Czech Republic E-Commerce Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Czech Republic E-Commerce Market Analysis
In Europe, the e-commerce business has grown quickly over the past few years, giving online retailers in many different fields exciting new opportunities.The Czech Republic is a big e-commerce market and one of the largest consumer markets in Europe. It has grown steadily over the past few years.During the projected period, the e-commerce market in the Czech Republic is anticipated to register a CAGR of 9%.
- Czech consumers are considered sensitive to two aspects: price and quality. Prices are usually quality standards, but the Czechs still prefer cheaper solutions. As with ecological and healthy products, local brands in the country are getting more attention. E-commerce solutions are intelligent solutions that facilitate cross-border shopping, and people in the country look for cheaper alternatives in foreign markets.
- During the COVID-19 outbreak, a significant number of people used online shopping. After the pandemic, the change persisted as e-commerce evaluated consumer preferences and purchasing patterns and provided a variety of incentives, like fast home deliveries, to keep these loyal customers.
- The country has established itself as a dynamic and new field for e-commerce. International traders can retain their own by providing citizens with a more established e-commerce infrastructure than Czech traders.
- Cash payments are still an essential feature of this market. International merchants must focus on providing cards to overcome this, as this method will overtake cash by 2023. The Czech Republic's e-commerce distribution market is developing rapidly. Click and collect is an important feature, but there are also options for quick couriers. Foreign merchants can set themselves apart from their domestic competitors by providing secure and simple digital payment options and fast and reliable delivery.
- The Czech National Bank increased the benchmark interest rate to 7% in June 2022 after the inflation rate hit 16% in May 2022. These factors are preventing e-commerce from providing more discounts or robust promotional offers. Because of rising inflation, the Czech populace has less disposable cash, and they are less inclined to make frivolous purchases. This will affect the revenue that e-commerce platforms make.
Czech Republic E-Commerce Market Trends
This section covers the major market trends shaping the Czech Republic Market according to our research experts:
Surge in demand for ecommerce due to COVID-19
- The COVID-19 outbreak and the nationwide blockade had a big effect on retail businesses around the world, especially in-store models.However, e-commerce is one of the few sectors in which consumer interaction is increasing in many segments. With the closure of non-essential stores and the enactment of national closure orders, many companies were forced to quickly adapt and respond to changing consumer priorities. Some markets in the Czech Republic's e-commerce sector have grown significantly.
- A survey indicates that 6 million people in the Czech Republic prefer online shopping. In 2020, 54% of people were using the internet; by 2025, it's predicted to reach 65%. The most demanding area in Czech e-commerce is the fashion business, which generates about 29% of the country's total income. Electronics and media come in second at 28%. The Czechs favor using the COD (cash on delivery) option for payments. Cash payments make up 36% of all e-commerce payments.
Food and Personal Care market to drive the market growth
- Many individuals are turning to online shopping due to the widespread use of smartphones in the nation. According to a study done in the Czech Republic, young people mostly use smartphones to make online purchases, while middle-aged adults (ages 25 to 45) use both smartphones and tablets. In contrast, the majority of people still use desktop computers.
- Czech consumers are becoming more interested in cross-border e-commerce as a result of the increased variety of things they can purchase that aren't offered locally and the cheaper price points that are offered. Some of the goods Czech consumers buy via international e-commerce include digital and electronic gadgets, clothing, jewelry, watches, and cosmetics. Breuninger, a fashion and leisure retailer with headquarters in Germany, has opened an online store in the Czech Republic and will deliver orders in 3 to 5 days. Following a rise in demand for the brand among Czech consumers, action was taken.
- Awareness towards health and nutrition post COVID-19 pandemic changed buyer preference towards organic and natural ingredients. A report published by the service health department in the Czech Republic showed 81% of buyers shop for organic food through online channels. The frequency of online purchases further increases with the higher income of respondents, from around 72% for respondents with a monthly family income up to CZK 20,000 to 86% for those who earn above CZK 50,000 per month.
Czech Republic E-Commerce Industry Overview
The Czech Republic's e-commerce market is moderately competitive, with a few significant regional players. The competition is also increasing with newcomers to the e-commerce industry and is trying to expand the market to gain market share.
In April 2022, more than 40 million euros were spent by Alza.cz on the construction of its new logistic hub. The e-commerce company also made an investment in AutoStore technology, which will reduce delivery times and boost warehouse productivity.
