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E-commerce in Belgium
Overview by the numbers




by @tomstaelens
There’s a lot of online knowledge available on
e-commerce in Belgium. By sifting through as
much data as possible, we intent to get an as
accurate as possible view on what is
happening in the online sales sphere, where
opportunities and learnings can be found.
Overview

1. Who’s buying?
2. Who’s selling?
3. E-shopping in Belgium
4. A shift to online
5. Market size
Overview

6. Pre-shopping
7. Our online wallet
8. Our online shopping cart
9. Why online
10.So.Lo.Mo
Who’s buying?
Consumer profile
Consumer profile (2012)
             Dutch                 56%            Male     55%
            French           48%                Female    50%



             18-27            57%           < 2500 euro   50%
             28-43             59%       2500-3499 euro     57%
             44-59          49%             > 3500 euro      60%
               60+        42%

% of Belgian population; gross income
fast upcoming group :
                                                                                            Younger people,
                                                                                           women and people
        New consumers (2012)                                                              with a lower income


           Family with kids               35%                                Male      29%
      Couple without kids                  38%
      Singles without kids              25%
                                                                           Female        39%



                       18-27             42%                           < 2500 euro       36%
                       28-43           28%                          2500-3499 euro     30%
                       44-59            36%                            > 3500 euro   18%
                         60+            35%

% of Belgian population, first online purchase in the last 2 years
no significant changes
                                                                                compared with 2011
        Repeated buying (2012)

                                   Weekly/monthly           16%

                                Within 1-6 months                         54%

                               Within 6-12 months                   23%

                                             > yearly    7%




% of Belgian population, first online purchase in the last 2 years
Preferential sites - Youth
                                 Media site (hln, stubru, …)                            45%
          Sharing site (Fotolog, Youtube, ThePirateBay, ...)                   31%
             Technological website (Firefox, Microsoft, ...)                  29%
                         Recreational site (travel, sport, ...)              25%
                                         Sales site (Ebay, ...)        15%              Much more numerous among:
                                                                   10%              ‣
                     Game site (Casino, jeuxvideo.com, ...)                              Secondary art education (+21%)
                                                                                    ‣
                      Community site (blogs, facebook, ...)       5%                     1st-2nd secondary education (+10%)
                                                                                    ‣
                      Research site (Google, Wikipedia, ...)      2%                     5th-6th secondary education (+15%)
                                                                                    ‣
                                Adult site (Meetics, XXX, ...)    1%                     Rural Flemish youth (+9%)
                                                                                    ‣
                                                                                         Families with 2 to 3 people (+14%)


October 2010 - January 2011; Youth = 10-17 years old
Online purchasing - Youth
                                                       45% uses the family
                                                           bank card

                                                                     ‣
                                                                             Mainly 14 to 16 years old
                                     Purchasing                      ‣
                                       23,0%                                 Average of 1,5 purchases in the last
                                                                             month
                                                                     ‣
                                                                             Guys buy mainly games
                                                                     ‣
                                                                             Girls buy mainly clothes and shoes

           Not purchasing
               77,0%



October 2010 - January 2011; Youth = 10-17 years old
Online loyalty - Belgium



                                                                    89%
                                              84%
                                                 2011               2012




% of Belgian population, first online purchase in the last 2 years
Net promotor score - Belgium
        Q: How likely are you to recommend ‘website’ to a friend, on a scale from 0 to 10?

                    Toys                                        40%

          Entertainment                                             42%

                   Food                                         40%

        Health & Beauty                                        39%

                  Books                                        39%

                   Sport                                                  52%

                    DIY                                             41%

                 Electro                                     37%

                 Fashion                         25%

                 Interior     5%

                Telecom            9%

% of Belgian population, first online purchase in the last 2 years
17% of EU consumers reported they had problems
when buying something in their country

          Complained when experiencing a problem
          Satisfied with the way in which their complaints where handled

                                                        Belgium : 61%



           77%                             80%
                        52%                              58%

                   2010                             2011
                                        Yet, almost half (45%) of those
                                        who were not satisfied did not
                                        seek further redress.
Google trusted stores

BE Commerce

Unizo

Safeshops
A Forrester study shows that, when e-
merchants suggest relevant products, they
increase the average basket by 47% and the
number of products sold by 27%.

Persuasive personalization can improve
conversion rates up to 40%.
Amazon used Facebook.com’s social graph to define what influences each site
visitor : customer reviews, comments from friends, expert advice, or
promotions. They also connected an identified stimulus for one person to similar
purchasing habits for any products.
Conclusions
‣   In the near future, all consumer groups will be
    equally represented in e-commerce.
‣   Belgians are (increasingly) loyal, and an average
    of 40% would recommend their preferred e-shop.
‣   We easily complain, and are being helped when
    doing so.
Who’s selling?
E-shop profile
Websites in Belgium

Clear difference between
 Flanders and Wallonia




                               ‘Liège’ stands out clearly
                                    within Wallonia
Percentage of websites in
              Belgium
                                                18%
                                                           16%
                                    12%   13%

% of region’s companies
who own a website
                                                      9%
38-42% : Antwerp, Brussels,
Namur, East Flanders, Fl. Brabant
and Wal. Brabant
35% : Limburg
33% : Luxembourg
29% : Liège
26% : Hainaut
E-commerce websites in
Belgium
                         21,2%
                                       8,5%     11,7%
       13,0%    15,1%
                          9,5%


                         4,2%
                  5,5%                   6,5%

                                3,1%


               Total                   1,7%
               27.541
E-commerce in Belgium is also
foreign companies
‣   60% of the keywords that are being advertised on
    in Belgium, are owned by foreign companies.
‣   For every € 1 that we export, other companies
    are importing € 1,5.
General trust in e-commerce
Belgium
        Trust in the security of e-commerce (Belgium)




                                        70%
        64%
          2011                             2012
Safety concerns (EU)
‣       Fraudulent advertisements and offers were still
        spotted by :
    ‣    29% of consumers
    ‣    23% of retailers           29% of fraud stays unsolved
1/2 describes internet fraud
as payment fraud

eg. hacked payment website
Only 1/2 of online shoppers prefer to buy from a
Belgian shop than from a foreign shop.

We are playing it rather safe when it comes to
buying products or services from other internet
users or unknown websites.
SME online intentions (2010)
% SME companies actively selling and/or promoting online their products and services


         13%
                             14%
                                                                                                                                                                        Planning to use
                                                                                                                                                                        Currently using
                                                13%                                 11%

                                                                                                                       13%
         59%                                                      8%
                             54%
                                                                                                                                                   11%
                                                35%                                 37%               11%
                                                                                                                                                              8%
                                                                  23%                                                  26%
                                                                                                      11%                                          15%        11%
          SEM Optimization




                             E-mail marketing




                                                SEM advertising




                                                                  Display banners




                                                                                    Online ordering




                                                                                                      Online payment




                                                                                                                       Social media profile page




                                                                                                                                                   Blogging




                                                                                                                                                              Twitter
Conclusions
‣   Flanders (and mainly Antwerp) is much stronger
    represented in e-commerce than Wallonia.
‣   But our strongest competition comes from
    behind the Belgian borders.
‣   We buy mainly local, as we have trust in Belgian
    e-shops.
Conclusions
‣   SEM and e-mail marketing are the main
    promotional effort, and efforts herein are
    increasing.
‣   Social had (in 2010) still ground to cover, but is
    growing.
E-shopping in Belgium
Belgium vs EU
EU consumers still prefer to buy goods and
services in their own country even though the
past five years have seen a steady, if slow,
increase in the level of cross-border shopping.
Domestic e-commerce shopping
‣     43% of EU-consumers bought over the internet
      in 2011 (versus 40% in 2010)              Belgium = 43%
                                          Highest : UK & Sweden (71%)
                                             Lowest : Romania (6%)


    Buying from domestic seller   Buying from other EU country

        2010         2011             2010                2011
        36%           39%              9%                  12%
Cross-border e-commerce in
       Belgium
                                                 Cross-border shopping by Belgians

                                                        10% of Belgians
6% lower than the EU
                                                      bought solely from a
      average
                                                      non-Belgian country


                                                                                             43%
                            33%                               24%
                          From national seller       From sellers in other EU countries   Total online shopping




                                                         Double of the
                                                       European average!

