How British companies are thriving in Hungary
Several British companies have had success in the Hungarian market since starting operations. Across a range of sectors, we’re going to look at the internal and external factors that have helped them to become a success and the advancements that have helped them along the way.
AI for Enhanced Retail Operations
One particular British company that has been successful in the Hungarian market for over 30 years, is Tesco. Tesco has continued to make improvements to its technologies to ensure success, and these now encompass automation and artificial intelligence. Now commonplace across sectors, these technologies have the ability to improve day-to-day operations for businesses. In the iGaming sector, for example, gamers can play slot games on sites like Paddy Power, on which AI-powered functionality improves the experience. Primarily this is through the site’s search bar, which can prompt users based on their preferences and can range from suggestions for specific games to just general themes too, improving accessibility for gamers. We can see its influence in the airline industry too, with British Airways implementing AI to optimize flight scheduling and predict maintenance needs, which can help reduce delays and improve operational efficiency.
When it comes to Tesco Hungary, their online algorithms offer personalized product offerings based on previous purchases. As well as this, AI-driven pricing models adjust prices in real time, reflecting demand and inventory levels. When it comes to logistics, the company has streamlined their supply chain, improving inventory management across stores.
Adapting to Local Market Dynamics and Challenges
Vodafone entered the domestic market just before the turn of the millennium after acquiring a national license. Since the company has invested in local infrastructure has brought with it competitive pricing. One of the aspects of their success is their localization strategy. For example, in 2012, they introduced self-service kiosks in stores in Budapest to reduce waiting times for customers.
In the supermarket sector, Tesco has a 22% share of the local market in Hungary with around 200 stores and 20,000 workers. However, in 2024, on the back of regulatory measures, they too had to adjust local operations. They committed to a 12.5% increase in wages and an enhancement of cafeteria benefits for 9,000 of its workers, complying with local labor expectations. While in early March 2025, they opened an Express outlet with just under 300 square meters of space and over 3,800 products, with a mix of local and international cuisine.
Strengthening Community Engagement and Sustainability Efforts
Since coming to the country in 2009, British Petroleum has actively worked with local communities through their corporate social responsibility programs. They have developed initiatives in Budapest and Szeged that aim to promote social cohesion and diversity. When it comes to Tesco, they have engaged with local communities, especially when it comes to sustainability. They have partnered with local charities to donate food to locals with the aim of not only helping them but also reducing food waste. While when it comes to store design, the company has made an effort to be as energy-efficient as possible, as well as reducing waste.
The story of these companies in Hungary shows the importance of localization and adapting to local markets. By leveraging technology, knowledge of customer preferences, and investment in the region, each has made a success of their time in Hungary.