Shop the World!
Consumer attitudes towards global distance selling
Shop the World 1
Japan .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 176
Mex...
Shop the World 2
lobal distance selling account-
ed for sales of €616 billion in
2013 and is expected to see annual
growth...
Shop the World 3
•	 When it comes to internet use, the Nether-
lands lead the field (93%). China (42%),
Mexico (38%) and I...
Shop the World 4
Global advertising expenditure
· in Eur bn. *
2011 2012 2013 2014 2015
436.8
413.1
391.7
377.3
363.9
2016...
Shop the World 5
Industrialised countries (Europe)
Industrialised countries (Americas & APAC)
Emerging economies
GL
US
CN
...
Shop the World 6
In the 20 countries covered by
the study, on average 84% of the
online population are order-
ing goods vi...
Shop the World 7Shop the World! -
in half an hour
UK 28.7
DE 18.2
CN 23.1
AT 15.6
KR 16.5
PL 12.7
US 13.6
CH 12.6
JP 13.1
...
Shop the World 8
Searching for product information
Across all countries covered by
the study, some 93% of respon-
dents go...
Shop the World 9
Price is the key criterion in
choosing a supplier. This is es-
pecially the case in Japan (64%)
and South...
Shop the World 10
Some 84% of the online popula-
tion across the 20 countries cov-
ered by the study are distance
selling ...
Shop the World 11
Credit cards are the most fre-
quently used method of payment
around the world. In global com-
parison, ...
Shop the World 12
The maximum acceptable delivery time
differs from country to country. Tol-
erance ranges from 3.8 days i...
Shop the World 13
On average 13% of orders are
returned in Germany and Aus-
tria. In almost all other coun-
tries, the ret...
Shop the World 14
Cross-border shopping –
Overview
Shopping without limits is a way of
life for many distance selling cust...
Shop the World 15
Drivers in cross-border
shopping
The main reasons for shopping
abroad are that products are not
availabl...
Country
Information
Australia
Beccy and Tom
Australian distance selling clients are mobile,
urban dwellers, price consciou...
Shop the World 17
4.7
Population 0 - 15 years
Australian economy *
COUNTRY PROFILE AUSTRALIA	
Melbourne
3,896
* Source: Fi...
Shop the World 18
32+8+1+4+32+19+4MEDIA USE IN AUSTRALIA
25.1
106.2
Smartphone market penetration · in % *****
Representat...
Shop the World 19
Anything but laid back
With a CAGR of +16.5%, the
Australiandistancesellingbusi-
ness is growing signifi...
Shop the World 2081+1984+16Distance selling on the up
Distance selling is a given in
Australia. With over 80% of
the popul...
Shop the World 21
On trend, but different
Australia’sdistancesellingbusi-
ness is similar to the global
average, but there...
Shop the World 22
“CUSTOMER JOURNEY“– SEARCHING FOR
PRODUCT INFORMATION
Search for product information
· Australia in % * ...
Shop the World 23
* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Australia from 462 to 468 ** scale f...
Shop the World 24
Australia Globally
Use of different suppliers
· in % *
Never Seldom Frequently /
very frequently
Occasio...
Shop the World 25
Online payment wins
Online payment systems like
PayPal are clearly preferred by
Australian distance sell...
Shop the World 26
Australia
Globally
The option of selecting the shipping
company
The vendor only works with reliable
deli...
Shop the World 27
15+85Number of returns per capita per year · Ø *	
Australia
Globally
0.8
0.4
Return rate · in % *
Austra...
Shop the World 28
High delivery costs
Uncertain delivery
Concern about misuse of payment data
No demand because all produc...
Shop the World 29
80+9+11CROSS-BORDER SHOPPING – OVERVIEW
Previous orders abroad
Previous and future orders abroad by coun...
Shop the World 30
Products not obtainable domestically
Higher quality of the products
Lower prices
Greater selection
Assur...
Shop the World 31
Receipt of mailings and catalogs
· Australia in % *
5 and 63 and 41 and 2
DIALOG MARKETING
Reading maili...
Country
Information
Austria
Christian
Austrian eCommerce clients are educated,
young, security-conscious and live in rural...
Shop the World 33
The Austrian economy *
* Source: Fischer World Almanac 2014, Germany Trade & Invest ** Source: Metropoli...
Shop the World 34
23+6+1+7+14+37+12MEDIA USE IN AUSTRIA
25.2
161.2
Smartphone market penetration · in % *****
Representati...
Shop the World 35
Apparel and footwear
Consumer electronics,
computers + equipment
Media products (books, CDs,
DVDs, etc.)...
Shop the World 36
84+16
90+10
Top usage rates
In Austria, distance selling
purchases are very common.
Almost 90% are users...
Shop the World 37
Mobile is the current trend
Active distance selling custom-
ers have a unique profile in
Austria: They a...
Shop the World 38
Search engines
Customer ratings in blogs or forums
Product test ratings / expert test reports
Product ch...
Shop the World 39
* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Austria from 468 to 484 ** scale fro...
Shop the World 40
Online PC
Online mobile
(tablet, smartphone)
By telephone
In writing (by post, fax)
By email
Order in st...
Shop the World 41
Playing it safe
Austrian distance selling cli-
ents prefer to pay for goods only
after receiving them: 3...
Shop the World 42
The option of selecting the shipping
company
The vendor only works with reliable
delivery companies
Deta...
Shop the World 43
47+5327+73+Number of returns per capita per year · Ø *	
Austria
Globally
0.8
1.8
Return rate · in % *
Au...
Shop the World 44
High delivery costs
Uncertain delivery
Concern about misuse of payment data
No demand because all produc...
Shop the World 45
84+9+7
CROSS-BORDER SHOPPING – OVERVIEW
Previous orders abroad
Previous and future orders abroad by coun...
Shop the World 46
Products not obtainable domestically
Higher quality of the products
Lower prices
Greater selection
Assur...
Shop the World 47
Receipt of mailings and catalogs
· Austria in % *
5 and 63 and 41 and 2
DIALOG MARKETING
Reading mailing...
Country
Information
Brazil
Juliana, Camila, and Maiza
Brazil’s heavy users are young, urban, have
high-incomes, are media ...
Shop the World 49
51.9
Population 0 - 15 years
The Brazilian economy *
COUNTRY PROFILE BRAZIL	
São Paulo
19,649
Rio de Jan...
Shop the World 50
71+4+1+4+5+10+5
MEDIA USE IN BRAZIL
9.2
125.2
Smartphone market penetration · in % *****
Representative ...
Shop the World 51
Enthusiastic technology buyers
With 42% total share, Bra-
zil is the largest distance sell-
ing business...
Shop the World 52
84+1678+22
Distance selling business set
to grow
Brazil’s consumer activity in
the distance selling busi...
Shop the World 53
Globally*
44.3
Gender · in % 		 Male
			Female	
Age · in % 		 <30 yrs.
			30-49 yrs.
			50 yrs. +
Occupa...
Shop the World 54
“CUSTOMER JOURNEY“ SEARCHING FOR
PRODUCT INFORMATION
Search for product information
· Brazil in % * Glob...
Shop the World 55
Usefulness of advertising media
· in % *, **
5 and 63 and 41 and 2
Ø
29.227.7 43.1
26.1 43.8 30.1
Online...
Shop the World 56
Online PC
Online mobile
(tablet, smartphone)
By telephone
In writing (by post, fax)
By email
Order in st...
Shop the World 57
Credit cards way in front
Brazilians prefer simple pay-
ment methods for their orders.
The vast majority...
Shop the World 58
The option of selecting the shipping
company
The vendor only works with reliable
delivery companies
Deta...
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  1. 1. Shop the World! Consumer attitudes towards global distance selling
  2. 2. Shop the World 1 Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . 208 Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 South Korea . . . . . . . . . . . . . . . . . . . . . . . . . 256 Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . 288 Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336 Methodology: Study design and sample size . . . . 336 Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Legal notice . . . . . . . . . . . . . . . . . . . . . . . . . . 338 Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Shop the World! - in five minutes . . . . . . . . . . 3 Shop the World! - in half an hour . . . . . . . . . . 4 Media use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Distance selling - Market overview . . . . . . . . . . . 5 Distance selling - Use . . . . . . . . . . . . . . . . . . . . . . 6 Search for product information . . . . . . . . . . . . . . 8 Supplier selection . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Placing orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Payment methods . . . . . . . . . . . . . . . . . . . . . . . . 11 Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Cross-boarder shopping . . . . . . . . . . . . . . . . . . . 14 Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Great Britain . . . . . . . . . . . . . . . . . . . . . . . . . 128 India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 Table of Contents Table of Contents
  3. 3. Shop the World 2 lobal distance selling account- ed for sales of €616 billion in 2013 and is expected to see annual growth of 10.7% in the next five years. This trend now influences almost all sectors of the economy. An increasing focus is being placed on the eCommerce customers who decide whether, when and under what conditions they order goods online. Businesses thus have to understand the var- ious steps in the customer’s journey through the online purchasing process. And they must also be aware of the economic and cultural dif- ferences that drive cross-border eCommerce. In this Shop the World! consumer study, more than 11,000 people in 20 countries were asked about their attitudes, behavior and pref- erences in respect of different media, product selection criteria, payment methods, and de- livery and return options. They were also asked about their rea- sons for ordering goods from abroad, and the obstacles they face in doing so. The same data was collected for each country to allow the first ever comparative study of dis- tance selling practices in 20 different countries around the world. The survey is supplemented by a set of country profiles containing current distance selling sales figures and forecasts, as well as demographic, economic and media- related data. I trust you will find the study valuable in your work, and wish you an interesting and infor- mative read. Dear Reader, G Yours Thomas Kipp CEO DHL eCommerce Editorial
  4. 4. Shop the World 3 • When it comes to internet use, the Nether- lands lead the field (93%). China (42%), Mexico (38%) and India (13%) bring up the rear. South Korea is the market leader in terms of smartphone share (73%). • The global advertising industry is set to see revenue of €413 billion in 2014. After the US and China, the biggest growth in glob- al advertising expenditure will be seen in emerging economies like Indonesia, Ar- gentina and Brazil. While TV remains the dominant medium in the global media mix, future growth will primarily occur through spends on mobile advertising. • According to Euromonitor International, global distance selling sales amounted to €616 billion in 2013. • The three biggest distance selling markets are the US, China and Japan. • The global distance selling market is ex- pected to see annual growth of 10.7% between now and 2018. • The largest growth is expected in China (24.5%), Mexico (16.5%) and Australia (16.4%). • The top products offered via distance sell- ing are fashion, consumer electronics, me- dia products and food. There are, however, marked country-specific differences. • Some 84% of the online population are distance selling customers. Emerging economies see lower user numbers, but enjoy considerably higher growth fore- casts. • Annual per capita orders average 13 in global comparison, with country- specific order numbers ranging from 6 in Mexico to 29 in Great Britain. • As the only one of the emerging economies covered by the study, China has extremely high user rates, order numbers and signifi- cant growth potential. • Customers mainly search for products on- line (93%), largely via search engines and suppliers’ websites. • Their main reasons for choosing a supplier are affordable prices and free delivery. • Orders are primarily placed online using a PC, followed by those placed with mobile devices. China, South Korea, and Austra- lia have the highest shares in mCommerce (some 15% of orders overall). • Credit cards are the most frequent pay- ment method used. Preferences differ from region to region, however. These include for example the use of Alipay in China, and cash on delivery in India. • The key ordering criteria are speedy, free delivery. Acceptable delivery times range from between 3.8 days in Turkey to 12.4 days in Russia. • The highest return rates are seen in Ger- many, Austria, Switzerland and the Nether- lands (between 9% and 13%). • Some 45% of internet users have ordered goods from abroad. Figures in emerging economies are significantly lower than those for industrialised countries. • The main exporting countries are the US, Great Britain, Germany and China. • The main reasons for ordering goods from abroad are that they are not available do- mestically and are lower-priced. In emerg- ing economies, better quality and protec- tion against counterfeit goods and product piracy are key drivers in the purchasing decision. Shop the World! - in five minutes Shop the World! - in five minutes Media use Distance selling – market overview Customer Journey Cross-border shopping