% of Belgian population
Cross-border e-commerce in
       Belgium
                                                       Cross-border shopping by belgians




                                                                                                 100%
                                  77%
                                                                    56%
                                From national seller       From sellers in other EU countries   Total online shopping



                                                     Mainly in France (42%), the
                                                 Netherlands (38%), Germany (26%),
                                                      UK (20%) and US (14%)
% of Belgian online consumers
For 50% of the product searches, prices are 10%
cheaper when buying cross-border than buying
from a belgian web shop.

65% of the products we search are only available in
foreign shops.
Cross-border e-commerce
                                                                                     Mainly Luxembourg (19%),
                         Bought cross-border in a Belgian shop                       the Netherlands (15%) and
                         EU-consumers purchasing online cross-border within the EU         France (15%)


E-commerce shopping from non-
EU sellers is in average half of
that of shopping from EU-sellers                                               18%
eg. 2011 : 6%



                                                                               12%
                7%                 9%           9%              9%
                 2006              2008          2009            2010            2011
Correlation between online
sales and broadband
penetration
E-commerce in enterprises
             Europe                 Belgium




                  23%
      14%                               12%
                             6%
      Sales in own country   Sales cross-border
Share of e-commerce in
retail sales of the GDP
   Europe (by 2015)   Belgium (in 2010)


      E-commerce        E-commerce
          3,4%              0,5%




   GDP Europe          GDP Belgium
     96,6%               99,5%
Value of total retailing and
internet retailing in 2010
Share of the internet of GDP
     Belgium (in 2009)   The Netherlands (in 2009)


             2,5%                    4,3%




           97,5%                   95,7%



     Belgium (by 2015)   United Kingdom (in 2009)


              4,6%                    7,2%




           95,4%                  92,8%
E-commerce in Belgium
                           Number of                                       Spending       Average    Average
                                             Revenue (shops)   Growth
                          transactions                                   (consumers)      revenue   spending

            2007            4.500.000         460.000.000 €             989.000.000 €      102 €     220 €


            2008            6.400.000         590.000.000 €    28,3%    1.325.000.000 €    92 €      207 €


            2009            8.400.000         705.000.000 €    19,5%    1.600.000.000 €    84 €      190 €


            2010           10.700.000         903.000.000 €    28,1%    1.756.000.000 €    84 €      164 €


            2011           13.200.000        1.118.000.000 €   23,8%    2.355.700.000 €    85 €      178 €


            2012           15.454.000        1.367.602.000 €   22,3%    2.815.861.000 €    88 €      182 €




Light grey = extrapolation based upon given numbers
EU action plans by 2015
‣   50% of EU-consumers buy online
‣   20% of EU-consumers buy cross-border (EU)
‣   Double the share of e-commerce in retail sales
    (currently 3,4%)
‣   Double the share of e-commerce on GDP
    (currently 3%)
Conclusions
‣   We buy mainly from a national seller.
‣   Growing trend of buying cross-border.
‣   When buying cross-border, EU-citizens buy
    mostly from neighboring countries.
Conclusions
‣   Belgians buy up to 2 times more cross-border
    than the EU-average.
‣   But we also sell 6% more to other Europeans
    than the EU-average.
‣   10% of belgians only shop cross-border.
Conclusions
‣   We buy cross-border because of price and
    product range.
‣   In 2012, we will lose about 1500 million euro to
    cross-border e-shops.
Conclusions
‣   We rank 5th within the EU in enterprises selling
    in their own country, and shared 3th (!!!) when it
    comes to selling cross-border.
‣   We rank only in the middle of the EU when it
    comes to online shopping.
Conclusions
‣   The EU average of online revenue is 215% of that
    of Belgium, with Germany having a value of
    internet retailing of almost 1800% of that of
    Belgium.
Is there still room
    for growth?

17-25%/year
 Expected growth of the internet market
A shift to online
Online vs Offline shopping
Frequency of where I shop
                                                                                       53% in Flanders and
                                                                                      57% in Brussels. Only
   Center of the city where I live                 47%                                  35% in Wallonia.

 Center of the city where I work            35%
Shopping center outside the city           28%
                                                                       Tops the list in
                      A webshop      13%                              Wallonia with 41%

    Shop at the side of the road     8%
                                                  Expected to lose
                                                 heavily frequency-
                                                   market share
Substitution offline purchases
of people already buying online


                                          2011                     2012




            42%
                           36%                                         35%
                                                 27% 29%           31%
             Mainly new/extra purchases            Both    Mainly replacements of previous offline purchases
Online purchase
Future intention to buy on the internet


                                2011                              2012




                                 53%       48%
                       41%
            31%
                                                 13%         9%
                                                                         2%         2%
                Certainly            Probably      Neutral                    Not
Conclusions
‣   Those experienced with online shopping, are
    shifting from new and extra purchases towards
    replacement purchases.
‣   Cannibalization today is rather limited to 50%,
    but is growing.
‣   The growth of online shoppers will continue.
Market size
Facts & numbers
Market size - E-commerce 2012
‣       Revenue from the home market
    ‣       € 1.095.838.980
‣       Cross-border revenue
    ‣       € 240.550.020
        ‣    Luxembourg : € 45.704.504
        ‣    The Netherlands : € 36.082.503
        ‣    France : € 36.082.503
Market size - E-commerce 2012
‣       Money that we lose to cross-border competition
    ‣    € 1.479.472.000
9%
   Automotive




                                                    92%




                   6%
     Cosmetics

                                                        93%
                                                               Online vs offline purchases




               0%
     Groceries
                                                         99%




Health Products
                   4%
                                                        95%




                    12%




  Car Insurance
                                                   87%




                    12%




Home Insurance
                                                   87%




                        18%




 Personal Loans
                                                                                Purchases per sector



                                                  81%




                        18%




 Cinema tickets
                                                  81%


                                    44%




   Event tickets
                                      55%

                              30%




    Real estate
                                            69%
15%
                              Books




                                                   84%




                                         13%
                         CDs/DVDs




 14% in the UK
                                                   86%
                                                               Online vs offline purchases




                                        7%
            Clothes & Accessories
                                                     92%




DIY, tools, garden equipment            2%
                                                         97%




                                         9%




                 Domestic appliances
                                                    90%




                                        2%




                           Footware
                                                         97%




                                        3%




       Gifts, Flowers, Greetings
                                                                                Purchases per sector


                                                         96%




                                        5%




  Home furnishing/furniture
                                                     94%




                                        4%




Home and household goods
                                                     95%




                                        6%




                  Personal appliances
                                                     93%
16%
              Sport equipment




                                                 83%




                                  6%
                          Toys

                                                      93%
                                                            Online vs offline purchases




                                    17%
                 Audio devices
                                                 82%




                                    17%
          Computer hardware
                                                 82%




                                       18%




          Compuer peripherals
                                                81%




                                         25%




Computer software/video games
                                               74%



                                       20%




      Digital camera/camcorder
                                                                             Purchases per sector



