shop the world

Shop the World!Consumer attitudes towards global distance selling

Shop the World 1

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . 208 Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

South Korea . . . . . . . . . . . . . . . . . . . . . . . . . 256 Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . 288 Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . 336

Methodology: Study design and sample size . . . . 336 Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

Legal notice . . . . . . . . . . . . . . . . . . . . . . . . . 338

Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Shop the World! - in five minutes . . . . . . . . . 3

Shop the World! - in half an hour . . . . . . . . . 4

Media use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Distance selling - Market overview . . . . . . . . . . 5 Distance selling - Use . . . . . . . . . . . . . . . . . . . . . . 6 Search for product information . . . . . . . . . . . . . 8 Supplier selection . . . . . . . . . . . . . . . . . . . . . . . . . 9 Placing orders . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Payment methods . . . . . . . . . . . . . . . . . . . . . . . 11 Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Cross-boarder shopping . . . . . . . . . . . . . . . . . . . 14

Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 Great Britain . . . . . . . . . . . . . . . . . . . . . . . . . 128 India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

Table of Contents

Table of Contents

Shop the World 2

lobal distance selling account-ed for sales of €616 billion in

2013 and is expected to see annual growth of 10 .7% in the next five years . This trend now influences almost all sectors of the economy . An increasing focus is being placed on the eCommerce customers who decide whether, when and under what conditions they order goods online .

Businesses thus have to understand the var-ious steps in the customer’s journey through the online purchasing process . And they must also be aware of the economic and cultural dif-ferences that drive cross-border eCommerce .

In this Shop the World! consumer study, more than 11,000 people in 20 countries were asked about their attitudes, behavior and pref-erences in respect of different media, product selection criteria, payment methods, and de-

livery and return options . They were also asked about their rea-sons for ordering goods from abroad, and the obstacles they face in doing so .

The same data was collected for each country to allow the first ever comparative study of dis-

tance selling practices in 20 different countries around the world . The survey is supplemented by a set of country profiles containing current distance selling sales figures and forecasts, as well as demographic, economic and media-related data .

I trust you will find the study valuable in your work, and wish you an interesting and infor-mative read .

Dear Reader,

G

Yours

Thomas KippCEO DHL eCommerce

Editorial

Shop the World 3

• When it comes to internet use, the Nether-lands lead the field (93%) . China (42%), Mexico (38%) and India (13%) bring up the rear . South Korea is the market leader in terms of smartphone share (73%) .

• The global advertising industry is set to see revenue of €413 billion in 2014 . After the US and China, the biggest growth in glob-al advertising expenditure will be seen in emerging economies like Indonesia, Ar-gentina and Brazil . While TV remains the dominant medium in the global media mix, future growth will primarily occur through spends on mobile advertising .

• According to Euromonitor International, global distance selling sales amounted to €616 billion in 2013 .

• The three biggest distance selling markets are the US, China and Japan .

• The global distance selling market is ex-pected to see annual growth of 10 .7% between now and 2018 .

• The largest growth is expected in China (24 .5%), Mexico (16 .5%) and Australia (16 .4%) .

• The top products offered via distance sell-ing are fashion, consumer electronics, me-dia products and food . There are, however, marked country-specific differences .

• Some 84% of the online population are distance selling customers . Emerging economies see lower user numbers, but enjoy considerably higher growth fore-casts .

• Annual per capita orders average

13 in global comparison, with country-specific order numbers ranging from 6 in Mexico to 29 in Great Britain .

• As the only one of the emerging economies

covered by the study, China has extremely high user rates, order numbers and signifi-cant growth potential .

• Customers mainly search for products on-line (93%), largely via search engines and suppliers’ websites .

• Their main reasons for choosing a supplier are affordable prices and free delivery .

• Orders are primarily placed online using a PC, followed by those placed with mobile devices . China, South Korea, and Austra-lia have the highest shares in mCommerce (some 15% of orders overall) .

• Credit cards are the most frequent pay-ment method used . Preferences differ from region to region, however . These include for example the use of Alipay in China, and cash on delivery in India .

• The key ordering criteria are speedy, free delivery . Acceptable delivery times range from between 3 .8 days in Turkey to 12 .4 days in Russia .

• The highest return rates are seen in Ger-

many, Austria, Switzerland and the Nether-lands (between 9% and 13%) .

• Some 45% of internet users have ordered goods from abroad . Figures in emerging economies are significantly lower than those for industrialised countries .

• The main exporting countries are the US, Great Britain, Germany and China .

• The main reasons for ordering goods from abroad are that they are not available do-mestically and are lower-priced . In emerg-ing economies, better quality and protec-tion against counterfeit goods and product piracy are key drivers in the purchasing decision .

Shop the World! - in five minutes

Shop the World! - in five minutes

Media use Distance selling – market overview Customer Journey Cross-border shopping

Shop the World 4

Global advertising expenditure · in Eur bn. *

2011 2012 2013 2014 2015

436.

8

413.

1

391.

7

377.

3

363.

9

2016

462.

9

Mobile internet

TV

Desktop internet

Out of home

Radio

Movies

General magazines

Newspapers

24.6

24.2

19.4

4.1

2.1

0.6

-1.2

-2.7

Contributors to global growth in adspend by medium 2013-2016 · in Eur bn. *

Internet use

As more and more people use the internet huge country-specific differences emerge . The Nether-lands lead the field with 93%, followed by Great Britain (87%) and Canada (86 .8%) . India, Chi-na and Mexico bring up the rear . While Mexico and China have online populations of 38% and 42% respectively, only 12 .6% of India's consumers use the inter-net .

With growing use of smartphones, mobile access to online content is on the rise . Com- pared with 2012, state subsidisa-tion and billion-strong invest-ment in Brazil, Poland and Tur-key have led to a two-fold rise in use of internet-compatible smart-phones . In Russia and Mexico, smartphone use has risen from 20% to 37% . But South Korea, where 73% of the population own a smartphone, is the un-contested leader .

Advertising

The global advertising indus-try is set to see revenue of €413 billion in 2014 . Growth of 5 .8% and 6 .1% is forecast for 2015 and 2016 respectively . While TV re-mains the dominant medium in the global media mix, future growth will largely be seen in ex-penditure on mobile advertise-ment . The three biggest advertis-ing markets are the US (€130 .5 billion), Japan (€41 .4 billion) and China (€31 .9 billion), although Japan is expected to relinquish its No . 2 spot to China in 2016 . Apart from the US and China, the biggest growth in global ad-vertising expenditure will be seen in the emerging economies such as Indonesia, Argentina and Brazil .

* Source: Zenith Optimedia 2013

Internet desktopMobile internetNewspapers Magazines

40+7+1+7+18+3+17+7Global media mix · 2013 in % *

TV Radio Movies Outdoor advertising

18.0

17.0

8.0

7.01.07.0

40.0

3.0

India

USA

China

Indonesia

Argentina

Brazil

UK

Japan

South Korea

Russia

18.8

5.2

12.8

5.1

2.7

2.5

3.0

2.5

2.2

1.9

Top ten contributors to ad spend growth 2013 - 2016 · in Eur bn. *

Shop the World! - in half an hour

Shop the World! - in half an hourMedia use

Media Use · Distance selling-market overview · Distance selling use ·

Searching for product information · Supplier selection · Placing orders ·

Payment methods · Delivery · Returns · Cross-border shopping

Shop the World 5

Industrialised countries (Europe)

Industrialised countries (Americas & APAC)

Emerging economies

GL

US

CN

JP

UK

DE

KR

FR

RU

BR

IT

ES

CA

AU

NL

CH

MX

PL

AT

TR

IN

Distance selling sales by country in 2013 · in EUR bn. *

616.4

227.1

78.4

57.4

45.3

34.9

26.1

25.7

14.4

8.6

6.4

6.3

6.1

5.2

4.5

4.2

4.1

4.1

3.2

2.9

2.4

CN

MX

AU

BR

ES

IT

TR

PL

RU

IN

FR

CA

GL

DE

US

NL

KR

JP

AT

CH

UK

Distance selling market growth by country CAGR 2013 - 2018 · in % *

24.4

16.5

16.4

13.6

13.0

12.7

12.4

12.2

11.9

11.6

11.3

10.8

10.7

8.7

7.3

5.7

5.3

4.8

4.8

4.2

4.0

* Source: Euromonitor International

Market data and trends

Distance selling sales rose again in 2013 . This boom is expected to continue: Euromonitor Inter-national forecasts annual growth of 10 .7% (CAGR) for the peri-od up to 2018 . While growth in most established distance selling markets in Europe and the US is below the global average, in the emerging economies investment in infrastructure and an increasing middle class are generating growth which in most cases ex-ceeds the global average by far .With estimated annual growth of 24 .4% for the period up to 2018, China leads the field – closely followed by Mexico with 16 .5% . Surprisingly, Australia is also among the leaders, with an


Distance Selling – Market Overviewannual growth of 16 .4% . In Eu-rope above-average growth is ex-pected in Italy, Poland and Spain .

Around 46% of global distance selling revenue in 2013 was attributed to clothing, consum-er electronics, media products and food . However, country-by-country differences are evident: While clothing dominates in China and Germany (30 .4% and 27 .2%), clothing doesn’t play a role in Brazil . Here the highest demand is for consumer elec-tronics (38 .5%) . In Turkey, on the other hand, food sales domi-nate the market (24 .5%) and in Canada the demand for media products (28 .6%) .

Development of distance selling and share of total retail 2011 - 2018 · n Eur bn. *

CAGR: 10.7%

Home shopping

Online shopping 333.3 406.7 483.1

142.6138.2

133.3

558.7 912.2

127.2

110.5

2011 2012 2013e 2014e 2018eShare of total retail

· in % 5.0 5.5 5.9 6.4 8.4




Shop the World 6

In the 20 countries covered by the study, on average 84% of the online population are ordering goods via distance selling . Great Britain and Germany lead the field – both have dis-tance selling histories going back more than 100 years . The emerging economies bring up the rear, although the ‘lowest’ user rates there still amount to 73% .

In country-to-country com-parison, there are huge differences in market size: Great Britain is the biggest distance selling market in the world on a per-capita basis, with annual sales of €45 .3 billion in 2013 and a number of orders per capita of 28 .7 per year . At the opposite end of the scale and typical of the emerging econ-omies, Mexico has significantly less experience in distance sell-ing, accruing just €4 .1 billion in sales in 2013 and a number of orders per capita amounting to 5 .8 per year .

Use of distance selling · in % *


UK DE CN AT KR PL US CH JP FR GL IT ES NL AU IN BR RU TR CA MX

94 94 92 90 88 86 86 86 86 85 84 83 83 81 81 79 78 78

73 73 73

70

58 58

52 50 50 49

44 43

39 37 36

33 30 29 28 26 25 24 22

20

IN CN BR TR MX RU IT PL ES GL CA AU UK KR US NL FR DE AT CH JP

Planning higher number of orders in future (current users)

· in % **

Distance Selling – Use

Industrialised countries (Europe)Industrialised countries (Americas & APAC)Emerging economies

* Source: DHL Global Mail 2013 ∙ n (total) = 11,265; n (countries) = 500-1,040 ** n (total) = 9,161; n (countries) = 344-941, selec-tion by those planning a larger order volume, basis: Current distance selling users




Shop the World 7Shop the World! - in half an hour

UK 28.7

DE 18.2

CN 23.1

AT 15.6

KR 16.5

PL 12.7

US 13.6

CH 12.6

JP 13.1

FR 12.0

IT 10.1

ES 10.1

NL 7.9

AU 14.3

IN 8.5

BR 7.0

RU 6.8

TR 8.1

MX 5.8

CA 9.7

GL 12.7

< 8 orders

< 10 orders

< 15 orders

15 orders or more

Average number of orders per capita per year · Mean *

In Mexico, and also in Turkey, Brazil and India, distance sell-ing sales lie below €10 billion . About one-fifth of respondents made their purchases offline in stores . Annual number of or-ders per capita are in the sin-gle digit range . Nonetheless, these countries harbour growth potential: Over half of current distance selling customers plan to use this shopping channel more in future, and around 80% of those who visit stores say they intend to use distance selling in the future .

Less typical among the emerg-ing economies is China, where distance selling sales amount-ed to €78 .4 billion in 2013 . Of these, 95% were generated through eCommerce . Despite the country’s greater affinity to distance selling (92%) – the average number of orders per capita amount to 23 .1 per year – almost 60% of respondents say they intend to order more .

* Source: DHL Global Mail 2013 ∙ n (total) = 11,265; n (countries) = 500-1,040, Basis: all (including non-users with 0 orders)




Shop the World 8

Searching for product information

Across all countries covered by the study, some 93% of respon-dents go online to search for product information . Search en-gines are the No . 1 choice (53%), followed by retailers’ websites (46%), price comparison sites (44%) and online marketplaces (43%) . Some 70% of distance selling customers also use offline sources, mostly in their immedi-ate environment . 38% rely on ex-perience gained by and tips from friends, acquaintances and colleagues, while about a quarter use catalogs and product visibil-ity in retail stores .

Country-specific differences are evident in the way users search for information . People in Brazil tend to rely on personal recom-mendations (48%), social media platforms (26%) and customer reviews (53%) . In Japan, the trend goes more towards per-sonal dialog (18%), while social media plays only a subordinate role .

Online (net)

Search engines

Retailer or manufacturer website

Price comparison sites

Online marketplace

Customer ratings on the supplier’s website

Customer ratings in blogs and forums

Social media platforms, such as Facebook, Twitter

Apps (on smartphone, iPad or tablet)

Offline (net)

Recommendations from friends, acquaintances, and colleagues

Catalog

Product check in a retail store

Product test ratings / expert test reports

Mail advertising

93

53

46

44

43

41

36

15

10

70

38

25

24

23

15

Search for product information · in % *

Flags show national variations from the global average of at least +10% points.


