For the fifth year in a row, Telekom is number one in online mobile and tablet sales
Budapest, June 16, 2023 09:00
In 2022, Magyar Telekom was again the largest mobile phone and tablet seller in the Hungarian online retail market - for the fifth year in a row. Telekom has a 2.4% share of the total online retail market, being the sixth largest online player in Hungary, according to the latest eTOPLISTA ranking by GKID.
For the fifth consecutive year Telekoms online webstore maintained its market leader role in mobile devices and tablets with a 28% share of the online retail market. The companys online sales platform provided nearly 10% of the total domestic online retail sales in the mobile phone and tablet, consumer electronics and IT product categories in 2022, representing an increase of nearly 14%, according to GKIDs market analysis.
According to the general findings of the analysis global e-commerce experienced a hyper-growth in the last two years as a result of the COVID epidemic, followed by a decline and shift towards traditional stores. In 2022 this was accompanied by a deteriorating economic and inflation environment, particularly for food and energy prices, which led to a significant decrease of purchasing power and hindered the growth of online retail trade. In this environment the Hungarian e-commerce market grew by only 9.9% in value in 2022, while the share of online sales in total trade was below 10% (9.6%). The number of online orders increased by 11.8%, exceeding 77.1 million orders per year.
Looking at the overall online sales market in Hungary, the survey shows that the shift in consumer habits resulted in an overall 2% decrease in online shopping cart values in 2022, which amounted to HUF 17.2 thousand per purchase last year. The decline in cart value was strengthened by a decrease in welfare spending from the second half of 2022, where the online market for technical goods and high-value consumer goods were hit hardest.
As opposed to this trend Magyar Telekom achieved an above-average market growth in mobile and tablet revenues in 2022 (15% compared to an average of 12%) for the overall retail market. At the same time, it is important to note that although Magyar Telekom did not experience a volume decline in certain product types, the increase in turnover was also driven by the exchange rate and inflation.
The first place in mobile handset and tablet sales was achieved despite the fact that while the proportion of people buying new mobile devices increased steadily between 2019 and 2022, it started to decline for the first time in last year: when replacing mobile phones most people (85%) bought a new handset in 2021, but last year this proportion was only 79%. The survey also found that in average smartphone owners replace their devices every 3 years, mostly when their existing phone stops working well or breaks down. The company also performed well in the consumer electronics sales market, ranking in the top ten (5th for TVs and 8th for consumer electronics), with growth of more than 20% in an otherwise stagnating market. Regarding TV sales the company grew by almost 30% within the category.
It is clear that even in a challenging market Telekom is a stable reference point for consumers. We put a lot of effort into improving our webstore to make it as easy and quick to use as possible for our subscribers to make their purchases, and to let our customers know that we wont let go of their hands after theyve made their purchase. We are trying to reward their trust with numerous innovations, practices and useful tips - in other words, lots and lots of digital goodness - said Zolt n Pereszl nyi, Magyar Telekoms Chief Commercial Officer.
Magyar Telekoms net online traffic increased by almost 14% compared to 2021. Although the slowdown in online commerce in the second half of the year was a challenge for even the largest retailers, Magyar Telekom still fulfilled 186 thousand orders last year, out of which 92 thousand were mobile phones and more than 30 thousand were TV sets. This gives the company 2.4% of the total online retail market, making it the sixth largest online player in Hungary.
As the survey shows, in a rapidly changing economic environment, consumers are constantly trying to adapt to new circumstances, including by making more conscious and moderate purchases. This encouraged Telekom to be part of the solution to this problem by a collection of digital wonders, which include free convenience features and other innovations, discounts and surprises that make everyday life easier. For more information please visit www.telekom.hu/ahogyakarod.
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For the fifth year in a row, Telekom is number one in online mobile and tablet sales 