                                                79%




                                   13%




                 Mobile phone
                                                     86%




                                   16%




     Mobile phone subscription
                                                 83%




                                   14%




               Printer supplies
                                                 85%
European average is 60%
                                                                                                                      online purchases for travel
Purchases per sector
Online vs offline purchases




                               83%
                                                             66%                                                                                    64%
                                                                                  52%                           55%
                                                                   47%                  44%
                                     33%                                                                                   35%
        16%
              Visual devices




                                           Business travel




                                                                         Hotels




                                                                                              Leisure flights




                                                                                                                                 Package holidays
Growth
 ‣   SME with e-commerce have grown 3,7% in
     2011.
 ‣   They grow 4 times more than SME without e-
     commerce.
Cross-border opportunity
 ‣   SME with e-commerce sell in average 17,4% to
     foreign countries.
 ‣   SME without e-commerce sell in average
     12,4% to foreign countries.
Conclusions
‣   SME with e-commerce activities, are growing
    faster and selling more cross-border.
‣   Adapting for Luxembourg, the Netherlands and
    France are real opportunities to increase sales
    cross-border.
Conclusions
‣   Today, most purchases are still taking place
    offline, providing large growth opportunities for
    online sales.
Pre-shopping
Research methods
Online price research - Youth


                 ‣
                     average : 16,7 times a week
                 ‣
                     16 + : 80%


 No       Yes
49,0%    51,0%
                 Brussels           62%

                 Wallonia          60%

                 Flanders         45%
Online purchase - Youth


                              ‣
                                  Purchasing mainly happens in physical
                                  stores
                 Purchasing   ‣
                                  87% does not share their experiences
                   37,0%


Not purchasing
    63,0%
Information sharing - Youth

                  Clothes, shoes                     36%
  Scooter and driving equipment                20%
                          Games             15%
                      Cellphones            15%            Mainly girls (+25%)
                            Music          12%
             Services (travel, ...)   5%
               Internet services      5%
                              Hifi    5%
                           Books      5%
                             Toys     4%
             Leisure equipment        1%
                             Ipod     1%
From research to purchase
Online vs offline purchase
From research to purchase
Online vs offline purchase
From research to purchase
Online vs offline purchase
From research to purchase
Online vs offline purchase
From research to purchase
Online vs offline purchase
From research to purchase
Online vs offline purchase
From research to purchase
Online vs offline purchase
Conclusions
‣   The impact of online research on sales is the
    strongest for travel related products and services.
‣   For 16-17 year old youth, online is an important
    resource for comparing products and services.
‣   Youth only share experiences when it adds to their
    status or reputation.
Our online wallet
Online spending
Monthly budget (2012)
                            2011            2012



      < € 20
                2011        19%
                2012               26%
  € 20 - € 49
                2011       16%
                2012   10%
  € 50 - € 99
                2011           22%                 Belgians spend on
                2012         19%                    average € 187

€ 100 - € 149
                2011     13%
                2012     13%
     > € 150
                2011                 30%
                2012                  32%
Mainly the Dutch youth (18-27) is spending more
on a monthly base.

Also those with a higher income (> € 3500) are
spending a lot more than the previous year.
Budget allocation (2012)

        Electro                                  303 €
        Interior                         241 €
   DIY & garden                      199 €
         Sports                     189 €
          Food                   149 €
           Toys            104 €
       Fashion            92 €
       Telecom      60 €
Health & Beauty     52 €
         Books     43 €
 Entertainment     39 €
Average price difference online
      vs offline                                (excluding delivery costs)

                Consumer electronics (excl. delivery costs)                           -5,10%

         Beauty and personal care (excl. delivery costs)                   -16,50%

                     Toys and games (excl. delivery costs)                     -10,80%

                Clothes and footwear (excl. delivery costs)                               -0,20%

                   DIY and gardening (excl. delivery costs)                          -6,40%

                           Hot drinks (excl. delivery costs)                                   4,00%

                       Packaged food (excl. delivery costs)                                        8,70%




December 2010
Average price difference online
      vs offline                         (excluding delivery costs)

                             Mobile phones                                        -0,90%
                                    Laptops                                 -4,50%
                            Digital cameras                                      -1,60%
                           In-car navigation                       -8,10%
                                    LCD TVs                  -11,10%
                       Portable MP3 players                                  -4,10%
                Premium women’s fragrances         -16,50%
                     Video games hardware                           -7,60%
                            Traditional toys            -13,90%
                           Men’s outerwear                                           1,50%
                        Women’s outerwear                                        -1,80%
                 Power tools and accessories                          -6,40%
                     Instant standard coffee                                          4,00%
                      Standard milk formula                                           8,70%

                                               Food&drink products are
                                                   more expensive
                                                   on- than offline
December 2010
Average price difference online
      vs offline                         (including delivery costs)

                             Mobile phones               0,70%
                                    Laptops           -3,10%
                            Digital cameras              2,60%
                                                                    When including delivery fees,
                           In-car navigation        -5,20%           buying (one product) online
                                    LCD TVs     -8,90%                   becomes for a lot of
                       Portable MP3 players              1,70%        categories more expensive
                Premium women’s fragrances     -9,30%               than their offline counterpart
                     Video games hardware          -6,30%
                            Traditional toys             8,50%
                           Men’s outerwear               7,80%
                        Women’s outerwear                5,30%
                 Power tools and accessories             0,50%
                     Instant standard coffee             46,90%
                      Standard milk formula              40,80%




December 2010
Percentage more products
      online than offline by country


                        There are almost 200% more
                     products available online vs offline




December 2010
Conclusions
‣   We buy more products and services online, but at
    an average lower price.
‣   It’s cheaper to buy online... ‘till we add delivery
    costs.
‣   There are almost 200% more products available
    online than offline in Belgium.
Our online
shopping cart
Online purchases
Hotel/overnight stay


                   Clothing/shoes




                                                                                       42% 40%
                     Event tickets




                                                                                     38%
       Boat, plane or train tickets


                            Books


Computer, hardware and software                                                  34% 33%
                                                                             27%
        CD/DVD/Blu-ray/Games


            Electronic appliances
                                                                       23% 21%




                     Digital music


                          Telecom


          Personal care products


           Household appliances
                                                           16% 16% 16% 14%
                                                                                                                                                         Online purchases




                              Toys
                                                       12%




  Furniture and home decoration


         Nutrition (supermarket)


                   Fun fair tickets


        DIY and garden products
                                                                                                 % of people purchasing this type of product (Belgium)




        Pharmaceutical products


                  Sport products


               Digital films/series
                                      8% 8% 8% 6% 6% 6% 5%




                   Resto/catering
                                                           3%




                            Other
                                                                   19%
Hotel/overnight stay




                                          6%
                   Clothing/shoes




                                                    15%
                     Event tickets




                                         5%
       Boat, plane or train tickets




                                               12%
                            Books




                                                    16%
Computer, hardware and software




                                        4%
        CD/DVD/Blu-ray/Games                         19%

            Electronic appliances     2%

                     Digital music
                                                                      42%




                          Telecom
                                                          24%




          Personal care products
                                             10%




           Household appliances
                                      1%
                                                                                                              Online purchases




                              Toys
                                               12%




  Furniture and home decoration
                                  0%




         Nutrition (supermarket)
                                                                            Frequency of purchase (Belgium)




                                                                32%




                   Fun fair tickets
                                      1%




        DIY and garden products


        Pharmaceutical products
                                         3% 4%




                  Sport products
                                               7%




               Digital films/series
                                                           27%