* Source: DHL Global Mail 2013 ∙ n = 9,386; Basis: Distance selling users




Shop the World 9

Price is the key criterion in choosing a supplier . This is es-pecially the case in Japan (64%) and South Korea (66%) . By way of contrast, people in India place significantly less importance on affordable prices (35%) . The second most important criteri-on is free delivery . This is a key purchasing factor for 45% of people worldwide, and is the most important supplier selec-tion driver in Japan and the US .

Of less importance when choos-ing a supplier are the criteria in-volved in the subsequent phases of the purchasing process . In global comparison, one in four people expect speedy delivery (26%) . This includes delivery time, which is of great impor-tance to customers in Brazil (38%) . Supplier preference can also be driven by customers’ pay-ment option preferences (23%) and free returns (21%), the latter being of particular importance to shoppers in Germany (35%) and Austria (35%), where distance selling and especially free returns have long been the norm .

Favorable prices, promotions, & special offers

Free delivery

Positive customer ratings on the internet

Fast delivery

Choice of preferred payment methods

Free returns

Large selection of products

Good customer service

Attractive product line

Recommendations and experiences of friends, acquaintances, and colleagues

Straightforward return process

Official test seals, reviews, and test reports of independent institutions

52

45

27

26

23

21

21

19

14

15

13

9

Criteria for choosing a vendor · in % *



Supplier selection

* Source: DHL Global Mail 2013 ∙ n = 10,617, Basis: Current and future distance selling users




Shop the World 10

Some 84% of the online popula-tion across the 20 countries cov-ered by the study are distance selling customers who place on average 15 .2 orders per year . A large number of these orders are placed online (75% using a PC and 11% via mobile devices) . Use of mCommerce is disproportionately high in Australia, where 16% of orders are placed in this way, and also in China and South Korea (each at 15%) .

Although online orders tend to dominate, offline orders should not be neglected . Around one fifth of people who shop online also order goods in stores and have them delivered to their homes . Some 17% occasionally place orders by telephone, while 9% sometimes send a written order by post . However, the em-phasis here is on ‘occasionally’ and ‘sometimes’ rather than ‘reg-ularly’ . Thus, the three offline channels only account for 10% of orders . Of these, 5% are orders placed in stores, 3% by telephone and 2% by post . This applies both

to industrialised countries and most emerging economies .

There are three big exceptions, however: In Turkey (57%), Mexico (55%) and India (52%) the share of online orders made using a PC is significantly below the global average of 75% . Instead of PCs, distance selling custom-ers in these countries tend to order goods in stores (12%), by telephone (7%) and especially in India by post (9%) .


Placing orders




Share of distance selling order channels · in % *

* Source: DHL Global Mail 2013 - selected countries

JP US UK CN GL AU KR TR MX IN

1221

10

85

133

4

10

79

134

5

10

78

133

5

15

77

2

3

4

5

11

75

2

3

4

3

16

73

2

6

2

4

15

71

3

6

12

11

11

57

5

8

9

12

11

55

9

6

8

13

12

52

By post, faxBy telephoneBy email

Order in store & delivery to homeOnline mobileOnline PC

Shop the World 11

Credit cards are the most fre-quently used method of payment around the world . In global com-parison, some 61% of respon-dents said they used this method (very) frequently or occasionally . In Turkey, Japan, the US, South Korea, Brazil and Canada this figure rises to over 80% . The Netherlands, Poland and Russia tend to view credit card payment with scepticism – regular credit card use in these countries drops to just below 25% .

Online payment systems like PayPal and Alipay are the second most-frequent payment method used . More than half of distance selling customers around the world say they use them (very) frequently or occasionally . As with credit card payments, use of online payment systems varies from country to count-ry . In China, Aliplay – a wallet solution which supports all national debit cards and international credit cards – is the do-minant choice . Almost all Chi-nese distance selling customers (91%) use it to pay for their or-ders . In Japan, by contrast, online payment systems are of little relevance: Nine out of ten custom-

ers (88%) say they never use them or only use them on occa-sion .

Debit cards, prepayment, in-voice payment, direct debit and cash on delivery see similar use rates of between 28% and 34% . But there are some countries in which these payment methods are the preferred choice . Peo-ple in Great Britain (78%) prefer debit cards, while the Swiss (76%) and Germans (69%) like to receive an invoice before they pay . Cash on delivery, by con-trast, enjoys wide acceptance in India (75%) . Payment by install-ments is by far the least preferred method (12%), and is mostly used in South Korea (49%) .

Never Seldom Frequently / very frequentlyOccasionally

29 10 19 42Credit card

Online payment systems

Debit card

Prepayment

Invoice

Direct debit

Cash on delivery

Installment purchase / financing

33 13 20 34

55 11 16 18

53 16 16 15

54 16 16 13

56 16 16 12

78 9 8 4

56 1616 12

Frequently / very frequently

Payment in distance selling · in % *



Payment methods

* Source: DHL Global Mail 2013 ∙ n = 9,218-9,324, Basis: Current distance selling users




Shop the World 12

The maximum acceptable delivery time differs from country to country . Tol-erance ranges from 3 .8 days in Turkey to 12 .4 days in Russia, whereby the country’s size and the associated distances goods must travel are not necessarily the decid-ing factors . India is nine times the size of Germany, yet in both countries custom-ers expect delivery within 5 days . Signif-icantly more important, however, is pop-ulation density: In Russia, the country with the longest waiting times, there are only 9 inhabitants per square kilometer, while in Turkey there are 100 and over 500 in South Korea . As a result, Turkish and South Korean customers expect to receive their deliveries within 3 .8 and 3 .9 days respectively .

In all countries covered by the study, free and speedy deliveries are the key crite-ria when choosing a supplier . On a scale from 1 (not important) to 6 (very impor-tant), free delivery receives a 5 .3 rating, while speedy delivery gets a 5 .1 . Third place goes to ‘detailed information on de-livery times and delivery date at the time of order’ (4 .9) .

Preferences in respect of order tracking and supplier trustworthiness also differ from country to country: In emerging economies, some 30% of distance sell-ing customers fear that products might not arrive . As a result, the importance of track and trace options, and supplier trustworthiness is higher than in indus-trialised countries .

RU BR CA AU CH MX ES AT FR GL IT US JP CN UK IN DE NL PL KR TR

Max . accepted order time · in days *

Free delivery

Fast delivery

Detailed information regarding delivery period & delivery date when ordering

Tracking information

The vendor only works with reliable delivery companies

The option of selecting the shipping company

Delivery to a retail store

Other collection points (supermarket, kiosk, gas station)

Delivery to a parcel locker or drop box 1 2 3 4 5 6

Not important at all Very important

Globally

Requirements for delivery · Mean **

12.4

9.3

8.9

8.7

7.4

7.3

7.1

6.8

6.6 6.5

6.5

6.3 6.3

5.5

5.2

5.0 5.0

4.9

4.3

3.9

3.8


Delivery

* Source: DHL Global Mail 2013 ∙ Mean, n (total) = 10,347; n (countries) = 424-989, Basis: Current and future distance selling users ** n = 10,270-10,462, Basis: Current and future distance selling users




Shop the World 13

On average 13% of orders are returned in Germany and Aus- tria . In almost all other coun-tries, the return rate is below 10%; in Japan and Italy it is even as low as 2% . The global list of reasons for order returns is long, ranging from the top four – ‘does not fit’ (38%), ‘defect’ (32%), ‘poor quality’ (30%) and ‘does not meet expectations’ (30%) – to ‘excessive delivery time’ (6%) and ‘product cheaper elsewhere’ (4%) . However, the reasons for a return differ from region to region . While fit and failure to meet expectations are the key reasons both in German-speaking countries and in Great Britain and Canada, poor quality do-minates in emerging economies and South Korea .The different return rates and reasons can in part be attributed to cultural preferences, shopping basket composition and coun-try-specific laws and legislation . Orders of clothing in multiple sizes and customer-friendly leg-

islation, certainly in German-speaking countries, result in high return rates, while the drivers in China are product piracy and poor quality standards .


UK 6%

DE 13%

CN 5%

AT 13%

KR 5%

PL 3%

US 7%

CH 9%

JP 2%

FR 6%

IT 2%

ES 5%

NL 9%

AU 3%

IN 7%

BR 3%

RU 3%

TR 5%MX 3%

CA 4%

GL 6%

< 3% Returns

< 5% Returns

< 7% Returns

< 7% & more returns

Return rate · Mean in % *

Returns

* Source: DHL Global Mail 2013 ∙ n (total) = 9,325; n (countries) = 368-954, Basis: Current distance selling users




Shop the World 14

Cross-border shopping – Overview

Shopping without limits is a way of life for many distance selling customers . While some 45% have ordered goods from abroad, significant differences are evident between industria-lised countries (53%) and emerging economies (31%) . While in parti-cular Europe has a well-established cross-border shopping tradition, it is the smaller or geographically iso-lated countries like Austria (79%), Australia (74%) and Switzerland (73%) that lead the field . Most of the goods ordered originate in the US . This applies to orders placed in emerging economies, industrialised countries in the Asia-Pacific region, and Canada . Exceptions in-

clude Russia, where distance selling customers mostly order from China – as do those in the US . Customers in Europe tend to order from coun-tries in the region .

Cross-border shopping trends

While 45% of distance selling cus-tomers have ordered goods from abroad, 75% plan to do so in future . The share of cross-border orders will rise significantly among customers in emerging economies: India, Po-land and Mexico expect to see an in-crease from 30% to over 80%, while Brazil anticipates a rise from 41% to 84% . China promises a huge increa-se, from a low 20% to 78% . Some in-dustrialised countries err on the side

79

74

73

60

57

54

54

49

45

43

43

41

41

40

34

32

30

30

30

20

18

Use of cross-border eCommerce · in % **

123

GL AT CH DE ES FR IT NL UK AU CA JP KR US BR CN IN MX PL RU TR

(52) (91) (62) (47) (49) (48) (53) (42) (71) (77) (82) (69) (84) (48) (72) (66) (66) (87) (32) (66) (49)ASIA

(OTHER)

(31) (28) (42) (45) (45) (46) (53) (41) (37) (58) (41) (22) (19) (41) (55) (35) (24) (15) (32) (49) (40)

(29) (23) (37) (33) (42) (39) (36) (31) (31) (45) (29) (18) (8) (31) (18) (30) (22) (9) (24) (26) (18)

Top 3 countries for placing orders abroad · in % *

Example: In Austria, 91% of all respondents with experience of placing orders abroad had already ordered something in Germany.

Hong Kong


Cross-border shoppingof caution when it comes to cross-border shopping: In Japan and the Netherlands, over 40% of respon-dents cannot see themselves placing an order with a supplier in another country . In South Korea and the US it is one third .

Despite the many obstacles, custom-ers seem satisfied with their cross-border orders . In global compari-son, only 3% of respondents who have ordered from abroad said they would not do so again . This number is particularly high in the US and in Switzerland (6% respectively) .

* Source: DHL Global Mail 2013 ∙ n (total) = 4,738; n (countries) = 91-393, Basis: Current users of distance selling ** n (total) = 11,030; n (countries) = 480-1,029, Basis: All *** n (total) = 8,932; n (countries) = 331-806, Basis: All

AT

AU

CH

UK

IT

ES

CA

DE

GL

NL

RU

FR

BR

US

MX

JP

KR

PL

IN

CN

TR

89

89

88

87

85

85

84

83

83

82

78

77

77

76

72

70

65

63

62

58

54

Future use of cross-border eCommerce · in % ***

AT

RU

IT

AU

ES

IN

BR

PL

CH

MX

CN

GL

UK

CA

DE

TR

FR

KR

US

NL

JP




Shop the World 15

Drivers in cross-border shopping

The main reasons for shopping abroad are that products are not available domestically (73%) and that prices are lower elsewhere (63%) . In emerging economies, better quality and protection against counterfeit goods and product piracy are key factors . These were cited particularly fre-quently by customers in China, India and Russia . Obstacles to cross-border shopping

In global comparison, 20% of all internet users say they would not order from abroad in future . Among them are also experi-enced distance selling customers who think the obstacles and pro-blems of ordering abroad are just too big . The biggest obstacles are seen in the delivery process: Long delivery times (56%), high delivery charges (54%) and com-plex return management (51%) . These were cited to equal extent by respondents in all countries

covered by the study . Cultural differences between the coun-tries occur in the context of other barriers: Concern about counter-feit products is one of the main obstacles in Japan (56%), while in Switzerland only 31% share this concern . Language barriers tend to stop people in Turkey (49%), China (44%) and France (42%) from ordering goods from abroad .

Products not obtain-able domestically

Lower prices

Greater selection

Higher quality of the products

Assurance against product counterfeiting

74

74

72

57

69

62

49

35

41

49

8

15

24

4

6

Emerging economies

Industrialized countries (Europe)

Industrialized countries (Americas & APAC)

Drivers for ordering abroad · in % *


* Source: DHL Global Mail 2013 ∙ n = 7,289, Basis: Current or future use of cross-border distance selling ** n = 10,689

Long delivery times

High delivery costs

Complicated return process

Fear of fraud

Customs clearance

Non-transparent costs

Uncertain delivery

Uncertainty regarding warranty terms, payment process, legal situation, etc.

