1. 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
The world
is your
address
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2. The Distance Selling/E-Commerce market in Europe
market definition - the distance selling industry
1 2 3 4 5 6
DISTANCE SELLING
Mailings / Online (e-shop) Mobile T-Commerce Direct selling
Catalogues
e-Commerce
Business to Consumer Business to Business
Consumer’s perspective - any order made in an e-shop
Domestic Cross Border from a non domestic retailer.
Integrates both channels and provides the
most competitive delivery option depending
B2C Mail B2C Parcel
on weight and/or value
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3. Global E-Commerce is growing rapidly
Europe is the largest market
1 2 3 4 5 6
Source: EMOTA/IMRG
2012
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4. European E-Commerce revenue by country in 2012
three main markets UK, France, Germany (€ Bn) 1 2 3 4 5 6
Eastern Europe, 15 Other, 12
Italy, 10
Russia, 10
Spain, 11 UK, 90
Benelux, 15
Austria/
Switzerland; 17
France, 46
Scandinavia, 29
Germany, 45
Source: EMOTA, 2012
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5. Top 50 e-Merchants in 2011
only 4 countries represented in the top 20 1 2 3 4 5 6
Online revenue (growth) Average cart Conversion Online revenue (growth) Average cart Conversion
Ranking Country Ranking Country
in m€ value rate in m€ value 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%
28 Migros-Genossenschafts
3 Tesco Stores UK 4,219 (+10.96%) 150 € 10.00% Switzerland 539 (+1.81%) 139 € 3.17%
Bund
4 Staples USA 2,790 (+2.20%) 430 € 9.50% 29 Play.com UK 530 (+10.42%) 50 € 8.50%
5 PPR France 2,780 (+20.87%) 88 € 2.10% 30 Komplett Norway 526 (+1.08%) 200 € 2.27%
6 Home Retail Group UK 2,570 (+18.33%) 250 € 2.00% 31 Darty.com France 518 (+15.88%) 340 € 2.30%
7 Shop Direct Group UK 1,630 (+8.87%) 90 € 3.00% 32 Medion Germany 515 (+25.61%) 550 € 1.90%
8 Apple USA 1,360 (+28.00%) 85 € 1.10% 33 Conrad Holding Germany 500 (+3.09%) 150 € 5.50%
9 Cdiscount France 1,348 (+14.24%) 110 € 4.30% 34 Baur Versand Germany 499 (+59.52%) 100 € 2.50%
10 3 Suisses France 1,300 (+10.17%) 150 € 3.20% 35 Wehkamp Netherlands 488 (+10.66%) 250 € 2.90%
11 Sainsburys UK 1,207 (+20.48%) 106 € 15.00% 36 Delticom Germany 480 (+14.039%) 265 € 1.49%
12 Dixons Stores Group UK 1,017 (-8.52%) 300 € 2.00% 37 Kingfisher UK 466 (+27.04%) 145 € 1.65%
13 Carrefour France 990 (+3.13%) 110 € 2.85% 38 K-Mail Order Germany 432 (+15.20%) 90 € 2.00%
14 Vente Privée France 941 (+27.16%) 85 € 2.00% 39 ASOS UK 410 (+27.75%) 95 € 2.40%
15 Next UK 928 (+38.51%) 130 € 2.70% 40 E.Leclerc France 405 (+0.37%) 100 € 2.20%
16 John Lewis UK 905 (+26.85%) 120 € 5.70% 41 Metro Group Germany 402 (+236.40%) 170 € 1.80%
17 ASDA UK 859 (+9.54%) 85 € 8.50% 42 Privalia Spain 400 (+137.83%) 50 € 0.50%
18 Neckermann Grupper Germany 799 (+10.00%) 140 € 2.80% 43 GetGoodGermanys.de Germany 400 (+33.33%) 160 € 2.40%
19 Marks & Spencer UK 789 (+11.56%) 100 € 4.30% 44 Musikhaus Thomann Germany 390 (+6.85%) 100 € 2.40%
20 Comet Group UK 785 (+17.09%) 195 € 2.04% 45 Findel UK 386 (-2.59%) 110 € 2.15%
21 Ocado UK 776 (+16.60%) 120 € 9.00% 46 Hewlett-Packard USA 381 (+5.54%) 750 € 0.20%
22 MediaShopping.it Ita 740 (+8.82%) 400 € 3.00% 47 N Brown Group UK 380 (+18.12%) 110 € 6.00%
23 eBuyer UK UK 724 (+27.53%) 300 € 2.00% 48 Bol.com Netherlands 376 (+18.24%) 110 € 2.35%
24 Dell USA 719 (+0.84%) 640 € 1.00% 49 Cyberport Germany 364 (+34.97%) 340 € 2.00%
25 Misco UK 688 (+9.03%) 430 € 3.40% 50 LVMH France 359 (+19.67%) 480 € 1.80%
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6. E-Commerce growth by country in 2012
two digits figures everywhere !
