Borderless Digital Commerce 2013

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http://www.emota.eu

The European Multi-channel and Online Trade Association

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  • 1. EMOTA represents 3,500 multi-channel/online retailers in 15 countries • 15 European countries • 16 member associations • 3,500 companies • € 250 billion turnover • 83% of European e-commerce
  • 2. E-Commerce Statistics
  • 3. E-Commerce contributes significantly to growth and job creation 0% 10% 20% 30% 40% Italy USA France UK Germany Sweden 12% 15% 18% 23% 24% 33% Contribution to GDP growth • 2.6 jobs created for each lost • internet-intensive companies create 2x jobs Average: 21% Source: McKinsey, 2011 Note: Internet % contribution to GDP growth 2004-2009 – mature countries -1-
  • 4. In addition, E-Commerce enables consumers to save money and time 0% 20% 40% 60% 80% more product information home delivery wide selection open anytime price comparison save time lower prices 10% 11% 22% 33% 33% 50% 66% Reasons for shopping online Consumer gains from e-commerce (wider choice + lower prices): currently € 12 Bn. potentially € 200 Bn. Source: Civic Consulting/TNS, 2011 Note: consumer survey – 3 most important reasons for shopping online (sample of 13,872 online shoppers) -2-
  • 5. 154 170 210 250 300 171 185 215 237 270 66 84 122 158 215 13 19 26 33 48 - 50 100 150 200 250 300 2008 2009 2010 2011 2012 € Billion Europe N. America Asia Pacific ROW +20% +14% +36% +44% E-commerce turnover by region Source: EMOTA/IMRG, 2012 -3- E-Commerce in Europe reached a €300 Bn. turnover, with 20% growth Growth
  • 6. UK, France and Germany account for 60% of European E-Commerce European E-commerce turnover by country 2012 (€ billion) Source: EMOTA, 2012 Note: B2C E-commerce turnover includes online travel, digital downloads and event tickets; excludes online gaming and financial services -4- UK France Germany Scandinavia Austria/ Switzerland Benelux Spain Russia Italy Eastern Europe Other 90 46 45 29 17 15 11 10 10 15 12
  • 7. E-Commerce is growing very fast throughout Europe +0% +5% +10% +15% +20% +25% +30% +14% +19% +27% +14% +18% +12% +20% +19% +27% E-commerce growth by country in 2012 Source: EMOTA, 2012 -5- average European growth
  • 8. Online share of retail high in UK/Scandinavia, low in South/East Europe European average 0% 5% 10% 15% 20% 25% Source: EMOTA, 2012 Note: % of e-commerce turnover on total retail trade -6- Online share of retail by country 2012
  • 9. There are significant differences in E-Commerce penetration and spend 0% 10% 20% 30% 40% 50% 60% 70% 80% - 500 1.000 1.500 2.000 2.500 3.000 3.500 Average annual expenditure (€) E-Commerce penetration UK Scandinavia Austria/Switzerl. France Germany Italy Benelux Eastern Europe EU average 2011 Source: EMOTA, Eurostat, 2011 Note: E-commerce penetration: % of population aged 14-74 years buying online -7- Digital Agenda target 2015 Spain 43%
  • 10. Very few consumers shop online across borders EU average 2011 0% 5% 10% 15% 20% 25% Digital Agenda target 2015 GAP Proportion of consumers buying online from another country Source: Eurostat, 2011 -8-
  • 11. In fact, consumers are more worried about international delivery 0% 5% 10% 15% 20% 25% 30% 35% Uncertainty on rights Data privacy Payment security No delivery Guarantee Returns Long delivery times Concerns about cross-border vs. domestic online purchases Source: Civic Consulting/TNS, 2011 Note: % of consumers reporting concerns about buying products online in their own country vs. in another EU country (sample: 29.010 individuals) -9- % domestic % increase cross-border
  • 12. In addition, only 27% of retailers sell across borders 0% 10% 20% 30% 40% 50% Proportion of retailers selling in at least one other EU country EU average Source: TNS, Flash Eurobarometer 331, 2012 -10- 27%
  • 13. Many retailers are deterred by legal/tax and payment issues Barriers to cross-border sales for retailers 0% 5% 10% 15% 20% 25% 30% 35% Language differences Customer service Own restrictions Complaints resolution Delivery costs Different tax regulations Risk of fraud/non-payments Different consumer laws Source: TNS, Flash Eurobarometer 331, 2012 Note: % of retailers reporting obstacles to cross-border sales to other EU countries -11-
  • 14. Trends & Best Practices
  • 15. Several e-retailers are expanding globally, offering worldwide shipping ASOS.com worldwide delivery 7 country-specific websites 15 currency options Free worldwide shipping Shipping to 190+ countries 5M customers 160 countries 62% international sales -12-
  • 16. Excellent service is ensured trough local logistics/customer care centers 5 logistics centers 7 local offices 8 customer care centers Yoox.com global presence Europe (excl. Italy) Italy 16% N.America 22% Japan Revenues by geography Brands Other -13-
  • 17. Best-practice online retailers provide several delivery options … Easy returnsClick & collect Track & traceExpress delivery Subscription service Parcel lockers -14-