Unknown product quality

Uncertainty with problems

Concern about misuse of payment data

Language problems

Concerns about data protection

No demand because all products are obtainable locally

56

54

51

42

41

41

39

39

33

36

32

32


24

13

Barriers to ordering abroad · in % **




Country InformationAustralia

Beccy and Tom Australian distance selling clients are mobile, urban dwellers, price conscious, demanding… and 8 out of 10 shop abroad.

Shop the World 17

4.7

Population 0 - 15 years

Australian economy * COUNTRY PROFILE AUSTRALIA

Melbourne 3,896

* Source: Fischer World Almanac 2014, Germany Trade & Invest ** Source: Metropolitan areas with 1 million inhabitants and more; United Nations, Department of Economic and Social Affairs, Po-pulation Division (2012). World Urbanization Prospects: The 2011 Revision, CD-ROM Edition. *** Source: Copyright © IHS, 2013. All rights reserved **** Source: Copyright © IHS, 2013. All rights reserved

Number of households Ø Household sizeUnemployment rateInflation rate

4.0

Economic growth · in % ****

>

>

2.32.6

2011 2012 2013

Country information Australia

Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

· 2013 in mn.· 2013· 2013 in %· 2013 in %

8.22.85.72.5

The Australian economy appears stable. While noticeable real GDP growth was seen in 2013, the boom of the previous year has passed. Dependency on the Chinese market threatens the country’s further growth. For years, Australia has prof-ited from China’s need for raw materials. Demand for coal, iron ore, uranium, and copper flushed capital into the country and strengthened the Austra- lian Dollar. At the same time, the processing industry came under pressure because their exports were no longer attrac-tive due to the high curren-cy exchange rate. Since 2012, growth in China has slowed considerably and with it the demand for raw materials. Aus-tralia’s strength as an export nation is threatened.

15.1

3.2Brisbane 1,993

Perth 1,617

Adelaide 1,181

Sydney 4,479

Age distribution · 2013 in mn.

Population 65 years and older

Population, total · 2013 in mn. 22.9 ***


Metropolitan areas with 1 million inhabitants or more · 2011 in thousands **

Shop the World 18

32+8+1+4+32+19+4MEDIA USE IN AUSTRALIA

25.1

106.2

Smartphone market penetration · in % *****Representative domestic population 16+, n = 1,000

52.2

Internet users · 2012 per 100 people **

Permanent access to broadband internet · 2012 per 100 people ***

Cellphones · 2012 per 100 people ****

2012 2013

64.6

Share of adspend by medium · in % *


Total advertising expenditure · in EUR bn. *

Internet Newspapers Magazines

>>

2011 2012 2013 2014 2015

10.8

82.3

10.5

10.2

10.0

10.0

2016

11.2



32.5

18.5

4.3

4.10.8

8.2

31.6

* Source: Zenith Optimedia, 2013 ** Source: Copyright © IHS, 2013. All rights reserved *** Source: The World Bank **** Source: Copyright © IHS, 2013. All rights reserved **** Source: Our Mobile Planet: Google Global Smart phone Study 2013, http://www.thinkwithgoogle.com/mobileplanet/

Internet use

In Australia, the internet is part of everyday life. More than 80% of Australians are now online. The most widespread internet use is seen on the country’s heavily populated east coast. But even in the outback, which is somewhat behind in terms of development, surfing the web is by no means uncommon. Internet the most powerful medium

2013 saw the internet take the highest share of Australia’s media mix for the first time. High growth is expected primarily in internet and TV expenditure. Although spending in the big advertising sectors of retail, automo-tive and FMCG is stunted by low consumer confidence, a stable annual increase of 2-3% in total expenditure is anticipated by 2016.

Shop the World 19

Anything but laid back

With a CAGR of +16.5%, the Australian distance selling business is growing significantly faster than its global counter-part (+10.7%). This also applies to food, media products, and consumer electronics, which are already being ordered with above-average frequency.

DISTANCE SELLING IN AUSTRALIA

1,995.6

Distance selling purchases in 2013 - trend for 2018 · in EUR mn. * 2013 2018

Apparel and footwear

168.3

139.4

1,270.0

286.4

501.4

308.0

143.7128.1

106.4

119.7

91.3

47.9

Consumer electronics,

computers + equipment

Media products (books, CDs,

DVDs, etc.)

Housewares and home furni-

shings + textiles

Food + beverages

Household and consumer

appliances

Beauty and personal care

DIY and gardening

OTC drugs and dietary supple-

ments

Traditional toys and games

House cleaning (detergent,

chastener, etc.)

Development of distance selling and share of total retail 2011 - 2018 · in EUR bn. *

CAGR: 16.5%

Home shopping

Online shopping3.7 4.3 4.9

0.30.3

0.3

5.8 10.9

0.3

0.2

2011 2012 2013e 2014e 2018e

Share of total retail · in % 2.3 2.6 2.9 3.4


25.7



658.4

151.7

131.5

1,534.3

836.5

1,069.9

1,615.1

858.9

5.7

Shop the World 20

81+1984

+16

Distance selling on the up

Distance selling is a given in Australia. With over 80% of the population already placing orders online, this figure is set to rise.


80.8

19.2

Australia

Globally

83.5

16.5

Number of orders in the previous year · in % *

1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

25.5

28.9

14.3

19.2

12.0

20.5

35.9

15.2

16.5

12.0

Future ordering behavior (current users) · in % *

More frequently than in the last

12 months

Just as frequently as in the last

12 months

Less frequently than in the last

12 months

57.2

36.2

55.2

38.8

6.5 6.1

Non-users of distance selling - future plans · in % *

Yes59.4

Australia

Globally

Yes70.5

No40.6

No29.5

Yes No

Australia Globally Australia Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Australia from 71 to 522



Shop the World 21

On trend, but different

Australia’s distance selling business is similar to the global average, but there are some differences in the ‘heavy users’ group. Highly active heavy internet users in Australia are broadly scattered across all age groups, with a slight majority among 30-49-year olds. They are ur-ban dwellers (68.3%) and tend to access the internet using mobile devices (60.2%). While the global average shows more women using distance selling, in Australia men have a slight edge. Another difference is seen in the number of older distance selling clients in the heavy users group (27.1%). This compares with the global average of 21.2%.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Australia from 109 to 522 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users



***

Globally*

40.0

Gender · in % Male Female

Age · in % <30 yrs. 30-49 yrs. 50 yrs. +

Occupation · in % Employed Unemployed

Education · in % Lower educational level Medium and higher level of education

17.1

Media affinity: Online · in % yes**

Community size · in % Rural (<50,000 inhabitants) Non-rural/urban (>50,000 inhabitants)

Minors in the household · Ø

Household type · in % Single 2-person household without children Household with children Household with 3 adults

Mobile Internet usage · in % Yes No

Gross household income · in % Low income Medium income High income

Media affinity: Classic · in % yes**

Media affinity: Dialog marketing · in % yes** 42.7

24.6

79.8

44.531.0

24.4

39.860.2

16.643.8

47.1

32.8

52.9

32.0

82.9

68.3

0.9

27.312.4

68.0

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6

Australia*

42.628.7

15.9

31.1

40.6

29.3

73.8

36.434.828.9

44.355.7

16.344.2

49.9

28.7

50.1

36.8

84.1

68.9

0.9

25.813.8

63.2

27.1

31.7

Heavy users* Global heavy users*

Shop the World 22

“CUSTOMER JOURNEY“ – SEARCHING FOR PRODUCT INFORMATIONSearch for product information · Australia in % * Globally

34.1 35.5

53.2

24.0 23.4

35.6 44.2

22.9 23.9

45.8

49.0 42.5

24.6 25.1

11.8 15.1

16.6 15.1

8.2 9.7

39.1 37.8

Criteria for choosing a vendor · Australia in % *

Globally

Search engines

Customer ratings in blogs or forums




Online marketplace

Catalog

Mail advertising

Social media platforms such as Facebook and Twitter

Apps (on smartphone, iPad, or tablet)


35.1 40.6Customer ratings on the supplier’s website



Recommendation and experiences of friends, acquaintances, and colleagues





Free returns


Fast delivery

Free delivery



15.1 13.7

20.7

10.1 8.8

30.0 26.6

12.0 14.9

56.9 51.7

9.6 12.9

14.4 20.8

30.6 22.6

27.5 25.7

44.0 45.2

15.4 18.5

19.9

Search engines in the leadMost Australian distance sell-ing clients use search engines to find information. Many also use retailer websites or online mar-ketplaces. They are also extremely price-conscious.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Australia from 415 to 476, multiple mentioning



61.6

49.3

Shop the World 23

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Australia from 462 to 468 ** scale from 1 "absolutely not useful“ to 6 "very useful“

Demanding target group

Persuasive advertising is a particular challenge in Aus- tralia. Online shoppers tend to perceive advertising media as unhelpful. Internet search en-gines lead the way, with 62.7% of users perceiving them as ‘very useful’.

ACCEPTANCE OF ADVERTISING MEDIA



Usefulness of advertising media · in % *, **

5 and 63 and 41 and 2

Ø

47.228.1 24.726.1 43.8 30.1

Online advertisingAustralia Globally

Television advertising


3.43.6

Ø

40.741.3 18.030.6 41.8 27.6

3.03.4

41.142.2 16.738.7 40.4 20.9Social media

Australia Globally

Advertising letters

2.93.1

32.546.2 21.333.9 37.6 28.5

2.93.4

Product suggestions in online shops

45.326.8 28.018.9 45.1 36.0

3.53.9

29.87.6 62.76.5 28.7 64.8

4.74.8

38.512.7 48.79.1 31.7 59.1

4.24.6

45.329.4 25.229.9 43.9 26.2

AustraliaGlobally

Household advertising

3.43.4

44.535.7 19.729.0 46.7 24.3

AustraliaGlobally

Advertisements in magazines and periodicals

3.23.4

47.338.6 14.134.8 43.1 22.1

AustraliaGlobally

Advertisements in newspapers

3.03.2

37.553.2 9.241.8 40.7 17.6

Australia Globally

Billboard advertise-ments

2.53.0

40.244.0 15.744.3 38.8 16.9

AustraliaGlobally

Radio

2.92.9

45.620.6 33.819.3 44.2 36.6

AustraliaGlobally

Catalogs from vendors

3.83.9

Australia Globally

Australia Globally

AustraliaGlobally

Internet search engines

Australia Globally


AustraliaGlobally

Shop the World 24

Australia Globally Use of different suppliers · in % *

Never Seldom Frequently / very frequently

Occasionally


Online PC

Online mobile (tablet, smartphone)

By telephone

In writing (by post, fax)

By email

Order in store & delivery to home

73.2

2.7

1.7

4.2

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERS

Online ordering clearly prefer-red

Ordering online: Almost three-quarters of Australian distance selling clients order online using their PC. Another 15.6% use mobile devices, and 4.2% order via email.

Among the available sales channels, online marketplaces and online shops rank highly among Australians. As a result, only 9.1% and 13.8% of custom-ers have not used these mail order options in the last 12 months. The traditional print catalog loses out, with only half of customers ordering this way. Attitudes towards teleshopping are largely conservative (64.2% non-users in Australia versus 60.2% globally).

13.8 32.516.4 37.4

Australia

9.1 54.26.1 30.6

48.5 9.122.7 19.7

64.2 4.919.3 11.6

15.6

10.5

2.6

4.8

Order channels · in % *



Online marketplace

Mail order company from which I received a catalog

Merchant who advertises on TV

Online shop of a manufaturer or

retailer

Globally

9.9 54.38.7 27.0

38.5 12.622.8 26.1

60.2 6.617.6 15.7

15.4 31.216.8 36.6

Shop the World 25

Online payment wins

Online payment systems like PayPal are clearly preferred by Australian distance selling cli-ents: 61.9% use them frequently to very frequently (33.7% globally). Unlike the global average, Australians have less of a preference for payments made by invoice, cash on delivery, pre-payment, direct debit, or credit card. However, debit cards are used more often (22.7% ‘fre-quent use’ in Australia versus 18.4% globally). Installment payment/credit financing is seen only rarely in the Austra-lian distance selling business: 87.8% of customers say they never buy on credit (compared with 78.0% globally).

Cash on delivery

Prepayment

Direct debit

Credit card


“CUSTOMER JOURNEY“– PAYMENT METHODS



Debit card

Invoice

Payment options · in % *


Australia

Globally

24.3 11.4 24.0 40.3

29.3 9.8 18.7 42.3

73.8 13.6 9.2 3.4

55.8 16.3 16.1 11.7

71.9 12.1 8.5 7.5

53.4 16.1 15.5 15.0

55.9 18.6 16.4 9.1

56.0 15.5 16.4 12.1

72.7 14.7 9.0 3.6

54.4 15.8 16.3 13.4

14.2 6.9 17.0 61.9

33.3 12.9 20.1 33.7

87.8 6.5 3.9 1.7

78.0 9.5 8.1 4.4

46.1 11.1 20.2 22.7

55.1 10.8 15.7 18.4



Shop the World 26

Australia Globally

The option of selecting the shipping company The vendor only works with reliable delivery companies

Detailed information regarding de-livery period & delivery date when ordering

Fast delivery

Free delivery



Delivery to a parcel locker or drop box

Other collection points (supermar-ket, kiosk, gas station) 3.4

3.3

2.9

5.1

4.6

5.0

3.2

4.8

4.4

Max. accepted order time · Ø in days *

3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Australia from 454 to 471 ** scale from 1 "absolutely not important“ to 6 "very important“

Speed is relative

Given Australia’s geography, speed is relative – as can be measured against customers’ delivery expectations. In some areas, it may take up to two days longer for a parcel to ar-rive. Expectations regarding transport are generally slightly lower compared with the global standard.