                   Resto/catering
                                                    16%




                            Other
                                            8%
Growth opportunities

   % bought in the last 2 months




                                   Intention to buy
Conclusions
‣   Travel related products, fashion products and
    event tickets are the top products among
    Belgians.
‣   The most frequent bought products are however
    digital music, nutrition and digital films.
Why online?
Benefits from e-commerce
Reason to buy online
                                                           Europe (2011)                                 Belgium (2012)
                        I find cheaper products online                                                     66%
                                                                                          37%
                           I save time by buying online                                            50%
                                                                                             42%
               I can order at any time of the day/week                                33%
                                                                                            39%
                   It’s easier to compare prices online                               33%
                                                                              22%
                I can only find certain products online                       22%
                                                                        16%
                           There’s more choice online                     19%
                                                                                27%
          Products are delivered to a convenient place                11%
                                                                                    31%                                Except for fashion and food
        I can find product reviews by other consumers             10%                                                 products, home delivery is the
                                                                              22%
                    I can find more information online            9%                                                  way to go, but we do not want
                                                                        16%
                                                                  8%                                                        to pay extra for it!
                             I don’t like going to shops               14%
                   I find better quality products online         6%

                           I can return products easily     2%

Because I get access to special discounts & promotions                              31%
Importance of this driver within
                       the sector vs average importance
                       Electro   DIY     Fashion   Entertainment   Food      Interior   Books   Sport   Health & Beauty   Telecom   Toys

  Time-saving                                           X          X (!!)                X                                  X

      24/7                                 X            X          X (!)                                                   X (!)

  Lower price            X        X        X            X                                       X (!)         X                      X

  Discounts/
                         X                X (!)                                                              X (!)          X        X
  promotions

 Door-delivery                    X        X                                  X (!)      X       X            X                      X

Wider selection          X        X                     X                                X       X                                   X

 Comparing &
                         X        X                                             X                X                          X
   reviews
 More product
                         X        X                                             X                X                          X        X
 information
Not available in
                                 X (!)     X            X                                X      X (!)                                X
 my country
To see if it’s still
                                           X                                             X                                           X
    in stock

To avoid crowds                            X                       X (!!!)                                                  X

      Other                                                          X                                        X             X
Reason to choose 1 website over
                      another
                        General                                                                                                  Health &
                                   Electro    DIY      Fashion   Entertainment     Food        Interior   Books     Sport                      Telecom      Toys
                      importance                                                                                                 Beauty
                                                                                 Totally not
       Price             17%         X                  X (!)         X                           X        X          X            X (!)          X
                                                                                 important!
   Satisfied with                                                                                                  Totally not
                         12%                   X         X(!)         X              X                     X                       X (!)          X
previous experience                                                                                               important!
 Product selection
                         10%         X         X          X           X              X            X        X          X                                     X(!!!)
  and availability

   Fast delivery         7%          X                                X              X                     X          X                           X           X

                                                                                                                  Totally not
 Trust and safety        5%          X         X                      X              X            X        X                                      X
                                                                                                                  important!
                                                                                                                  Totally not
 User-friendliness       4%                                           X              X                     X                                      X
                                                                                                                  important!
By accident - where
                         4%                  X (!!!)      X                          X          X (!!)     X                                                  X
I found the product
                                                                                                                                              Totally not
Low shipping costs       2%                                           X                                                                                     X(!)
                                                                                                                                              important!
Recommended by a
                         2%                               X                                                                                       X         X(!)
     friend
Return, guarantee                                                                                                               Totally not
                         2%                    X          X                                       X                   X                           X
     policy                                                                                                                     important!
Complete product
                         2%          X       X (!)                                                         X          X                           X           X
  information
                                                                                                                  Totally not
   Other reason          3%                    X                      X            X (!!!)                 X                                     X (!)        X
                                                                                                                  important!
Reason to NOT buy online
                                                  Europe (2011)                                            Belgium (2012)
                    I like going to shops and seeing the products                                           40%
                                                                                                             41%
I have concerns regarding misuse of my personal/payment details                                    29%
                                                                                                     32%
It’s more difficult to solve any problems if something goes wrong                                 28%
                                                                     3%
                I do not trust the safety of products sold online                                26%
                                                                                                    30%
                                I want the products immediately                            21%
                                                                                 15%
                                 I prefer in-person sales services                17%
                                                                                            23%
                                     I don’t have a payment card               12%
                                                                                                   29%
                            I do not wish to buy products online               12%
                                                                     3%
                     I do not know how to buy products online             7%
                                                                               11%
                           It’s easier to compare prices in shops     6%                                   Online purchases with a credit
                                                                               11%
                      Products I buy are often cheaper in shops       6%                                    card are considered to be the
                                                                       7%
                                                                                                            safest way of shopping, but
              Delivery arrangements are not convenient for me        4%
                                                                                     16%                   62% would rather pay offline!
Conclusions
‣   Price is much less (but still) important to Belgians
    than the average EU-citizen.
‣   Convenience, both in time and place, are the
    reasons we go online for shopping.
‣   Every category has its own key driver for online
    sales.
Conclusions
‣   Shopping as an activity is THE key driver to not
    shop online, followed closely by privacy and
    trust-concerns.
‣   If we want more people to shop online, we need
    to invest in online payment methods.
So.Lo.Mo
New technologies
New technologies
                 Willing to use                         Neutral                        Not willing to use




                                                                                                                 63%
                                                  51%                               51%
43%
                  33%                                                    30%
       24%                 28%
                                       22%                    19%                                      22%
                                                                                               15%

 Group discount sites      Price reduction through referral       Location-based services          Mobile site/app
From social to online retail shop
          (US)
Facebook
Twitter
Youtube
Pinterest
Retailers blog
                                                                            11                        66%
                                                                                                             70%                         68%
                 35%                                                9,3           58%
                                                        8,5 8                           52%                                52%
                                                  6,9                                46%                                      45%               45%
                                                                                                                                                       39%


                       9% 8%
                                     2%      2%
                  % that is following retailers   Number of retailers following   Click-through to retailers website Browsing/researching retailers products/services
Facebook is currently for 50% of the Belgian e-
commerce companies the most important social
media tool.
Mobile commerce accounts in Belgium
however ‘already’ for 2,6% of the total
turnover of e-commerce activities and 2,7% of
the total number of orders of e-commerce
activities.

Mainly clothing and fashion accessories are
According to a Forrester study, the conversion
rate of Facebook-Commerce is lower than on
other website and does not exceed 2% (for a
CTR of 1%).

To date the F-Commerce shops that turn a
profit are mostly artists’ pages that sell their
Social commerce
Mark Ellis, SYZYGY - The 6 dimensions of social commerce
2 strategies
Social commerce


‣       Social media on e-commerce platforms
    ‣    Helping people connect where they buy
‣       E-commerce on social media platforms
    ‣    Helping people buy where they connect
6 tools
Social commerce


‣    Ratings & Reviews
‣    Recommendations & referrals
‣    Forums & communities
‣    Social shopping
‣    Group buy
‣    Purchase sharing
6 dimensions to success
Social commerce



