Market Trends of Portugal E-commerce Industry
Increase in the Adoption of Advanced Technology Drives the Market Growth
- As internet penetration continues to expand in Portugal, more people have asses to online shopping platforms. This increased connectivity allows businesses to reach a broader customer base and consumers to shop conveniently from the comfort of their homes.
- According to Statistics Portugal, in Portugal, in 2022, 88 percent of households had an internet connection. The proportion of families with a fixed internet connection was approximately 83 percent, while mobile internet connections were about 48 percent. Broadband access reached 85 percent of households.
- The widespread use of smartphones and tablets has led to the rise of mobile commerce or m-commerce. Mobile apps and optimized websites make it easier for consumers to browse, shop, and make purchases on the go. This has significantly contributed to the growth of the growing e-commerce in Portugal, as it caters to the preferences of modern consumers who prefer mobile devices for shopping.
- The emergence of user-friendly e-commerce platforms and content management systems has made it easier for businesses to set up online stores. These platforms often have features like secure payment gateways, inventory management, and marketing tools, making it simpler for businesses to establish and manage their online presence.
- Advanced technology has facilitated the rise of social media as a marketing tool for e-commerce businesses. Social media platforms offer businesses to connect with their target audience directly, while influencer marketing has proven to be an effective way to promote products and drive sales.
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Fashion and Apparel Application Segment is Expected to Hold Significant Market Share
- Fashion and apparel are analyzed to hold a significant share of the Portugal e-commerce market. The clothing and fashion industries encompass textiles and other clothes such as shoes, watches, jewelry, eyewear, bags, accessories, accessories, and boys, women, and girls. Portugal has witnessed a significant rise in internet penetration, paving the way for the surge in online shopping. Additionally, online sales promotions through mega sales, festive offers, and social media marketing have also contributed to the market growth rate.
- According to Statistics Portugal, In 2020, almost 40 percent of Portuguese e-commerce users placed online orders from EUR 100 (USD 109.56) to EUR 499 (USD 546.71). Over the observed years, the share of e-commerce users spending under EUR 50 online decreased, reaching 18 percent in 2021. In the same year, only 6.4 percent of the respondents said they spent one thousand euros or more online. In 2022, the share of people spending less than EUR 50 (USD 54.78) increased to 19 percent, but the percentage of people spending higher amounts also rose. The Proportion of persons aged 16 to 74 years using e-commerce clothes, shoes, or accessories is 65.9 percent.
- Furthermore, social media platforms have emerged as powerful influencers in the fashion and apparel industry. Portugal consumers frequently use social media channels for fashion inspiration and product discovery. Fashion brands and retailers leverage these platforms to showcase their offerings and engage with their target audience.
- The growth of the Portugal fashion and apparel segment in the e-commerce market has been supported by the emergence and expansion of local online platforms. These platforms provide a marketplace for established and emerging fashion brands to showcase their products and reach a broader customer base. These platforms offer diverse fashion and apparel options, facilitating secure transactions and reliable delivery services.
- Furthermore, the Portugal government has recognized the potential of e-commerce and has implemented initiatives to support its growth. The national e-commerce strategy focuses on enhancing digital infrastructure, improving payment systems, and fostering innovation. The government's commitment to digital transformation has enabled the fashion and apparel sector to thrive in the e-commerce industry.
- The growth of the Portugal fashion and apparel segment in the e-commerce market is a testament to the changing retail landscape and evolving consumer preferences. With increasing internet penetration, mobile commerce dominance, and social media's influential role, the fashion and apparel industry is well-positioned for sustained growth. The government's support and investment in digital infrastructure further bolster this growth trajectory. As Portugal's e-commerce ecosystem expands, the fashion and apparel segment will remain at the forefront of this dynamic industry.