“CUSTOMER JOURNEY“ – DELIVERY

1 2 3 4 5 6

Requirements for delivery · Ø *,**



8.7

6.5

Australia Globally

Shop the World 27

15+85Number of returns per capita per year · Ø * Australia Globally

0.8

0.4

Return rate · in % * Australia Globally

3.0

Reasons for returns * · Australia in %

Defective product 41.9

Percentage of users who returned goods · in % *

15.6

84.4

Australia Globally

Yes No

“CUSTOMER JOURNEY“– RETURNSReturns are not an issue

Only 15.6% of distance sellingclients in Australia return or-dered goods. This is more than 10 percentage points below the global average of 27.5%. Both the per capita returns (0.4 ver-sus 0.8 globally) and the return rate of 3% are significantly be-low the global average. The reasons for a return can differ greatly: Australian consumers do not hold back if a product is found to be defect (41.9% versus 32.3% globally). Far less often, an item is returned because it does not fit (24.5% versus 37.7%) or because several sizes were ordered to allow a better choice (6.1% versus 15.5%).


Differing product description

Delivery of the wrong product

Wrong product was ordered

Product did not fit

Ordered multiple variants to choose from

Delivery period too long

Found less expensive product

Deficient product quality

Product was not liked

17.3

15.6

24.5

16.9

6.1

6.5

5.9

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

21.7

4.5



5.9

72+28 27.5

72.5

Shop the World 28

High delivery costs

Uncertain delivery



Long delivery periods


No try-on possible before purchase

Complicated return of the products

No personal advice

No personal contact person for problems

Doubts regarding data protection or the dissemination of data to third parties

Concern about counterfeited products, product piracy

DRIVERS & BARRIERS IN DISTANCE SELLING

Product can only be obtained via distance selling

Easy price comparison

Shopping 24/7

Location-independent ordering

Higher product quality

Lower prices

Greater selection

Option to deliver to a preferred location

Barriers · Australia in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

72.3

46.4

67.4

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

A host of good reasons

Autonomy of time and place, pricing, and delivery options are arguments in favour of eCommerce in Australia. A noticeale drawback is consumers’ concern regarding unknown product quality.

Drivers · Australia in % *

Globally


58.9

47.7

72.7

64.3

6.8

45.0

33.8

36.0

4.3

37.6

58.6

68.3

54.1

22.2

24.2

25.3

35.8


Country profile · Media Use · Distance selling · “Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Shop the World 29

80+9+11

CROSS-BORDER SHOPPING – OVERVIEW

Previous orders abroad

Previous and future orders abroad by country · in % *

China[43.9]

Other Asian countries[17.4]

1

2

3

4

5

USA[77.4]

Great Britain[58.0]

Hong Kong[45.0]

Future orders abroad

Australia

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Australia from 359 to 438 ** split into "further orders planned“ 78% Australia and "no further orders planned“ 2.1% Australia

Shopping without limits

In Australia, cross-border shopping is taken for grant-ed: 80.1% of consumers have ordered from abroad - a fig-ure far exceeding the global benchmark of 51.2%. The En- glish-speaking countries of the US and Great Britain are espe-cially popular. Orders are also placed with suppliers in Asia, primarily Hong Kong and Chi-na. Australians want to con-tinue to use these markets and are also turning to Japan for ordering abroad.

China[53.3]

Japan[34.9]

USA[85.5]

Great Britain[73.4]

Hong Kong[54.2]


Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Use of cross-border eCommerce · in % *

Yes, already ordered **No, but future orders planned No, no future orders planned

8.6

80.1

11.3

Shop the World 30

Products not obtainable domestically


Lower prices

Greater selection

Assurance against product counter-

feiting

Drivers for ordering abroad · Australia in % *

Barriers to ordering abroad · Australia in % *

High delivery costs Language problems

Customs clearance




Long delivery times



Concerns regarding data protection Fear of fraud Uncertain delivery



Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Price-driven purchase

When compared with the glob-al trend, the main driver for or-dering abroad is a lower price. In contrast, product quality (13.4% versus 24.2% globally) plays only a subordinate role. Lack of product availability on the domestic market and grea-ter selection are also key fac-tors.

CROSS-BORDER SHOPPING – DRIVERS & BARRIERS


51.8

21.6

22.3

27.7

32.8

8.6

65.1

50.5

48.5

24.4

45.8

43.3

36.1

42.0

76.7

13.4

80.9

55.6

3.5



Shop the World 31

Receipt of mailings and catalogs · Australia in % *


DIALOG MARKETING

Reading mailings and catalogs

· in % *,**

Australia

Globally

22.4 30.4 47.3

22.1 35.2 42.7


Response to mailings and catalogs

· in % *,**

Australia

Globally

28.1 49.1 22.8

29.0 45.8 25.3

Response channel for mailings and catalogs · Australia in % * Globally

Website visits

Visits to stores or

branch offices

Other online

response (e.g. chat,

Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

67.7 73.4

48.6

30.0

24.5

18.4

12.6

*Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Australia from 393 to 522 ** scale from 1 "never“ to 6 "almost always“

Dialog marketing popular

Dialog marketing is widely used in Australia. At 42.6%, the number of people who receive one or more mailings and cat-alogs per week, is considerably higher than the global average of 26.9%. The approximately 11.2% of the online population that do not receive mailings is within the global average. Also, mailing recipients look forward to receiving these mails: At 47.3%, frequency in reading di-alog marketing mails is almost 5 percentage points higher than the global average. In contrast, recipients are less enthusiastic when it comes to responding via the established channels (e.g. via suppliers’ websites). They do, however, tend to go directly to an advertiser’s out-let or store (68.9% versus 48.6% globally).

Globally

One or more times per week

One or more times per month

Less than once per month

Never

26.9

33.7

27.7

11.6 68.9

19.3

16.0

17.5

6.4

42.6

24.7

21.5

11.2



Country InformationAustria

Christian

Austrian eCommerce clients are educated, young, security-conscious and live in rural areas. They love to shop abroad.

Shop the World 33

The Austrian economy *


Country information Austria Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border selling · Dialog marketing

After a poor fiscal year in 2012,Austria’s economy continued to stagnate throughout 2013. Unlike other European coun-tries, Austria avoided falling back into a recession but the economy only grew 0.5%. The low growth rate had the greatest impact on private households: while real earnings stagnated, the unemployment rate increased one percentage point to 7.6%. Private house-holds limited their consump-tion due to the economic un-certainty and domestic demand regressed. The outlook for 2014 appears much better however - at the start of the year Austrian companies reported their order books to be fuller than in recent years.

1.3Population 0 - 15 years

COUNTRY PROFILE AUSTRIA


0.7


>

>

0.5

2.9

2011 2012 2013





· 2013 in mn.· 2013· 2013 in %· 2013 in %

3.6 2.37.62.0

5.6

1.5


Vienna1,708

Shop the World 34

23+6+1+7+14+37+12MEDIA USE IN AUSTRIA

25.2

161.2

Smartphone market penetration · in % ***** Representative domestic population 16+, n = 1,000

35.9


Permanent access to broadband internet · 2012 per100 people ***


2012 2013

48.0





>>


2011 2012 2013 2014 2015

3.4

81.0

3.3

3.3

3.3

3.3

2016

3.5


14.4

36.9

12.2

6.5

0.4

5.6

24.0

Internet use

The extent to which the popu-lation uses the internet is an indicator of how important it is. 81% of all Austrians had in-ternet access in 2012, while 25% had a permanent broadband connection. The future of in-ternet growth is going mobile. According to experts, "on de-mand" TV, videos and films are the greatest drivers.

In the land of newspapers and magazines

Printed advertising has an high share in Austria‘s media mix, while internet expen ditures are below the European average. Currently, the total advertising market is growing slightly at a rate of 1.2%.

Shop the World 35





DVDs, etc.)

Housewares and home furni-

shings + textiles

Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

Fashion and media products

Clothing and media products are bestsellers in Austria, fol-lowed by consumer electronics. Compared to the global average, toys are ordered more frequently, while cosmetics are less popular.

DISTANCE SELLING IN AUSTRIA

785.1


375.4

1112.7

617.2

173.0

149.3

189.3

105.9

141.4

71.0

67.3

48.7

44.3

86.5

43.8

10.3


CAGR: 4.8%

Home shopping


0.6

0.6

0.6

2.9 3.5

0.6

0.5

2011 2012 2013e 2014e 2018e

Share of total retail · in % 4.7 5.1 5.8 6.3 7.2


722.7

8.3


151.0

61.3

49.5

366.0

Shop the World 36

84+16

90+10

Top usage rates

In Austria, distance selling purchases are very common. Almost 90% are users and al-most three quarters of the non-users want to become involvedin the future.


89.8

10.2

Austria

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

21.4

39.0

17.5

10.2

11.9

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

68.0

24.4

55.2

38.8

7.6 6.1


Yes73.5

Austria

Globally

Yes70.5

No26.5

No29.5

Yes No

Globally Austria Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Austria from 34 to 510


Austria

More than 20 orders

Shop the World 37

Mobile is the current trend

Active distance selling custom-ers have a unique profile in Austria: They are slightly older than the average population (78.9% over 30), live more of-ten in a rural area and also have a higher level of education. At 53.9%, the proportion of peo-ple living in smaller households (max. 2 people per household without children) is above aver-age. Consequently, this group rarely has a high household in-come. Mobile internet usage is widespread in Austria (76.1%). Traditional advertising media on the other hand is less valued than in the global average.


* Source: DHL Global Mail 2013 ∙ n from 2,661 to 11,265 ∙ n Austria from 112 to 510 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "abso-lutely not useful" to 6 "very useful" *** the top third of most active mail order users


***

Global*

54.5


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



8.7









21.4

83.4

33.040.1

26.9

23.976.1

8.737.4

47.1

21.1

52.9

28.8

91.3

34.7

0.8

33.920.0

71.2

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6

Austria*

45.429.5

20.3

63.4

41.5

24.2

77.7

27.437.934.7

32.867.2

14.430.5

50.0

25.2

50.0

31.0

79.7

36.6

0.6

35.419.7

69.0

24.4

65.3


Shop the World 38

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery



Criteria for choosing a vendor · Austria in % *

“CUSTOMER JOURNEY“ – SEARCHING FOR PRODUCT INFORMATIONSearch for product information · Austria in % * Globally

33.4 35.5

53.2

27.3 23.4

44.9 44.2

22.7 23.9

48.5 45.8

50.3 42.5

23.8 25.1

17.7 15.1

9.6 15.1

5.8 9.7

35.4 37.8

Globally

54.4

48.9 40.6

7.0 13.7

20.7

9.6 8.8

22.8 26.6

15.0 14.9

46.0 51.7

19.2 12.9

36.2 20.8

31.5 22.6

23.1 25.7

42.5 45.2

14.7 18.5

23.1

Customer reviews are important

In Austria, customer reviews posted on retailer websites are extremely important when searching for information. Free returns are particularly rele-vant when selecting a product.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Austria from 453 to 489, multiple mentioning


Shop the World 39

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Austria from 468 to 484 ** scale from 1 "absolutely not useful" to 6 "very useful“

Price checks are convincing

Distance selling clients in Aus-tria generally make purchasing decisions based on informationavailable online, mainly price comparison portals (59.4%) and search engines (57.6%). “Tradi-tional” catalogs from retailers continue to generate a great deal of interest, however.





Ø43.640.8 15.6

26.1 43.8 30.1

Online advertisingAustriaGlobally



3.03.6

Ø

40.144.9 15.030.6 41.8 27.6

2.93.4

41.844.3 13.938.7 40.4 20.9Social media

Austria Globally

Advertising letters

2.93.1

33.155.4 11.633.9 37.6 28.5

2.53.4


50.326.9 22.818.9 45.1 36.0

3.43.9

33.29.2 57.66.5 28.7 64.8

4.64.8

30.99.7 59.49.1 31.7 59.1

4.64.6

50.130.3 19.629.9 43.9 26.2

AustriaGlobally


3.33.4

46.037.3 16.729.0 46.7 24.3

AustriaGlobally


3.13.4

43.041.9 15.134.8 43.1 22.1

AustriaGlobally


3.03.2

36.654.9 8.541.8 40.7 17.6

AustriaGlobally


2.53.0

36.055.7 8.444.3 38.8 16.9

AustriaGlobally

Radio

2.52.9

42.920.9 36.219.3 44.2 36.6

AustriaGlobally


3.93.9

AustriaGlobally

Globally

Globally


Globally


Globally

Austria

Austria

Austria

Austria

Shop the World 40

Online PC


By telephone


By email


Online marketplace




retailer

Use of different suppliers · in % *Never Seldom Frequently /

very frequentlyOccasionally


Austria Global

79.9

2.7

2.6

6.2

75.0

3.2

2.1

4.4


Online wins

Austrian distance selling cli-ents like to place orders online via PC (79.9% vs. 75% globally), whe reas other ordering meth-ods are barely used.Online market places are the most popular way of ordering products. They are used frequently to very frequent-ly by 56,4% of Austrian distance selling cli ents. However, dispatchers who advertise their products on te levision struggle in Austria. 82,1% claim never to have used a TV shopping chan-nel.