1 2 3 4 5 6
30% 27% 27%
25% 22%
20% 19% Average
20% 18%
European
14% 14% growth
15% 12%
10%
5%
0%
Source: EMOTA, 2012
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7. 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 refused
to serve the consumers country (EC survey – 2010)
Source: TNS, Flash Eurobarometer 331, 2012
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8. Cross-border opportunities in Europe
% of consumers buying online from another country 1 2 3 4 5 6
25% 40% of European customers
purchase on line, only 10%
20% make their purchase from
another country (EC survey – 2010)
15%
EU
average
10% 2011
5%
0%
Source: Eurostat 2011
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9. Cross-border opportunities in Europe
continued growth potential 1 2 3 4 5 6
% of individuals who have never used the internet, 2011
Source: Emota
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10. Challenges - Europe
cultural and legislative
1 2 3 4 5 6
◙ 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
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11. Drivers and barriers
reasons for/against cross border shopping 1 2 3 4 5 6
Main drivers for cross-border Main barriers for cross-border
on-line shopping on-line shopping
1. Price 1.No need
lower prices, compare prices, better price due to Can find everything I need in my own country
lower taxes and exchange rates
2. Exclusive products 2. Lack of trust
Not sold in own country Quality of goods, not confident in receiving goods,
warranty
3. Wider range of products 3. Possible high delivery costs
4. Convenience 4. Complicated & long return processes
Any time of the day
Source: IPC Cross border e-commerce report 2010
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12. What consumers require
value for money, certainty, predictability and information 1 2 3 4 5 6
Low shipping prices
Value for
Easy to compare (clear format, local currency) to simplify the decision process money
No additional cost is a major requirement = total cost transparancy
Certainty
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 Predictability
BUT : the delivery promise must be kept
Full integration of the tracking data in the web portal, proactive notification of
Information
delivery
and trust
Simply and clear return process
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13. France and Switzerland
France 3rd market in Europe / Switzerland a niche market
1 2 3 4 5 6
Revenue generated by e-commerce in France
In billion euros 37.7
+22% E-COMMERCE
31
25 +24%
+25%
20
15.6
11.6 TOTAL DISTANCE SALES
8.4
2005 2006 2007 2008 2009 2010 2011
Revenue generated by e-commerce in Switzerland
In billion Swiss Francs TOTAL DISTANCE SALES
5.3
5.1 +4%
4.85
4.65 = € 4.3 Bn
TOTAL ONLINE SALES
= € 3.4 Bn
2008 2009 2010 2011
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14. French market
Summary – key points
1 2 3 4 5 6
The French Distance Selling market is:
Growing fast
• Annual growth over 20%
• Total revenue to double by 2015
Easy to access
• Pre-payment, low returns, strategic position
• Confident and loyal consumers
Very much attached to printed mail
• Printed catalogs generates more online purchases
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15. French market
French consumers – Key figures 1 2 3 4 5 6
• 30.7 million buyers
•13.7 transactions per buyer per year
• Average amount per transaction: 90 €
• 1688 € spend per year per buyer
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16. French market
a market with loyal customers
1 2 3 4 5 6
French e-buyers are generally confident and loyal.