  • 18. … increase consumer confidence with an excellent customer service … • “WOW” customer service • Family culture • Outstanding service model – Overnight shipping – Free shipping both ways – 365-day return policy – 24/7 availability with toll-free number • Real inventory in warehouse Zappos customer service policy -15-
  • 19. … and tailor payment methods to specific national preferences Source: Civic Consulting/TNS, 2011 Online payment methods by country -16- 0% 20% 40% 60% 80% 100% Other Invoice COD Online payment Bank transfer Debit card Credit card
  • 20. Most retailers are adopting a multi-channel strategy Source: McKinsey, 2009 Note: Average annual dollars spent per customer by channel (apparel example) -17- Amount spent by channel Internet / mobile
  • 21. Multi-channel integration requires enterprise-wide changes -18- Multi-channel integration Organization • Integrate online/offline teams • Marketing and product management Systems • Integrate front-end and back-office • Inventory levels and pricing • Customer database • CRM systems Operations • Picking and fulfillment • Return handling Source: Accenture, Booz & Company, 2012
  • 22. Mobile commerce is expanding rapidly in Europe - 4 8 12 16 20 2012 2013 2014 2015 2016 2017 3 5 7 11 17 19 € Billion Source: Forrester, 2012 Note: purchases via smartphone - excludes tablets and mobile payments at retail points of sales European mobile commerce market estimate -19-
  • 23. Shoppers use their mobiles to research products and find deals 0% 10% 20% 30% 40% 50% 60% retailer app retailer website QR code scan product review mobile coupon price comparison 28% 33% 45% 51% 54% 54% In-store activities of mobile shoppers Source: Vibes Media, 2012 -20-
  • 24. Many retailers developed mobile apps to facilitate product research John Lewis mobile app • Optimized navigation • Free Wi-Fi in stores – Search product information – Check ratings and reviews – Compare competitors’ prices • Sales staff available to help customers -21-
  • 25. Other retailers are testing virtual stores with smartphones Tesco virtual stores • Grocery shopping “on the go”, in subways, train stations or bus stops • Scan QR code with smartphone app • Orders delivered at home on the same day -22-
  • 26. Social commerce is also expected to boom in the next few years 0 5 10 15 20 25 30 2011 2012 2013 2014 2015 4 6 8 12 16 1 3 5 9 14 $ Billion Source: Booz & Company, 2011 Social commerce market estimate 5 9 14 20 30 Rest of the World U.S.A. -23-
  • 27. Source: Sociable Labs, 2012 All online shoppers 62% read friends’ comments on products 75% click through to retailer’s site 53% purchase product 25% of all shoppers Share-to-purchase funnel Product discovery mechanism Conversion driver -24- Social networks are already a fundamental enabler of E-Commerce
  • 28. Fab.com social shopping features -25- Pioneer e-retailers generate substantial sales from social networks Social feed Facebook log-in Credits for sharing
  • 29. EU Lobbying for E-Commerce
  • 30. Upcoming EU legislation will harmonize consumer laws across Europe E-Commerce Action Plan Green Paper on Payments Common European Sales Law (CESL) Directive on ADR/ Regulation on ODR Regulation on Data Protection -26- Online Trustmarks Consumer Rights Directive Green Paper on Parcel delivery
  • 31. • Harmonize consumer legislation across Europe • Improve consumer trust in cross-border shopping • Ensure competitive international parcel delivery services • Ensure security and efficiency of online payment platforms • Accelerate broadband networks development EMOTA is working to balance business and consumer interests -27- Balance consumer/ business interests Avoid unnecessary extra costs/burden for businesses
  • 32. Distance sales rules will be standardized in all EU countries -28- Consumer Rights Directive Information requirements: • Order button with “obligation to pay” • Delivery/payment restrictions indicated before order Price transparency: • No pre-ticked boxes for extra services • No payment / telephone surcharges Standard withdrawal right: • Withdrawal period: 14 days • Reimbursement within further 14 days
  • 33. We are working to limit data protection burdens for businesses -29- Data Protection Regulation Benefits: • Rules valid throughout Europe • Elimination of notifications • Single supervisory authority for companies Issues: • Explicit consent • Right to data portability • Constraints in profiling
  • 34. EMOTA is developing a European trustmark for cross-border shopping -30- • Harmonize codes of conduct • Accredit national trustmarks • Promote European trustmark European harmonization of national trustmarks
  • 35. EMOTA commits to drive international e-commerce growth in Europe -31- EMOTA Borderless Digital Commerce Commitment Consumers Providers Merchants Governments • Govern and guide international e-commerce development • Inform e-commerce industry with standard reporting • Proactively listen and respond to needs of key stakeholders