Online Shopping Falters: Viennese People Are Shopping Locally Again
Online retail in Vienna is experiencing a noticeable decline for the first time in years. According to a recent study by the Institute for Austria's Economy commissioned by the Vienna Chamber of Commerce, the proportion of people who regularly shop online has dropped from 74 percent in 2023 to now 68 percent – a level last reached in 2022.
"Corona Boom" in Online Retail is Finally Over for Viennese
The volume of spending has also decreased: The Viennese population spent 1.96 billion euros in online retail last year. This is significantly below the pandemic-related peak of 2.3 billion euros in 2021 and also below the previous year's figure of 2.0 billion euros.
"Digital purchasing behavior is normalizing after the Corona boom," says Margarete Gumprecht, Chairwoman of the Trade Division in the Vienna Chamber of Commerce. "Vienna's online retail spending in 2024 is as low as it was four years ago."
Personal Experience and Sensory Shopping in Focus
The decline is also evident in the share of online retail in the total retail volume. This has fallen from 10.9 percent (2023) to the current 10.4 percent – far from the peak of 13.6 percent during the pandemic.
"But this also means that the remaining shares fall to brick-and-mortar retail," explains Gumprecht. She sees a lasting strength in the physical shopping experience: "People appreciate personal consultations, want to touch, see, or smell products, and be convinced of the quality directly on site."
Hybrid Shopping Models Establishing in Austria
The future of commerce, according to Gumprecht, lies in the combination of online and offline offerings. Customers decide whether to shop online or in-store depending on the situation. For retailers, this means making their offerings available across all channels – with digital services like Click & Collect or virtual consultations.
In certain product categories, the online channel remains strong: 45 percent of Viennese buy clothing and accessories online, around 22 percent buy furniture or books. Cosmetics, medications, and dietary supplements each reach 21 percent, while 19 percent of respondents also order groceries online.
If online, then abroad: Amazon and Temu as a threat to domestic trade
The Viennese trade representative sees a growing problem in the outflow of revenue: 65 percent of online spending goes to foreign providers. Only one-third remains with domestic online retailers. Amazon remains the market leader with 57 percent, but Asian platforms like Temu (31 percent), Shein (20 percent), AliExpress (13 percent), and Wish (10 percent) are gaining ground – especially in affordable lifestyle products and household items.
Demand for fair rules in international competition
The Vienna Chamber of Commerce criticizes unequal competitive conditions. Gumprecht calls for the abolition of the EU customs exemption limit of 150 euros, from which providers like Temu and Shein currently benefit: "More and more orders are being placed directly and in a competition-distorting manner from China."
Additionally, Gumprecht advocates for stronger market surveillance, uniform product safety standards, and reporting obligations for foreign online marketplaces. Only in this way can fair competition be ensured and domestic trade be strengthened in the long term.
(Red)
This article has been automatically translated, read the original article here.