1. Scarcity - less is more (perceived value)
2. Affinity - shop with like-minded people
3. Reciprocity - pay back favors
4. Popularity - follow the crowd
5. Authority - follow the leader (experts)
6. Consistency - one step at a time
An eMarketer study showed that customers
would stop the purchase process 2 times less
when videos were available.
Conclusions
‣   It takes time for consumers to hop onto new
    technologies when it comes to purchasing.
‣   While most companies are investing in
    Facebook, investing in other platforms could
    increase the return per consumer.
Combining everything
What are the key learnings?
E-commerce, and not solely for Belgium, is only at
the start of its possibilities. Fighting of the
(foreign) competition and exploring (neighboring)
cross-border sales could break open a real revenue
stream.
But to do that, we need to arm ourselves. Finding a
solution for delivery costs and increasing product
range are a great way to start the battle. Creative
solutions (for example mobile payment) would
help to open up the market to the 29% of
consumers not being able to buy online today!
Companies (and than maybe mainly in Wallonia
and shops at the side of the road) are missing out
big time, by not embracing e-commerce. Not only
are they seeing lesser growth and cross-border
sales, soon they will be suffering (even more) from
replacement purchases towards other online shops.
Not only sales is ‘the’ reason to bet on online shops.
The next generation is already comparing every
product and service first online before even
considering to purchase. And soon, they will hit the
market. For travel related products, online
research is almost equally important as offline,
and in a very short period, your sector will be next.
Why are Belgians buying online? Price? Yes, but to
make the difference, other drivers can really add
value for your shop. Start of with convenience,
both in time and delivery. Not only “we will deliver
it to you soon” but “soon, within a chosen
timeframe and at a chosen location”.
As Belgian consumers, we are always ‘late’ when it
comes to embracing new online technologies, but
that doesn’t mean you have to focus all your efforts
on Facebook. If you aim for quality over quantity,
blogging, Youtube and Pinterest are at your
service.
Don’t miss the out on mobile commerce. A
majority might say that aren’t willing to use this
technology, but companies involved with this
opportunity are already seeing the (additional)
revenue. And the impact of mobile commerce will
only grow.
We’ll make you awesome
in e-commerce

Contact us
info@wijs.be
wijs.be
Main Resources being used
•   European commission, May 2012, Consumer Conditions Scoreboard –
    Consumers at home in the single market Monitoring the integration of the
    retail single market and consumer conditions in the Member States
•   Comeos and InSites Consulting, June 2012, E-commerce in Belgium
•   Comeos and InSites Consulting, June 2011, E-commerce in Belgium
•   Media planet, March 2012, E-commerce magazine
•   Indiegroup, August 2011,www.indiegroup.be/blog/
    e-commerce-belgië-een-status
•   Comeos and Arthur D. Little, May 2012, Hoe zwart moet de handel het
    inzien? Witboek van de handel
•   Onderzoeks- en Informatiecentrum van de Verbruiksorganisaties, January
    2012, Jongeren en de elektronische handel
•   Trendwatching.com, May 2012, (R)etail (R)evolution
Main Resources being used
•   Civic Consulting, September 2011,Consumer market study on the
    functioning of e-commerce and Internet marketing and selling techniques
    in the retail of goods
•   Eurostat, May 2012,Share of turnover from e-commerce
•   Mark Ellis, February 2011, The 6 dimensions of social commerce
•   Gregory Pouy, September 2011 The future of commerce
•   internetkassa.nu, Online verkopen België in cijfers
•   E-mail Brokers, 2012, Gebreken van de Belgische Internet-economie
•   The Boston Consulting Group, April 2011, Economy.be at the crossroads
•   consumerbarometer.eu
•   OECD, June 2008, The Future of the Internet Economy
•   United Nations, 2010, E-Government Survey 2010
•   BeCommerce: March 2012 BeCommerce Figures & Trends 2012