  5. 5. Shop the World 4 Global advertising expenditure · in Eur bn. * 2011 2012 2013 2014 2015 436.8 413.1 391.7 377.3 363.9 2016 462.9 Mobile internet TV Desktop internet Out of home Radio Movies General magazines Newspapers 24.6 24.2 19.4 4.1 2.1 0.6 -1.2 -2.7 Contributors to global growth in adspend by medium 2013-2016 · in Eur bn. * Internet use As more and more people use the internet huge country-specific differences emerge. The Nether- lands lead the field with 93%, followed by Great Britain (87%) and Canada (86.8%). India, Chi- na and Mexico bring up the rear. While Mexico and China have online populations of 38% and 42% respectively, only 12.6% of India's consumers use the inter- net. With growing use of smart- phones, mobile access to online content is on the rise. Com- pared with 2012, state subsidisa- tion and billion-strong invest- ment in Brazil, Poland and Tur- key have led to a two-fold rise in useofinternet-compatiblesmart- phones. In Russia and Mexico, smartphone use has risen from 20% to 37%. But South Korea, where 73% of the population own a smartphone, is the un- contested leader. Advertising The global advertising indus- try is set to see revenue of €413 billion in 2014. Growth of 5.8% and 6.1% is forecast for 2015 and 2016 respectively. While TV re- mains the dominant medium in the global media mix, future growth will largely be seen in ex- penditure on mobile advertise- ment. The three biggest advertis- ing markets are the US (€130.5 billion), Japan (€41.4 billion) and China (€31.9 billion), although Japan is expected to relinquish its No. 2 spot to China in 2016. Apart from the US and China, the biggest growth in global ad- vertising expenditure will be seen in the emerging economies such as Indonesia, Argentina and Brazil. * Source: Zenith Optimedia 2013 Internet desktop Mobile internet Newspapers Magazines 40+7+1+7+18+3+17+7Global media mix · 2013 in % * TV Radio Movies Outdoor advertising 18.0 17.0 8.0 7.01.07.0 40.0 3.0 India USA China Indonesia Argentina Brazil UK Japan South Korea Russia 18.8 5.2 12.8 5.1 2.7 2.5 3.0 2.5 2.2 1.9 Top ten contributors to ad spend growth 2013 - 2016 · in Eur bn. * Shop the World! - in half an hour Shop the World! - in half an hour Media use Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  6. 6. Shop the World 5 Industrialised countries (Europe) Industrialised countries (Americas & APAC) Emerging economies GL US CN JP UK DE KR FR RU BR IT ES CA AU NL CH MX PL AT TR IN Distance selling sales by country in 2013 · in EUR bn. * 616.4 227.1 78.4 57.4 45.3 34.9 26.1 25.7 14.4 8.6 6.4 6.3 6.1 5.2 4.5 4.2 4.1 4.1 3.2 2.9 2.4 CN MX AU BR ES IT TR PL RU IN FR CA GL DE US NL KR JP AT CH UK Distance selling market growth by country CAGR 2013 - 2018 · in % * 24.4 16.5 16.4 13.6 13.0 12.7 12.4 12.2 11.9 11.6 11.3 10.8 10.7 8.7 7.3 5.7 5.3 4.8 4.8 4.2 4.0 * Source: Euromonitor International Market data and trends Distance selling sales rose again in 2013. This boom is expected to continue: Euromonitor Inter- national forecasts annual growth of 10.7% (CAGR) for the peri- od up to 2018. While growth in most established distance selling markets in Europe and the US is below the global average, in the emerging economies investment in infrastructure and an increas- ing middle class are generating growth which in most cases ex- ceeds the global average by far. With estimated annual growth of 24.4% for the period up to 2018, China leads the field – closely followed by Mexico with 16.5%. Surprisingly, Australia is also among the leaders, with an Shop the World! - in half an hour Distance Selling – Market Overview annual growth of 16.4%. In Eu- rope above-average growth is ex- pected in Italy, Poland and Spain. Around 46% of global distance selling revenue in 2013 was attributed to clothing, consum- er electronics, media products and food. However, country-by- country differences are evident: While clothing dominates in China and Germany (30.4% and 27.2%), clothing doesn’t play a role in Brazil. Here the highest demand is for consumer elec- tronics (38.5%). In Turkey, on the other hand, food sales domi- nate the market (24.5%) and in Canada the demand for media products (28.6%). Development of distance selling and share of total retail 2011 - 2018 · n Eur bn. * CAGR: 10.7% Home shopping Online shopping 333.3 406.7 483.1 142.6 138.2 133.3 558.7 912.2 127.2 110.5 2011 2012 2013e 2014e 2018e Share of total retail · in % 5.0 5.5 5.9 6.4 8.4 Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  7. 7. Shop the World 6 In the 20 countries covered by the study, on average 84% of the online population are order- ing goods via distance selling. Great Britain and Germany lead the field – both have dis- tance selling histories going back more than 100 years. The emerging economies bring up the rear, although the ‘lowest’ user rates there still amount to 73%. In country-to-country com- parison, there are huge differ- ences in market size: Great Britain is the biggest distance selling market in the world on a per-capita basis, with annual sales of €45.3 billion in 2013 and a number of orders per capita of 28.7 per year. At the opposite end of the scale and typical of the emerging econ- omies, Mexico has significantly less experience in distance sell- ing, accruing just €4.1 billion in sales in 2013 and a number of orders per capita amounting to 5.8 per year. Use of distance selling · in % * Shop the World! - in half an hour UK DE CN AT KR PL US CH JP FR GL IT ES NL AU IN BR RU TR CA MX 94 94 92 90 88 86 86 86 86 85 84 83 83 81 81 79 78 78 73 73 73 70 58 58 52 50 50 49 44 43 39 37 36 33 30 29 28 26 25 24 22 20 IN CN BR TR MX RU IT PL ES GL CA AU UK KR US NL FR DE AT CH JP Planning higher number of orders in future (current users) · in % ** Distance Selling – Use Industrialised countries (Europe) Industrialised countries (Americas & APAC) Emerging economies * Source: DHL Global Mail 2013 ∙ n (total) = 11,265; n (countries) = 500-1,040 ** n (total) = 9,161; n (countries) = 344-941, selec- tion by those planning a larger order volume, basis: Current distance selling users Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  8. 8. Shop the World 7Shop the World! - in half an hour UK 28.7 DE 18.2 CN 23.1 AT 15.6 KR 16.5 PL 12.7 US 13.6 CH 12.6 JP 13.1 FR 12.0 IT 10.1 ES 10.1 NL 7.9 AU 14.3 IN 8.5 BR 7.0 RU 6.8 TR 8.1 MX 5.8 CA 9.7 GL 12.7 < 8 orders < 10 orders < 15 orders 15 orders or more Average number of orders per capita per year · Mean * In Mexico, and also in Turkey, Brazil and India, distance sell- ing sales lie below €10 billion. About one-fifth of respondents made their purchases offline in stores. Annual number of or- ders per capita are in the sin- gle digit range. Nonetheless, these countries harbour growth potential: Over half of current distance selling customers plan to use this shopping channel more in future, and around 80% of those who visit stores say they intend to use distance selling in the future. Less typical among the emerg- ing economies is China, where distance selling sales amount- ed to €78.4 billion in 2013. Of these, 95% were generated through eCommerce. Despite the country’s greater affinity to distance selling (92%) – the average number of orders per capita amount to 23.1 per year – almost 60% of respondents say they intend to order more. * Source: DHL Global Mail 2013 ∙ n (total) = 11,265; n (countries) = 500-1,040, Basis: all (including non-users with 0 orders) Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  9. 9. Shop the World 8 Searching for product information Across all countries covered by the study, some 93% of respon- dents go online to search for product information. Search en- gines are the No. 1 choice (53%), followed by retailers’ websites (46%), price comparison sites (44%) and online marketplaces (43%). Some 70% of distance selling customers also use offline sources, mostly in their immedi- ate environment. 38% rely on ex- perience gained by and tips from friends, acquaintances and col- leagues, while about a quarter use catalogs and product visibil- ity in retail stores. Country-specific differences are evident in the way users search for information. People in Brazil tend to rely on personal recom- mendations (48%), social media platforms (26%) and customer reviews (53%). In Japan, the trend goes more towards per- sonal dialog (18%), while social media plays only a subordinate role. Online (net) Search engines Retailer or manufacturer website Price comparison sites Online marketplace Customer ratings on the supplier’s website Customer ratings in blogs and forums Social media platforms, such as Facebook,Twitter Apps (on smartphone, iPad or tablet) Offline (net) Recommendations from friends, acquaintances, and colleagues Catalog Product check in a retail store Product test ratings / expert test reports Mail advertising 93 53 46 44 43 41 36 15 10 70 38 25 24 23 15 Search for product information · in % * Flags show national variations from the global average of at least +10% points. Shop the World! - in half an hour * Source: DHL Global Mail 2013 ∙ n = 9,386; Basis: Distance selling users Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  10. 10. Shop the World 9 Price is the key criterion in choosing a supplier. This is es- pecially the case in Japan (64%) and South Korea (66%). By way of contrast, people in India place significantly less importance on affordable prices (35%). The second most important criteri- on is free delivery. This is a key purchasing factor for 45% of people worldwide, and is the most important supplier selec- tion driver in Japan and the US. Of less importance when choos- ing a supplier are the criteria in- volved in the subsequent phases of the purchasing process. In global comparison, one in four people expect speedy delivery (26%). This includes delivery time, which is of great impor- tance to customers in Brazil (38%). Supplier preference can also be driven by customers’ pay- ment option preferences (23%) and free returns (21%), the latter being of particular importance to shoppers in Germany (35%) and Austria (35%), where distance selling and especially free returns have long been the norm. Favorable prices, promotions, & special offers Free delivery Positive customer ratings on the internet Fast delivery Choice of preferred payment methods Free returns Large selection of products Good customer service Attractive product line Recommendations and experiences of friends, acquaintances, and colleagues Straightforward return process Official test seals, reviews, and test reports of independent institutions 52 45 27 26 23 21 21 19 14 15 13 9 Criteria for choosing a vendor · in % * Flags show national variations from the global average of at least +10% points. Shop the World! - in half an hour Supplier selection * Source: DHL Global Mail 2013 ∙ n = 10,617, Basis: Current and future distance selling users Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  11. 11. Shop the World 10 Some 84% of the online popula- tion across the 20 countries cov- ered by the study are distance selling customers who place on average 15.2 orders per year. A large number of these orders are placed online (75% using a PC and 11% via mobile devices). Use of mCommerce is disproportion- ately high in Australia, where 16% of orders are placed in this way, and also in China and South Korea (each at 15%). Although online orders tend to dominate, offline orders should not be neglected. Around one fifth of people who shop online also order goods in stores and have them delivered to their homes. Some 17% occasionally place orders by telephone, while 9% sometimes send a written order by post. However, the em- phasis here is on ‘occasionally’ and ‘sometimes’ rather than ‘reg- ularly’. Thus, the three offline channels only account for 10% of orders. Of these, 5% are orders placed in stores, 3% by telephone and 2% by post. This applies both to industrialised countries and most emerging economies. There are three big exceptions, however: In Turkey (57%), Mexico (55%) and India (52%) the share of online orders made using a PC is significantly below the global average of 75%. Instead of PCs, distance selling custom- ers in these countries tend to order goods in stores (12%), by telephone (7%) and especially in India by post (9%). Shop the World! - in half an hour Placing orders Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping Share of distance selling order channels · in % * * Source: DHL Global Mail 2013 - selected countries JP US UK CN GL AU KR TR MX IN 1 2 2 1 10 85 1 3 3 4 10 79 1 3 4 5 10 78 1 3 3 5 15 77 2 3 4 5 11 75 2 3 4 3 16 73 2 6 2 4 15 71 3 6 12 11 11 57 5 8 9 12 11 55 9 6 8 13 12 52 By post, fax By telephone By email Order in store & delivery to home Online mobile Online PC
