Mobile Internet Retailing in Croatia

PROSPECTS

Services outweigh sales of goods via mobile internet retailing

Whilst there is lively movement in launching new mobile applications in Croatia, it seems that many more of them are being launched to support services offered by public agencies, utility companies or service providers. Parking, utility bills, tickets, travel and lodging can be acquired via these apps.

Mobile apps are usually just extensions of existing webpages

Whilst a significant number of manufacturers and retailers in Croatia (between 80% and 90%) have set up a webpage, about 30% of them have not bothered to adapt the same pages for access via a mobile device. This is potentially a big threat for their business, because disgruntled users who for instance need information immediately when away from home, not being able to obtain it, will spread their frustration in social networks quickly.

Mobile devices catching up with desktop devices

In an independent survey, mobile devices have already managed to surpass desktop devices in frequency of internet access, meaning the number of times the user establishes connection. This means that smartphones are now used more often to go online than PCs.

COMPETITIVE LANDSCAPE

Third-party merchants prevail

Younger generations, as the bulk of users of online purchases, are more comfortable with using their mobile device instead of a PC. Because of this, the relations between competitors in internet retailing literally spill into mobile internet retailing, since mobile sales are just internet sales transactions executed on a mobile device instead of on a PC.

Facebook Marketplace becoming more influential

The unpleasant news for all social media users, namely the introduction of Facebook Marketplace and comprehensive insertion of advertising within the network itself, has meanwhile become a reality and something the user must get along with. Judging by the recent changes in published advertising, Croatian entrepreneurs have quickly embraced this channel and are using it to advertise their products or services.

Google Pay

After being accepted as a channel for mobile payments in about 20 countries, Google Pay has decided to launch in Croatia, as the first country in Southeastern Europe. In cooperation with one local bank, the payments on all POS terminals with designation “Pay with Google” can now be executed by approaching the mobile device with the NFC device, without contact.

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