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E-commerce in Belgium

  • 1. E-commerce in Belgium Overview by the numbers by @tomstaelens
  • 2. There’s a lot of online knowledge available on e-commerce in Belgium. By sifting through as much data as possible, we intent to get an as accurate as possible view on what is happening in the online sales sphere, where opportunities and learnings can be found.
  • 3. Overview 1. Who’s buying? 2. Who’s selling? 3. E-shopping in Belgium 4. A shift to online 5. Market size
  • 4. Overview 6. Pre-shopping 7. Our online wallet 8. Our online shopping cart 9. Why online 10.So.Lo.Mo
  • 6. Consumer profile (2012) Dutch 56% Male 55% French 48% Female 50% 18-27 57% < 2500 euro 50% 28-43 59% 2500-3499 euro 57% 44-59 49% > 3500 euro 60% 60+ 42% % of Belgian population; gross income
  • 7. fast upcoming group : Younger people, women and people New consumers (2012) with a lower income Family with kids 35% Male 29% Couple without kids 38% Singles without kids 25% Female 39% 18-27 42% < 2500 euro 36% 28-43 28% 2500-3499 euro 30% 44-59 36% > 3500 euro 18% 60+ 35% % of Belgian population, first online purchase in the last 2 years
  • 8. no significant changes compared with 2011 Repeated buying (2012) Weekly/monthly 16% Within 1-6 months 54% Within 6-12 months 23% > yearly 7% % of Belgian population, first online purchase in the last 2 years
  • 9. Preferential sites - Youth Media site (hln, stubru, …) 45% Sharing site (Fotolog, Youtube, ThePirateBay, ...) 31% Technological website (Firefox, Microsoft, ...) 29% Recreational site (travel, sport, ...) 25% Sales site (Ebay, ...) 15% Much more numerous among: 10% ‣ Game site (Casino, jeuxvideo.com, ...) Secondary art education (+21%) ‣ Community site (blogs, facebook, ...) 5% 1st-2nd secondary education (+10%) ‣ Research site (Google, Wikipedia, ...) 2% 5th-6th secondary education (+15%) ‣ Adult site (Meetics, XXX, ...) 1% Rural Flemish youth (+9%) ‣ Families with 2 to 3 people (+14%) October 2010 - January 2011; Youth = 10-17 years old
  • 10. Online purchasing - Youth 45% uses the family bank card ‣ Mainly 14 to 16 years old Purchasing ‣ 23,0% Average of 1,5 purchases in the last month ‣ Guys buy mainly games ‣ Girls buy mainly clothes and shoes Not purchasing 77,0% October 2010 - January 2011; Youth = 10-17 years old
  • 11. Online loyalty - Belgium 89% 84% 2011 2012 % of Belgian population, first online purchase in the last 2 years
  • 12. Net promotor score - Belgium Q: How likely are you to recommend ‘website’ to a friend, on a scale from 0 to 10? Toys 40% Entertainment 42% Food 40% Health & Beauty 39% Books 39% Sport 52% DIY 41% Electro 37% Fashion 25% Interior 5% Telecom 9% % of Belgian population, first online purchase in the last 2 years
  • 13. 17% of EU consumers reported they had problems when buying something in their country Complained when experiencing a problem Satisfied with the way in which their complaints where handled Belgium : 61% 77% 80% 52% 58% 2010 2011 Yet, almost half (45%) of those who were not satisfied did not seek further redress.
  • 14. Google trusted stores BE Commerce Unizo Safeshops
  • 15. A Forrester study shows that, when e- merchants suggest relevant products, they increase the average basket by 47% and the number of products sold by 27%. Persuasive personalization can improve conversion rates up to 40%. Amazon used Facebook.com’s social graph to define what influences each site visitor : customer reviews, comments from friends, expert advice, or promotions. They also connected an identified stimulus for one person to similar purchasing habits for any products.
  • 16. Conclusions ‣ In the near future, all consumer groups will be equally represented in e-commerce. ‣ Belgians are (increasingly) loyal, and an average of 40% would recommend their preferred e-shop. ‣ We easily complain, and are being helped when doing so.
  • 18. Websites in Belgium Clear difference between Flanders and Wallonia ‘Liège’ stands out clearly within Wallonia
  • 19. Percentage of websites in Belgium 18% 16% 12% 13% % of region’s companies who own a website 9% 38-42% : Antwerp, Brussels, Namur, East Flanders, Fl. Brabant and Wal. Brabant 35% : Limburg 33% : Luxembourg 29% : Liège 26% : Hainaut
  • 20. E-commerce websites in Belgium 21,2% 8,5% 11,7% 13,0% 15,1% 9,5% 4,2% 5,5% 6,5% 3,1% Total 1,7% 27.541
  • 21. E-commerce in Belgium is also foreign companies ‣ 60% of the keywords that are being advertised on in Belgium, are owned by foreign companies. ‣ For every € 1 that we export, other companies are importing € 1,5.
  • 22. General trust in e-commerce Belgium Trust in the security of e-commerce (Belgium) 70% 64% 2011 2012
  • 23. Safety concerns (EU) ‣ Fraudulent advertisements and offers were still spotted by : ‣ 29% of consumers ‣ 23% of retailers 29% of fraud stays unsolved
  • 24. 1/2 describes internet fraud as payment fraud eg. hacked payment website
  • 25. Only 1/2 of online shoppers prefer to buy from a Belgian shop than from a foreign shop. We are playing it rather safe when it comes to buying products or services from other internet users or unknown websites.
  • 26. SME online intentions (2010) % SME companies actively selling and/or promoting online their products and services 13% 14% Planning to use Currently using 13% 11% 13% 59% 8% 54% 11% 35% 37% 11% 8% 23% 26% 11% 15% 11% SEM Optimization E-mail marketing SEM advertising Display banners Online ordering Online payment Social media profile page Blogging Twitter
  • 27. Conclusions ‣ Flanders (and mainly Antwerp) is much stronger represented in e-commerce than Wallonia. ‣ But our strongest competition comes from behind the Belgian borders. ‣ We buy mainly local, as we have trust in Belgian e-shops.
  • 28. Conclusions ‣ SEM and e-mail marketing are the main promotional effort, and efforts herein are increasing. ‣ Social had (in 2010) still ground to cover, but is growing.
  • 30. EU consumers still prefer to buy goods and services in their own country even though the past five years have seen a steady, if slow, increase in the level of cross-border shopping.
  • 31. Domestic e-commerce shopping ‣ 43% of EU-consumers bought over the internet in 2011 (versus 40% in 2010) Belgium = 43% Highest : UK & Sweden (71%) Lowest : Romania (6%) Buying from domestic seller Buying from other EU country 2010 2011 2010 2011 36% 39% 9% 12%
  • 32. Cross-border e-commerce in Belgium Cross-border shopping by Belgians 10% of Belgians 6% lower than the EU bought solely from a average non-Belgian country 43% 33% 24% From national seller From sellers in other EU countries Total online shopping Double of the European average! % of Belgian population
  • 33. Cross-border e-commerce in Belgium Cross-border shopping by belgians 100% 77% 56% From national seller From sellers in other EU countries Total online shopping Mainly in France (42%), the Netherlands (38%), Germany (26%), UK (20%) and US (14%) % of Belgian online consumers
  • 34. For 50% of the product searches, prices are 10% cheaper when buying cross-border than buying from a belgian web shop. 65% of the products we search are only available in foreign shops.
  • 35. Cross-border e-commerce Mainly Luxembourg (19%), Bought cross-border in a Belgian shop the Netherlands (15%) and EU-consumers purchasing online cross-border within the EU France (15%) E-commerce shopping from non- EU sellers is in average half of that of shopping from EU-sellers 18% eg. 2011 : 6% 12% 7% 9% 9% 9% 2006 2008 2009 2010 2011
  • 36. Correlation between online sales and broadband penetration
  • 37. E-commerce in enterprises Europe Belgium 23% 14% 12% 6% Sales in own country Sales cross-border
  • 38. Share of e-commerce in retail sales of the GDP Europe (by 2015) Belgium (in 2010) E-commerce E-commerce 3,4% 0,5% GDP Europe GDP Belgium 96,6% 99,5%
  • 39. Value of total retailing and internet retailing in 2010
  • 40. Share of the internet of GDP Belgium (in 2009) The Netherlands (in 2009) 2,5% 4,3% 97,5% 95,7% Belgium (by 2015) United Kingdom (in 2009) 4,6% 7,2% 95,4% 92,8%
  • 41. E-commerce in Belgium Number of Spending Average Average Revenue (shops) Growth transactions (consumers) revenue spending 2007 4.500.000 460.000.000 € 989.000.000 € 102 € 220 € 2008 6.400.000 590.000.000 € 28,3% 1.325.000.000 € 92 € 207 € 2009 8.400.000 705.000.000 € 19,5% 1.600.000.000 € 84 € 190 € 2010 10.700.000 903.000.000 € 28,1% 1.756.000.000 € 84 € 164 € 2011 13.200.000 1.118.000.000 € 23,8% 2.355.700.000 € 85 € 178 € 2012 15.454.000 1.367.602.000 € 22,3% 2.815.861.000 € 88 € 182 € Light grey = extrapolation based upon given numbers
  • 42. EU action plans by 2015 ‣ 50% of EU-consumers buy online ‣ 20% of EU-consumers buy cross-border (EU) ‣ Double the share of e-commerce in retail sales (currently 3,4%) ‣ Double the share of e-commerce on GDP (currently 3%)
  • 43. Conclusions ‣ We buy mainly from a national seller. ‣ Growing trend of buying cross-border. ‣ When buying cross-border, EU-citizens buy mostly from neighboring countries.