15.2 28.321.3

15.4 31.216.8

35.2

36.6

Austria

Globally

10.7 56.46.6

9.9 54.38.7

26.4

27.0

30.2 17.223.8

38.5 12.622.8

28.7

26.1

82.1 1.811.7

60.2 6.617.6

4.4

15.7

7.0

10.5

1.6

4.8



Shop the World 41

Playing it safe

Austrian distance selling cli-ents prefer to pay for goods only after receiving them: 36.1% use this payment method often (vs. 13.4% globally). In the interna-tional comparison, the high af-finity for paying by direct debit is significant. Credit cards andonline payment systems on the other hand are used less fre-quently in the global compari-son. Cash on delivery, install-ment purchases/financing and debit cards play a minor role.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice

Payment options · in % * Never Seldom Frequently / very frequentlyOccasionally

Austria

Globally

36.2 11.9 19.1 32.8

29.3 9.8 18.7 42.3

69.7 17.3 7.9 5.1

55.8 16.3 16.1 11.7

54.1 23.4 15.1 7.5

53.4 16.1 15.5 15.0

45.6 17.6 16.3 20.5

56.0 15.5 16.4 12.1

23.5 18.0 22.4 36.1

54.4 15.8 16.3 13.4

46.0 14.1 18.7 21.3

33.3 12.9 20.1 33.7

87.4 5.5 4.6 2.4

78.0 9.5 8.1 4.4

94.9 2.5 1.51.1

55.1 10.8 15.7 18.4


Shop the World 42



Fast delivery

Free delivery




Other collection points (supermar-ket, kiosk, gas station)

Austria Globally

2.7

2.4

2.9

5.1

4.3

4.7

3.2

4.7

4.6


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Austria from 473 to 488 ** scale from 1 "absolutely not important“ to 6 "very important“

Rather undemanding

While the expectations for delivery times are close to the global average (almost 7 days), Austrians are relatively undemanding regarding other delivery requirements.


1 2 3 4 5 6



6.8

6.5

Austria Globally

Shop the World 43

47+5327+73+Number of returns per capita per year · Ø * Austria Globally

0.8

1.8

Return rate · in % * Austria Globally

5.9

13.4

Reasons for returns · Austria in % *



46.853.2

Austria Globally

“CUSTOMER JOURNEY“ – RETURNSFrequent returns

People living in German- speaking countries often have the possibility of returning goods free of charge, and this option is used extensively in Austria. Almost one out of every two clients has returned a product over the last 12 months. Austrian mail order clients tend to return goods if the product did not meet their requirements or they were generally dissatisfied with it. Austrians also like to order a selection of product variants to choose from (32.5% vs. 15.5% globally).

27.5

72.5





Product did not fit






13.1

12.1

62.2

43.4

32.5

5.8

2.9

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

33.1

6.8


Yes No

Shop the World 44

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection



50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

48.3

51.9

69.5

24/7 shopping world

In Austria, the around-the-clock nature of the distance selling business is a decisive factor(79.8% vs. 72.6% globally). High delivery costs are a main purchasing barrier.

Drivers · Austria in % *

Globally


52.1

63.9

79.8

63.6

2.5

45.7

11.3

38.0

3.7

14.9

41.2

61.6

30.7

34.0

18.3

31.8

22.8


Barriers · Austria in % * Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Shop the World 45

84+9+7




China[17.0]

Other European countries[14.2]

1

2

3

4

5

Germany[90.8]

Great Britain[27.8]

USA[23.1]


Austria

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Austria from 371 to 440 ** split into "further orders planned“ 81.4% Austria and "no further orders planned“ 2.7% Austria

Simply more possibilities

The distance selling business in Austria is spreading quick-ly beyond the national borders without encountering language barriers: 84.1% of distance selling clients have already placed orders abroad and import products predomi-nantly from neighboring Ger-many, followed by Breat Britain and the US. Only 8% would not order products from abroad.

Great Britain[49.9]

France[40.7]

Germany[90.8]

USA[51.2]





7.9

84.1

8.0

Shop the World 46



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· Austria in % *

Barriers to ordering abroad · Austria in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Lack of choice at home

Austrians are placing more andmore orders abroad because of the greater product variety. High delivery costs and com-plicated return processes are seen as main obstacles.



61.0

23.0

49.0

41.4

31.9

8.3

40.5

26.9

58.2

24.0

43.9

34.1

36.8

38.7

80.9

7.1

66.3

37.3

2.0


Shop the World 47

Receipt of mailings and catalogs · Austria in % *


DIALOG MARKETING

Reading mailings and catalogs · in % *,**

Austria

Globally

23.6 37.4 39.1

22.1 35.2 42.7


Response to mailings and catalogs · in % *,**

Austria

Globally

28.5 54.3 17.2

29.0 45.8 25.3

Response channel for mailings and catalogs · Austria in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

72.8 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Austria from 424 to 510 ** scale from 1 "never“ to 6 "almost always“

Widespread distribution ofmailings

The concentration of mailings in Austria is much higher than the global reference value: 58.9% (vs. 26.9% globally) receive mailings and catalogs once a week or more. Only 3.9%received no mailings at all over the last 12 months. However, reading and response rates are slightly below global average. By far the most common res-ponse channel is visiting the provider‘s website. Austrians also like visit to the local store.

Globally




Never

26.9

33.7

27.7

11.6 52.7

21.7

17.8

4.0

9.2

58.9

23.0

14.1

3.9


Country InformationBrazil

Juliana, Camila, and Maiza

Brazil’s heavy users are young, urban, have high-incomes, are media savvy, price-conscious… and wild about consumer electronics.

Shop the World 49

51.9


The Brazilian economy * COUNTRY PROFILE BRAZIL

São Paulo 19,649

Rio de Janeiro11,867



0.9


>

>

2.12.7

2011 2012 2013




Country information Brazil Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing


· 2013 in mn.· 2013· 2013 in %· 2013 in %

54.7 3.65.46.2

The slow-down of the glob-al economy and decreasing demand for raw materials has had an adverse affect on the Brazilian economy. In 2012, economic growth reached just 0.9% and the business cycle is only slowly gaining momen-tum. The largest and most populated country in Latin America currently finds itself in transition: From an aspiring emerging nation with press-ing modernization demands in many areas, to a modern and efficient business location. Despite all assurances, signifi-cant structural improvements are not expected in 2014. This is due to the World Cup and also a spending freeze in the run-up to presidential and governor elections.

131.7

14.7

Belo Horizonte5,407

Salvador3,947

Pôrto Alegre3,892

Brasília 3,701

Fortaleza3,520

Recife3,684

Curitiba 3,118

Campinas 2,794

The ten largest metropolitan areas in Brazil · 2011 in thousands. **

Shop the World 50

71+4+1+4+5+10+5MEDIA USE IN BRAZIL

9.2

125.2


13.8




2012 2013

26.3





>>


2011 2012 2013 2014 2015

14.7

49.8

14.0

12.8

11.9

11.2

2016

15.8


4.5

10.2

5.6

3.50.34.1

71.9

Internet use

Of the approximately 198 million population, only about half had access to the internet in 2012. Yet due to the public fund- ing of PCs, laptops, tablets, and smartphones, more and more Brazilians are rushing to the web, particularly those in the low-income bracket.

Soccer and social media

TV is still the dominant medi-um in South America's largest advertising market. Due to the World Cup, expenditures for TV will increase by another 12% in 2014 - the total market shows a strong 9% growth. In-ternet expenditures are record- ing the strongest growth, driven by social media. After the US, Brazil is the second largest market worldwide for Facebook, Twitter, and You- Tube.

Shop the World 51

Enthusiastic technology buyers

With 42% total share, Bra-zil is the largest distance sell-ing business market in Latin America. Brazilians purchase consumer electronics most fre-quently, followed by household appliances. Clothing takes only fourth place, despite being first worldwide.

DISTANCE SELLING IN BRAZIL

1,440.2



4,814.3

3,324.2

1,537.8

947.2

228.7

166.5

353.0

1,315.8

2,352.2

610.8

94.7

78.0

27.3

329.7

153.5

18.6




DVDs, etc.)

Housewares and home

furnishings + textiles

Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)


CAGR: 13.6%

Home shopping


0.40.4

0.5

9.3 15.8

0.5

0.5

2011 2012 2013e 2014e 2018e



755.1

17.8


243.3

365.7

49.8

Shop the World 52

84+16

78+22

Distance selling business set to grow

Brazil’s consumer activity in the distance selling business is still below the global average. But a shopping boom is expected in the future: 57.7% have ex-pressed the desire to buy more.


78.5

21.5

Brazil

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

21.2

37.1

15.0

21.5

5.1

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

38.9

57.7

55.2

38.8

3.3 6.1


Yes71.0

Brazil

Globally

Yes70.5

No29.0

No29.5

Yes No

Brazil Globally Brazil Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Brazil from 86 to 512


More than 20 orders

Shop the World 53

Globally*

44.3


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



2.8









42.9

88.4

47.138.4

14.6

35.264.8

21.155.1

47.7

44.1

52.3

14.9

97.2

87.7

0.9

21.12.7

85.1

Heavy users: young and urban Brazil’s ‘heavy users,’ (particularly active distance selling customers) have been clearly profiled: They are young. i.e. under 50 with a large percent-age (44.1%) under 30. And while the global average shows more women ordering online, in Bra-zil there are slightly more men. It is also noticeable that Brazil’s heavy users originate primarily from urban locations (87.7%). Consequently, the young and urban target group also has a high income and is very media savvy: Almost half have a high income and they are above all open-minded with regard to online media, and dialog and traditional marketing.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Brazil from 138 to 512 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Brazil*

42.920.2

6.9

17.3

45.9

41.6

86.9

35.040.924.2

54.445.6

19.855.1

50.8

36.9

49.2

26.5

93.1

82.7

0.9

19.55.6

73.5

11.6

12.3


Shop the World 54

“CUSTOMER JOURNEY“ SEARCHING FOR PRODUCT INFORMATION

Search for product information · Brazil in % * Globally

40.3 35.5

53.2

27.5 23.4

55.3 44.2

13.7 23.9

50.2 45.8

33.6 42.5

18.2 25.1

17.2 15.1

25.9 15.1

8.0 9.7

48.2 37.8

Criteria for choosing a vendor· Brazil in % *

Globally

Search engines 54.9





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery



20.7 13.7

20.7

2.6 8.8

29.4 26.6

10.3 14.9

44.2 51.7

9.6 12.9

15.2 20.8

24.6 22.6

37.9 25.7

44.8 45.2

19.8 18.5

18.9

Price-conscious consumers

Both during the information search and retailer selection, Brazilians keep an eye on their pocketbooks. Price comparison sites as well as low prices and free delivery are of greatest importance.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Brazil from 401 to 468, multiple mentioning

Country information Brazil Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Shop the World 55



Ø

29.227.7 43.126.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Brazil from 455 to 463 ** scale from 1 "absolutely not useful“ to 6 "very useful“

Ready for recommendations

Brazil’s distance selling customers are active, web-savvy consumers. They find online media consistently valuable. Typical of the country is the strong orientation towards recommendations in social net-works and product recommen-dations in online shops.


Brazil Globally




3.83.6

Ø

31.625.9 42.530.6 41.8 27.6

3.93.4

30.344.7 25.038.7 40.4 20.9Social media

Brazil Globally

Advertising letters

3.03.1

27.425.2 47.433.9 37.6 28.5

4.03.4


34.217.0 48.818.9 45.1 36.0

4.23.9

20.26.6 73.26.5 28.7 64.8

5.14.8

22.110.7 67.29.1 31.7 59.1

4.84.6

34.035.7 30.429.9 43.9 26.2

Brazil Globally


3.43.4

33.335.7 31.029.0 46.7 24.3

Brazil Globally


3.43.4

33.941.6 24.434.8 43.1 22.1

Brazil Globally


3.13.2

28.850.2 21.041.8 40.7 17.6

Brazil Globally


2.83.0

27.950.7 21.544.3 38.8 16.9

Brazil Globally

Radio

2.82.9

30.338.5 31.119.3 44.2 36.6

Brazil Globally


3.33.9

Brazil Globally

Brazil Globally

Brazil Globally


Brazil Globally


Brazil Globally

Shop the World 56

Online PC


By telephone


By email


Online marketplace




retailer

Use of different suppliers · in % *

Never Frequently / very frequently

Occasionally


Brazil Globally

71.1

3.4

1.1

6.9

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERSOrders primarily online

When it comes to ordering methods, Brazilian distance selling customers match the global trend: Nine out of ten order online with a PC, a smart phone, or by email. Only a small number order locally in a store and have it delivered to their home, or order by tele-phone. But Brazil goes its own way when selecting a distance selling business. Most custom-ers choose a manufacturer or retailer’s online shop (56.8% “frequent use” versus 31.2% globally). Online marketplaces take second place (39.2%), com-pared to first place in the global average (54.3%). Openness to teleshopping is also noticeable: 60.4% of Brazilians buy via teleshopping, whereas the global average is only 39.9%.

7.8 56.89.3

15.4 31.216.8

26.1

36.6

Brazil

Globally

16.8 39.213.5

9.9 54.38.7

30.5

27.0

42.4 15.421.5

38.5 12.622.8

20.7

26.1

39.6 16.924.2

60.2 6.617.6

19.3

15.7

9.6

10.5

7.8

4.8

Order channels· in % *


Seldom

Shop the World 57

Credit cards way in front

Brazilians prefer simple pay-ment methods for their orders. The vast majority frequently uses credit cards (66%) compa-red with only 42.3% globally. Furthermore, debit/direct de-bit and prepayment are more frequent than the global com-parison. The consumer-orien-ted target group also likes to use the option of installment buying/financing. Almost 30% use financing, at least occasionally, compared to only 12.5% globally. Online payment sys-tems are below the international figure and ‘not used very frequently’: 23.9% versus 33.7% (globally).