In April 2022, with intentions to expand into other nations and invest in technical improvements that would allow automation of fulfillment centers and electric mobility, Rohlik Group, one of the market leaders in online grocery delivery services, raised 220 million euros. After 90 minutes of receiving an order, the online grocer delivers 85% of them.
Czech Republic E-Commerce Market Leaders
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Alza.cz
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Notino, SRO
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Mall.cz
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Aukro SRO
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Rohlik.cz
*Disclaimer: Major Players sorted in no particular order
Czech Republic E-Commerce Market News
- November 2022: The Mondi Group, a packaging solutions provider, teamed with MODIVO, a Czech online retailer of apparel. Mondi will provide corrugated boxes and paper MailerBAGS for Modivo to use to package orders. Until now, Modivo has used traditional rigid packaging.Because of this, packing costs will go down and materials that are better for the environment will be used.
- October 2022: Notino, one of the largest online cosmetics and fragrance retailers, announced a partnership with BWX. Customers like to use natural, organic, and non-toxic cosmetics. This partnership will bring in more customers by giving them the chance to choose from different brands from around the world.
- January 2023: Mall Group announced it would close its brick-and-mortar branches in the Czech Republic as it plans to expand its online business. Less than 15% of the brand's customers use brick-and-mortar services. Mall.cz has around 15000 delivery points, and shoppers also use self-service boxes, due to which the Mall group decided to close its offline stores in the country.
Czech Republic E-Commerce Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key market trends and share of e-commerce of total retail sector
4.4 Impact of COVID-19 on the e-commerce sales
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand from Fashion Industry
5.2 Market Challenges
5.2.1 Low Internet Penetration
5.3 Analysis of key demographic trends and patterns related to ecommerce industry in Czech Republic (Coverage to include Population, Internet Penetration, ecommerce Penetration, Age & Income etc.)
5.4 Analysis of the key modes of transaction in the ecommerce industry in Czech Republic (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)
5.5 Analysis of cross-border ecommerce industry in Czech Republic (Current market value of cross-border & key trends)
5.6 Current positioning of country Czech Republic in the ecommerce industry in region Europe
6. MARKET SEGMENTATION
6.1 By B2C ecommerce
6.1.1 Market size (GMV) for the period of 2018-2028
6.1.2 Market Segmentation - by Application
6.1.2.1 Beauty & Personal Care
6.1.2.2 Consumer Electronics
6.1.2.3 Fashion & Apparel
6.1.2.4 Food & Beverage
6.1.2.5 Furniture & Home
6.1.2.6 Others (Toys, DIY, Media, etc.)
6.2 By B2B ecommerce
6.2.1 Market size for the period of 2018-2028
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Alza.cz
7.1.2 Mall.cz
7.1.3 Rolik.cz
7.1.4 Notino,SRO
7.1.5 Briv.cz
7.1.6 Camarm
7.1.7 Zalando
7.1.8 Aukro,SRO
7.1.9 Bazar.cz
7.1.10 Sabazar.cz
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Czech Republic E-Commerce Industry Segmentation
An e-commerce marketplace is a place or website where customers can look at goods from many different sellers, shops, or even individuals.The third-party providers are in charge of manufacturing and delivery, and the marketplace owner is in charge of customer acquisition and payment processing. B2B and B2C e-commerce are separate segments of the Czech Republic's e-commerce market. The market under study is further broken down into consumer electronics, fashion and clothing, food and beverage, and furniture and home by B2C e-commerce.
The Czech Republic e-commerce market is segmented by B2C eCommerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B eCommerce.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By B2C ecommerce | ||||||||
| Market size (GMV) for the period of 2018-2028 | ||||||||
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| By B2B ecommerce | |
| Market size for the period of 2018-2028 |
Czech Republic E-Commerce Market Research FAQs
What is the current Czech Republic Market size?
The Czech Republic Market is projected to register a CAGR of 9% during the forecast period (2024-2029)
Who are the key players in Czech Republic Market?
Alza.cz, Notino, SRO, Mall.cz, Aukro SRO and Rohlik.cz are the major companies operating in the Czech Republic Market.
What years does this Czech Republic Market cover?
The report covers the Czech Republic Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Czech Republic Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Czech Republic E-Commerce Industry Report
Statistics for the 2023 Czech Republic E-Commerce market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Czech Republic E-Commerce analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