  12. 12. Shop the World 11 Credit cards are the most fre- quently used method of payment around the world. In global com- parison, some 61% of respon- dents said they used this method (very) frequently or occasionally. In Turkey, Japan, the US, South Korea, Brazil and Canada this figure rises to over 80%. The Netherlands, Poland and Russia tend to view credit card payment with scepticism – regular credit card use in these countries drops to just below 25%. Online payment systems like PayPal and Alipay are the second most-frequent payment method used. More than half of distance selling customers around the world say they use them (very) frequently or occasionally. As with credit card payments, use of online payment systems varies from country to count- ry. In China, Aliplay – a wallet solution which supports all national debit cards and inter- national credit cards – is the do- minant choice. Almost all Chi- nese distance selling customers (91%) use it to pay for their or- ders. In Japan, by contrast, online payment systems are of little re- levance: Nine out of ten custom- ers (88%) say they never use them or only use them on occa- sion. Debit cards, prepayment, in- voice payment, direct debit and cash on delivery see similar use rates of between 28% and 34%. But there are some countries in which these payment methods are the preferred choice. Peo- ple in Great Britain (78%) prefer debit cards, while the Swiss (76%) and Germans (69%) like to receive an invoice before they pay. Cash on delivery, by con- trast, enjoys wide acceptance in India (75%). Payment by install- ments is by far the least preferred method (12%), and is mostly used in South Korea (49%). Never Seldom Frequently / very frequentlyOccasionally 29 10 19 42Credit card Online payment systems Debit card Prepayment Invoice Direct debit Cash on delivery Installment purchase / financing 33 13 20 34 55 11 16 18 53 16 16 15 54 16 16 13 56 16 16 12 78 9 8 4 56 1616 12 Frequently / very frequently Payment in distance selling · in % * Flags show national variations from the global average of at least +10% points. Shop the World! - in half an hour Payment methods * Source: DHL Global Mail 2013 ∙ n = 9,218-9,324, Basis: Current distance selling users Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  13. 13. Shop the World 12 The maximum acceptable delivery time differs from country to country. Tol- erance ranges from 3.8 days in Turkey to 12.4 days in Russia, whereby the country’s size and the associated distances goods must travel are not necessarily the decid- ing factors. India is nine times the size of Germany, yet in both countries custom- ers expect delivery within 5 days. Signif- icantly more important, however, is pop- ulation density: In Russia, the country with the longest waiting times, there are only 9 inhabitants per square kilometer, while in Turkey there are 100 and over 500 in South Korea. As a result, Turkish and South Korean customers expect to receive their deliveries within 3.8 and 3.9 days respectively. In all countries covered by the study, free and speedy deliveries are the key crite- ria when choosing a supplier. On a scale from 1 (not important) to 6 (very impor- tant), free delivery receives a 5.3 rating, while speedy delivery gets a 5.1. Third place goes to ‘detailed information on de- livery times and delivery date at the time of order’ (4.9). Preferences in respect of order tracking and supplier trustworthiness also differ from country to country: In emerging economies, some 30% of distance sell- ing customers fear that products might not arrive. As a result, the importance of track and trace options, and supplier trustworthiness is higher than in indus- trialised countries. RU BR CA AU CH MX ES AT FR GL IT US JP CN UK IN DE NL PL KR TR Max. accepted order time · in days * Free delivery Fast delivery Detailed information regarding delivery period & delivery date when ordering Tracking information The vendor only works with reliable delivery companies The option of selecting the shipping company Delivery to a retail store Other collection points (supermarket, kiosk, gas station) Delivery to a parcel locker or drop box 1 2 3 4 5 6 Not important at all Very important Globally Requirements for delivery · Mean ** 12.4 9.3 8.9 8.7 7.4 7.3 7.1 6.8 6.6 6.5 6.5 6.3 6.3 5.5 5.2 5.0 5.0 4.9 4.3 3.9 3.8 Shop the World! - in half an hour Delivery * Source: DHL Global Mail 2013 ∙ Mean, n (total) = 10,347; n (countries) = 424-989, Basis: Current and future distance selling users ** n = 10,270-10,462, Basis: Current and future distance selling users Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  14. 14. Shop the World 13 On average 13% of orders are returned in Germany and Aus- tria. In almost all other coun- tries, the return rate is below 10%; in Japan and Italy it is even as low as 2%. The global list of reasons for order returns is long, ranging from the top four – ‘does not fit’ (38%), ‘defect’ (32%), ‘poor quality’ (30%) and ‘does not meet expectations’ (30%) – to ‘excessive delivery time’ (6%) and ‘product cheaper elsewhere’ (4%). However, the reasons for a return differ from region to re- gion. While fit and failure to meet expectations are the key rea- sons both in German-speaking countries and in Great Britain and Canada, poor quality do- minates in emerging economies and South Korea. The different return rates and reasons can in part be attributed to cultural preferences, shopping basket composition and coun- try-specific laws and legislation. Orders of clothing in multiple sizes and customer-friendly leg- islation, certainly in German- speaking countries, result in high return rates, while the drivers in China are product piracy and poor quality standards. Shop the World! - in half an hour UK 6% DE 13% CN 5% AT 13% KR 5% PL 3% US 7% CH 9% JP 2% FR 6% IT 2% ES 5% NL 9% AU 3% IN 7% BR 3% RU 3% TR 5% MX 3% CA 4% GL 6% < 3% Returns < 5% Returns < 7% Returns < 7% & more returns Return rate · Mean in % * Returns * Source: DHL Global Mail 2013 ∙ n (total) = 9,325; n (countries) = 368-954, Basis: Current distance selling users Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  15. 15. Shop the World 14 Cross-border shopping – Overview Shopping without limits is a way of life for many distance selling custom- ers. While some 45% have ordered goodsfromabroad,significantdiffer- ences are evident between industria- lised countries (53%) and emerging economies (31%). While in parti- cular Europe has a well-established cross-border shopping tradition, it is the smaller or geographically iso- lated countries like Austria (79%), Australia (74%) and Switzerland (73%) that lead the field. Most of the goods ordered originate in the US. This applies to orders placed in emerging economies, industrialised countries in the Asia-Pacific re- gion, and Canada. Exceptions in- clude Russia, where distance selling customers mostly order from China – as do those in the US. Customers in Europe tend to order from coun- tries in the region. Cross-border shopping trends While 45% of distance selling cus- tomers have ordered goods from abroad, 75% plan to do so in future. The share of cross-border orders will rise significantly among customers in emerging economies: India, Po- land and Mexico expect to see an in- crease from 30% to over 80%, while Brazil anticipates a rise from 41% to 84%. China promises a huge increa- se, from a low 20% to 78%. Some in- dustrialised countries err on the side 79 74 73 60 57 54 54 49 45 43 43 41 41 40 34 32 30 30 30 20 18 Use of cross-border eCommerce · in % ** 1 2 3 GL AT CH DE ES FR IT NL UK AU CA JP KR US BR CN IN MX PL RU TR (52) (91) (62) (47) (49) (48) (53) (42) (71) (77) (82) (69) (84) (48) (72) (66) (66) (87) (32) (66) (49) ASIA (OTHER) (31) (28) (42) (45) (45) (46) (53) (41) (37) (58) (41) (22) (19) (41) (55) (35) (24) (15) (32) (49) (40) (29) (23) (37) (33) (42) (39) (36) (31) (31) (45) (29) (18) (8) (31) (18) (30) (22) (9) (24) (26) (18) Top 3 countries for placing orders abroad · in % * Example: In Austria, 91% of all respondents with experience of placing orders abroad had already ordered something in Germany. Hong Kong Shop the World! - in half an hour Cross-border shopping of caution when it comes to cross- border shopping: In Japan and the Netherlands, over 40% of respon- dents cannot see themselves placing an order with a supplier in another country. In South Korea and the US it is one third. Despite the many obstacles, custom- ers seem satisfied with their cross- border orders. In global compari- son, only 3% of respondents who have ordered from abroad said they would not do so again. This number is particularly high in the US and in Switzerland (6% respectively). * Source: DHL Global Mail 2013 ∙ n (total) = 4,738; n (countries) = 91-393, Basis: Current users of distance selling ** n (total) = 11,030; n (countries) = 480-1,029, Basis: All *** n (total) = 8,932; n (countries) = 331-806, Basis: All AT AU CH UK IT ES CA DE GL NL RU FR BR US MX JP KR PL IN CN TR 89 89 88 87 85 85 84 83 83 82 78 77 77 76 72 70 65 63 62 58 54 Future use of cross-border eCommerce · in % *** AT RU IT AU ES IN BR PL CH MX CN GL UK CA DE TR FR KR US NL JP Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  16. 16. Shop the World 15 Drivers in cross-border shopping The main reasons for shopping abroad are that products are not available domestically (73%) and that prices are lower elsewhere (63%). In emerging economies, better quality and protection against counterfeit goods and product piracy are key factors. These were cited particularly fre- quently by customers in China, India and Russia. Obstacles to cross-border shopping In global comparison, 20% of all internet users say they would not order from abroad in future. Among them are also experi- enced distance selling customers who think the obstacles and pro- blems of ordering abroad are just too big. The biggest obstacles are seen in the delivery process: Long delivery times (56%), high delivery charges (54%) and com- plex return management (51%). These were cited to equal extent by respondents in all countries covered by the study. Cultural differences between the coun- tries occur in the context of other barriers: Concern about counter- feit products is one of the main obstacles in Japan (56%), while in Switzerland only 31% share this concern. Language barriers tend to stop people in Turkey (49%), China (44%) and France (42%) from ordering goods from abroad. Products not obtain- able domestically Lower prices Greater selection Higher quality of the products Assurance against product counterfeiting 74 74 72 57 69 62 49 35 41 49 8 15 24 4 6 Emerging economies Industrialized countries (Europe) Industrialized countries (Americas & APAC) Drivers for ordering abroad · in % * Shop the World! - in half an hour * Source: DHL Global Mail 2013 ∙ n = 7,289, Basis: Current or future use of cross-border distance selling ** n = 10,689 Long delivery times High delivery costs Complicated return process Fear of fraud Customs clearance Non-transparent costs Uncertain delivery Uncertainty regarding warranty terms, payment process, legal situation, etc. Unknown product quality Uncertainty with problems Concern about misuse of payment data Language problems Concerns about data protection No demand because all products are obtainable locally 56 54 51 42 41 41 39 39 33 36 32 32 Flags show national variations from the global average of at least +10% points. 24 13 Barriers to ordering abroad · in % ** Media Use · Distance selling-market overview · Distance selling use · Searching for product information · Supplier selection · Placing orders · Payment methods · Delivery · Returns · Cross-border shopping
  17. 17. Country Information Australia Beccy and Tom Australian distance selling clients are mobile, urban dwellers, price conscious, demanding… and 8 out of 10 shop abroad.
