In August 2023, retail trade in Bulgaria is at a standstill, according to the latest statistical data from the National Statistical Institute. At the same time, there is a significant increase of nearly 10% in orders placed through mail, phone, or Internet.
On October 16, 2023, Dimitar Dimitrov, Sales Director & Co-Owner of Stenik, was invited as a guest on the "In Development" show on Bloomberg TV. In the campaign led by host Veselina Spasova, he shared his observations and comments on questions such as: "Is there a standstill in retail trade in Bulgaria in recent months?", "How is online commerce developing in the same period?" and "How will businesses react to a new COVID wave?".
Highlights from the interview with Dimitar Dimitrov
During the Bloomberg TV broadcast, Dimitar shared his observations from previous years (2010, 2016, and 2018). He noted a certain stagnation during the same period (August), comparing it to the previous month and the same month in the previous year. Dimitar highlighted that, based on the statistical data for 2023, the food products sector is currently experiencing positive growth. However, he emphasized the need to analyze specific factors, such as the increase in commodity prices and the demand for essential goods, for more precise and accurate data.
During the interview, Dimitrov noted that the influence of promotional campaigns is strengthening. The latest data in online commerce indicates that consumers are becoming increasingly sensitive to discounted products.
On the question: "Are we witnessing unfair trading practices in the market?"
Dimitar emphasized the significance of the widely spread and applied "Omnibus" directive within the EU. In the realm of online commerce, it imposes serious technological and legal restrictions, including the visualization of promotions, adherence to promotions, prevention of misleading advertisements, handling fake reviews, and presenting accurate search results for consumers. Dimitrov highlighted that merchants adhering to legal frameworks and striving for fairness are providing more information to consumers about pricing and its variations in previous periods. The goal is to ensure buyers are aware of the correctness of their decision for a particular purchase.
Significant changes are noticeable, which can be called trends in online shopping, related to delivery methods. While in the past, a large percentage of orders were delivered by courier to the customer's address or office, a significant increase in orders with the "Click and Collect" option is now recorded, commented the partner in Stenik. Since this year, the entry of international players into the field of so-called "boxes" - automatic stations, to which consumers can choose delivery and make payment on the spot with a card or online, has been observed. This option provides greater flexibility and convenience to consumers when shopping and also minimizes the human factor, providing other advantages.
"According to forecast data from the 'European eCommerce report' for 2023, a 7% increase in gross domestic product (GDP) is expected in Bulgaria. Regarding the share of online trade (E-GDP), it is projected to increase to 10%. There is no stagnation in the growth of online commerce compared to the growth of gross domestic product; on the contrary, it surpasses it." Dimitar Dimitrov
Regarding the expectations and mindset of online merchants in the event of a pandemic, Dimitar shared that, while mainly working with retailers at Stenik, he does not observe such concerns among the online merchants the company works with. According to him, the retail sector in Bulgaria has undergone significant changes and is adapting to the new reality brought about by the pandemic. In 2020, a large number of merchants took initial steps towards digitization. Restrictions force companies to reconsider their business models and focus their efforts on online commerce. As of today, online merchants have successfully reached a good level of digitization and have all the necessary tools and resources to adapt to possible restrictions or closures.
At the end of the conversation, Dimitar noted that one of the most relevant topics is related to consumers' preferred way of shopping. Until a few years ago, online and offline commerce were considered two mutually competing types of trade. Dimitrov explained that online commerce is a percentage of total commerce and will always be so. Currently, there is an increasingly observed mixing of the two channels. This is expected and demanded by the customers themselves. Previously, they considered physical stores and e-shops as two completely different channels; now, they seek a blend of experiences - visiting a physical store, looking for a product on promotion online, making the purchase, and exploring the possibility of returning it in a physical store. "Merchants operating locally should remember that this is one of their biggest advantages - the ability to serve customers in a multi-channel way." he appeals.
See the entire interview
Dimitar's contribution focuses on several advantages for local eCommerce businesses, including: multi-channel customer service, promoting fairness in online commerce, conducting effective promotional campaigns, and offering a variety of delivery options to enhance flexibility and convenience for customers. These aspects would significantly contribute to the success of online commerce and enhance the overall competitiveness of businesses.