of e-buyers will buy of web-users trust
again from the e-commerce
same website if websites
they are satisfied (+2% vs. 2010) French web-users do not
hesitate to buy online, but
with their 1st
their loyalty depends on their
purchase purchasing experience
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17. French market
E-buyers delivery requirements in France 1 2 3 4 5 6
• 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 awareness
September 2011 – on the basis of 486 e-buyers
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18. French market
Focus on So Colissimo service 1 2 3 4 5 6
A MULTIPLE-CHOICE DELIVERY SERVICE IN
48 HOURS
AT HOME OR ALTERNATIVE PICK-UP LOCATIONS IN METROPOLITAN FRANCE
Home Outside the home
For parcels up to 30kg With parcel storage for
10 working days – For parcels < 20kg
5,500 convenience stores in La Poste
With or without signature, according to Group's PICKUP network
your choice
Choice of 10,000 La Poste collection
Home delivery by appointment in the points (Post office, delivery agency….)
evening between 17.00 and 21.30 (in
Paris)
33 self-service locker stations,
available 24/7
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19. French market
examples of e-merchants using So Colissimo 1 2 3 4 5 6
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20. French market
The importance of mail as a media
1 2 3 4 5 6
Printed mailings and catalogues are a popular and effective way of prospecting the
French market and building French consumers' loyalty.
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 Despite the explosion of e-
catalog?" communication, traditional
printed mail remains an
No, probably not
effective media channel in
25% France.
Yes, definitely 56%
19%
Yes, maybe
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21. French market
The importance of mail as a media
1 2 3 4 5 6
A few examples of printed mailing campaigns sent by pure players:
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22. French market
The importance of mail as a media
1 2 3 4 5 6
Even catalogs and magazines!
An e-buyer who receives a printed catalog is twice as likely to make an online purchase
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23. Asendia network
our new global mail solutions company
1 2 3 4 5 6
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24. Asendia network
Distance selling value chain
1 2 3 4 5 6
Identifying potential customers
Consultancy, targeting, prospection, data management
Web deduplication, rental, Address Doctor check
and control addresses
Data management via MDS (back issue
service, telesales)
Following up and securing Creating communication
shipments & building loyalty
Tracking, Value-added services Planning, technical
B2C Parcel support, manufacturing
Colissimo Destineo Print
Reverse Logistics Development Globaddress Rental
(return solutions) Globaddress Optimis
IBRS/IBRS+ Planning Address Doctor
Post test Optimisation
Advice on customs issues
Loyalty building
Managing orders Distributing mailings
Storage, order Mailings and catalogues, response management
processing, packaging, shipping Destineo Mail / Integral
Fulfilment, Priority Mail
Packstream Business Reply Service
Colissimo Alliage
B2C Parcel Massenpost A or B destination CH
Unsorted to fully coded and sorted
Local look mailings
IDM mailings
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25. Asendia network
facilitating cross-border e-Commerce : B2C parcel
1 2 3 4 5 6
2012 – 2013...
• Combining shared
parcels networks
• Swiss Post, La Poste
network with postal
USA partners for home
delivery
• Using the DPD
parcels services in
certain countries
ASIA
• One cohesive
network
• Designed for packet
and parcel delivery
across Europe
• Extension into the US
and Asia
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26. 1 2 3 4 5 6
THANK YOU
FOR YOUR ATTENTION
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Notas do Editor
This is our outline definition and graphic of the Distance Selling and eCommerce industry.As a Postal Operator, we are still very much focused on ‘selling’ the value of mail; mailings and catalogues form an important segment of our mailing portfolio.The online segment for us concerns largely business from e-shops and also mobile channels (e.g. smartphones / tablets). Other parts of the DS industry concern t-Commerce (television) and of course Direct Selling (door-to-door) in certain countries.Asendia is focused on the B2C (business to consumer) segment, looking at cross-border distribution.We have two channels which include B2C Mail (typically the postal channel for shipments up to 2kg) and B2C Parcel (which includes packets and parcels up to 30kg).