  18. 18. Shop the World 17 4.7 Population 0 - 15 years Australian economy * COUNTRY PROFILE AUSTRALIA Melbourne 3,896 * Source: Fischer World Almanac 2014, Germany Trade & Invest ** Source: Metropolitan areas with 1 million inhabitants and more; United Nations, Department of Economic and Social Affairs, Po- pulation Division (2012). World Urbanization Prospects: The 2011 Revision, CD-ROM Edition. *** Source: Copyright © IHS, 2013. All rights reserved **** Source: Copyright © IHS, 2013. All rights reserved Number of households Ø Household size Unemployment rate Inflation rate 4.0 Economic growth · in % **** > > 2.3 2.6 2011 2012 2013 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing · 2013 in mn. · 2013 · 2013 in % · 2013 in % 8.2 2.8 5.7 2.5 The Australian economy ap- pears stable. While noticeable real GDP growth was seen in 2013, the boom of the previous yearhaspassed.Dependencyon the Chinese market threatens the country’s further growth. For years, Australia has prof- ited from China’s need for raw materials. Demand for coal, iron ore, uranium, and copper flushed capital into the country and strengthened the Austra- lian Dollar. At the same time, the processing industry came under pressure because their exports were no longer attrac- tive due to the high curren- cy exchange rate. Since 2012, growth in China has slowed considerably and with it the demand for raw materials. Aus- tralia’s strength as an export nation is threatened. 15.1 3.2 Brisbane 1,993 Perth 1,617 Adelaide 1,181 Sydney 4,479 Age distribution · 2013 in mn. Population 65 years and older Population, total · 2013 in mn. 22.9 *** Population 16 - 64 years Metropolitan areas with 1 million inhabitants or more · 2011 in thousands **
  19. 19. Shop the World 18 32+8+1+4+32+19+4MEDIA USE IN AUSTRALIA 25.1 106.2 Smartphone market penetration · in % ***** Representative domestic population 16+, n = 1,000 52.2 Internet users · 2012 per 100 people ** Permanent access to broadband internet · 2012 per 100 people *** Cellphones · 2012 per 100 people **** 2012 2013 64.6 Share of adspend by medium · in % * TV Radio Movies Outdoor advertising Total advertising expenditure · in EUR bn. * Internet Newspapers Magazines > > 2011 2012 2013 2014 2015 10.8 82.3 10.5 10.2 10.0 10.0 2016 11.2 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing 32.5 18.5 4.3 4.1 0.8 8.2 31.6 * Source: Zenith Optimedia, 2013 ** Source: Copyright © IHS, 2013. All rights reserved *** Source: The World Bank **** Source: Copyright © IHS, 2013. All rights reserved **** Source: Our Mobile Planet: Google Global Smart phone Study 2013, http://www.thinkwithgoogle.com/mobileplanet/ Internet use In Australia, the internet is part of everyday life. More than 80% of Australians are now online. The most widespread internet use is seen on the country’s heavily populated east coast. But even in the outback, which is somewhat behind in terms of development, surfing the web is by no means uncommon. Internet the most powerful medium 2013 saw the internet take the highest share of Australia’s media mix for the first time. High growth is expected primarily in internet and TV expenditure. Although spending in the big advertis- ing sectors of retail, automo- tive and FMCG is stunted by low consumer confidence, a stable annual increase of 2-3% in total expenditure is antici- pated by 2016.
  20. 20. Shop the World 19 Anything but laid back With a CAGR of +16.5%, the Australiandistancesellingbusi- ness is growing significantly faster than its global counter- part (+10.7%). This also applies to food, media products, and consumer electronics, which are already being ordered with above-average frequency. DISTANCE SELLING IN AUSTRALIA 1,995.6 Distance selling purchases in 2013 - trend for 2018 · in EUR mn. * 2013 2018 Apparel and footwear 168.3 139.4 1,270.0 286.4 501.4 308.0 143.7 128.1 106.4 119.7 91.3 47.9 Consumer electronics, computers + equipment Media products (books, CDs, DVDs, etc.) Housewares and home furni- shings + textiles Food + beverages Household and consumer appliances Beauty and personal care DIY and gardening OTC drugs and dietary supple- ments Traditional toys and games House cleaning (detergent, chastener, etc.) Development of distance selling and share of total retail 2011 - 2018 · in EUR bn. * CAGR: 16.5% Home shopping Online shopping 3.7 4.3 4.9 0.3 0.3 0.3 5.8 10.9 0.3 0.2 2011 2012 2013e 2014e 2018e Share of total retail · in % 2.3 2.6 2.9 3.4 * Source: Euromonitor International 25.7 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing 658.4 151.7 131.5 1,534.3 836.5 1,069.9 1,615.1 858.9 5.7
  21. 21. Shop the World 2081+1984+16Distance selling on the up Distance selling is a given in Australia. With over 80% of the population already placing orders online, this figure is set to rise. Use of distance selling · in % * 80.8 19.2 Australia Globally 83.5 16.5 Number of orders in the previous year · in % * 1 to 5 orders 6 to 10 orders 11 to 20 orders More than 20 orders No orders 25.5 28.9 14.3 19.2 12.0 20.5 35.9 15.2 16.5 12.0 Future ordering behavior (current users) · in % * More frequently than in the last 12 months Just as frequently as in the last 12 months Less frequently than in the last 12 months 57.2 36.2 55.2 38.8 6.5 6.1 Non-users of distance selling - future plans · in % * Yes 59.4 Australia Globally Yes 70.5 No 40.6 No 29.5 Yes No Australia Globally Australia Globally DISTANCE SELLING IN AUSTRALIA * Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Australia from 71 to 522 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing
  22. 22. Shop the World 21 On trend, but different Australia’sdistancesellingbusi- ness is similar to the global average, but there are some differences in the ‘heavy users’ group. Highly active heavy internet users in Australia are broadly scattered across all age groups, with a slight majority among 30-49-year olds. They are ur- ban dwellers (68.3%) and tend to access the internet using mobile devices (60.2%). While the global average shows more women using distance selling, in Australia men have a slight edge. Another difference is seen in the number of older dis- tance selling clients in the heavy users group (27.1%). This compares with the global average of 21.2%. DISTANCE SELLING IN AUSTRALIA * Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Australia from 109 to 522 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing *** Globally* 40.0 Gender · in % Male Female Age · in % <30 yrs. 30-49 yrs. 50 yrs. + Occupation · in % Employed Unemployed Education · in % Lower educational level Medium and higher level of education 17.1 Media affinity: Online · in % yes** Community size · in % Rural (<50,000 inhabitants) Non-rural/urban (>50,000 inhabitants) Minors in the household · Ø Household type · in % Single 2-person household without children Household with children Household with 3 adults Mobile Internet usage · in % Yes No Gross household income · in % Low income Medium income High income Media affinity: Classic · in % yes** Media affinity: Dialog marketing · in % yes** 42.7 24.6 79.8 44.5 31.0 24.4 39.8 60.2 16.6 43.8 47.1 32.8 52.9 32.0 82.9 68.3 0.9 27.3 12.4 68.0 44.3 27.1 14.4 36.4 46.9 36.5 80.8 33.7 34.2 32.1 45.7 54.3 22.4 43.0 50.0 28.6 50.0 29.4 85.6 63.6 0.7 23.4 11.2 70.6 Australia* 42.6 28.7 15.9 31.1 40.6 29.3 73.8 36.4 34.8 28.9 44.3 55.7 16.3 44.2 49.9 28.7 50.1 36.8 84.1 68.9 0.9 25.8 13.8 63.2 27.1 31.7 Heavy users* Global heavy users*
  23. 23. Shop the World 22 “CUSTOMER JOURNEY“– SEARCHING FOR PRODUCT INFORMATION Search for product information · Australia in % * Globally 34.1 35.5 53.2 24.0 23.4 35.6 44.2 22.9 23.9 45.8 49.0 42.5 24.6 25.1 11.8 15.1 16.6 15.1 8.2 9.7 39.1 37.8 Criteria for choosing a vendor · Australia in % * Globally Search engines Customer ratings in blogs or forums Product test ratings / expert test reports Product check in a retail store Retailer or manufacturer website Online marketplace Catalog Mail advertising Social media platforms such as Facebook and Twitter Apps (on smartphone, iPad, or tablet) Recommendations from friends, acquaintances, and colleagues 35.1 40.6Customer ratings on the supplier’s website Price comparison sites Large selection of products Recommendation and experiences of friends, acquaintances, and colleagues Official test seals, reviews, and test reports of independent institutions Attractive product line Favorable prices, promotions, & special offers Straightforward return process Free returns Choice of preferred payment methods Fast delivery Free delivery Good customer service Positive customer ratings on the internet 15.1 13.7 20.7 10.1 8.8 30.0 26.6 12.0 14.9 56.9 51.7 9.6 12.9 14.4 20.8 30.6 22.6 27.5 25.7 44.0 45.2 15.4 18.5 19.9 Search engines in the lead Most Australian distance sell- ing clients use search engines to find information. Many also use retailer websites or online mar- ketplaces. They are also ex- tremely price-conscious. * Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Australia from 415 to 476, multiple mentioning Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing 61.6 49.3
  24. 24. Shop the World 23 * Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Australia from 462 to 468 ** scale from 1 "absolutely not useful“ to 6 "very useful“ Demanding target group Persuasive advertising is a particular challenge in Aus- tralia. Online shoppers tend to perceive advertising media as unhelpful. Internet search en- gines lead the way, with 62.7% of users perceiving them as ‘very useful’. ACCEPTANCE OF ADVERTISING MEDIA Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing Usefulness of advertising media · in % *, ** 5 and 63 and 41 and 2 Ø 47.228.1 24.7 26.1 43.8 30.1 Online advertising Australia Globally Television advertising 5 and 63 and 41 and 2 3.4 3.6 Ø 40.741.3 18.0 30.6 41.8 27.6 3.0 3.4 41.142.2 16.7 38.7 40.4 20.9Social media Australia Globally Advertising letters 2.9 3.1 32.546.2 21.3 33.9 37.6 28.5 2.9 3.4 Product suggestions in online shops 45.326.8 28.0 18.9 45.1 36.0 3.5 3.9 29.87.6 62.7 6.5 28.7 64.8 4.7 4.8 38.512.7 48.7 9.1 31.7 59.1 4.2 4.6 45.329.4 25.2 29.9 43.9 26.2 Australia Globally Household advertising 3.4 3.4 44.535.7 19.7 29.0 46.7 24.3 Australia Globally Advertisements in mag- azines and periodicals 3.2 3.4 47.338.6 14.1 34.8 43.1 22.1 Australia Globally Advertisements in newspapers 3.0 3.2 37.553.2 9.2 41.8 40.7 17.6 Australia Globally Billboard advertise- ments 2.5 3.0 40.244.0 15.7 44.3 38.8 16.9 Australia Globally Radio 2.9 2.9 45.620.6 33.8 19.3 44.2 36.6 Australia Globally Catalogs from vendors 3.8 3.9 Australia Globally Australia Globally Australia Globally Internet search engines Australia Globally Price comparison sites Australia Globally