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice


Never Frequently / very frequentlyOccasionally

Brazil

Globally

9.5 6.8 17.6 66.0

29.3 9.8 18.7 42.3

58.4 14.6 19.5 7.5

55.8 16.3 16.1 11.7

36.6 18.6 19.6 25.2

53.4 16.1 15.5 15.0

39.0 19.8 23.3 17.9

56.0 15.5 16.4 12.1

50.9 14.3 15.8 18.9

54.4 15.8 16.3 13.4

30.6 17.1 28.4 23.9

33.3 12.9 20.1 33.7

54.2 17.7 15.2 12.9

78.0 9.5 8.1 4.4

41.4 17.7 19.8 21.0

55.1 10.8 15.7 18.4


Seldom

Shop the World 58



Fast delivery

Free delivery





Brazil Globally

3.6

3.8

4.3

5.2

5.3

5.3

4.4

5.3

5.0


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Brazil from 439 to 462 ** scale from 1 "absolutely not important“ to 6 "very important“

Patience in the flatland

Brazilians will wait patiently even if delivery takes a little longer: They accept three days more than the typical global customer. Certain delivery fac-tors are nevertheless important: Price, speed, tracking informa-tion, and delivery date.

"CUSTOMER JOURNEY“ – DELIVERY

1 2 3 4 5 6



9.3

6.5

Brazil Globally

Shop the World 59

15+85

72+28

Number of returns per capita per year · Ø * Brazil Globally

0.8

0.3

Return rate · in % * Brazil Globally

5.9

Reasons for returns · Brazil in % *



15.6

84.4

Brazil Globally

Yes No

“CUSTOMER JOURNEY“ – RETURNSMinimal return rate

Only 15.6% of distance selling customers in Brazil returned ordered goods, 10% below the global average of 27.5%. Even the per capita number of returns is minimal at 0.3 (com-pared to 0.8 globally), as is the return rate (3.3%) which is be-low the global average of 5.9%. Most common reasons for returns are: Defective products, product deviates from descrip-tion, and dissatisfaction. The most frequently cited global reason (product does not fit - 37.7%) occurs far less frequent-ly in Brazil (21.0%).

27.5

72.5





Product did not fit






27.5

22.6

21.0

27.2

3.2

6.4

9.5

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

14.6

4.8


3.3

Shop the World 60

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection


DRIVERS & BARRIERS IN DISTANCE SELLING Barriers

· Brazil in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

56.1

35.6

72.6

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Maximum flexibility

eCommerce captivates Brazil- ians with its flexible delivery options, independence of loca-tion and time, as well as the clear price benefits. A noticeable barrier is fear of data misuse.

Drivers · Brazil in % *

Globally


50.9

40.9

67.7

68.6

13.2

26.4

31.9

39.6

4.5

32.7

22.4

53.3

48.6

19.2

15.8

44.4

29.2


Shop the World 61

46+42+12CROSS-BORDER SHOPPING – OVERVIEW



Japan[15.0]

Canada[9.5]

1

2

3

4

5

USA[71.7]

China[55.1]

Hong Kong[18.0]


Brazil

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Brazil from 201 to 425 ** split into "further orders planned“ 42.3% Brazil and "no further orders planned“ 3.8% Brazil

Greater openness

Nearly half of all Brazilian dis-tance selling customers (46.1%) have purchased abroad. An-other 41.9% can imagine them-selves ordering from abroad in the future. This establishes Brazil as one of the top coun-tries for cross-border eCom-merce. Only 12% remain cau-tious, much less than the global comparison. The US and China remain the top target coun-tries for foreign orders, both at present and in the future, and orders from Japan and En- glish-speaking countries would also be considered.

Canada[21.8]

Great Britain[20.6]

USA[88.1]

China[50.7]

Japan[34.7]




41.9

46.1

12.0

Shop the World 62


Customs clearance




Long delivery times








Lower prices

Greater selection


feiting

Drivers for ordering abroad· Brazil in % *

Barriers to ordering abroad · Brazil in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

More quality

The strongest drivers for foreign orders match the global figures: Availability of products, price, and broader selection. Brazilians also have an expec-tation that foreign products are of a better quality (38.1% versus 24.2% globally).



44.9

30.0

49.5

39.3

38.3

10.6

59.5

27.4

53.1

36.3

35.1

45.2

31.7

36.9

72.3

38.1

71.1

49.7

17.8


Shop the World 63

Receipt of mailings and catalogs · Brazil in % *


DIALOG MARKETING


Brazil

Globally

21.2 22.2 56.6

22.1 35.2 42.7



Brazil

Globally

14.1 39.5 46.4

29.0 45.8 25.3

Response channel for mailings and catalogs · Brazil in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

75.0 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Brazil from 399 to 512 ** scale from 1 "never“ to 6 "almost always“

Mailings with room to improve

Mailing frequency in Brazil is way below the global average: Only 7.4% receive a mailing or catalog every week, while the global average is almost four times as much (26.9%). How-ever, enthusiasm for personal customer dialog is high. 56.6% actively read mailings and cata-logs (compared with the glob-al figure of 42.7%) and some 46.6% frequently respond to mailings (compared with only 25.3% globally). Online is a frequently chosen response method (website: 75%, email: 42.4%, other online: 36.5%) and is slightly higher than the glob-al figure. Visits to stores and offices are also popular. A high percentage (27.3%) respond by telephone, almost one-third compared to 18.4% globally.

Globally




Never

26.9

33.7

27.7

11.6 49.8

36.5

42.4

27.3

17.5

7.4

33.1

36.9

22.5


Country InformationCanada

Claudia

Canadian eCommerce customers like to buy media products. They are experienced cross-border shop-pers and prefer to order in English-speaking coun-tries.

Shop the World 65

6.1


Canadian economy * COUNTRY PROFILE CANADA

Toronto 5,485

Montreal 3,808



1.7


>

>

1.82.5

2011 2012 2013




Country information Canada Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing


· 2013 in mn.· 2013· 2013 in %· 2013 in %

13.4 2.67.1 0.9

Despite a declining growth rate, Canada experienced a solid economic growth of 1.7% in 2012. After the Canadian economy was not able to set a positive trend in 2013, analysts expect an economic recovery with an economic growth of 2.3% to 2.5% in 2014. How-ever, this is strongly depending on the growth in the USA. The southern neighbor is by far Canada‘s most important trad-ing partner, which accounts for more than 70.0% of the Cana-dian foreign trade. Due to these close business ties, Cana-da‘s economy is susceptible to economic fluctuations in the US. To reduce this de-pendency, Prime Minister Stephen Harper and his govern ment focus in their economic policy on the diversification of the Canadian export markets.

23.5

5.1

Vancouver 2,235

Ottawa-Gatineau 1,191

Calgary 1,191

Edmonton 1,121


Shop the World 66

31+14+4+31+15+5MEDIA USE IN CANADA

32.9


32.7




2012 2013

56.4





>>

* Source: Zenith Optimedia, 2013 ** Source: Copyright © IHS, 2013. All rights reserved *** Source: The World Bank **** Source: Copyright © IHS, 2013. All rights reserved **** Source: Our Mobile Planet: Google Global Smartphone Study 2013, http://www.thinkwithgoogle.com/mobileplanet/

2011 2012 2013 2014 2015

9.7

86.8

9.3

9.09.1

8.8

2016

10.1


30.8

14.8

5.1

4.4

14.4

30.4

75.7

Internet use

Canadians are online-savvy. Around 30 million of the 34.7 million inhabitants use the in-ternet. Mobile devices, mainly smartphones, are well on their way to replace PC and laptop as preferred tool for accessing the internet.

Online rules

In 2013 internet replaced TV asstrongest advertising medium. A growth of 3-4% is expected for the overall advertising mar-ket for the next years.

Shop the World 67

Media junkies

Canadians predominantly buy media products online (almost 30% of the overall market, global average: 9%). All other prod-uct categories are purchased far below the global average.

DISTANCE SELLING IN CANADA

879.7



669.2

614.8

3000.6

1740.8

243.4

226.0

227.3

277.2

336.7

116.0

70.0

75.2

51.1

103.2

83.0

7.7




DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)


CAGR: 10.8 %

Home shopping


1.5

1.5

1.5

5.2 8.9

1.5

1.3

2011 2012 2013e 2014e 2018e



645.7

6.0


207.9

110.5

48.0

Shop the World 68

73+2784

+16

Moderate users

73% of Canadian consumers are active distance shoppers. Slight growth rates can be ex-pected in the next years.


73.0

27.0

Canada

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

17.1

40.6

8.5

27.0

6.9

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

56.4

36.9

55.2

38.8

6.7 6.1


Yes54.0

Canada

Globally

Yes70.5

No46.0

No29.5

Yes No

Canada Globally Canada Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Canada from 102 to 512


Shop the World 69

Globally*

48.5


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



27.7









34.3

85.6

36.641.1

22.3

49.450.6

12.540.4

51.0

28.8

49.0

35.8

72.3

62.4

0.9

29.317.9

64.2

Typical profile

The profile of distance sellingclients in Canada shows howwidely spread the target group is in this country: The propor-tion of men and women is bal- anced. Almost all age groups are distributed according to the global average. Further- more, the number of customers in rural areas is only slightly higher than in urban centers. Canadian heavy users distin-guish themselves slightly more from their global counterparts. They are less educated, and live more often in small households with average incomes. Com- pared to the global average, mobile devices are less often used.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Canada from 96 to 512 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Canada*

40.932.5

31.3

39.3

46.9

33.5

76.5

37.134.528.5

62.637.4

12.036.7

49.7

26.6

50.3

36.5

68.7

60.7

0.7

34.416.9

63.5

22.7

37.6


Shop the World 70

“CUSTOMER JOURNEY“ SEARCHING FOR PRODUCT INFORMATIONSearch for product information · Canada in % * Globally

29.9 35.5

53.2

22.4 23.4

27.4 44.2

20.4 23.9

49.4 45.8

39.0 42.5

17.0 25.1

11.3 15.1

15.1

9.7

37.8

Criteria for choosing a vendor· Canada in % *

Globally

Search engines 52.9





Online marketplace

Catalog

Mail advertising




40.6Customer ratings on the supplier’s website








Free returns


Fast delivery

Free delivery



11.1 13.7

20.7

9.1 8.8

18.0 26.6

15.8 14.9

55.9 51.7

10.6 12.9

18.6 20.8

24.0 22.6

23.1 25.7

51.7 45.2

18.7 18.5

20.9

The own opinion countsCanadians care less about other people‘s opinions: Customer ratings, recommendations and price comparison sites are used below global average.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Canada from 369 to 451, multiple mentioning


12.0

7.1

32.8

36.4

Shop the World 71



Ø

43.731.1 25.226.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Canada from 423 to 437 ** scale from 1 "absolutely not useful“ to 6 very useful“

Critical target group

Canadian consumers are slight-ly more critical when it comes to advertising media. Only search engines are considered to be usefull by two thirds of respondents.


Canada Globally




3.33.6

Ø

38.938.1 23.030.6 41.8 27.6

3.13.4

41.540.6 17.938.7 40.4 20.9Social media

Canada Globally

Advertising letters

3.03.1

38.337.8 23.933.9 37.6 28.5

3.13.4


47.222.1 30.818.9 45.1 36.0

3.63.9

30.46.4 63.26.5 28.7 64.8

4.74.8

41.516.7 41.89.1 31.7 59.1

4.04.6

44.727.8 27.529.9 43.9 26.2

Canada Globally


3.53.4

38.339.4 22.329.0 46.7 24.3

Canada Globally


3.13.4

41.237.7 21.134.8 43.1 22.1

Canada Globally


3.13.2

31.252.5 16.441.8 40.7 17.6

Canada Globally


2.73.0

36.248.5 15.344.3 38.8 16.9

Canada Globally

Radio

2.82.9

41.822.1 36.119.3 44.2 36.6

Canada Globally


3.73.9

Canada Globally

Canada Globally

Canada Globally


Canada Globally


Canada Globally

Shop the World 72

15.4 31.216.8 36.6


Online marketplace




Occasionally


retailer


Canada Global

Online PC


By telephone


By email


73.6

4.3

1.5

6.1

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“ – PLACING ORDERSOnline orders preferred

For 73.6% of Canadian distance selling clients, the PC is the most common medium for placing orders. Only 7.4% order via mobile devices, which is sig-nificantly lower than the global average. Online marketplaces play an important role, and are used frequently to very fre-quently by 50% of Canadian distance selling clients. However, dispatchers who advertise their products on television struggle in the Canadian target group. 72% claim never to have used a TV shopping channel. Tradi- tional catalogs are also not common in Canada, 50% never use this method of ordering.

13.6 24.519.2 42.6

Canada

Globally

15.4 46.99.3

9.9 54.38.7

28.4

27.0

50.6 6.921.4

38.5 12.622.8

21.1

26.1

71.9 4.413.5

60.2 6.617.6

10.2

15.7

10.5

4.8



7.4

7.1

Shop the World 73

Clear picture

Credit card is the preferred payment option for Canadian eCommerce customers. Online payment systems are also very popular and are frequently used by 37.6%. Cash on delivery, prepayment, direct debit, and payment upon invoice are far behind. While every second person „never“ uses these pay-ment methods in the interna-tional comparison, more than three quarters never use them in Canada.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Canada

Globally

7.5 8.7 27.1 56.7

29.3 9.8 18.7 42.3

75.4 10.4 9.0 5.3

55.8 16.3 16.1 11.7

70.9 9.5 10.0 9.5

53.4 16.1 15.5 15.0

77.8 11.2 7.4 3.6

56.0 15.5 16.4 12.1

76.3 12.7 7.7 3.3

54.4 15.8 16.3 13.4

25.2 10.8 26.3 37.6

33.3 12.9 20.1 33.7

88.0 4.4 5.4 2.2

78.0 9.5 8.1 4.4

73.3 10.1 8.7 7.9

55.1 10.8 15.7 18.4


Shop the World 74

Canada Globally



Fast delivery

Free delivery





3.0

3.5

5.3

4.7

4.8

3.6

4.8

4.6


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Canada from 406 to 440 ** scale from 1 "absolutely not important“ to 6 "very important“

Slow, but affordable

The Canadian consumer is quite relaxed regarding delivery speed. He knows: It takes time to deliver goods to remote areas. It is more important that shipment is free and that a delivery date is provided when the order is placed.


