The world is your address The world is your address Staying at home is not an option Agenda 1. The Distance Selling / e-Commerce market in Europe 2. Cross border opportunities in Europe 3. Drivers and barriers / customers requirements 4. Opportunities in Switzerland and France 5. Focus on the French market 6. Asendia network WWV2013_23/11/2013_12:15_Logistiek & Fulfilment theather_Asendia - Staying at home is not an option
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Staying at home is not an option: Helping merchants boost cross-border e-commerce sales
Manuel Bonnin highlights various distribution options and customer-driven service features that are available to help Dutch-based merchants achieve greater online sales within and beyond Europe.
In depth appreciation of the key trends driving cross-border e-commerce. Assessment of the barriers that still exist, and how merchants (SMEs and larger sellers) can benefit from an effective high-quality parcels network.
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The world is your address
WWV2013_23/11/2013_12:15_Logistiek & Fulfilment theather_Asendia - Staying at home is not an option
The world is your address
Staying at home is not an optionAgenda
1. The Distance Selling / e-Commerce market in Europe2. Cross border opportunities in Europe3. Drivers and barriers / customers requirements4. Opportunities in Switzerland and France5. Focus on the French market6. Asendia network
WWV2013_23/11/2013_12:15_Logistiek & Fulfilment theather_Asendia - Staying at home is not an option
The Distance Selling/E-Commerce market in Europemarket definition - the distance selling industry
Online (e-shop)
Business to Consumer Business to Business
Domestic Cross Border
B2C Mail B2C ParcelIntegrates both channels and provides the most competitive delivery option depending on weight and/or value
Consumer’s perspective - any order made in an e-shop from a non domestic retailer.
DISTANCE SELLING
Mailings / Catalogues
T-Commerce Direct sellingMobile
e-Commerce
1 2 3 4 5 6
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Global E-Commerce is growing rapidlyEurope is the largest market
Source: EMOTA/IMRG2012
1 2 3 4 5 6
UK; 90
France; 46
Germany; 45
Scandinavia; 29
Austria/Switzerland; 17
Benelux; 15
Spain; 11
Russia; 10
Italy; 10
Eastern Europe; 15
Other; 12
Source: EMOTA, 2012
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European E-Commerce revenue by country in 2012three main markets UK, France, Germany (€ Bn) 1 2 3 4 5 6
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Top 50 e-Merchants in 2011only 4 countries represented in the top 20
Ranking Country Online revenue (growth) in m€
Average cart value
Conversion rate
Ranking Country Online revenue (growth) in m€
Average cart value
Conversion rate
1 Amazon USA 12,917 (+38.00%) 90 € 6.30%26 The Carphone Warehouse UK 569 (+21.83%) 125 € 1.50%
2 Otto Group Germany 4,800 (+25.13%) 178 € 2.80%27 Weltbild Publishing Group Germany 545 (+17.82%) 120 € 2.50%
25 Misco UK 688 (+9.03%) 430 € 3.40%50 LVMH France 359 (+19.67%) 480 € 1.80%
1 2 3 4 5 6
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UK
Franc
e
Germ
any
Scand
inav
ia
Austri
a / S
witzer
land
Benel
ux
Spain
Italy
Easte
rn E
urop
e0%
5%
10%
15%
20%
25%
30%
14%
22%
27%
14%
18%
12%
20% 19%
27%
Average European growth
Source: EMOTA, 2012
E-Commerce growth by country in 2012two digits figures everywhere !
1 2 3 4 5 6
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Source: TNS, Flash Eurobarometer 331, 2012
Cross-border opportunities in Europe% of retailers selling in at least one other EU country 1 2 3 4 5 6
61% of transactions failed because traders refusedto serve the consumers country (EC survey – 2010)
WWV2013_23/11/2013_12:15_Logistiek & Fulfilment theather_Asendia - Staying at home is not an option
UK France Germany Scandinavia Benelux Spain Italy Eastern Europe0%
5%
10%
15%
20%
25%
EUaverage2011
Source: Eurostat 2011
Cross-border opportunities in Europe% of consumers buying online from another country
1 2 3 4 5 6
40% of European customers purchase on line, only 10% make their purchase from another country (EC survey – 2010)
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Cross-border opportunities in Europecontinued growth potential
• Almost a quarter of persons aged 16-74 in the EU27 have never used the internet• Online is a way of life in Europe’s largest economies
Source: Emota
% of individuals who have never used the internet, 2011
1 2 3 4 5 6
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Challenges - Europe cultural and legislative
◙ 27 countries in the European Union
◙ Own customs and tax authorities
◙ 23 official languages
◙ Plus Norway and Switzerland
◙ One single currency (Euro) & other currencies (GBP, SEK, NOK, CHF)
◙ A single EU customs territory with ‘no borders’, but…separate tax rules and regulations
1 2 3 4 5 6
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Drivers and barriersreasons for/against cross border shopping
Source: IPC Cross border e-commerce report 2010
Main drivers for cross-border on-line shopping
Main barriers for cross-border on-line shopping
1. Pricelower prices, compare prices, better price due to lower taxes and exchange rates
1.No needCan find everything I need in my own country
2. Exclusive productsNot sold in own country
2. Lack of trustQuality of goods, not confident in receiving goods, warranty
3. Wider range of products 3. Possible high delivery costs
4. ConvenienceAny time of the day
4. Complicated & long return processes
1 2 3 4 5 6
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What consumers requirevalue for money, certainty, predictability and information 1 2 3 4 5 6
