Conversion in the moment of buying- don’t disappoint your customer

1. Conversion in the moment of buying
- don’t disappoint your customer

2. DIBS E-Commerce Survey 2011
• The purpose of The DIBS E-Commerce Survey is to give
a comprehensive overview of e-commerce in all
industries
• The survey covers Sweden, Denmark, Norway, Finland,
UK, Germany, France, Poland and Spain
• Interviews with over 9,000 Internet users and 333 online
retailers in the third quarter of 2011 by research agency
YouGov
• The study used Europe * for the sum of Finland, Great
Britain, Germany, France, Poland and Spain
SLIDE 2

3. Massive Market
A growth opportunity for merchants

4. E-shoppers
Sweden 94%
92%
Denmark 95%
94%
Norway 92%
85%
Finland 89%
90%
UK 94%
95%
Germany 94%
96%
France 87%
86%
Poland 90%
84%
Spain 82%
77%
0% 20% 40% 60% 80% 100% 120%
Male Female
SLIDE 4

5. Average number of purchases (six month)
Sweden 6,9
6,3
Denmark 7,5
6,1
Norway 7,6
6,4
Finland 6,1
5,6
UK 11,7
10,5
Germany 7,7
7,6
France 6,0
5,6
The Brits are
Poland 5,9 the most keen
5,0
on e-shopping
Spain 4,8
4,3
0 5 10 15
Male Female
SLIDE 5

6. Average consumption
Sweden 600
693
Denmark 763
717
Norway 987
952
Finland 594
752
UK 618
813
Germany 554
618
France 487
569
Norwegians are
Poland 293 the top online
consumers
Spain 443
429
Euro
0 200 400 600 800 1000 1200
2010 2011
SLIDE 6

7. Total market per industry
Other 18
Services 21
Personal
12
care
Clothes 17
Media 13
Travel 54
Home non The online trave
24
consumables market is a
Household
consumables
28 massive 54 billion
euros
Electronics 26
Billion euro
0 10 20 30 40 50 60
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8. E-commerce is a safe place to sell
Sweden 93%
Denmark 92%
Norway 98%
E-stores see
e-commerce
Europe* 89%
as a safe channel
80% 85% 90% 95% 100%
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9. Structural drivers
Optimism for growth

10. Optimism for further growth, consumers
Sweden 91%
86%
Denmark 85%
82%
Norway 84%
79%
Finland 87%
89%
UK 73%
79%
Germany 76%
79%
France 61%
63%
Growing optimism
Poland 65% in the largest
markets
Spain 68%
72%
0% 20% 40% 60% 80% 100%
Same or more 2010 Same or more 2011
SLIDE 10

11. Drivers of e-commerce, consumers
Other reason 4%
Larger
product 44%
range
To compare
products and 59%
prices
Always open 60%
Lower prices 61%
Saves
69%
time/it's easy
0% 20% 40% 60% 80%
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12. Optimism for further growth, e-stores
15%
Sweden 9%
72%
7%
Denmark 12%
63%
4%
Norway 9%
80%
9%
Europe* 16%
67%
0% 20% 40% 60% 80% 100%
Less2 Same More
SLIDE 12

13. Commerce is going mobile
The young are leading the way

14. E-stores offering mobile commerce
No 2%
No, but we will soon 4%
4%
Yes, via own mobile
site
Yes, via apps
Yes, through other
solutions 21%
70%
21% of the stores are about to
launch m-commerce
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15. M-consumers
20%
18%
16%
15%
11%
10%
7%
5%
M-commerce is
5%
3% reaching out to
younger crowds
0%
15-24 25-34 35-44 45-54 55-64 65-74 Years old
SLIDE 15

16. How m-consumers paid for the service or product
Sweden
Denmark
Norway
Finland
UK
Germany
France
SMS is so far the
Poland most used form
of payment
Spain
0% 20% 40% 60% 80% 100%
By SMS By mobile bill By card By invoice
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17. What they bought with their phone
Other 18%
Services 17%
Personal
6%
care
Clothes and
10%
shoes
Media/
25%
Entertainm…
M-commerce is
Travel 16% especially
Home non- success-ful for
14%
consumables services to be
Household
consumables
9% consumed ”on the
go
Electronics 16%
0% 5% 10% 15% 20% 25% 30%
SLIDE 17

18. Why they have not done m-commerce
Other 15%
Need help 4%
Not receive
5%
product
Want to see
9%
product
Too
14%
complicated
Don´t feel
30%
safe Perceived need
Cannot see is the key
59%
the need
0% 20% 40% 60% 80%
SLIDE 18

19. Expectations for m-commerce, stores
1%
Sweden 26%
31%
2%
Denmark 26%
27%
1% M-stores in all
Norway 28% countries are
23% overwhelmingly
optimistic about
0%
growth in m-
Europe* 29%
commerce
29%
0% 10% 20% 30% 40%
Less Same More
SLIDE 19

20. Perceived obstacles for m-commerce, stores
None 16%
Other 10%
No trust in
payment 3%
Lack of efficient
platform 9%
Lack of
financial… 12%
Products not
suitable 15% Two thirds of the
Lack of
stores do not say
Knowledge 26% that there is no
No customers customer demand
demand yet 31%
0% 10% 20% 30% 40%
SLIDE 20

21. Commerce is going mobile
Denmark

22. M-consumers per age group in Denmark
30%
27%
26%
20% 19%
11%
10%
7% Over a quarter of
Danes below the age
4%
of 34 are m-shopping
0%
15-24 25-34 35-44 45-54 55-64 65-74 Years old
SLIDE 22

