Working Group on IMCO Working Group on the Digital Single Market 31st of January 2013
Working Group on
IMCO Working Group on the Digital Single Market
31st of January 2013
EMOTA represents 3,500 multi-channel/online retailers in 15 countries
• 15 European countries
• 16 member associations
• 3,500 companies
• € 250 billion turnover
• 83% of European e-commerce
-1-
E-Commerce contributes significantly to growth and job creation
0% 10% 20% 30% 40%
Italy
USA
France
UK
Germany
Sweden
12%
15%
18%
23%
24%
33%
Contribution to GDP growth • 2.6 jobs created for each lost
• internet-intensive companies create 2x jobs
Average: 21%
Source: McKinsey, 2011 Note: Internet % contribution to GDP growth 2004-2009 – mature countries
-2-
E-Commerce enables consumers to save money and time
0% 20% 40% 60% 80%
more product information
home delivery
wide selection
open anytime
price comparison
save time
lower prices
10%
11%
22%
33%
33%
50%
66%
Reasons for shopping online
Consumer gains from e-commerce (wider choice + lower prices): currently € 12 bn potentially € 200 bn
Source: Civic Consulting/TNS, 2011 Note: consumer survey – 3 most important reasons for shopping online (sample of 13,872 online shoppers)
-3-
154 170
210
250
300
171 185
215 237
270
66 84
122
158
215
13 19 26 33 48
-
50
100
150
200
250
300
2008 2009 2010 2011 2012
€ Billion Europe
N. America
Asia Pacific
ROW
+20%
+14%
+36%
+44%
E-commerce turnover by region
Source: EMOTA/IMRG, 2012
-4-
2012 European E-Commerce is estimated to have reached € 300 bn, with 20% growth
Growth
UK, France and Germany account for 60% of European E-Commerce
European E-commerce turnover by country 2012 (€ billion)
Source: EMOTA, 2012 Note: B2C e-commerce turnover estimate
-5-
UK
France
Germany
Scandinavia
Austria/ Switzerland
Benelux
Spain
Russia
Italy
Eastern Europe Other
90
46
45
29
17
15
11
10
10 15
12
E-Commerce is growing very fast throughout Europe
+0%
+5%
+10%
+15%
+20%
+25%
+30%
+14%
+22%
+27%
+14%
+18%
+12%
+20% +19%
+27%
E-commerce growth by country in 2012
Source: EMOTA, 2012; estimate
-6-
average European
growth
Share of online in retail is high in UK/Scandinavia, low in South/East Europe
European average
0%
5%
10%
15%
20%
25%
Source: EMOTA, 2012 Note: % of e-commerce turnover on total retail trade; estimate
-7-
Online share of retail by country 2012
There are significant differences in E-Commerce penetration and spend
0%
10%
20%
30%
40%
50%
60%
70%
80%
- 500 1.000 1.500 2.000 2.500 3.000 3.500
Average annual expenditure (€)
E-Commerce penetration
UK
Scandinavia
Austria/Switzerl.
France
Germany
Italy
Benelux
Eastern Europe
EU average 2011
Source: EMOTA, Eurostat, 2011 Note: E-commerce penetration: % of population aged 14-74 years buying online
-8-
Digital Agenda target 2015
Spain
43%
The level of cross-border shopping online is still low
EU average 2011
0%
5%
10%
15%
20%
25%
Digital Agenda target 2015
GA
P
Proportion of consumers buying online from another country
Source: Eurostat, 2011
-9-
In fact, consumers are more worried about international delivery
0% 5% 10% 15% 20% 25% 30% 35%
Uncertainty on rights
Data privacy
Payment security
No delivery
Guarantee
Returns
Long delivery times
Concerns about cross-border vs. domestic online purchases
Source: Civic Consulting/TNS, 2011 Note: % of consumers reporting concerns about buying products online in their own country vs. in another EU country (sample: 29.010 individuals)
-10-
% domestic % increase cross-border
Top E-Commerce players in Europe are mostly multi-channel
# Company Online sales Growth Country Channels Category
1 12.0 38% Books/Electron.
2 4.5 25% Apparel
3 3.9 11% Grocery
4 2.6 2% Office supplies
5 2.6 21% Apparel
6 2.4 18% Apparel/Home
7 1.5 9% Apparel/Home
8 1.3 28% Electronics
9 1.3 14% Electronics
10 1.2 10% Apparel
catalogues retail internet
-12-
Source: Internet Retailer, 2012 Note: Online sales in Europe in 2011 in € billion; growth % 2011 vs. 2010
However, most companies have still to embrace E-Commerce
-
5
10
15
20
25
30
35
- 5 10 15 20 25 30
% of SMEs
% of turnover Source: Eurostat, 2011 Note: companies with 10-249 employees and at least 1% of online sales
-13-
Proportion of companies selling online
European average 2011
Digital Agenda target 2015
GA
P
33%
In addition, only 27% of retailers sell across borders
0%
10%
20%
30%
40%
50%
Proportion of retailers selling in at least one other EU country
EU average
Source: TNS, Flash Eurobarometer 331, 2012
-14-
27%
In fact, many retailers are deterred by legal/tax and payment issues
Barriers to cross-border sales for retailers
0% 5% 10% 15% 20% 25% 30% 35%
Language differences
Customer service
Own restrictions
Complaints resolution
Delivery costs
Different tax regulations
Risk of fraud/non-payments
Different consumer laws
Source: TNS, Flash Eurobarometer 331, 2012 Note: % of retailers reporting obstacles to cross-border sales to other EU countries
-15-
EU initiatives that could help to remove these barriers
Green Paper on cross-border parcel
delivery
Green Paper on Payments
Common European Sales Law (CESL)
Directive on ADR/ Regulation on ODR
Regulation on Data Protection
-16-
Online Trustmarks
Consumer Rights Directive
• Harmonise data and consumer legislation across Europe
• Improve consumer trust
• Liberalise postal delivery services
• Ensure security and efficiency of online payment platforms
• Improve broadband networks development
EMOTA supports all EU initiatives aimed at facilitating E-Commerce
-17-
Balance consumer/
business interests
Avoid unnecessary
extra costs/burden for businesses