Current trends in Commerce. Opportunities in Belgium

IAB-session:

Current Trends in Commerce
Opportunities for Belgium

Roel Naessens, Industry Head Google Belgium

30th March 2011

Belgium is behind EU average

Individuals last online purchase in 12 months (2010)

United Kingdom

Netherlands

France

EU (27 countries)

Belgium

0 10 20 30 40 50 60 70 80
%

Source : Eurostat, 2011 Google Confidential and Proprietary 3

! And foreign players concur our market

Investment share of top 10 players for Belgian market in Q410

Air travel Books Clothing label
16%

44% 46%
56% 54%

84%

Credit cards Home improvement Video
6%
31%
46%
54%
69%
94%

Source : Google internal data, 2011 Google Confidential and Proprietary 4

The main barrier for eCommerce is recognition

Besides the offer, what else?

Google Confidential and Proprietary 5

The seniors are the main segment lagging
Individuals age that made an online
purchase in the 12 months
Internet access at home in 2010

UK UK

Males
Females
BE
BE

0 20 40 60 80 100
% 0% 20% 40% 60% 80% 100%

Individuals age that made an online purchase in the 12 months
80 220%
70
170%
60
50 120%
40
%

30 70%
20
20%
10
0 -30%
16 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 to 74 years
old old old old old old

EU (25) Belgium United Kingdom Delta UK vs. BE

Source : Google internal data, 2011 Google Confidential and Proprietary 6

The responsibility of the Belgian market

High streets retailers with a localized full webshop
120%

100% 100%
100%

80%
80%

60%
60%

40% 35%

20%
20%

0%
Consumer electronics Home & Garden Shopping Apparel

Source : Insights for Search to determine top high street retailers popularity in Belgium Google Confidential and Proprietary 7

BUT! E-commerce is growing in Belgium


Fueled by Apparel and Entertainment

2008 2010
"590million "903million

Apparel Travel Apparel

Travel Ents Finance
Ents
+28 %
YoY Growth

Tech Tech
Home and
Finance Home and Garden
Garden


Source: Ogone

E-commerce is consumers to buy online?
So what drives

3.6 billion Google
searches per day

Search is the most
popular online activity after
e-mail

1.2 billion people
online


The functional benefits are most prominent!

41%
28%

27% 27%


!And what's stopping them from buying online?
E-commerce is

3.6 billion Google
searches per day

Search is the most
e-mail

1.2 billion people
online


Again functional, but emotional barriers
are significant too!..

51% 41%

17% 36%


!The question is: How do you thrive online?
E-commerce is

3.6 billion Google
searches per day

Search is the most
e-mail

1.2 billion people
online


Give them what they want!

Characteristics of an e-shop
Free shipping costs

Availability of special online offers
Usability / ease of use of the website
Presence of well-known, trustable brands
There is a physical address in Belgium
Wide range of products
Fast delivery
Clear return options if unsatisfied
Clear after-sales services
Existence of a phone number

Google Confidential and Proprietary
15

Example... Zappos


Another Example...


OK, but it’s not a big deal for my business!..


Why is online so key?

I have changed my mind about which brand
to buy following research on the web
The internet is usually the first place I go
when researching products to buy


Why is online so key?

How do you get to know about new websites / e-shops?

Results from a search engine

Talks with friends or colleagues

Direct mail (e-mail)

Offline media (Radio, TV, Press!)

Internet Banners

Social media (Facebook, Linkedin!)

Direct mail (via post)
Source: TNS Infratest 20

Online is just one part of the puzzle


And Online clearly influences Offline

Research

Online In-Store
Online

•  18% of all purchases
15% 3% were made online
Purchase

•  63% researched
In-Store

48% 33% online before
purchasing

Source:GFK Fashion Study 2010; Research Online, Purchase Offline (ROPO) – Insights into the Fashion Buying Process

Sales (units sold)

0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
06-May-07
06-Jun-07
06-Jul-07
06-Aug-07
06-Sep-07

Radio 1%

Other drivers 1%

Press 3%
06-Oct-07
06-Nov-07
06-Dec-07

Catalogues 15%
06-Jan-08
06-Feb-08
06-Mar-08
06-Apr-08
06-May-08 2%
Price promotion

06-Jun-08
06-Jul-08
11%

06-Aug-08
06-Sep-08
TV Advertising 5%
Pc City web traffic

06-Oct-08
conversions driven by
of offline

06-Nov-08
06-Dec-08
06-Jan-09
06-Feb-09
06-Mar-09
06-Apr-09
06-May-09
06-Jun-09
Knowing how much can be measured

06-Jul-09
Regular price 12%

06-Aug-09
06-Sep-09
Sales
Offline

volumes

06-Oct-09
8%

06-Nov-09
Seasonality

06-Dec-09

06-Jan-10
Base Sales 42%

23

06-Feb-10

New phase of Internet growth


1.The Web is mobile

Half of all new Internet connections now come from mobile devices

2. The Web is social

<< I ve already added this photo to my Picasa album

!"#$%&'()*+$,'))
%"+-'(),%(.-',)
"/".#0)

I've already tweeted about how weird this guy is >>

2. The Web is social


3. The Web is personal

Source: ray-ban.com

4. The Web is Local


And The future is now!.


"A great wind is blowing
and that gives you either imagination
or a headache"
Catherine the Great

Thank you.
roelnaessens@google.com

Current trends in Commerce. Opportunities in Belgium

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