23. What Danish mobile consumers buy with their
phone
Other 20%
Services 28%
Personal
0%
care
Clothes 3%
Media 18%
Travel 34%
Home non
3%
consumables Travel is a large
Household
consumables
1% part of the m-
commerce market
Electronics 7%
0% 10% 20% 30% 40%
SLIDE 23

24. Mobile payment methods consumers used in
Denmark 5%
SMS
Mobile phone bill
25%
Card
45%
Invoice
In Denmark, 58% of
m-consumers have paid via SMS 25%
SLIDE 24

25. How to pay
Finding the right payment methods across Europe

26. Preferred payment method - Consumer
Other
3%
method
Instalment/
1%
financing
Micropayme
18%
nt services
Mobile
1%
telephone
Cash on
7%
delivery
Invoice 17% Card is the most
Direct via
popular method,
9% but not in every
Internet bank
country
Card 42%
0% 10% 20% 30% 40% 50%
SLIDE 26

27. How to choose payment method
Other 3%
I get bonus
6%
points
Possibility to
3%
finance
Only method
7%
available
Cheapest 11%
Billed later 12%
Easiest 52% Safe and easy,
that’s the triggers
Safest 53%
0% 10% 20% 30% 40% 50% 60%
SLIDE 27

28. Reason for abandoning a purchase
Other 15%
No in-store
4%
delivery
Payment
17%
process
Registration
19%
process
Insufficient
20%
information
30% of the
Technical
22% consumers have
problems
Lack of abandoned a
25%
confidence purchase due to
Not preferred
payment
30% lack of payment
Uncertain alternative
32%
conditions
0% 10% 20% 30% 40%
SLIDE 28

29. How to pay?
Scandinavia

30. Preferred payment methods in Denmark
2%0% 3% 0% 0%
Card 3%
Direct via Internet bank 4%
Invoice
Cash on delivery
Mobile telephone
Micropayment services
Instalment/financing
Other method
The Dankort dominates the 87%
market
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31. Preferred payment methods in Sweden
0% 4% 1% 1%
Card 2%
Direct via Internet bank
Invoice
Cash on delivery
Mobile telephone 24%
42%
Micropayment services
Instalment/financing
Other method
Three main alternative
methods 24%
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32. Payment methods preferred in Norway
1% 0%
Card 10%
0%
Direct via Internet bank
3%
Invoice
Cash on delivery
Mobile telephone 10%
Micropayment services
Instalment/financing
Other method
9%
65%
Card has the strongest appeal
SLIDE 32

33. Preferred payment methods in Finland
3% 0%
Card 6%
0%
Direct via Internet bank 3%
Invoice 28%
Cash on delivery
Mobile telephone
17%
Micropayment services
Instalment/financing
Other method
Internet transfer is big 41%
SLIDE 33

34. How to pay?
Selected contries

35. Preferred payment methods in UK
1% 1%
Card
Direct via Internet bank 19%
Invoice
Cash on delivery
Mobile telephone 0%
Micropayment services 1%
Instalment/financing 1%
Other method 4%
71%
People pay with the plastics
SLIDE 35

36. Preferred payment methods in Germany
Card 1% 6% 9%
Direct via Internet bank
5%
Invoice
Cash on delivery
Mobile telephone 24%
Micropayment services
Instalment/financing
Other method
1%
4%
Cards dominate, with 50%
micropayments being very
popular
SLIDE 36

37. Preferred payment methods in France
3% 3%
Card
Direct via Internet bank
Invoice 17%
Cash on delivery
Mobile telephone
Micropayment services
Instalment/financing 1%
2%
Other method
3%
4%
65%
Cards and micropayments
SLIDE 37

38. Preferred payment methods in Poland
Card 2% 3% 9%
4%
Direct via Internet bank 2%
Invoice
Cash on delivery
Mobile telephone
Micropayment services
Instalment/financing
Other method
33%
42%
Cash on delivery is more
popular than elsewhere 3%
SLIDE 38

39. Cross border opportunities

40. E-consumers who shopped abroad
Sweden 33%
31%
Denmark 51%
47%
Norway 53%
49%
Finland 43%
42%
UK 19%
16%
Germany 15%
14%
France 25%
20%
Poland 0%
12%
Spain 32%
32%
Euro
0% 10% 20% 30% 40% 50% 60%
2010 2011
SLIDE 40

41. Why shop abroad
Other 5%
Product to be
8%
used there
Lower
11%
tax/VAT
Lower price
39%
than at home
Product not
found at 42%
home
0% 10% 20% 30% 40% 50%
SLIDE 41

42. Conversion in the moment of buying
A dificult choice

43. DIBS Mobile – standard design

44. Mobile app/page - customized

45. Internet payment – standard design
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46. Internet payment - custumized
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47. Internet payment - custumized
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48. Internet payment - custumized
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49. Internet payment - custumized
SIDE 49

50. Internet payment - custumized
SIDE 50

51. Summary
A huge market opportunity, still in its infancy

52. E-commerce on the move
• E-commerce is well established among all consumer
segments and it is a disruptive force in all industries
• It is a massive market opportunity for merchants, total
value estimated to amount to 213 billion Euro for 2011
• Still a fraction of total consumption and consumers do
just above one purchase per month
• Wide varieties in paying preferences across Europe,
merchants have to take actions to cater for different
preferences
• The choice of how to integrate the payment functionality
have an effect on the conversion in the shop
• M-commerce is gaining tractions – Is it time to be a part
of this?
SLIDE 52

53. Thanks for your time
Bo Knoblauch
bk@dibs.dk
+45 2788 9220
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