Research: The Croatian Online Market is Becoming More Mature and Competitive

The latest E-commerce Report, conducted by Valicon and Jeftinije.hr, provides a detailed insight into the development of online shopping in Croatia in 2024. The most important finding is that online shopping has evolved from an alternative purchasing channel to an indispensable part of the daily lives of Croatian consumers.

The report encompasses many important data points, such as: elements influencing purchases, motivators for buying among certain generations, purchasing devices, the purchasing process, etc., and compares the year of the study with the previous one to clearly show the direction of the trend. The report is owned by Jeftinije!, however, it is updated every year with a free webinar, where they share the report and explain the results to attendees.

The data was presented by Igor Martinović, Sales Manager of Jeftinije.hr, and Kristijan Gregorić, General Director of Valicon, and we have summarized the key findings from the webinar: Online shoppers in 2024 and expectations for 2025.

Characteristics of Online Shoppers in 2024

Kristijan Gregorić opened the webinar with customer expectations, which he divided into three parts. Customers expect that purchasing products will make their lives better, easier, or more fulfilling. ‘I want my life to be easier’ refers to customers expecting fast and efficient service and payment, certain return options, and the ability to shop across all channels. ‘My life must be better’ relates to assistance, meaning customers seek expert help to improve their daily lives, looking for services that complement the products they purchase. ‘I want my life to be more fulfilling’ refers to customers’ desire for a positive shopping experience across all channels, to feel good during the purchase, and to be understood by brands.

Martinović also speaks about the growing thoughtfulness of online shoppers, adding that 57 percent of consumers research products before purchasing. Customers are overwhelmed with information and are eager for simpler solutions. This also holds a piece of advice for online retailers, where the best practice is for the retailer to communicate clearly and simplify the shopping experience as much as possible. In communication, they also warn against overusing artificial intelligence, as online users are cautious towards it, with only 43 percent of consumers considering it a reliable source of information. This can negatively impact trust in the online retailer and consequently affect purchases.

The research revealed interesting generational differences in the approach to online shopping. Generation X (born between 1965 and 1980) is the strongest segment of online shoppers (42 percent), but has been declining since 2022, as has the younger Generation Y (29 percent). At the same time, the purchasing power of Generation Z, which is just entering the market, is increasing. They have fewer obligations, less stable income, and are expected to shop online even more intensively in the future.

If we look at what we are actually buying online – based on the share of purchases (number of customers), the most popular product category (since 2020) in 2024 is Fashion (41 percent). This is followed by Home and Garden (17 percent), Beauty and Health (15 percent), Electronics (14 percent), Children’s Products and Sports (both 8 percent), and Pets (5 percent).

In the case of Electronics, it should be noted that this does not mean that there are fewer orders in the electronics segment. The market is still growing, which means that orders are increasing year by year, only the dynamics of power among certain product categories is somewhat changing.

Interestingly, 47 percent of users will increase their cart value by up to 15 euros if it entitles them to free shipping.

Important Technological Changes

– Mobile phones have truly become the primary device for both research and completing purchases. We can also notice a significant shift towards cashless transactions, as already 66 percent of all purchases are made with payment cards. Interestingly, we are more trusting of foreign online stores – 92 percent of card payments, but perhaps this high percentage is precisely because they do not offer the option of cash on delivery – states the announcement.

Local vs. Foreign Customers

Consumers are becoming less prejudiced about shopping online, both at home and abroad. Moreover, the average purchase values in domestic and foreign stores are gradually equalizing. Specifically, on average, Croatian online shoppers spent 95 euros monthly on purchases in Croatian online stores (in 2024), while the value of cross-border purchases was 78 euros. This means that Croatian online shoppers are becoming more trusting with their money, as long as there is a good offer.

Due to the entry of stronger advertisers into the European market, retailers are facing rising costs of digital advertising, which have increased by up to 30 percent, warns Martinović.

– For 2025, we do not expect major upheavals in the field of online shopping. The Croatian online market is becoming more mature and competitive. The success of retailers in the upcoming period will primarily depend on their ability to adapt to different consumer segments, ensuring excellent customer experience, and effective cost management. Now is not the time to rest on laurels, as there are many online stores that are simultaneously and continuously improving their services to maintain competitiveness in facing strong foreign and local players. People are buying less but more frequently, the frequency is increasing – concludes the announcement.