  25. 25. Shop the World 24 Australia Globally Use of different suppliers · in % * Never Seldom Frequently / very frequently Occasionally * Source: DHL Global Mail 2013 ∙ n Global from 9,270 to 9,446 ∙ n Australia from 413 to 422 Online PC Online mobile (tablet, smartphone) By telephone In writing (by post, fax) By email Order in store & delivery to home 73.2 2.7 1.7 4.2 75.0 3.2 2.1 4.4 “CUSTOMER JOURNEY“– PLACING ORDERS Online ordering clearly prefer- red Ordering online: Almost three-quarters of Australian distance selling clients order online using their PC. Another 15.6% use mobile devices, and 4.2% order via email. Among the available sales channels, online marketplaces and online shops rank highly among Australians. As a result, only 9.1% and 13.8% of custom- ers have not used these mail order options in the last 12 months. The traditional print catalog loses out, with only half of customers ordering this way. Attitudes towards teleshopping are largely conservative (64.2% non-users in Australia versus 60.2% globally). 13.8 32.516.4 37.4 Australia 9.1 54.26.1 30.6 48.5 9.122.7 19.7 64.2 4.919.3 11.6 15.6 10.5 2.6 4.8 Order channels · in % * Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing Online marketplace Mail order company from which I received a catalog Merchant who advertises on TV Online shop of a manufaturer or retailer Globally 9.9 54.38.7 27.0 38.5 12.622.8 26.1 60.2 6.617.6 15.7 15.4 31.216.8 36.6
  26. 26. Shop the World 25 Online payment wins Online payment systems like PayPal are clearly preferred by Australian distance selling cli- ents: 61.9% use them frequently to very frequently (33.7% glob- ally). Unlike the global average, Australians have less of a pref- erence for payments made by invoice, cash on delivery, pre- payment, direct debit, or credit card. However, debit cards are used more often (22.7% ‘fre- quent use’ in Australia versus 18.4% globally). Installment payment/credit financing is seen only rarely in the Austra- lian distance selling business: 87.8% of customers say they never buy on credit (compared with 78.0% globally). Cash on delivery Prepayment Direct debit Credit card * Source: DHL Global Mail 2013 ∙ n Global from 9,218 to 9,324 ∙ n Australia from 412 to 417 “CUSTOMER JOURNEY“– PAYMENT METHODS Online payment systems Installment purchase / financing Debit card Invoice Payment options · in % * Never Seldom Frequently / very frequentlyOccasionally Australia Globally 24.3 11.4 24.0 40.3 29.3 9.8 18.7 42.3 73.8 13.6 9.2 3.4 55.8 16.3 16.1 11.7 71.9 12.1 8.5 7.5 53.4 16.1 15.5 15.0 55.9 18.6 16.4 9.1 56.0 15.5 16.4 12.1 72.7 14.7 9.0 3.6 54.4 15.8 16.3 13.4 14.2 6.9 17.0 61.9 33.3 12.9 20.1 33.7 87.8 6.5 3.9 1.7 78.0 9.5 8.1 4.4 46.1 11.1 20.2 22.7 55.1 10.8 15.7 18.4 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing
  27. 27. Shop the World 26 Australia Globally The option of selecting the shipping company The vendor only works with reliable delivery companies Detailed information regarding de- livery period & delivery date when ordering Fast delivery Free delivery Tracking information Delivery to a retail store Delivery to a parcel locker or drop box Other collection points (supermar- ket, kiosk, gas station) 3.4 3.3 2.9 5.1 4.6 5.0 3.2 4.8 4.4 Max. accepted order time · Ø in days * 3.6 3.5 3.7 5.3 4.8 5.1 3.8 4.9 4.7 * Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Australia from 454 to 471 ** scale from 1 "absolutely not important“ to 6 "very important“ Speed is relative Given Australia’s geography, speed is relative – as can be measured against customers’ delivery expectations. In some areas, it may take up to two days longer for a parcel to ar- rive. Expectations regarding transport are generally slightly lower compared with the global standard. “CUSTOMER JOURNEY“ – DELIVERY 1 2 3 4 5 6 Requirements for delivery · Ø *,** Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing 8.7 6.5 Australia Globally
  28. 28. Shop the World 27 15+85Number of returns per capita per year · Ø * Australia Globally 0.8 0.4 Return rate · in % * Australia Globally 3.0 Reasons for returns * · Australia in % Defective product 41.9 Percentage of users who returned goods · in % * 15.6 84.4 Australia Globally Yes No “CUSTOMER JOURNEY“– RETURNSReturns are not an issue Only 15.6% of distance selling clients in Australia return or- dered goods. This is more than 10 percentage points below the global average of 27.5%. Both the per capita returns (0.4 ver- sus 0.8 globally) and the return rate of 3% are significantly be- low the global average. The reasons for a return can differ greatly: Australian consumers do not hold back if a product is found to be defect (41.9% versus 32.3% globally). Far less often, an item is returned because it does not fit (24.5% versus 37.7%) or because several sizes were ordered to allow a better choice (6.1% versus 15.5%). * Source: DHL Global Mail 2013 ∙ n Global from 2,648 to 9,325 ∙ n Australia from 65 to 417 Differing product description Delivery of the wrong product Wrong product was ordered Product did not fit Ordered multiple variants to choose from Delivery period too long Found less expensive product Deficient product quality Product was not liked 17.3 15.6 24.5 16.9 6.1 6.5 5.9 Globally 32.3 30.0 17.8 13.3 8.5 37.7 29.9 15.5 5.8 3.9 21.7 4.5 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing 5.9 72+2827.5 72.5
  29. 29. Shop the World 28 High delivery costs Uncertain delivery Concern about misuse of payment data No demand because all products are obtainable locally Long delivery periods Unknown product quality No try-on possible before purchase Complicated return of the products No personal advice No personal contact person for problems Doubts regarding data protection or the dissemination of data to third parties Concern about counterfeited products, product piracy DRIVERS & BARRIERS IN DISTANCE SELLING Product can only be obtained via distance selling Easy price comparison Shopping 24/7 Location-independent ordering Higher product quality Lower prices Greater selection Option to deliver to a preferred location Barriers · Australia in % * 50.8 54.6 72.6 63.5 7.8 59.1 46.0 67.3 72.3 46.4 67.4 Globally 36.6 24.2 34.4 3.9 25.8 48.5 64.9 44.1 21.5 22.0 29.8 34.1 A host of good reasons Autonomy of time and place, pricing, and delivery options are arguments in favour of eCommerce in Australia. A noticeale drawback is con- sumers’ concern regarding unknown product quality. Drivers · Australia in % * Globally * Source: DHL Global Mail 2013 ∙ n Global from 10,509 to 10,864 ∙ n Australia from 470 to 512 58.9 47.7 72.7 64.3 6.8 45.0 33.8 36.0 4.3 37.6 58.6 68.3 54.1 22.2 24.2 25.3 35.8 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“· Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing
  30. 30. Shop the World 29 80+9+11CROSS-BORDER SHOPPING – OVERVIEW Previous orders abroad Previous and future orders abroad by country · in % * China [43.9] Other Asian countries [17.4] 1 2 3 4 5 USA [77.4] Great Britain [58.0] Hong Kong [45.0] Future orders abroad Australia * Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Australia from 359 to 438 ** split into "further orders planned“ 78% Australia and "no further orders planned“ 2.1% Australia Shopping without limits In Australia, cross-border shopping is taken for grant- ed: 80.1% of consumers have ordered from abroad - a fig- ure far exceeding the global benchmark of 51.2%. The En- glish-speaking countries of the US and Great Britain are espe- cially popular. Orders are also placed with suppliers in Asia, primarily Hong Kong and Chi- na. Australians want to con- tinue to use these markets and are also turning to Japan for ordering abroad. China [53.3] Japan [34.9] USA [85.5] Great Britain [73.4] Hong Kong [54.2] Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shop- ping · Dialog marketing Use of cross-border eCommerce · in % * Yes, already ordered ** No, but future orders planned No, no future orders planned 8.6 80.1 11.3
  31. 31. Shop the World 30 Products not obtainable domestically Higher quality of the products Lower prices Greater selection Assurance against product counter- feiting Drivers for ordering abroad · Australia in % * Barriers to ordering abroad · Australia in % * High delivery costs Language problems Customs clearance Non-transparent costs Uncertainty with problems No demand because all products are obtainable locally Long delivery times Unknown product quality Complicated return process Concerns regarding data protection Fear of fraud Uncertain delivery Concern about misuse of payment data Uncertainty regarding warranty terms, payment process, legal situation, etc. Globally 73.3 24.2 62.9 41.2 11.7 Globally 53.7 31.6 41.3 41.3 33.3 12.5 56.1 35.7 50.8 24.5 41.6 39.5 31.6 39.3 Price-driven purchase When compared with the glob- al trend, the main driver for or- dering abroad is a lower price. In contrast, product quality (13.4% versus 24.2% globally) plays only a subordinate role. Lack of product availability on the domestic market and grea- ter selection are also key fac- tors. CROSS-BORDER SHOPPING – DRIVERS & BARRIERS * Source: DHL Global Mail 2013 ∙ n Global from 7,289 to 10,689 ∙ n Australia from 410 to 495 51.8 21.6 22.3 27.7 32.8 8.6 65.1 50.5 48.5 24.4 45.8 43.3 36.1 42.0 76.7 13.4 80.9 55.6 3.5 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shop- ping · Dialog marketing
  32. 32. Shop the World 31 Receipt of mailings and catalogs · Australia in % * 5 and 63 and 41 and 2 DIALOG MARKETING Reading mailings and catalogs · in % *,** Australia Globally 22.4 30.4 47.3 22.1 35.2 42.7 5 and 63 and 41 and 2 Response to mailings and catalogs · in % *,** Australia Globally 28.1 49.1 22.8 29.0 45.8 25.3 Response channel for mailings and catalogs · Australia in % * Globally Website visits Visits to stores or branch offices Other online response (e.g. chat, Twitter, Facebook, newsletter registration, etc.) Email Phone call Business reply card 67.7 73.4 48.6 30.0 24.5 18.4 12.6 *Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Australia from 393 to 522 ** scale from 1 "never“ to 6 "almost always“ Dialog marketing popular Dialog marketing is widely used in Australia. At 42.6%, the number of people who receive one or more mailings and cat- alogs per week, is considerably higher than the global average of 26.9%. The approximately 11.2% of the online population that do not receive mailings is within the global average. Also, mailing recipients look forward to receiving these mails: At 47.3%, frequency in reading di- alog marketing mails is almost 5 percentage points higher than the global average. In contrast, recipients are less enthusiastic when it comes to responding via the established channels (e.g. via suppliers’ websites). They do, however, tend to go directly to an advertiser’s out- let or store (68.9% versus 48.6% globally). Globally One or more times per week One or more times per month Less than once per month Never 26.9 33.7 27.7 11.6 68.9 19.3 16.0 17.5 6.4 42.6 24.7 21.5 11.2 Country information Australia Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shop- ping · Dialog marketing
  33. 33. Country Information Austria Christian Austrian eCommerce clients are educated, young, security-conscious and live in rural areas. They love to shop abroad.