  • 44. Conclusions ‣ Belgians buy up to 2 times more cross-border than the EU-average. ‣ But we also sell 6% more to other Europeans than the EU-average. ‣ 10% of belgians only shop cross-border.
  • 45. Conclusions ‣ We buy cross-border because of price and product range. ‣ In 2012, we will lose about 1500 million euro to cross-border e-shops.
  • 46. Conclusions ‣ We rank 5th within the EU in enterprises selling in their own country, and shared 3th (!!!) when it comes to selling cross-border. ‣ We rank only in the middle of the EU when it comes to online shopping.
  • 47. Conclusions ‣ The EU average of online revenue is 215% of that of Belgium, with Germany having a value of internet retailing of almost 1800% of that of Belgium.
  • 48. Is there still room for growth? 17-25%/year Expected growth of the internet market
  • 49. A shift to online Online vs Offline shopping
  • 50. Frequency of where I shop 53% in Flanders and 57% in Brussels. Only Center of the city where I live 47% 35% in Wallonia. Center of the city where I work 35% Shopping center outside the city 28% Tops the list in A webshop 13% Wallonia with 41% Shop at the side of the road 8% Expected to lose heavily frequency- market share
  • 51. Substitution offline purchases of people already buying online 2011 2012 42% 36% 35% 27% 29% 31% Mainly new/extra purchases Both Mainly replacements of previous offline purchases
  • 52. Online purchase Future intention to buy on the internet 2011 2012 53% 48% 41% 31% 13% 9% 2% 2% Certainly Probably Neutral Not
  • 53. Conclusions ‣ Those experienced with online shopping, are shifting from new and extra purchases towards replacement purchases. ‣ Cannibalization today is rather limited to 50%, but is growing. ‣ The growth of online shoppers will continue.
  • 55. Market size - E-commerce 2012 ‣ Revenue from the home market ‣ € 1.095.838.980 ‣ Cross-border revenue ‣ € 240.550.020 ‣ Luxembourg : € 45.704.504 ‣ The Netherlands : € 36.082.503 ‣ France : € 36.082.503
  • 56. Market size - E-commerce 2012 ‣ Money that we lose to cross-border competition ‣ € 1.479.472.000
  • 57. 9% Automotive 92% 6% Cosmetics 93% Online vs offline purchases 0% Groceries 99% Health Products 4% 95% 12% Car Insurance 87% 12% Home Insurance 87% 18% Personal Loans Purchases per sector 81% 18% Cinema tickets 81% 44% Event tickets 55% 30% Real estate 69%
  • 58. 15% Books 84% 13% CDs/DVDs 14% in the UK 86% Online vs offline purchases 7% Clothes & Accessories 92% DIY, tools, garden equipment 2% 97% 9% Domestic appliances 90% 2% Footware 97% 3% Gifts, Flowers, Greetings Purchases per sector 96% 5% Home furnishing/furniture 94% 4% Home and household goods 95% 6% Personal appliances 93%
  • 59. 16% Sport equipment 83% 6% Toys 93% Online vs offline purchases 17% Audio devices 82% 17% Computer hardware 82% 18% Compuer peripherals 81% 25% Computer software/video games 74% 20% Digital camera/camcorder Purchases per sector 79% 13% Mobile phone 86% 16% Mobile phone subscription 83% 14% Printer supplies 85%
  • 60. European average is 60% online purchases for travel Purchases per sector Online vs offline purchases 83% 66% 64% 52% 55% 47% 44% 33% 35% 16% Visual devices Business travel Hotels Leisure flights Package holidays
  • 61. Growth ‣ SME with e-commerce have grown 3,7% in 2011. ‣ They grow 4 times more than SME without e- commerce.
  • 62. Cross-border opportunity ‣ SME with e-commerce sell in average 17,4% to foreign countries. ‣ SME without e-commerce sell in average 12,4% to foreign countries.
  • 63. Conclusions ‣ SME with e-commerce activities, are growing faster and selling more cross-border. ‣ Adapting for Luxembourg, the Netherlands and France are real opportunities to increase sales cross-border.
  • 64. Conclusions ‣ Today, most purchases are still taking place offline, providing large growth opportunities for online sales.
  • 66. Online price research - Youth ‣ average : 16,7 times a week ‣ 16 + : 80% No Yes 49,0% 51,0% Brussels 62% Wallonia 60% Flanders 45%
  • 67. Online purchase - Youth ‣ Purchasing mainly happens in physical stores Purchasing ‣ 87% does not share their experiences 37,0% Not purchasing 63,0%
  • 68. Information sharing - Youth Clothes, shoes 36% Scooter and driving equipment 20% Games 15% Cellphones 15% Mainly girls (+25%) Music 12% Services (travel, ...) 5% Internet services 5% Hifi 5% Books 5% Toys 4% Leisure equipment 1% Ipod 1%
  • 69. From research to purchase Online vs offline purchase
  • 70. From research to purchase Online vs offline purchase
  • 71. From research to purchase Online vs offline purchase
  • 72. From research to purchase Online vs offline purchase
  • 73. From research to purchase Online vs offline purchase
  • 74. From research to purchase Online vs offline purchase
  • 75. From research to purchase Online vs offline purchase
  • 76. Conclusions ‣ The impact of online research on sales is the strongest for travel related products and services. ‣ For 16-17 year old youth, online is an important resource for comparing products and services. ‣ Youth only share experiences when it adds to their status or reputation.
  • 78. Monthly budget (2012) 2011 2012 < € 20 2011 19% 2012 26% € 20 - € 49 2011 16% 2012 10% € 50 - € 99 2011 22% Belgians spend on 2012 19% average € 187 € 100 - € 149 2011 13% 2012 13% > € 150 2011 30% 2012 32%
  • 79. Mainly the Dutch youth (18-27) is spending more on a monthly base. Also those with a higher income (> € 3500) are spending a lot more than the previous year.
  • 80. Budget allocation (2012) Electro 303 € Interior 241 € DIY & garden 199 € Sports 189 € Food 149 € Toys 104 € Fashion 92 € Telecom 60 € Health & Beauty 52 € Books 43 € Entertainment 39 €
  • 81. Average price difference online vs offline (excluding delivery costs) Consumer electronics (excl. delivery costs) -5,10% Beauty and personal care (excl. delivery costs) -16,50% Toys and games (excl. delivery costs) -10,80% Clothes and footwear (excl. delivery costs) -0,20% DIY and gardening (excl. delivery costs) -6,40% Hot drinks (excl. delivery costs) 4,00% Packaged food (excl. delivery costs) 8,70% December 2010
  • 82. Average price difference online vs offline (excluding delivery costs) Mobile phones -0,90% Laptops -4,50% Digital cameras -1,60% In-car navigation -8,10% LCD TVs -11,10% Portable MP3 players -4,10% Premium women’s fragrances -16,50% Video games hardware -7,60% Traditional toys -13,90% Men’s outerwear 1,50% Women’s outerwear -1,80% Power tools and accessories -6,40% Instant standard coffee 4,00% Standard milk formula 8,70% Food&drink products are more expensive on- than offline December 2010
  • 83. Average price difference online vs offline (including delivery costs) Mobile phones 0,70% Laptops -3,10% Digital cameras 2,60% When including delivery fees, In-car navigation -5,20% buying (one product) online LCD TVs -8,90% becomes for a lot of Portable MP3 players 1,70% categories more expensive Premium women’s fragrances -9,30% than their offline counterpart Video games hardware -6,30% Traditional toys 8,50% Men’s outerwear 7,80% Women’s outerwear 5,30% Power tools and accessories 0,50% Instant standard coffee 46,90% Standard milk formula 40,80% December 2010
  • 84. Percentage more products online than offline by country There are almost 200% more products available online vs offline December 2010
  • 85. Conclusions ‣ We buy more products and services online, but at an average lower price. ‣ It’s cheaper to buy online... ‘till we add delivery costs. ‣ There are almost 200% more products available online than offline in Belgium.
  • 87. Hotel/overnight stay Clothing/shoes 42% 40% Event tickets 38% Boat, plane or train tickets Books Computer, hardware and software 34% 33% 27% CD/DVD/Blu-ray/Games Electronic appliances 23% 21% Digital music Telecom Personal care products Household appliances 16% 16% 16% 14% Online purchases Toys 12% Furniture and home decoration Nutrition (supermarket) Fun fair tickets DIY and garden products % of people purchasing this type of product (Belgium) Pharmaceutical products Sport products Digital films/series 8% 8% 8% 6% 6% 6% 5% Resto/catering 3% Other 19%
  • 88. Hotel/overnight stay 6% Clothing/shoes 15% Event tickets 5% Boat, plane or train tickets 12% Books 16% Computer, hardware and software 4% CD/DVD/Blu-ray/Games 19% Electronic appliances 2% Digital music 42% Telecom 24% Personal care products 10% Household appliances 1% Online purchases Toys 12% Furniture and home decoration 0% Nutrition (supermarket) Frequency of purchase (Belgium) 32% Fun fair tickets 1% DIY and garden products Pharmaceutical products 3% 4% Sport products 7% Digital films/series 27% Resto/catering 16% Other 8%
  • 89. Growth opportunities % bought in the last 2 months Intention to buy
  • 90. Conclusions ‣ Travel related products, fashion products and event tickets are the top products among Belgians. ‣ The most frequent bought products are however digital music, nutrition and digital films.
