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

E-Commerce Statistics

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

-1-

In addition, 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)

-2-

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

€ BillionEurope

N. America

Asia Pacific

ROW

+20%

+14%

+36%

+44%

E-commerce turnover by region

Source: EMOTA/IMRG, 2012

-3-

E-Commerce in Europe reached a €300 Bn. turnover, 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 includes online travel, digital downloads and event tickets; excludes online gaming and financial services

-4-

UK

France

Germany

Scandinavia

Austria/

Switzerland

Benelux

Spain

Russia

Italy

Eastern EuropeOther

90

46

45

29

17

15

11

10

1015

12

E-Commerce is growing very fast throughout Europe

+0%

+5%

+10%

+15%

+20%

+25%

+30%

+14%

+19%

+27%

+14%

+18%

+12%

+20%+19%

+27%

E-commerce growth by country in 2012

Source: EMOTA, 2012

-5-

average

European

growth

Online share of retail 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

-6-

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

-7-

Digital Agenda

target 2015

Spain

43%

Very few consumers shop online across borders

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

-8-

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)

-9-

% domestic % increase cross-border

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

-10-

27%

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

-11-

Trends & Best Practices

Several e-retailers are expanding globally, offering worldwide shipping

ASOS.com worldwide delivery

� 7 country-specific websites

� 15 currency options

� Free worldwide shipping

� Shipping to 190+ countries

� 5M customers 160 countries

� 62% international sales

-12-

Excellent service is ensured trough local logistics/customer care centers

5 logistics centers

7 local offices

8 customer care centers

Yoox.com global presence

Europe

(excl. Italy)

Italy

16%

N.America

22%

Japan

Revenues by geography Brands

Other

-13-

Best-practice online retailers provide several delivery options …

Easy returnsClick & collect

Track & traceExpress delivery Subscription service

Parcel lockers

-14-

… increase consumer confidence with an excellent customer service …

• “WOW” customer service

• Family culture

• Outstanding service model

– Overnight shipping

– Free shipping both ways

– 365-day return policy

– 24/7 availability with toll-free number

• Real inventory in warehouse

Zappos customer service policy

-15-

… and tailor payment methods to specific national preferences

Source: Civic Consulting/TNS, 2011

Online payment methods by country

-16-

0%

20%

40%

60%

80%

100%Other

Invoice

COD

Online payment

Bank transfer

Debit card

Credit card

Most retailers are adopting a multi-channel strategy

Source: McKinsey, 2009

Note: Average annual dollars spent per customer by channel (apparel example)

-17-

Amount spent by channel

Internet / mobile

Multi-channel integration requires enterprise-wide changes

-18-

Multi-channel integration

Organization

• Integrate online/offline teams

• Marketing and product management

Systems

• Integrate front-end and back-office

• Inventory levels and pricing

• Customer database

• CRM systems

Operations

• Picking and fulfillment

• Return handling

Source: Accenture, Booz & Company, 2012

Mobile commerce is expanding rapidly in Europe

-

4

8

12

16

20

2012 2013 2014 2015 2016 2017

3

5

7

11

17

19 € Billion

Source: Forrester, 2012

Note: purchases via smartphone - excludes tablets and mobile payments at retail points of sales

European mobile commerce market estimate

-19-

Shoppers use their mobiles to research products and find deals

0% 10% 20% 30% 40% 50% 60%

retailer app

retailer website

QR code scan

product review

mobile coupon

price comparison

28%

33%

45%

51%

54%

54%

In-store activities of mobile shoppers

Source: Vibes Media, 2012

-20-

Many retailers developed mobile apps to facilitate product research

John Lewis mobile app

• Optimized navigation

• Free Wi-Fi in stores

– Search product information

– Check ratings and reviews

– Compare competitors’ prices

• Sales staff available to help customers

-21-

Other retailers are testing virtual stores with smartphones

Tesco virtual stores

• Grocery shopping “on the go”, in subways,

train stations or bus stops

• Scan QR code with smartphone app

• Orders delivered at home on the same day

-22-

Social commerce is also expected to boom in the next few years

0

5

10

15

20

25

30

2011 2012 2013 2014 2015

46

8

12

16

1

3

5

9

14

$ Billion

Source: Booz & Company, 2011

Social commerce market estimate

5

9

14

20

30

Rest

of the

World

U.S.A.

-23-

Source: Sociable Labs, 2012

All online

shoppers

62% read

friends’

comments

on products

75% click

through to

retailer’s site

53%

purchase

product

25% of all

shoppers

Share-to-purchase funnel

Product

discovery

mechanism

Conversion

driver

-24-

Social networks are already a fundamental enabler of E-Commerce

Fab.com social shopping features

-25-

Pioneer e-retailers generate substantial sales from social networks

Social feed

Facebook log-in

Credits for sharing

EU Lobbying for E-Commerce

Upcoming EU legislation will harmonize consumer laws across Europe

E-Commerce

Action Plan

Green Paper on PaymentsCommon

European

Sales Law

(CESL)

Directive on

ADR/

Regulation

on ODR

Regulation on

Data Protection

-26-

Online

Trustmarks

Consumer

Rights

Directive

Green Paper on

Parcel delivery

• Harmonize consumer legislation across Europe

• Improve consumer trust in cross-border shopping

• Ensure competitive international parcel delivery services

• Ensure security and efficiency of online payment platforms

• Accelerate broadband networks development

EMOTA is working to balance business and consumer interests

-27-

Balance

consumer/

business

interests

Avoid

unnecessary

extra

costs/burden

for businesses

Distance sales rules will be standardized in all EU countries

-28-

Consumer Rights Directive

Information requirements:

• Order button with “obligation to pay”

• Delivery/payment restrictions indicated before order

Price transparency:

• No pre-ticked boxes for extra services

• No payment / telephone surcharges

Standard withdrawal right:

• Withdrawal period: 14 days

• Reimbursement within further 14 days

We are working to limit data protection burdens for businesses

-29-

Data Protection Regulation

Benefits:

• Rules valid throughout Europe

• Elimination of notifications

• Single supervisory authority

for companies

Issues:

• Explicit consent

• Right to data portability

• Constraints in profiling

EMOTA is developing a European trustmark for cross-border shopping

-30-

• Harmonize codes of conduct

• Accredit national trustmarks

• Promote European trustmark

European harmonization of national trustmarks

EMOTA commits to drive international e-commerce growth in Europe

-31-

EMOTA Borderless Digital Commerce Commitment

Consumers

Providers

Merchants

Governments

• Govern and guide international

e-commerce development

• Inform e-commerce industry

with standard reporting

• Proactively listen and respond to

needs of key stakeholders