Most of the merchandise purchased online is ordered via third-party merchants, or online marketplaces. This means that the main motive for buying online is the price.
It is estimated that around every seventh retailer offers its goods online as well. Whilst they display the goods on their webpages, virtually nothing else has changed in that respect: they offer no special customer support services, have created no new departments nor have they engaged any logistical solutions.
Internet retailing is showing double-digit growth rates, but, according to official sources, Croatia is amongst the lowest-ranked EU countries when it comes to internet penetration and online purchases. Whilst about 75% of the population has broadband internet access, the country has the lowest number of recorded online purchases: less than 30% of Croatians are buying online.
Younger generations, particularly the millennials, are driving sales in internet retailing, and they are not interested in online versions of existing local stores that do not satisfy them in terms of pricing and product variety. Such consumers like to have a wide variety of options at their disposal and investigate by themselves.
Croatian companies currently seem to be present in internet retailing just for the sake of being there. There is only one company visibly promoting its online appearance, and that is Agrokor.
Although not directly linked with internet retailing, deliveries do have an impact on overall sales, albeit a negative one. The explosive growth in online sales has resulted in an increase in deliveries via post or couriers, which the various operators did not follow up with growth in capacity.
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This industry report originates from Passport, our Retailing market research database.