Surprising statistics here – many consumers (new accession countries where internet and broadband penetration is low) have not used the internet.That picture will change rapidly with the advancement of mobile technology (smartphones / tablet computers)In larger economies the web is a way of life with well over 80% of individuals using the internet as part of the daily routine.
There are cultural and legislative challenges here in Europe.Still no single customs territory and harmonised tax regimeMultiple languages – a barrier to simple cross-border tradingThe exceptions of Norway & Switzerland that are in Europe physically but outside the EU For exporters seeking to open up Europe, VAT and Duty payable at the entry point into the EU – need for centralised Customs Clearance and taxation into the regionStill low value (< 22 Euro) exemption exists for low value goods.
Cross border online shopping offers benefits such as price, product exclusivity and availability and convenience.Barriers exist still though and include:Lack of trust – will I get the goods, warranty and refunds if products are faulty and need repairHigh delivery costs – not always trueComplicated and long returns processes.
Looking at the consumer (shopper) then the needs shift a little towards:Certainty of delivery Predictability – not always the fastest express service, but reliable on-time delivery is the key. A consumer will wait an extra day or so if it’s a product they want and cannot source locally. But, the delivery promise must be kept.Trust – this factor is vital for shoppers buying from overseas sellers – in particular Asia due to distance, cost, refund and returns issues if problems arise.
Looking at the consumer (shopper) then the needs shift a little towards:Certainty of delivery Predictability – not always the fastest express service, but reliable on-time delivery is the key. A consumer will wait an extra day or so if it’s a product they want and cannot source locally. But, the delivery promise must be kept.Trust – this factor is vital for shoppers buying from overseas sellers – in particular Asia due to distance, cost, refund and returns issues if problems arise.
Looking at the consumer (shopper) then the needs shift a little towards:Certainty of delivery Predictability – not always the fastest express service, but reliable on-time delivery is the key. A consumer will wait an extra day or so if it’s a product they want and cannot source locally. But, the delivery promise must be kept.Trust – this factor is vital for shoppers buying from overseas sellers – in particular Asia due to distance, cost, refund and returns issues if problems arise.
Looking at the consumer (shopper) then the needs shift a little towards:Certainty of delivery Predictability – not always the fastest express service, but reliable on-time delivery is the key. A consumer will wait an extra day or so if it’s a product they want and cannot source locally. But, the delivery promise must be kept.Trust – this factor is vital for shoppers buying from overseas sellers – in particular Asia due to distance, cost, refund and returns issues if problems arise.
Looking at the consumer (shopper) then the needs shift a little towards:Certainty of delivery Predictability – not always the fastest express service, but reliable on-time delivery is the key. A consumer will wait an extra day or so if it’s a product they want and cannot source locally. But, the delivery promise must be kept.Trust – this factor is vital for shoppers buying from overseas sellers – in particular Asia due to distance, cost, refund and returns issues if problems arise.
Asendia is implementing the cross border infrastructure to help eCommerce merchants grow.The B2C Parcels networks of both organisations are being fused and combined to provide pan-European delivery to the door, with future extensions into and between the USA and Asia.The La Poste Groupe company DPD is being used in certain countries as a tried and tested delivery channel.
Services and solutions designed to help the industry provide the reliability, predictability and competitiveness that is needed.Track and trace is standard and the service can handle shipments from lightweight packets up to parcels weighing 30 kg.Prepaid returns solutions are integrated as is web-based interface for the merchant and shopper.In addition to home delivery, alternative delivery options (e,g, Pick Point to a parcel shop or other convenient location) are available.