Market Trends of Slovak Republic E-commerce Industry
This section covers the major market trends shaping the Slovak Republic E-commerce Market according to our research experts:
Significant Growth in E-Commerce is Expected due to Digital Transformation
- Digitalization is a tremendous opportunity and challenge 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 90% of the Slovak Republic's population is using the internet as of 2020. Internet usage and access have driven the usage of various electronic devices, facilitating e-commerce.
- To promote digitalization, the government of the Slovak Republic has come up with the 2030 Strategy for Digital Transformation. This Digital transformation strategy offers a framework for defining the policy priorities of the Slovak Republic that is aligned with the continuing digital transformation of the economy and society with the enhancement of innovative technologies and global trends of the digital era.
- In March 2021, the government of Slovak adopted the new national broadband plan. This plan aims s for all households, whether urban or rural, to have access to an internet connection of at least 100 Mbps, with the possibility of upgrading to gigabit speeds, as well as for major socio-economic drivers to have access to gigabit connectivity.
- Similarly, the Recovery and Resilience Plan (RRP) by the Slovak government amounts to EUR 1.33 billion. This plan has a strong emphasis on the digitalization of the public sector, both as part of sectoral reforms and cross-cutting measures aimed at improving the accessibility and quality of e-government solutions. Such strong strides in the digital transformation are expected to aid the growth of the studied market in the country by providing easy access to the channels and supporting the technological innovation of the market vendors.
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Fashion is Expected to Hold a Major Share
- The concepts of e-commerce have revolutionized the fashion industry in multiple ways. The buyers can shop from their homes, but they can also ensure that they can still keep their favored brands in their closets. Digital shopping is the most preferred way of buying goods in Slovakia.
- For instance, according to the International Trade Administration, in 2020, there were about 12,600 e-shops in the country that generated sales of EUR 2 billion. The majority of Slovak people use their mobile devices when purchasing online. This highlights the need for upgraded mobile versions of shopping sites in the country.
- The country is expecting new entrants from different parts of the world as the market expects continuous growth in the fashion sector in the e-commerce market. For instance, In June 2021, Ingram Micro Commerce & Lifecycle Services, a provider of e-commerce fulfillment solutions and third-party logistics, announced its partnership with ABOUT YOU, an online fashion retailer and e-commerce company in Europe. This partnership will offer large-scale business in Slovakia and help ABOUT YOU rapidly expand its operations to meet enormous demands.
- Many companies which provide financial solutions in the Slovak Republic have increased their operations to meet the growing demand of online shopping customers. For instance, Klarna, a financial service provider, has announced the launch of its new Comparison Shopping Service in European countries, including the Slovak Republic. This service offers brands the opportunity to reach their online consumers with their products.