1 2 3 4 5 6



8.9

6.5

Canada Globally

Shop the World 75

15+85

72+28

Number of returns per capita per year · Ø * Canada Globally

0.8

0.2

Return rate · in % * Canada Globally

5.9

Reasons for returns · Canada in % *



15.2

84.8

Canada Globally

Yes No

“CUSTOMER JOURNEY“ – RETURNSFew returns

A gratifyingly low rate of re-turns of 4.3% shows that the Canadian consumer does not like to return ordered goods. There are on average 0.2 re-turns per customer which is significantly below the global reference value. With 40.9% the classic fashion faux pas is the most common return reason: The product does not fit. It also happens that a consumer is not happy with a product in general (30.6%). Compared to the in-ternational comparative values, a product is less frequently re-turned due to defects or quality issues.

27.5

72.5





Product did not fit






10.6

8.8

40.9

30.6

10.8

3.7

3.6

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

21.3

14.2


4.3

Shop the World 76

High delivery costs

Uncertain delivery







No personal advice


Doubts regarding data protection or thedissemination of data to third parties




Shopping 24/7



Lower prices

Greater selection



· Canada in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

55.5

43.8

61.1

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Shopping around the clock

Canadian consumers un-derstand the benefits of distance selling purchases. „24/7“ is the strongest argument. Many consumers buy products, as they are only available online.

Drivers · Canada in % *

Globally


56.8

45.4

71.7

58.6

8.0

46.5

26.9

29.5

7.0

33.2

49.3

60.9

50.2

14.3

22.3

27.4

28.3

Country information Canada Country profile · Media Use · Distance selling · “Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Shop the World 77




Hong Kong[28.9]

Japan[14.9]

1

2

3

4

5

USA[82.1]

China[41.2]

Great Britain[29.0]


Canada

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Canada from 265 to 410 ** split into "further orders planned“ 60 % Canada and "no further orders planned" 1.2 % Canada

Experienced customers

Cross-border shopping is com-monly used in Canada. 61.2 % of consumers have ordered from abroad, exeeding the global benchmark of 51.2%. En- glish-speaking countries like the US and Great Britain are especially popular. Orders are also placed with suppliers in Asia, primarily China and Hong Kong.

Hong Kong[39.0]

France[35.2]

USA[89.7]

Great Britain[47.7]

China[45.0]




16.0

61.2 22.7

Shop the World 78



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· Canada in % *

Barriers to ordering abroad · Canada in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Top prices and best selection

Canadians order from abroad, mainly because products are not available domestically or because they expect lower prices. High delivery costs and long delivery times speak against ordering from abroad. Another barrier is the more dif-ficult process involved in prod-uct returns.



52.9

28.4

42.3

39.8

31.4

14.0

55.4

46.1

49.5

23.4

44.2

38.0

29.2

34.3

63.7

12.6

69.1

45.9

5.8


Shop the World 79

Receipt of mailings and catalogs · Canada in % *


DIALOG MARKETING


Canada

Globally

25.6 39.3 35.1

22.1 35.2 42.7



Canada

Globally

37.3 44.5 18.2

29.0 45.8 25.3

Response channel for mailings and catalogs · Canada in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

64.4 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Canada from 366 to 512 ** scale from 1 "never“ to 6 "almost always“

Cautious response behavior

In Canada, mailings or catalogsare less common: 16% never receive advertisements in their letterbox. Canadians read and respond to direct marketing initiatives less often than the global average. By far the most common response channel is visiting the provider‘s website. Clients also pay a visit to the local store.

Globally




Never

26.9

33.7

27.7

11.6 53.5

24.2

16.7

15.9

12.3

25.6

28.3

30.7

15.5

Country information Canada Country profile · Media Use · Distance selling · “Customer journey“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Country Information China

Mandy

Chinese consumers love eCommerce. They are young, urban, and mobile. Quality and autentic- ity of products are important.

Shop the World 81Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing


The Chinese economy * COUNTRY PROFILE CHINA

Shanghai 19,554

Beijing 14,999



7.7


>

>

7.7

9.3

2011 2012 2013



Population, total · 2013 in mn. 1,353.6 ***

Country information China


· 2013 in mn.· 2013· 2013 in %· 2013 in %

344.0 3.94.12.6

In 2012, economic growth in China fell well short of the growth rates from previ-ous years. Last year the Chi- nese economy remained stable and registered a 7.7% growth. The third session of the 18th Communist Party Conference laid the foundations for greater economic activity. The de- clared aim was to change from an investment and export- driven economy to an economy based predominantly on domestic consumption. To achieve this, key requirements are the development of pension and health insurance schemes and consolidation of purchasing power in the less developed ru-ral regions.

963.9

116.2

Shenzhen 10,222

Tianjin 8,535

Guangdong 7,160

Chengdu 6,397

Guangdong 10,486

Wuhan 8,904

Chongqing 9,732

The ten largest conurbations in China · 2011 in thousand. **

Foshan6,208

Shop the World 82

40+4+1+14+23+16+2MEDIA USE IN CHINA

13.0

81.3


33.1




2012 2013

46.9





>>


2011 2012 2013 2014 2015

39.9

42.3

35.7

31.9

29.0

26.2

2016

44.8


23.3

15.62.2

14.50.24.3

39.9

Internet use

In China, the internet is a recently acquired freedom for independent communication. Chinese consumers are spend-ing more and more time on the internet and social media sites, and are very enthusiastic about mobile communication. None- theless, the majority of internet users are located in the coastal regions and larger cities.

Strong market in the fast lane

The third largest global advertising market continues to grow at an impressive rate of 12% per year and will move into secondplace behind the USA by 2016. The internet will replace TV as the dominant medium within the next three years. The main drivers behind this growth are online videos and mobile ad-vertisement.








DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

The dragon takes off

In China, more and more peo-ple are discovering distance selling. Rapid growth far high-er than the global average is expected in all categories over the next few years. The fastest growing categories are clothing, food, homewares and consumer electronics.

91,010.9

44,589.4

20,754.3

1,657.5

1,199.6

7,254.8

2,646.2

21,759.2

12,038.8

32,870.9

9,524.8

300.4

108.9

876.0

414.1

190.0

128.6


CAGR: 24.4%

Home shopping


2.93.3

3.8

100.3 228.0

4.1

5.8

2011 2012 2013e 2014e 2018e



21,313.8

65.7


5,125.4

3,846.0

1,892.4

DISTANCE SELLING IN CHINA

Shop the World 84


92+884+16

Going all the way

In China, online shopping is becoming extremely popular. Of the target group surveyed, 92% shopped online. A quarter had placed more than 20 orders in the last year.


92.0

8.0

China

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

19.5

23.2

23.5

8.0

25.8

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

36.3

58.2

55.2

38.8

5.4 6.1

Yes65.1

China

Globally

Yes70.5

No34.9

No29.5

Yes No

China Globally China Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n China from 63 to 1,040

Country information China Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

More than 20 orders

Shop the World 85

Globally*

50.3


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +











45.1

88.4

35.542.4

22.1

39.260.8

30.856.8

57.0

33.3

43.0

10.7

99.6

86.3

0.6

9.43.0

89.3

Particularly heavy users

Online shopping in China is very different from the average behaviour worldwide. This can be seen in the number of heavy users. They are predominantly women (57%), younger, with a higher level of education. Members of this target group live almost exclusively in urban centers due to the enormous conurbations in China.The household structure is family-oriented. Two further trends are worth noting: The increased use of mobile internet (60.8%) and the strong affinity to classic media (45.1%).


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n China from 248 to 1,040 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

China*

46.722.1

0.8

18.7

43.0

47.1

84.3

29.138.332.6

49.950.1

33.553.3

48.2

31.1

51.8

16.3

99.2

81.3

0.6

10.82.4

83.7

16.3

13.7


0.4


Shop the World 86

Search engines





Online marketplace

Catalog

Mail advertising











Free returns


Fast delivery

Free delivery




“CUSTOMER JOURNEY“ – SEARCHING FOR PRODUCT INFORMATION

Search for product information · China in % * Globally

30.0 35.5

53.2

21.4 23.4

51.0 44.2

32.1 23.9

34.0 45.8

59.8 42.5

18.2 25.1

15.1 15.1

20.5 15.1

20.2 9.7

50.9 37.8

Criteria for choosing a vendor · China in % *

Globally

45.3

50.1 40.6Customer ratings on the supplier‘s website

22.6 13.7

20.7

10.5 8.8

47.3 26.6

24.5 14.9

52.4 51.7

12.9 12.9

21.3 20.8

9.4 22.6

15.9 25.7

32.9 45.2

18.6 18.5

19.5

Word of mouth

Chinese consumers usually search for product information on online marketplaces and price comparison websites. They also attach great importance to personal recommenda-tions.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n China from 953 to 1,004, multiple mentioning





Ø

46.118.7 35.226.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n China from 979 to 994 ** scale from 1 "absolutely not useful" to 6 "very useful"

Broad acceptance

Compared to the global average, a larger proportion of Chinese consumers found advertising media useful. Users considered online media such as online ad-vertising, social media or even recommendations in online shops most helpful when searching for information.

China Globally




3.83.6

Ø

51.317.3 31.430.6 41.8 27.6

3.83.4

47.825.5 26.738.7 40.4 20.9Social media

China Globally

Advertising letters

3.53.1

47.813.9 38.333.9 37.6 28.5

4.03.4


42.57.5 50.018.9 45.1 36.0

4.43.9

32.05.4 62.66.5 28.7 64.8

4.74.8

30.95.3 63.89.1 31.7 59.1

4.74.6

48.826.7 24.529.9 43.9 26.2

China Globally


3.43.4

51.118.7 30.229.0 46.7 24.3

China Globally


3.73.4

48.823.8 27.434.8 43.1 22.1

China Globally


3.63.2

53.119.9 27.041.8 40.7 17.6

China Globally


3.63.0

48.026.4 25.744.3 38.8 16.9

China Globally

Radio

3.52.9

50.317.3 32.419.3 44.2 36.6

China Globally


3.83.9

China Globally

China Globally

China Globally


China Globally


China Globally



Online PC


By telephone


By email


“CUSTOMER JOURNEY“ – PLACING ORDERS

Online marketplace





Occasionally

Online shop of a manufaturer or retailer

* Source: DHL Global Mail 2013 ∙ n Global from 9,270 to 9,446 ∙ n China from 943 to 955

China Global

76.8

2.2

1.2

2.0

75.0

3.2

2.1

4.4

Welcome to Alibaba

Online shoppers primarly place orders online, whether via PC (76.8%) or mobile devices (14.6%). The ubiquitous eCom-merce giant Alibaba dominates the market with its tmall shopping website. The large majorityof providers has a shop there or on one of the smaller online marketplaces – however, independent online shops are less common in China.Compared to the average world-wide, offline channels are seldom used to place or-ders, and catalogs are also used far less than the global average. Merchants who advertise their products on TV are slightly more popular in China: only 53% of those surveyed had not recently placed an order via this channel.

16.3 28.817.4

15.4 31.216.8

37.5

36.6

China

Globally

1.7 87.02.2

9.9 54.38.7

9.1

27.0

46.0 7.523.0

38.5 12.622.8

23.5

26.1

53.0 8.618.8

60.2 6.617.6

19.6

15.7

14.6

10.5

3.1

4.8



Seldom


Paying by Alipay

Online payment clearly dominates the Chinese eCom-merce market. At least three quarters of Chinese online shoppers use online payment systems such as the mar-ket leader Alipay frequent-ly to very frequently. None- theless other methods of pay-ment are still popular. While credit cards are used on a global scale, a high proportion of orders are paid by cash on de-livery or by debit card.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice

Payment options · in % * Never Frequently / very frequentlyOccasionally

China

Globally

31.2 10.2 18.3 40.3

29.3 9.8 18.7 42.3

16.5 20.3 37.8 25.5

55.8 16.3 16.1 11.7

46.4 21.3 18.8 13.5

53.4 16.1 15.5 15.0

44.1 19.7 18.9 17.2

56.0 15.5 16.4 12.1

57.5 20.4 14.2 7.9

54.4 15.8 16.3 13.4

5.7 3.4 13.1 77.8

33.3 12.9 20.1 33.7

67.0 17.2 12.0 3.8

78.0 9.5 8.1 4.4

28.2 16.8 27.8 27.2

55.1 10.8 15.7 18.4


Seldom

Shop the World 90



Fast delivery

Free delivery






China Globally

4.0

3.9

3.8

5.2

4.9

5.0

4.4

4.7

4.9


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n China from 988 to 995 ** scale from 1 "absolutely not important" to 6 "very important“

Long distance, little time

The predominantly urban cli-ents accept delivery times be-low the global average. They are also used to being able to choose from different delivery companies. Alternative collec-tion points and drop boxes are also very important.

