how high is the summit of the e-commerce boom?
TRANSCRIPT
How High is the Summit of the e-Commerce Boom?
Peter Somers CEO bpost Parcels & International
Post-Expo 2012 – Brussels - 18th of September 2012
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e-Commerce is still growing worldwide
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19%
13,4%
Average growth per year
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But…, challenges ahead of us
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From double digit to single digit growth?
National and international challenges?
Changes in customer behaviour?
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Some mature markets & segments are facing already a single digit growth
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The lowest ever growth for the fashion sector
was recorded in April 2012
Growth in sales of clothing at 10% YoY compared to 28% LY
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The biggest markets (UK,FR,NL) are slowly showing signs of maturity Fe. B2C e-commerce growth in NL in 2011 was only 9,7%
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The whole world has become a potential market, but barriers
and challenges still exist for e-commerce activities
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National
Cross-border
Cross-continental
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National
Cross-border
Cross-continental
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The end consumer is not always at home when his parcel is delivered
Convenience by offering different delivery options
Barrier #1
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The consumer wants to decide when and where his parcel has to be delivered
• Home delivery 72%
• Pick-up point 10%
• Pick up in store 13%
• Packstation 5%
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Belgian consumers fe. request different delivery options
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Home delivery
Pick-up point
Packstation
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For the online customer: choose where you want your parcel to be delivered (at home, pick-up point, or packstation)
For the e-tailer: offer convenience, print labels, track & trace your parcels and manage different webshops via one platform
Integrated tools to support the convenience
But, is this what the consumer really expects from us in terms of optimal convenience?
Neighbour Delivery?
Time slot Delivery?
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National
Cross-border
Cross-continental
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Cross-border issues hinder full roll out of international e-commerce
Go step by step by starting with (a) test market(s)
Barrier #2
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Revenues could grow by 25% (or more) if e-tailers could sell both online and cross-border in Europe
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Technical & practical challenges
22 Trade restrictions
Law regulations
Payment options
Marketing
Brand awareness
Currencies
Trust
Cultural differences Languages
42%
of all e-tailers identify market entry cost and compliance with consumer and fiscal regulations as the primary barriers to entrance into new markets
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Go step by step by starting with a test market
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Example BeNeLux
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Example Spain -> Portugal
Example Germany –> Switerland & Austria
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National
Cross-border
Cross-continental
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Taxes & duties hinder cross-continental e-commerce activities
Development of innovative solutions
Barrier #3
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Taxes & duties
47% of European customers consider
fraud and additional duties, taxes and fees at
delivery a significant concern
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is a shipping solution for international e-commerce that provides the consumer with true
landed costs: shipping costs, taxes and duties are guaranteed
A win-win situation for the e-tailer and his customer
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Barriers
Challenges
Innovation
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e-Commerce hasn’t reached its summit yet
Thanks to innovation and growing confidence
Worldwide number of e-shoppers will surpass 650 million in 2012
Increased offering as more and more retailers
go online
845 million Facebook users, up to 15% actively sharing
products or brands
Mobile internet will be over 50% of internet usage by 2015
The use of m-commerce is rapidly increasing
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However, we are not there yet!
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The customer behaviour is also changing
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& How!
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Logistics challenges due to change in customer behaviour
Combine innovative products and solutions with new services
Barrier #4
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• Visits physical store X to get more information on product A
• Checks prices online and orders at webshop Y
• Chooses for deliver of the goods at home
Customer 1
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• Visits physical store X to buy product A
• Wants product A in another colour (not available in store X)
• Product A needs to be delivered in physical store Xbis (near her office)
Customer 2
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• Buys product A in online shop X
• Buys product B in online shop Y
• Wants his products to be delivered at the same time
Customer 3
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One-stop-shop partner for all deliveries
We will unlock this habit change with 4 components forming a compelling eco-system
51 yy/mm/dd - title presentation - author - qualifier
The customer agrees a
delivery time with bpost
All purchases and parcels are
delivered together at that time
The customer can also return
goods (empties,
ironing etc.)
The customer pays for the
goods safely and securely by
banker’s card at
the time of delivery
To conclude
eCommerce keeps on
growing
still a lot of challenges and
barriers change in consumer behavior needs a
multichannel approach