Low shipping prices
Easy to compare (clear format, local currency) to simplify the decision process
No additional cost is a major requirement = total cost transparancy
Make the customer "feel at home"
Not always the fastest services, but reliable on-time delivery is the key
A customer will wait an extra day if the product they want is not found locally
BUT : the delivery promise must be kept
Full integration of the tracking data in the web portal, proactive notification of delivery
Simply and clear return process
Value for money
Certainty
Predictability
Information and trust
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France and SwitzerlandFrance 3rd market in Europe / Switzerland a niche market
Revenue generated by e-commerce in FranceIn billion euros
2005 2006 2007 2008 2009 2010 2011
8.411.6
15.6
20
25
31
37.7
+25%
+24%
+22%
€37.7bn
€42.9bn
E-COMMERCE
TOTAL DISTANCE SALES
CHF5.3bn
TOTAL DISTANCE SALES
CHF4.2bn
TOTAL ONLINE SALES
2008 2009 2010 2011
4.65
4.85
5.1
5.3
+4%
Revenue generated by e-commerce in SwitzerlandIn billion Swiss Francs
1 2 3 4 5 6
= € 4.3 Bn
= € 3.4 Bn
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French market Summary – key points
The French Distance Selling market is:
• Annual growth over 20%• Total revenue to double by 2015
Growing fast
• Pre-payment, low returns, strategic position• Confident and loyal consumers
Easy to access
• Printed catalogs generates more online purchases
Very much attached to printed mail
KEEPIN
MIND
1 2 3 4 5 6
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French market French consumers – Key figures
• 30.7 million buyers
• 13.7 transactions per buyer per year
• Average amount per transaction: 90 €
• 1688 € spend per year per buyer
1 2 3 4 5 6
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French web-users do not hesitate to buy online, but their loyalty depends on their purchasing experience
51% 66.5%of e-buyers will buy
again from the same website if
they are satisfied with their 1st
purchase
of web-users truste-commerce
websites(+2% vs. 2010)
96%of e-buyers are
satisfied with the online purchases
they made in the last 6 months
French e-buyers are generally confident and loyal.
French marketa market with loyal customers
1 2 3 4 5 6
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French marketE-buyers delivery requirements in France
• 90% of e-buyers consider it useful, or even essential for 38% to have the choice between several delivery options*
• Localness is the first criterion of choice for a pick-up location
*IFOP Barometer of parcel delivery brand awarenessSeptember 2011 – on the basis of 486 e-buyers
1 2 3 4 5 6
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French marketFocus on So Colissimo service
A MULTIPLE-CHOICE DELIVERY SERVICE IN 48 HOURS AT HOME OR ALTERNATIVE PICK-UP LOCATIONS IN METROPOLITAN FRANCE
With or without signature, according to your choice
HomeFor parcels up to 30kg
Outside the homeWith parcel storage for 10 working days – For parcels < 20kg
5,500 convenience stores in La Poste Group's PICKUP network
Choice of 10,000 La Poste collection points (Post office, delivery agency….)Home delivery by appointment in the
evening between 17.00 and 21.30 (in Paris)
33 self-service locker stations,available 24/7
1 2 3 4 5 6
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French marketexamples of e-merchants using So Colissimo 1 2 3 4 5 6
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French market The importance of mail as a media
Printed mailings and catalogues are a popular and effective way of prospecting the French market and building French consumers' loyalty.
Despite the explosion of e-communication, traditional printed mail remains an effective media channel in France.
of French people that receive addressed mail read it or take a look at it
25% of French Distance Buyers would stop ordering if they were not sent a catalog
"Would you keep buying online if you did not receive a printed catalog?"
No, probably not
Yes, definitely
Yes, maybe
56%
25%
19%
1 2 3 4 5 6
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French market The importance of mail as a media
A few examples of printed mailing campaigns sent by pure players:
1 2 3 4 5 6
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French market The importance of mail as a media
Even catalogs and magazines!
An e-buyer who receives a printed catalog is twice as likely to make an online purchase
1 2 3 4 5 6
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Asendia networkour new global mail solutions company
1 2 3 4 5 6
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Asendia networkDistance selling value chain
Following up and securing shipments
Tracking, Value-added servicesB2C ParcelColissimo
Reverse Logistics (return solutions)
IBRS/IBRS+Post test
Advice on customs issues
Identifying potential customersConsultancy, targeting, prospection, data management Web deduplication, rental, Address Doctor check and control addressesData management via MDS (back issue service, telesales)
Distributing mailingsMailings and catalogues, response managementDestineo Mail / IntegralPriority MailBusiness Reply ServiceAlliage Massenpost A or B destination CH Unsorted to fully coded and sortedLocal look mailingsIDM mailings
Managing ordersStorage, order processing, packaging,
shippingFulfilment,
PackstreamColissimo
B2C Parcel
DevelopmentPlanning
OptimisationLoyalty building
Creating communication & building loyaltyPlanning, technical support, manufacturingDestineo PrintGlobaddress RentalGlobaddress OptimisAddress Doctor
1 2 3 4 5 6
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