  • 92. Reason to buy online Europe (2011) Belgium (2012) I find cheaper products online 66% 37% I save time by buying online 50% 42% I can order at any time of the day/week 33% 39% It’s easier to compare prices online 33% 22% I can only find certain products online 22% 16% There’s more choice online 19% 27% Products are delivered to a convenient place 11% 31% Except for fashion and food I can find product reviews by other consumers 10% products, home delivery is the 22% I can find more information online 9% way to go, but we do not want 16% 8% to pay extra for it! I don’t like going to shops 14% I find better quality products online 6% I can return products easily 2% Because I get access to special discounts & promotions 31%
  • 93. Importance of this driver within the sector vs average importance Electro DIY Fashion Entertainment Food Interior Books Sport Health & Beauty Telecom Toys Time-saving X X (!!) X X 24/7 X X X (!) X (!) Lower price X X X X X (!) X X Discounts/ X X (!) X (!) X X promotions Door-delivery X X X (!) X X X X Wider selection X X X X X X Comparing & X X X X X reviews More product X X X X X X information Not available in X (!) X X X X (!) X my country To see if it’s still X X X in stock To avoid crowds X X (!!!) X Other X X X
  • 94. Reason to choose 1 website over another General Health & Electro DIY Fashion Entertainment Food Interior Books Sport Telecom Toys importance Beauty Totally not Price 17% X X (!) X X X X X (!) X important! Satisfied with Totally not 12% X X(!) X X X X (!) X previous experience important! Product selection 10% X X X X X X X X X(!!!) and availability Fast delivery 7% X X X X X X X Totally not Trust and safety 5% X X X X X X X important! Totally not User-friendliness 4% X X X X important! By accident - where 4% X (!!!) X X X (!!) X X I found the product Totally not Low shipping costs 2% X X(!) important! Recommended by a 2% X X X(!) friend Return, guarantee Totally not 2% X X X X X policy important! Complete product 2% X X (!) X X X X information Totally not Other reason 3% X X X (!!!) X X (!) X important!
  • 95. Reason to NOT buy online Europe (2011) Belgium (2012) I like going to shops and seeing the products 40% 41% I have concerns regarding misuse of my personal/payment details 29% 32% It’s more difficult to solve any problems if something goes wrong 28% 3% I do not trust the safety of products sold online 26% 30% I want the products immediately 21% 15% I prefer in-person sales services 17% 23% I don’t have a payment card 12% 29% I do not wish to buy products online 12% 3% I do not know how to buy products online 7% 11% It’s easier to compare prices in shops 6% Online purchases with a credit 11% Products I buy are often cheaper in shops 6% card are considered to be the 7% safest way of shopping, but Delivery arrangements are not convenient for me 4% 16% 62% would rather pay offline!
  • 96. Conclusions ‣ Price is much less (but still) important to Belgians than the average EU-citizen. ‣ Convenience, both in time and place, are the reasons we go online for shopping. ‣ Every category has its own key driver for online sales.
  • 97. Conclusions ‣ Shopping as an activity is THE key driver to not shop online, followed closely by privacy and trust-concerns. ‣ If we want more people to shop online, we need to invest in online payment methods.
  • 99. New technologies Willing to use Neutral Not willing to use 63% 51% 51% 43% 33% 30% 24% 28% 22% 19% 22% 15% Group discount sites Price reduction through referral Location-based services Mobile site/app
  • 100. From social to online retail shop (US) Facebook Twitter Youtube Pinterest Retailers blog 11 66% 70% 68% 35% 9,3 58% 8,5 8 52% 52% 6,9 46% 45% 45% 39% 9% 8% 2% 2% % that is following retailers Number of retailers following Click-through to retailers website Browsing/researching retailers products/services
  • 101. Facebook is currently for 50% of the Belgian e- commerce companies the most important social media tool.
  • 102. Mobile commerce accounts in Belgium however ‘already’ for 2,6% of the total turnover of e-commerce activities and 2,7% of the total number of orders of e-commerce activities. Mainly clothing and fashion accessories are
  • 103. According to a Forrester study, the conversion rate of Facebook-Commerce is lower than on other website and does not exceed 2% (for a CTR of 1%). To date the F-Commerce shops that turn a profit are mostly artists’ pages that sell their
  • 104. Social commerce Mark Ellis, SYZYGY - The 6 dimensions of social commerce
  • 105. 2 strategies Social commerce ‣ Social media on e-commerce platforms ‣ Helping people connect where they buy ‣ E-commerce on social media platforms ‣ Helping people buy where they connect
  • 106. 6 tools Social commerce ‣ Ratings & Reviews ‣ Recommendations & referrals ‣ Forums & communities ‣ Social shopping ‣ Group buy ‣ Purchase sharing
  • 107. 6 dimensions to success Social commerce 1. Scarcity - less is more (perceived value) 2. Affinity - shop with like-minded people 3. Reciprocity - pay back favors 4. Popularity - follow the crowd 5. Authority - follow the leader (experts) 6. Consistency - one step at a time
  • 108. An eMarketer study showed that customers would stop the purchase process 2 times less when videos were available.
  • 109.
  • 110. Conclusions ‣ It takes time for consumers to hop onto new technologies when it comes to purchasing. ‣ While most companies are investing in Facebook, investing in other platforms could increase the return per consumer.
  • 111. Combining everything What are the key learnings?
  • 112. E-commerce, and not solely for Belgium, is only at the start of its possibilities. Fighting of the (foreign) competition and exploring (neighboring) cross-border sales could break open a real revenue stream.
  • 113. But to do that, we need to arm ourselves. Finding a solution for delivery costs and increasing product range are a great way to start the battle. Creative solutions (for example mobile payment) would help to open up the market to the 29% of consumers not being able to buy online today!
  • 114. Companies (and than maybe mainly in Wallonia and shops at the side of the road) are missing out big time, by not embracing e-commerce. Not only are they seeing lesser growth and cross-border sales, soon they will be suffering (even more) from replacement purchases towards other online shops.
  • 115. Not only sales is ‘the’ reason to bet on online shops. The next generation is already comparing every product and service first online before even considering to purchase. And soon, they will hit the market. For travel related products, online research is almost equally important as offline, and in a very short period, your sector will be next.
  • 116. Why are Belgians buying online? Price? Yes, but to make the difference, other drivers can really add value for your shop. Start of with convenience, both in time and delivery. Not only “we will deliver it to you soon” but “soon, within a chosen timeframe and at a chosen location”.
  • 117. As Belgian consumers, we are always ‘late’ when it comes to embracing new online technologies, but that doesn’t mean you have to focus all your efforts on Facebook. If you aim for quality over quantity, blogging, Youtube and Pinterest are at your service.
  • 118. Don’t miss the out on mobile commerce. A majority might say that aren’t willing to use this technology, but companies involved with this opportunity are already seeing the (additional) revenue. And the impact of mobile commerce will only grow.
  • 119. We’ll make you awesome in e-commerce Contact us info@wijs.be wijs.be
  • 120. Main Resources being used • European commission, May 2012, Consumer Conditions Scoreboard – Consumers at home in the single market Monitoring the integration of the retail single market and consumer conditions in the Member States • Comeos and InSites Consulting, June 2012, E-commerce in Belgium • Comeos and InSites Consulting, June 2011, E-commerce in Belgium • Media planet, March 2012, E-commerce magazine • Indiegroup, August 2011,www.indiegroup.be/blog/ e-commerce-belgië-een-status • Comeos and Arthur D. Little, May 2012, Hoe zwart moet de handel het inzien? Witboek van de handel • Onderzoeks- en Informatiecentrum van de Verbruiksorganisaties, January 2012, Jongeren en de elektronische handel • Trendwatching.com, May 2012, (R)etail (R)evolution
  • 121. Main Resources being used • Civic Consulting, September 2011,Consumer market study on the functioning of e-commerce and Internet marketing and selling techniques in the retail of goods • Eurostat, May 2012,Share of turnover from e-commerce • Mark Ellis, February 2011, The 6 dimensions of social commerce • Gregory Pouy, September 2011 The future of commerce • internetkassa.nu, Online verkopen België in cijfers • E-mail Brokers, 2012, Gebreken van de Belgische Internet-economie • The Boston Consulting Group, April 2011, Economy.be at the crossroads • consumerbarometer.eu • OECD, June 2008, The Future of the Internet Economy • United Nations, 2010, E-Government Survey 2010 • BeCommerce: March 2012 BeCommerce Figures & Trends 2012