet as of 2020. Internet usage and access have driven the usage of various electronic devices, facilitating e-commerce.
- Technological advancements like the usage of 5G enable greater innovation and speed. The European Commission has approved a EUR 3 billion Austrian aid scheme under the Recovery and Resilience Facility (RRF) to support the rollout of passive infrastructure for broadband networks in the parts of Austria where there is no current network able to provide a minimum 100MBPS download speed. This initiative is a part of Austria's strategy to address the growing business needs in the context of the country's digitalization.
- According to Ecommerce DB, the most often offered delivery service provider among online businesses in Austria is Osterreichische Post. Among those who said which service they use to convey their goods, 59% named Austrian Post as one of their options. Furthermore, DHL and DPD are among Austria's top three shipping service providers, with 30% and 15%, respectively.
- Cross-border shopping is popular among Austrians. More than half of their online purchases are for things from other countries. Austria is one of the rare countries where local e-commerce sales are much lower than international sales. This is primarily because the majority of the most popular merchants are situated outside of Austria and have yet to decide to create a store there. Amazon is a fantastic example in this regard. Austrians buy on the German site, and products are transported from there. Germany, Italy, Switzerland, China, and the Czech Republic are Austrians' most popular shopping destinations.
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Fashion is Expected to Hold a Significant Share
- The concepts of e-commerce have revolutionized the fashion industry in multiple ways. Not only can the buyers shop from their homes, but they can also ensure that they can still keep their favored brands in their closets. Online shopping has increased in Austria too. According to the E-commerce news, Presently, 85% of Austrian customers shop online at least once a month, whereas 42% buy products online at least once a week.
- Fashion enterprises are one of the most creative and vibrant sectors in Austria. They are present in everyday life of millions of individuals and act as representatives of Austrian values, such as creativity, culture, innovation, and craftsmanship. According to Meta Triad, the apparel and fashion industry was USD 1.5 trillion in 2020 and is projected to reach 2.25 trillion dollars by 2025. The Austria-based Meta Triads aims to accelerate the digital transformation of the whole apparel industry.
- Price remains a significant factor when buying, whether affordable or luxury goods, now that online shopping has become a trend. Third-party online retailers continue to evolve and consolidate the market as well. The Austrian market has many key players in online retailing such as Amazon, Zalando, MediaMarkt, Universal, Otto, H&M, and many more.
- According to E-commerce news Europe, Amazon generated a total net sales of EUR 1.1 billion in Austria due to its incomparable pricing. The e-commerce company is followed by Zalando with 328.7 million euros in net sales, followed by MediaMarkt with 144.3 million euros in net sales. This shows that online retailing is growing quickly in the Austrian e-commerce market.