  34. 34. Shop the World 33 The Austrian economy * * Source: Fischer World Almanac 2014, Germany Trade & Invest ** Source: Metropolitan areas with 1 million inhabitants and more; United Nations, Department of Economic and Social Affairs, Po- pulation Division (2012). World Urbanization Prospects: The 2011 Revision, CD-ROM Edition. *** Source: Copyright © IHS, 2013. All rights reserved **** Source: Copyright © IHS, 2013. All rights reserved Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing After a poor fiscal year in 2012, Austria’s economy continued to stagnate throughout 2013. Unlike other European coun- tries, Austria avoided falling back into a recession but the economy only grew 0.5%. The low growth rate had the greatest impact on private households: while real earnings stagnated, the unemployment rate increased one percentage point to 7.6%. Private house- holds limited their consump- tion due to the economic un- certainty and domestic demand regressed. The outlook for 2014 appears much better however - at the start of the year Austrian companies reported their order books to be fuller than in recent years. 1.3 Population 0 - 15 years COUNTRY PROFILE AUSTRIA Number of households Ø Household size Unemployment rate Inflation rate 0.7 Economic growth · in % **** > > 0.5 2.9 2011 2012 2013 Age distribution · 2013 in mn. Population 65 years and older Population, total · 2013 in mn. 8.4 *** Population 16 - 64 years · 2013 in mn. · 2013 · 2013 in % · 2013 in % 3.6 2.3 7.6 2.0 5.6 1.5 Metropolitan areas with 1 million inhabitants or more · 2011 in thousands ** Vienna 1,708
  35. 35. Shop the World 34 23+6+1+7+14+37+12MEDIA USE IN AUSTRIA 25.2 161.2 Smartphone market penetration · in % ***** Representative domestic population 16+, n = 1,000 35.9 Internet users · 2012 per 100 people ** Permanent access to broadband internet · 2012 per100 people *** Cellphones · 2012 per 100 people **** 2012 2013 48.0 Share of adspend by medium · in % * TV Radio Movies Outdoor advertising Total advertising expenditure · in EUR bn. * Internet Newspapers Magazines > > * Source: Zenith Optimedia, 2013 ** Source: Copyright © IHS, 2013. All rights reserved *** Source: The World Bank **** Source: Copyright © IHS, 2013. All rights reserved **** Source: Our Mobile Planet: Google Global Smart phone Study 2013, http://www.thinkwithgoogle.com/mobileplanet/ 2011 2012 2013 2014 2015 3.4 81.0 3.3 3.3 3.3 3.3 2016 3.5 Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing 14.4 36.9 12.2 6.5 0.4 5.6 24.0 Internet use The extent to which the popu- lation uses the internet is an indicator of how important it is. 81% of all Austrians had in- ternet access in 2012, while 25% had a permanent broadband connection. The future of in- ternet growth is going mobile. According to experts, "on de- mand" TV, videos and films are the greatest drivers. In the land of newspapers and magazines Printed advertising has an high share in Austria‘s media mix, while internet expen­ditures are below the European average. Currently, the total advertising market is growing slightly at a rate of 1.2%.
  36. 36. Shop the World 35 Apparel and footwear Consumer electronics, computers + equipment Media products (books, CDs, DVDs, etc.) Housewares and home furni- shings + textiles Food + beverages Household and consumer appliances Beauty and personal care DIY and gardening OTC drugs and dietary supple- ments Traditional toys and games House cleaning (detergent, chastener, etc.) Fashion and media products Clothing and media products are bestsellers in Austria, fol- lowed by consumer electron- ics. Compared to the global average, toys are ordered more frequently, while cosmetics are less popular. DISTANCE SELLING IN AUSTRIA 785.1 Distance selling purchases in 2013 - trend for 2018 · in EUR mn. * 2013 2018 375.4 1112.7 617.2 173.0 149.3 189.3 105.9 141.4 71.0 67.3 48.7 44.3 86.5 43.8 10.3 Development of distance selling and share of total retail 2011 - 2018 · in EUR bn. * CAGR: 4.8% Home shopping Online shopping 1.8 2.2 2.6 0.6 0.6 0.6 2.9 3.5 0.6 0.5 2011 2012 2013e 2014e 2018e Share of total retail · in % 4.7 5.1 5.8 6.3 7.2 * Source: Euromonitor International 722.7 8.3 Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing 151.0 61.3 49.5 366.0
  37. 37. Shop the World 36 84+16 90+10 Top usage rates In Austria, distance selling purchases are very common. Almost 90% are users and al- most three quarters of the non- users want to become involved in the future. Use of distance selling · in % * 89.8 10.2 Austria Globally 83.5 16.5 Number of orders in the previous year · in % * 1 to 5 orders 6 to 10 orders 11 to 20 orders No orders 21.4 39.0 17.5 10.2 11.9 20.5 35.9 15.2 16.5 12.0 Future ordering behavior (current users) · in % * More frequently than in the last 12 months Just as frequently as in the last 12 months Less frequently than in the last 12 months 68.0 24.4 55.2 38.8 7.6 6.1 Non-users of distance selling - future plans · in % * Yes 73.5 Austria Globally Yes 70.5 No 26.5 No 29.5 Yes No Globally Austria Globally DISTANCE SELLING IN AUSTRIA * Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Austria from 34 to 510 Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing Austria More than 20 orders
  38. 38. Shop the World 37 Mobile is the current trend Active distance selling custom- ers have a unique profile in Austria: They are slightly older than the average population (78.9% over 30), live more of- ten in a rural area and also have a higher level of education. At 53.9%, the proportion of peo- ple living in smaller households (max. 2 people per household without children) is above aver- age. Consequently, this group rarely has a high household in- come. Mobile internet usage is widespread in Austria (76.1%). Traditional advertising media on the other hand is less valued than in the global average. DISTANCE SELLING IN AUSTRIA * Source: DHL Global Mail 2013 ∙ n from 2,661 to 11,265 ∙ n Austria from 112 to 510 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "abso- lutely not useful" to 6 "very useful" *** the top third of most active mail order users Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing *** Global* 54.5 Gender · in % Male Female Age · in % <30 yrs. 30-49 yrs. 50 yrs. + Occupation · in % Employed Unemployed Education · in % Lower educational level Medium and higher level of education 8.7 Media affinity: Online · in % yes** Community size · in % Rural (<50,000 inhabitants) Non-rural/urban (>50,000 inhabitants) Minors in the household · Ø Household type · in % Single 2-person household without children Household with children Household with 3 adults Mobile Internet usage · in % Yes No Gross household income · in % Low income Medium income High income Media affinity: Classic · in % yes** Media affinity: Dialog marketing · in % yes** 40.0 21.4 83.4 33.0 40.1 26.9 23.9 76.1 8.7 37.4 47.1 21.1 52.9 28.8 91.3 34.7 0.8 33.9 20.0 71.2 44.3 27.1 14.4 36.4 46.9 36.5 80.8 33.7 34.2 32.1 45.7 54.3 22.4 43.0 50.0 28.6 50.0 29.4 85.6 63.6 0.7 23.4 11.2 70.6 Austria* 45.4 29.5 20.3 63.4 41.5 24.2 77.7 27.4 37.9 34.7 32.8 67.2 14.4 30.5 50.0 25.2 50.0 31.0 79.7 36.6 0.6 35.4 19.7 69.0 24.4 65.3 Heavy users* Global heavy users*
  39. 39. Shop the World 38 Search engines Customer ratings in blogs or forums Product test ratings / expert test reports Product check in a retail store Retailer or manufacturer website Online marketplace Catalog Mail advertising Social media platforms such as Facebook and Twitter Apps (on smartphone, iPad, or tablet) Recommendations from friends, acquaintances, and colleagues Customer ratings on the supplier’s website Price comparison sites Large selection of products Recommendation and experiences of friends, acquaintances, and colleagues Official test seals, reviews, and test reports of independent institutions Attractive product line Favorable prices, promotions, & special offers Straightforward return process Free returns Choice of preferred payment methods Fast delivery Free delivery Good customer service Positive customer ratings on the internet Criteria for choosing a vendor · Austria in % * “CUSTOMER JOURNEY“ – SEARCHING FOR PRODUCT INFORMATION Search for product information · Austria in % * Globally 33.4 35.5 53.2 27.3 23.4 44.9 44.2 22.7 23.9 48.5 45.8 50.3 42.5 23.8 25.1 17.7 15.1 9.6 15.1 5.8 9.7 35.4 37.8 Globally 54.4 48.9 40.6 7.0 13.7 20.7 9.6 8.8 22.8 26.6 15.0 14.9 46.0 51.7 19.2 12.9 36.2 20.8 31.5 22.6 23.1 25.7 42.5 45.2 14.7 18.5 23.1 Customer reviews are important In Austria, customer reviews posted on retailer websites are extremely important when searching for information. Free returns are particularly rele- vant when selecting a product. * Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Austria from 453 to 489, multiple mentioning Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing
  40. 40. Shop the World 39 * Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Austria from 468 to 484 ** scale from 1 "absolutely not useful" to 6 "very useful“ Price checks are convincing Distance selling clients in Aus- tria generally make purchasing decisions based on information available online, mainly price comparison portals (59.4%) and search engines (57.6%). “Tradi- tional” catalogs from retailers continue to generate a great deal of interest, however. ACCEPTANCE OF ADVERTISING MEDIA Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing Usefulness of advertising media · in % *, ** 5 and 63 and 41 and 2 Ø 43.640.8 15.6 26.1 43.8 30.1 Online advertising Austria Globally Television advertising 5 and 63 and 41 and 2 3.0 3.6 Ø 40.144.9 15.0 30.6 41.8 27.6 2.9 3.4 41.844.3 13.9 38.7 40.4 20.9Social media Austria Globally Advertising letters 2.9 3.1 33.155.4 11.6 33.9 37.6 28.5 2.5 3.4 Product suggestions in online shops 50.326.9 22.8 18.9 45.1 36.0 3.4 3.9 33.29.2 57.6 6.5 28.7 64.8 4.6 4.8 30.99.7 59.4 9.1 31.7 59.1 4.6 4.6 50.130.3 19.6 29.9 43.9 26.2 Austria Globally Household advertising 3.3 3.4 46.037.3 16.7 29.0 46.7 24.3 Austria Globally Advertisements in mag- azines and periodicals 3.1 3.4 43.041.9 15.1 34.8 43.1 22.1 Austria Globally Advertisements in newspapers 3.0 3.2 36.654.9 8.5 41.8 40.7 17.6 Austria Globally Billboard advertise- ments 2.5 3.0 36.055.7 8.4 44.3 38.8 16.9 Austria Globally Radio 2.5 2.9 42.920.9 36.2 19.3 44.2 36.6 Austria Globally Catalogs from vendors 3.9 3.9 Austria Globally Globally Globally Internet search engines Globally Price comparison sites Globally Austria Austria Austria Austria
  41. 41. Shop the World 40 Online PC Online mobile (tablet, smartphone) By telephone In writing (by post, fax) By email Order in store & delivery to home Online marketplace Mail order company from which I received a catalog Merchant who advertises on TV Online shop of a manufaturer or retailer Use of different suppliers · in % * Never Seldom Frequently / very frequently Occasionally * Source: DHL Global Mail 2013 ∙ n Global from 9,270 to 9,446 ∙ n Austria from 451 to 457 Austria Global 79.9 2.7 2.6 6.2 75.0 3.2 2.1 4.4 “CUSTOMER JOURNEY“– PLACING ORDERS Online wins Austrian distance selling cli­ ents like to place orders online via PC (79.9% vs. 75% globally), whe­reas other ordering meth- ods are barely used. Online market­places are the most popular way of order- ing products. They are used frequently to very frequent- ly by 56,4% of Austrian dis- tance selling cli­ents. However, dispatchers who advertise their products on te­levision struggle in Austria. 82,1% claim never to have used a TV shopping chan- nel. 15.2 28.321.3 15.4 31.216.8 35.2 36.6 Austria Globally 10.7 56.46.6 9.9 54.38.7 26.4 27.0 30.2 17.223.8 38.5 12.622.8 28.7 26.1 82.1 1.811.7 60.2 6.617.6 4.4 15.7 7.0 10.5 1.6 4.8 Order channels · in % * Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing
  42. 42. Shop the World 41 Playing it safe Austrian distance selling cli- ents prefer to pay for goods only after receiving them: 36.1% use this payment method often (vs. 13.4% globally). In the interna- tional comparison, the high af- finity for paying by direct debit is significant. Credit cards and online payment systems on the other hand are used less fre- quently in the global compari- son. Cash on delivery, install- ment purchases/financing and debit cards play a minor role. Cash on delivery Prepayment Direct debit Credit card * Source: DHL Global Mail 2013 ∙ n Global from 9,218 to 9,324 ∙ n Austria from 451 to 455 “CUSTOMER JOURNEY“– PAYMENT METHODS Online payment systems Installment purchase / financing Debit card Invoice Payment options · in % * Never Seldom Frequently / very frequentlyOccasionally Austria Globally 36.2 11.9 19.1 32.8 29.3 9.8 18.7 42.3 69.7 17.3 7.9 5.1 55.8 16.3 16.1 11.7 54.1 23.4 15.1 7.5 53.4 16.1 15.5 15.0 45.6 17.6 16.3 20.5 56.0 15.5 16.4 12.1 23.5 18.0 22.4 36.1 54.4 15.8 16.3 13.4 46.0 14.1 18.7 21.3 33.3 12.9 20.1 33.7 87.4 5.5 4.6 2.4 78.0 9.5 8.1 4.4 94.9 2.5 1.51.1 55.1 10.8 15.7 18.4 Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing
  43. 43. Shop the World 42 The option of selecting the shipping company The vendor only works with reliable delivery companies Detailed information regarding de- livery period & delivery date when ordering Fast delivery Free delivery Tracking information Delivery to a retail store Delivery to a parcel locker or drop box Other collection points (supermar- ket, kiosk, gas station) Austria Globally 2.7 2.4 2.9 5.1 4.3 4.7 3.2 4.7 4.6 Max. accepted order time · Ø in days * 3.6 3.5 3.7 5.3 4.8 5.1 3.8 4.9 4.7 * Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Austria from 473 to 488 ** scale from 1 "absolutely not important“ to 6 "very important“ Rather undemanding While the expectations for delivery times are close to the global average (almost 7 days), Austrians are relatively un- demanding regarding other delivery requirements. “CUSTOMER JOURNEY“ – DELIVERY 1 2 3 4 5 6 Requirements for delivery · Ø *,** Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing 6.8 6.5 Austria Globally
  44. 44. Shop the World 43 47+5327+73+Number of returns per capita per year · Ø * Austria Globally 0.8 1.8 Return rate · in % * Austria Globally 5.9 13.4 Reasons for returns · Austria in % * Defective product 30.1 Percentage of users who returned goods · in % * 46.8 53.2 Austria Globally “CUSTOMER JOURNEY“ – RETURNSFrequent returns People living in German- speaking countries often have the possibility of returning goods free of charge, and this option is used extensively in Austria. Almost one out of every two clients has returned a product over the last 12 months. Austrian mail order clients tend to return goods if the product did not meet their requirements or they were generally dissatisfied with it. Austrians also like to order a selection of product variants to choose from (32.5% vs. 15.5% globally). 27.5 72.5 * Source: DHL Global Mail 2013 ∙ n Global from 2,648 to 9,325 ∙ n Austria from 206 to 441 Differing product description Delivery of the wrong product Wrong product was ordered Product did not fit Ordered multiple variants to choose from Delivery period too long Found less expensive product Deficient product quality Product was not liked 13.1 12.1 62.2 43.4 32.5 5.8 2.9 Globally 32.3 30.0 17.8 13.3 8.5 37.7 29.9 15.5 5.8 3.9 33.1 6.8 Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing Yes No
  45. 45. Shop the World 44 High delivery costs Uncertain delivery Concern about misuse of payment data No demand because all products are obtainable locally Long delivery times Unknown product quality No try-on possible before purchase Complicated return process No personal advice No personal contact person for problems Doubts regarding data protection or the dissemination of data to third parties Concern about counterfeited products, product piracy Product can only be obtained via distance selling Easy price comparison Shopping 24/7 Location-independent ordering Higher product quality Lower prices Greater selection Option to deliver to a preferred location DRIVERS & BARRIERS IN DISTANCE SELLING 50.8 54.6 72.6 63.5 7.8 59.1 46.0 67.3 48.3 51.9 69.5 24/7 shopping world In Austria, the around-the- clock nature of the distance sell- ing business is a decisive factor (79.8% vs. 72.6% globally). High delivery costs are a main purchasing barrier. Drivers · Austria in % * Globally * Source: DHL Global Mail 2013 ∙ n Global from 10,509 to 10,864 ∙ n Austria from 460 to 488 52.1 63.9 79.8 63.6 2.5 45.7 11.3 38.0 3.7 14.9 41.2 61.6 30.7 34.0 18.3 31.8 22.8 Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing Barriers · Austria in % * Globally 36.6 24.2 34.4 3.9 25.8 48.5 64.9 44.1 21.5 22.0 29.8 34.1
  46. 46. Shop the World 45 84+9+7 CROSS-BORDER SHOPPING – OVERVIEW Previous orders abroad Previous and future orders abroad by country · in % * China [17.0] Other European countries [14.2] 1 2 3 4 5 Germany [90.8] Great Britain [27.8] USA [23.1] Future orders abroad Austria * Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Austria from 371 to 440 ** split into "further orders planned“ 81.4% Austria and "no further orders planned“ 2.7% Austria Simply more possibilities The distance selling business in Austria is spreading quick- ly beyond the national borders without encountering lan- guage barriers: 84.1% of dis- tance selling clients have already placed orders abroad and import products predomi- nantly from neighboring Ger- many, followed by Breat Britain and the US. Only 8% would not order products from abroad. Great Britain [49.9] France [40.7] Germany [90.8] USA [51.2] Other European countries [51.1] Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing Use of cross-border eCommerce · in % * Yes, already ordered ** No, but future orders planned No, no future orders planned 7.9 84.1 8.0
  47. 47. Shop the World 46 Products not obtainable domestically Higher quality of the products Lower prices Greater selection Assurance against product counter- feiting High delivery costs Language problems Customs clearance Non-transparent costs Uncertainty with problems No demand because all products are obtainable locally Long delivery times Unknown product quality Complicated return process Concerns regarding data protection Fear of fraud Uncertain delivery Concern about misuse of payment data Uncertainty regarding warranty terms, payment process, legal situation, etc. Drivers for ordering abroad · Austria in % * Barriers to ordering abroad · Austria in % * Globally 73.3 24.2 62.9 41.2 11.7 Globally 53.7 31.6 41.3 41.3 33.3 12.5 56.1 35.7 50.8 24.5 41.6 39.5 31.6 39.3 Lack of choice at home Austrians are placing more and more orders abroad because of the greater product variety. High delivery costs and com- plicated return processes are seen as main obstacles. CROSS-BORDER SHOPPING – DRIVERS & BARRIERS * Source: DHL Global Mail 2013 ∙ n Global from 7,289 to 10,689 ∙ n Austria from 408 to 479 61.0 23.0 49.0 41.4 31.9 8.3 40.5 26.9 58.2 24.0 43.9 34.1 36.8 38.7 80.9 7.1 66.3 37.3 2.0 Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing
  48. 48. Shop the World 47 Receipt of mailings and catalogs · Austria in % * 5 and 63 and 41 and 2 DIALOG MARKETING Reading mailings and catalogs · in % *,** Austria Globally 23.6 37.4 39.1 22.1 35.2 42.7 5 and 63 and 41 and 2 Response to mailings and catalogs · in % *,** Austria Globally 28.5 54.3 17.2 29.0 45.8 25.3 Response channel for mailings and catalogs · Austria in % * Globally Website visits Visits to stores or branch offices Other online response (e.g. chat, Twitter, Facebook, newsletter registration, etc.) Email Phone call Business reply card 72.8 73.4 48.6 30.0 24.5 18.4 12.6 * Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Austria from 424 to 510 ** scale from 1 "never“ to 6 "almost always“ Widespread distribution of mailings The concentration of mailings in Austria is much higher than the global reference value: 58.9% (vs. 26.9% globally) receive mailings and catalogs once a week or more. Only 3.9% received no mailings at all over the last 12 months. However, reading and response rates are slightly below global average. By far the most common res- ponse channel is visiting the provider‘s website. Austrians also like visit to the local store. Globally One or more times per week One or more times per month Less than once per month Never 26.9 33.7 27.7 11.6 52.7 21.7 17.8 4.0 9.2 58.9 23.0 14.1 3.9 Country information Austria Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing
  49. 49. Country Information Brazil Juliana, Camila, and Maiza Brazil’s heavy users are young, urban, have high-incomes, are media savvy, price-conscious… and wild about consumer electronics.
  50. 50. Shop the World 49 51.9 Population 0 - 15 years The Brazilian economy * COUNTRY PROFILE BRAZIL São Paulo 19,649 Rio de Janeiro 11,867 * Source: Fischer World Almanac 2014, Germany Trade & Invest ** Source: Metropolitan areas with 1 million inhabitants and more; United Nations, Department of Economic and Social Affairs, Po- pulation Division (2012). World Urbanization Prospects: The 2011 Revision, CD-ROM Edition. *** Source: Copyright © IHS, 2013. All rights reserved **** Source: Copyright © IHS, 2013. All rights reserved Number of households Ø Household size Unemployment rate Inflation rate 0.9 Economic growth · in % **** > > 2.1 2.7 2011 2012 2013 Age distribution · 2013 in mn. Population 65 years and older Population, total · 2013 in mn. 198.4 *** Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing Population 16 - 64 years · 2013 in mn. · 2013 · 2013 in % · 2013 in % 54.7 3.6 5.4 6.2 The slow-down of the glob- al economy and decreasing demand for raw materials has had an adverse affect on the Brazilian economy. In 2012, economic growth reached just 0.9% and the business cycle is only slowly gaining momen- tum. The largest and most populated country in Latin America currently finds itself in transition: From an aspiring emerging nation with press- ing modernization demands in many areas, to a modern and efficient business location. Despite all assurances, signifi- cant structural improvements are not expected in 2014. This is due to the World Cup and also a spending freeze in the run-up to presidential and governor elections. 131.7 14.7 Belo Horizonte 5,407 Salvador 3,947 Pôrto Alegre 3,892 Brasília 3,701 Fortaleza 3,520 Recife 3,684 Curitiba 3,118 Campinas 2,794 The ten largest metropolitan areas in Brazil · 2011 in thousands. **
  51. 51. Shop the World 50 71+4+1+4+5+10+5 MEDIA USE IN BRAZIL 9.2 125.2 Smartphone market penetration · in % ***** Representative domestic population 16+, n = 1,000 13.8 Internet users · 2012 per 100 people ** Permanent access to broadband internet · 2012 per 100 people *** Cellphones · 2012 per 100 people **** 2012 2013 26.3 Share of adspend by medium · in % * TV Radio Movies Outdoor advertising Total advertising expenditure · in EUR bn. * Internet Newspapers Magazines > > * Source: Zenith Optimedia, 2013 ** Source: Copyright © IHS, 2013. All rights reserved *** Source: The World Bank **** Source: Copyright © IHS, 2013. All rights reserved **** Source: Our Mobile Planet: Google Global Smart phone Study 2013, http://www.thinkwithgoogle.com/mobileplanet/ 2011 2012 2013 2014 2015 14.7 49.8 14.0 12.8 11.9 11.2 2016 15.8 Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing 4.5 10.2 5.6 3.5 0.3 4.1 71.9 Internet use Of the approximately 198 mil- lion population, only about half had access to the internet in 2012. Yet due to the public fund- ing of PCs, laptops, tablets, and smartphones, more and more Brazilians are rushing to the web, particularly those in the low-income bracket. Soccer and social media TV is still the dominant medi- um in South America's largest advertising market. Due to the World Cup, expenditures for TV will increase by another 12% in 2014 - the total market shows a strong 9% growth. In- ternet expenditures are record- ing the strongest growth, driven by social media. After the US, Brazil is the second largest market worldwide for Facebook, Twitter, and You- Tube.
