On the Necessity, Possibilities, and Prospects of Developing Market-Based Commerce (Part 1)

Abstract

The evolution of food retail processes over the past 15–20 years has been dynamic, with fundamental changes occurring in certain areas. Today, traditional marketplace food retailing coexists with so-called small local shops in towns and villages, alongside newly emerged multinational food retail chains operating hypermarkets and supermarkets. With the recent separation of offline and online commerce, e-commerce has also taken a prominent position in the food retail sector. The transformation of commerce has been ruthless in some areas, delivering particularly harsh blows to traditional food markets. This trend is observable internationally as well, although the commercial development policies of major European cities—especially regarding multinational food chains—have often differed from domestic practices.

The first part of this study aims to present several currently valid theoretical issues underlying food retailing and, through analytical methods, examines the competitiveness of traditional marketplaces and market halls. The study investigates the components that determine the survival prospects of markets and market halls in the capital city, their added value compared to competing commercial players, and attempts to formulate a development strategy through which a potential development project could ensure the continued functionality of Budapest’s traditional market halls and the future survival of various food markets. The analysis is fundamentally rooted in the necessity of preserving traditional food markets, which are based on a millennia-old commercial culture built around meeting consumer needs, while also serving as valuable and significant venues for social interaction. The second part of the study will expand on the processes currently influencing Budapest’s food retailing landscape and the evolving positions within the commercial sector.

The first part of the study titled Reflections on the Necessity, Possibilities, and Prospects of Developing Market-Based Commerce (Opus et Educatio, Volume 12, Issue …) provided a general overview of the food retail positions of traditional markets and market halls, along with the advantages and disadvantages they face in comparison to newly emerged competitors such as multinational food chains and e-commerce platforms, and evaluated their developmental opportunities.

In the second part, the current practical experiences of food retail in Budapest are analyzed. The study includes an evaluation of the differences between in-person (offline) and e-commerce (online) channels, the significance of various commercial functions, their transformations, and their impact on different types of markets in Budapest (traditional, organic, eco) and the future status of market halls.

The analysis also quantifies and interprets changes in consumer demand in the capital, the demographic developments of different districts, the number of stores operated by food chains, and the changes in the number of still-operating markets and market halls. It compares the prices of several products across various food chains and selected market halls, revealing the current static or dynamic pricing strategies of different retail sectors, the prospects for future pricing mechanisms, and consequently, the risks facing traditional market-based commerce.

The study addresses the delicate economic conditions of primary producers with deep-rooted traditions in the food retail market and the social consequences of their gradual exclusion from market trading opportunities. The concluding section highlights the necessity of a comprehensive food retail concept for Budapest’s markets and outlines the potential content of such a strategy.