Market Trends of Czech Republic Industry
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.
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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.