  52. 52. Shop the World 51 Enthusiastic technology buyers With 42% total share, Bra- zil is the largest distance sell- ing business market in Latin America. Brazilians purchase consumer electronics most fre- quently, followed by household appliances. Clothing takes only fourth place, despite being first worldwide. DISTANCE SELLING IN BRAZIL 1,440.2 Distance selling purchases in 2013 - trend for 2018 · in EUR mn. * 2013 2018 Apparel and footwear 4,814.3 3,324.2 1,537.8 947.2 228.7 166.5 353.0 1,315.8 2,352.2 610.8 94.7 78.0 27.3 329.7 153.5 18.6 Consumer electronics, computers + equipment Media products (books, CDs, DVDs, etc.) Housewares and home furnishings + textiles Food + beverages Household and consumer appliances Beauty and personal care DIY and gardening OTC drugs and dietary supple- ments Traditional toys and games House cleaning (detergent, chastener, etc.) Development of distance selling and share of total retail 2011 - 2018 · in EUR bn. * CAGR: 13.6% Home shopping Online shopping 6.0 7.0 8.2 0.4 0.4 0.5 9.3 15.8 0.5 0.5 2011 2012 2013e 2014e 2018e Share of total retail · in % 2.9 3.0 3.3 3.5 5.0 * Source: Euromonitor International 755.1 17.8 Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing 243.3 365.7 49.8
  53. 53. Shop the World 52 84+1678+22 Distance selling business set to grow Brazil’s consumer activity in the distance selling business is still below the global average. But a shopping boom is expect- ed in the future: 57.7% have ex- pressed the desire to buy more. Use of distance selling · in % * 78.5 21.5 Brazil Globally 83.5 16.5 Number of orders in the previous year · in % * 1 to 5 orders 6 to 10 orders 11 to 20 orders No orders 21.2 37.1 15.0 21.5 5.1 20.5 35.9 15.2 16.5 12.0 Future ordering behavior (current users) · in % * More frequently than in the last 12 months Just as frequently as in the last 12 months Less frequently than in the last 12 months 38.9 57.7 55.2 38.8 3.3 6.1 Non-users of distance selling - future plans · in % * Yes 71.0 Brazil Globally Yes 70.5 No 29.0 No 29.5 Yes No Brazil Globally Brazil Globally DISTANCE SELLING IN BRAZIL * Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Brazil from 86 to 512 Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing More than 20 orders
  54. 54. Shop the World 53 Globally* 44.3 Gender · in % Male Female Age · in % <30 yrs. 30-49 yrs. 50 yrs. + Occupation · in % Employed Unemployed Education · in % Lower educational level Medium and higher level of education 2.8 Media affinity: Online · in % yes** Community size · in % Rural (<50,000 inhabitants) Non-rural/urban (>50,000 inhabitants) Minors in the household · Ø Household type · in % Single 2-person household without children Household with children Household with 3 adults Mobile Internet usage · in % Yes No Gross household income · in % Low income Medium income High income Media affinity: Classic · in % yes** Media affinity: Dialog marketing · in % yes** 49.7 42.9 88.4 47.1 38.4 14.6 35.2 64.8 21.1 55.1 47.7 44.1 52.3 14.9 97.2 87.7 0.9 21.1 2.7 85.1 Heavy users: young and urban Brazil’s ‘heavy users,’ (par- ticularly active distance selling customers) have been clearly profiled: They are young. i.e. under 50 with a large percent- age (44.1%) under 30. And while the global average shows more women ordering online, in Bra- zil there are slightly more men. It is also noticeable that Brazil’s heavy users originate primarily from urban locations (87.7%). Consequently, the young and urban target group also has a high income and is very media savvy: Almost half have a high income and they are above all open-minded with regard to online media, and dialog and traditional marketing. DISTANCE SELLING IN BRAZIL * Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Brazil from 138 to 512 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users 44.3 27.1 14.4 36.4 46.9 36.5 80.8 33.7 34.2 32.1 45.7 54.3 22.4 43.0 50.0 28.6 50.0 29.4 85.6 63.6 0.7 23.4 11.2 70.6 Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing *** Brazil* 42.9 20.2 6.9 17.3 45.9 41.6 86.9 35.0 40.9 24.2 54.4 45.6 19.8 55.1 50.8 36.9 49.2 26.5 93.1 82.7 0.9 19.5 5.6 73.5 11.6 12.3 Heavy users* Global heavy users*
  55. 55. Shop the World 54 “CUSTOMER JOURNEY“ SEARCHING FOR PRODUCT INFORMATION Search for product information · Brazil in % * Globally 40.3 35.5 53.2 27.5 23.4 55.3 44.2 13.7 23.9 50.2 45.8 33.6 42.5 18.2 25.1 17.2 15.1 25.9 15.1 8.0 9.7 48.2 37.8 Criteria for choosing a vendor · Brazil in % * Globally Search engines 54.9 Customer ratings in blogs or forums Product test ratings / expert test reports Product check in a retail store Retailer or manufacturer website Online marketplace Catalog Mail advertising Social media platforms such as Facebook and Twitter Apps (on smartphone, iPad, or tablet) Recommendations from friends, acquaintances, and colleagues 52.6 40.6Customer ratings on the supplier’s website Price comparison sites Large selection of products Recommendation and experiences of friends, acquaintances, and colleagues Official test seals, reviews, and test reports of independent institutions Attractive product line Favorable prices, promotions, & special offers Straightforward return process Free returns Choice of preferred payment methods Fast delivery Free delivery Good customer service Positive customer ratings on the internet 20.7 13.7 20.7 2.6 8.8 29.4 26.6 10.3 14.9 44.2 51.7 9.6 12.9 15.2 20.8 24.6 22.6 37.9 25.7 44.8 45.2 19.8 18.5 18.9 Price-conscious consumers Both during the information search and retailer selection, Brazilians keep an eye on their pocketbooks. Price comparison sites as well as low prices and free delivery are of greatest impor- tance. * Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Brazil from 401 to 468, multiple mentioning Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shop- ping · Dialog marketing
  56. 56. Shop the World 55 Usefulness of advertising media · in % *, ** 5 and 63 and 41 and 2 Ø 29.227.7 43.1 26.1 43.8 30.1 Online advertising * Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Brazil from 455 to 463 ** scale from 1 "absolutely not useful“ to 6 "very useful“ Ready for recommendations Brazil’s distance selling cus- tomers are active, web-savvy consumers. They find online media consistently valuable. Typical of the country is the strong orientation towards recommendations in social net- works and product recommen- dations in online shops. ACCEPTANCE OF ADVERTISING MEDIA Brazil Globally Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing Television advertising 5 and 63 and 41 and 2 3.8 3.6 Ø 31.625.9 42.5 30.6 41.8 27.6 3.9 3.4 30.344.7 25.0 38.7 40.4 20.9Social media Brazil Globally Advertising letters 3.0 3.1 27.425.2 47.4 33.9 37.6 28.5 4.0 3.4 Product suggestions in online shops 34.217.0 48.8 18.9 45.1 36.0 4.2 3.9 20.26.6 73.2 6.5 28.7 64.8 5.1 4.8 22.110.7 67.2 9.1 31.7 59.1 4.8 4.6 34.035.7 30.4 29.9 43.9 26.2 Brazil Globally Household advertising 3.4 3.4 33.335.7 31.0 29.0 46.7 24.3 Brazil Globally Advertisements in mag- azines and periodicals 3.4 3.4 33.941.6 24.4 34.8 43.1 22.1 Brazil Globally Advertisements in newspapers 3.1 3.2 28.850.2 21.0 41.8 40.7 17.6 Brazil Globally Billboard advertise- ments 2.8 3.0 27.950.7 21.5 44.3 38.8 16.9 Brazil Globally Radio 2.8 2.9 30.338.5 31.1 19.3 44.2 36.6 Brazil Globally Catalogs from vendors 3.3 3.9 Brazil Globally Brazil Globally Brazil Globally Internet search engines Brazil Globally Price comparison sites Brazil Globally
  57. 57. Shop the World 56 Online PC Online mobile (tablet, smartphone) By telephone In writing (by post, fax) By email Order in store & delivery to home Online marketplace Mail order company from which I received a catalog Merchant who advertises on TV Online shop of a manufaturer or retailer Use of different suppliers · in % * Never Frequently / very frequently Occasionally * Source: DHL Global Mail 2013 ∙ n Global from 9,270 to 9,446 ∙ n Brazil from 393 to 402 Brazil Globally 71.1 3.4 1.1 6.9 75.0 3.2 2.1 4.4 “CUSTOMER JOURNEY“– PLACING ORDERSOrders primarily online When it comes to ordering methods, Brazilian distance selling customers match the global trend: Nine out of ten order online with a PC, a smart phone, or by email. Only a small number order locally in a store and have it delivered to their home, or order by tele- phone. But Brazil goes its own way when selecting a distance selling business. Most custom- ers choose a manufacturer or retailer’s online shop (56.8% “frequent use” versus 31.2% globally). Online marketplaces take second place (39.2%), com- pared to first place in the global average (54.3%). Openness to teleshopping is also noticeable: 60.4% of Brazilians buy via tele- shopping, whereas the global average is only 39.9%. 7.8 56.89.3 15.4 31.216.8 26.1 36.6 Brazil Globally 16.8 39.213.5 9.9 54.38.7 30.5 27.0 42.4 15.421.5 38.5 12.622.8 20.7 26.1 39.6 16.924.2 60.2 6.617.6 19.3 15.7 9.6 10.5 7.8 4.8 Order channels · in % * Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing Seldom
  58. 58. Shop the World 57 Credit cards way in front Brazilians prefer simple pay- ment methods for their orders. The vast majority frequently uses credit cards (66%) compa- red with only 42.3% globally. Furthermore, debit/direct de- bit and prepayment are more frequent than the global com- parison. The consumer-orien- ted target group also likes to use the option of installment buying/financing. Almost 30% use financing, at least occasion- ally, compared to only 12.5% globally. Online payment sys- tems are below the interna- tional figure and ‘not used very frequently’: 23.9% versus 33.7% (globally). Cash on delivery Prepayment Direct debit Credit card * Source: DHL Global Mail 2013 ∙ n Global from 9,218 to 9,324 ∙ n Brazil from 391 to 400 “CUSTOMER JOURNEY“– PAYMENT METHODS Online payment systems Installment purchase / financing Debit card Invoice Payment options · in % * Never Frequently / very frequentlyOccasionally Brazil Globally 9.5 6.8 17.6 66.0 29.3 9.8 18.7 42.3 58.4 14.6 19.5 7.5 55.8 16.3 16.1 11.7 36.6 18.6 19.6 25.2 53.4 16.1 15.5 15.0 39.0 19.8 23.3 17.9 56.0 15.5 16.4 12.1 50.9 14.3 15.8 18.9 54.4 15.8 16.3 13.4 30.6 17.1 28.4 23.9 33.3 12.9 20.1 33.7 54.2 17.7 15.2 12.9 78.0 9.5 8.1 4.4 41.4 17.7 19.8 21.0 55.1 10.8 15.7 18.4 Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing Seldom
  59. 59. Shop the World 58 The option of selecting the shipping company The vendor only works with reliable delivery companies Detailed information regarding de- livery period & delivery date when ordering Fast delivery Free delivery Tracking information Delivery to a retail store Delivery to a parcel locker or drop box Other collection points (supermar- ket, kiosk, gas station) Brazil Globally 3.6 3.8 4.3 5.2 5.3 5.3 4.4 5.3 5.0 Max. accepted order time · Ø in days * 3.6 3.5 3.7 5.3 4.8 5.1 3.8 4.9 4.7 * Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Brazil from 439 to 462 ** scale from 1 "absolutely not important“ to 6 "very important“ Patience in the flatland Brazilians will wait patiently even if delivery takes a little longer: They accept three days more than the typical global customer. Certain delivery fac- tors are nevertheless important: Price, speed, tracking informa- tion, and delivery date. "CUSTOMER JOURNEY“ – DELIVERY 1 2 3 4 5 6 Requirements for delivery · Ø *,** Country information Brazil Country profile · Media Use · Distance selling · “Customer jour- ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing 9.3 6.5 Brazil Globally

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