"CUSTOMER JOURNEY“ – DELIVERY

1 2 3 4 5 6



5.5

6.5

China Globally

Shop the World 91

37+63

72+28

Number of returns per capita per year · Ø * China Globally

0.8

1.0

Return rate · in % * China Globally

5.9

Reasons for returns · China in % *



37.063.0

China Globally

Yes No

“CUSTOMER JOURNEY“ – RETURNSReturns are rather rare

Even though 37% of those sur-veyed had already returned goods bought online, the re-turn-rate is well below the in-ternational average (4.9%). The Chinese target group usually returns goods when a product is faulty or of insufficient qual-ity. Misleading product de-scriptions also play a relatively important role. On the other hand, people rarely order multi-ple variants of the same product to choose from.

27.5

72.5





Product did not fit






28.4

12.5

33.5

23.0

2.8

7.9

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

40.9

10.0


4.9

2.8


Shop the World 92Country profile · Media Use · Distance selling · “Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection



· China in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

64.4

61.3

80.0

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

The quality must be right

Aspects of eCommerce that most impress the Chinese include a high degree of price transparency and extensive de-livery options. Major barriers: questionable product quality and concerns about product piracy.

Drivers · China in % *

Globally

* Source: DHL Global Mail 2013 ∙ n Global from 10,509 to 10,864 ∙ n China from 996 to 1.032

47.8

61.7

64.1

64.4

13.4

18.4

14.2

39.9

2.9

21.2

67.8

61.1

53.6

29.8

19.5

34.6

68.5


Shop the World 93



25+53+22



Great Britain[17.9]

Germany[13.6]

1

2

3

4

5

USA[65.8]

Hong Kong[34.8]

Japan[30.4]


China

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n China from 207 to 799 ** split into "further orders planned“ 24.8% China and "no further orders planned" 0.5% China

Potential for imports

Since China has an enormous domestic market and exporting to China is still not an easy undertaking, Chinese clients rarely take the opportunity of ordering from abroad. How-ever, significant growth can be expected since more than half of those surveyed indicated that they would like to order prod-ucts from abroad in the future. The US currently benefits from orders received from China and will continue to do so in the fu-ture. Closer to home, people or-der goods from Hong Kong and Japan. In the future, the Chi- nese target group will also show a greater interest in products from Great Britain and France.

Great Britain[39.5]

France[34.8]

USA[83.8]

Hong Kong[61.8]

Japan[46.8]


Use of cross-border eCommerce· in % *


52.925.3

21.8

Shop the World 94



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times








Drivers for ordering abroad· China in % *

Barriers to ordering abroad · China in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Drivers of product quality

Chinese consumers expect that products purchased from abroad are of a higher quality (70.1%). The price is not im-portant for this target group: Lower prices are less important drivers and high delivery costs do not represent a significant deterrent.

* Source: DHL Global Mail 2013 ∙ n Global from 7,289 to 10,689 ∙ n China from 632 to 1.025

43.2

43.7

48.7

39.5

28.9

11.0

55.7

30.9

52.3

20.6

45.2

28.0

23.2

37.0

77.4

70.1

40.4

40.8

30.6


Shop the World 95Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Receipt of mailings and catalogs · China in % *


DIALOG MARKETING


China

Globally

20.0 39.2 40.9

22.1 35.2 42.7



China

Globally

28.2 46.6 25.2

29.0 45.8 25.3

Response channel for mailings and catalogs · China in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

77.9 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n China from 861 to 1,040 ** scale from 1 "never“ to 6 "almost always“

Fewer mailings

Chinese consumers receive relatively few mailings and catalogs. Only 7.5% receive offers once a week or more. Al-most a fifth never receive such traditional direct marketing. The number of those surveyed who read mailings and cata-logs was similar to global figures: More than 40% frequently or almost always read mailings and catalogs. The frequency with which they respond to offers paints a similar picture. Differences in the form of response were identifiable. Online channels such as chat rooms, microblogging and newsletters are used to an increasing extent. However, the most common response channel in China is visiting the provider‘s website (77.9%).

Globally




Never

26.9

33.7

27.7

11.6 49.7

47.5

24.5

25.1

11.8

7.5

37.4

38.9

16.1


Country InformationFrance

Yann French online buyers are employed, middle-class, rural, traditional, comfortable... and prefer to orderfashion items and food products.

Shop the World 97Country information France Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

12.4


The economy in France * COUNTRY PROFILE FRANCE

Paris 10,516

Marseille-Aix-en-Provence 1,472



0.1


>

>

0.32.0

2011 2012 2013





· 2013 in mn.· 2013· 2013 in %· 2013 in %

24.3 2.6

10.80.9

France's economy is currently on a stagnant growth path. In 2014, GDP is expected to grow slightly by 0.9%. However, this is mainly due to the brighter economic situation in Europe rather than structural changes within the country. Companies are cautious to invest but a slight positive development is forecast for 2014. The unemployment rate is improving only slowly and was 10.8% in 2013. Accord- ing to surveys, around two thirds of French households ex-pect their financial situation to worsen. As a consequence, they predominantly make savings on daily expenditures for personal services, gastronomy and the purchase of clothing, furniture and food.

40.0

11.0

Lille 1,034

Lyon 1,471


Shop the World 98

32+7+1+12+26+9+13

Country information France Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

MEDIA USE IN FRANCE

37.8

98.1


38.2




2012 2013

42.2



Total advertising expenditure · in Eur bn. *


>>


2011 2012 2013 2014 2015

10.1

83.0

10.0

10.010.2

10.5

26.5

9.4

12.5

11.50.9

7.4

31.8

Internet use

In France, the internet is widespread, the broadband net-work is outstanding and the cost of using the internet is low. There has been a rapid rise in the use of mobile internet ser-vices because more and more people in France are using smartphones.

Internet and World Cup lead-ing the recovery

Following a decrease in adver-tising expenditure over the last two years, the economic recovery and the World Cup are expected to facilitate a gradual increase of 0.3% in 2014. Inter-net spending will grow below the European average, which is why the internet will remain only the second most powerful medium after TV until after 2016.

Shop the World 99





DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

Equally seductive

The French are seduced into buying fashion, food, consumer electronics and media products in almost equal measure. They tend to visit stores when shopping for clothing, but much pre-fer to have food products delivered to their home.

DISTANCE SELLING IN FRANCE

6,706.4

3,392.4

3,224.4

3,907.8

2,952.4

439.7

407.0

4,514.3

719.9

1,071.5

1,056.2

414.5

264.2

146.0

493.3

357.3

57.7


CAGR: 11.3%

Home shopping


3.63.3

3.0

25.4 41.9

2.8

1.9

2011 2012 2013e 2014e 2018e



4,242.4

51.8


3,837.8

1,013.3

203.3


Shop the World 100

85+1584

+16

Stability at the highest level

With a user share of 85%, France's distance selling clients are major players in the glob-al market. A large proportion claim they intend to maintain the same level of order activity in the future.Use of distance selling · in % *

85.0

15.0

France

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

24.1

35.1

19.0

15.0

6.7

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

67.9

25.7

55.2

38.8

6.5 6.1


Yes54.7

France

Globally

Yes70.5

No45.3

No29.5

Yes No

France Globally France Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n France from 53 to 505


More than 20 orders

Shop the World 101

Globally*

49.5


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



14.9









33.7

87.5

39.737.2

23.1

49.550.5

10.856.8

44.5

30.9

55.5

20.8

85.1

31.7

1.0

20.112.4

79.2

Beyond the metropolis Distance selling in France is booming in rural regions. Around 70% of distance sell-ing clients and heavy users live outside of Paris or the few other conurbations. The profiles of heavy users, who are particu-larly important for the industry, are more masculine than the global trend. The target group tends to represent house-holds with children and has a higher level of education as well as a household income in the medium range. While gen-eral media affinity is similar to the international comparison, mobile devices are used much more seldomly to access the in-ternet in France.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n France from 113 to 505 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

France*

45.528.9

23.2

70.4

54.1

35.8

79.5

29.040.430.6

59.240.8

10.143.9

50.5

25.6

49.5

25.1

76.8

29.6

0.9

28.517.4

74.9

19.6

68.3


Shop the World 102

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery



„CUSTOMER JOURNEY“ – SEARCHING FOR PRODUCT INFORMATIONSearch for product information · France in % * Globally

32.0 35.5

53.2

18.2 23.4

41.8 44.2

28.7 23.9

40.0 45.8

33.1 42.5

31.9 25.1

14.6 15.1

7.7 15.1

4.7 9.7

35.8 37.8

Criteria for choosing a vendor · France in % *

Globally

52.0

32.6 40.6

13.4 13.7

20.7

6.4 8.8

18.0 26.6

18.3 14.9

53.8 51.7

10.9 12.9

23.2 20.8

20.6 22.6

26.2 25.7

50.5 45.2

18.2 18.5

24.1

Tradition has a future

In order to search information, digital media is used most fre-quently, while the retail busi-ness and catalogs are also popu-lar sources of information.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n France from 425 to 470, multiple mentioning


Shop the World 103



Ø

44.832.4 22.926.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n France from 454 to 464 ** scale from 1 "absolutely not useful" to 6 "very useful“

No online hype

While online media is becoming increasingly relevant elsewhere, the opinion of dis-tance selling clients in France is rather more reserved. The French are slightly wary of on-line advertising and social me-dia.


FranceGlobally




3.33.6

Ø

39.938.3 21.730.6 41.8 27.6

3.13.4

34.540.9 24.538.7 40.4 20.9Social media

FranceGlobally

Advertising letters

3.13.1

32.350.4 17.333.9 37.6 28.5

2.83.4


45.724.0 30.318.9 45.1 36.0

3.63.9

28.85.4 65.76.5 28.7 64.8

4.84.8

35.411.9 52.79.1 31.7 59.1

4.44.6

38.731.0 30.329.9 43.9 26.2

FranceGlobally


3.43.4

46.532.2 21.329.0 46.7 24.3

FranceGlobally


3.23.4

42.937.5 19.634.8 43.1 22.1

FranceGlobally


3.13.2

43.139.2 17.741.8 40.7 17.6

FranceGlobally


3.03.0

39.544.3 16.244.3 38.8 16.9

FranceGlobally

Radio

2.92.9

39.815.9 44.319.3 44.2 36.6

FranceGlobally


4.13.9

FranceGlobally

FranceGlobally

FranceGlobally


FranceGlobally


FranceGlobally

Shop the World 104

Online PC


By telephone


By email


Online marketplace

Mail order company from whom I received a catalog

Merchant who advertises on TV)


retailer



Occasionally


France Global

77.8

3.4

2.8

3.7

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“ – PLACING ORDERSCatalogs with weight

The use of different ordering methods and mail order providers in France is similar to the international reference value. If French mail order clients pre-fer to use the PC to make on-line purchases rather than mobile devices, the ratio between online and offline orders is extremely close to the global reference value.The larger number of orders placed with traditional mail or-der providers is worth noting: 21.1% use these frequently, while another 33.3% use them at least occasionally. In the in-ternational comparison, both values are higher than average and demonstrate the special affinity of French customers to printed media.

15.9 31.917.5

15.4 31.216.8

34.7

36.6

France

Globally

12.4 50.810.1

9.9 54.38.7

26.7

27.0

28.4 21.117.2

38.5 12.622.8

33.3

26.1

59.9 6.919.1

60.2 6.617.6

14.0

15.7

7.1

10.5

5.0

4.8



Seldom

Shop the World 105

Credit cards win

Credit cards are the No. 1 pay-ment method in the French distance selling business. 57.1% use this form of payment fre-quently to very frequently, which is much higher than the global average. Only approxi-mately one fifth have never used a credit card to place an order. All other methods of payment (online payment systems rank in second place) are also used, albeit to a much lesser extent. By comparison, the cash on delivery, direct debit and debit card payment methods are rarely used in France.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



France

Globally

20.8 6.1 16.0 57.1

29.3 9.8 18.7 42.3

64.5 14.9 13.2 7.3

55.8 16.3 16.1 11.7

59.0 11.6 9.0 20.4

53.4 16.1 15.5 15.0

65.5 10.8 11.7 12.0

56.0 15.5 16.4 12.1

60.1 12.5 14.7 12.7

54.4 15.8 16.3 13.4

36.3 12.2 19.0 32.4

33.3 12.9 20.1 33.7

75.8 9.3 9.0 5.9

78.0 9.5 8.1 4.4

66.1 5.7 9.4 18.7

55.1 10.8 15.7 18.4


Seldom

Shop the World 106



Fast delivery

Free delivery





France Globally

4.4

4.4

4.3

5.4

4.9

5.1

3.7

4.9

4.6


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n France from 454 to 465 ** scale from 1 "absolutely not important“ to 6 "very important“

Flexibility required

A flexible collection location is an absolute must for French distance selling clients. The possi-bility of delivering an order to a shop, drop box or other collec-tion point is just as important and distinguishes the French from the global average.


1 2 3 4 5 6



6.6

6.5

France Globally

Shop the World 107

74+26

72+28

Number of returns per capita per year · Ø * France Globally

0.8

0.7

Return rate · in % * France Globally

5.9

Reasons for returns · France in % *



26.4

73.6

France Globally

Yes No

“CUSTOMER JOURNEY“ – RETURNSUnremarkable return rate

The option to use different or-dering methods and suppliers is used by one in four clients in France. This is comparable to the global average. A similar picture emerges for the number of returns and the return rate. The main reason for returning goods in France is that the or-dered product did not fit: 47.5% give this as a reason, a figure that is way ahead of the field in the international compari-son. In contrast, poor quality and abnormal or incomplete deliveries were specified more often as reasons for returning products.

27.5

72.5





Product did not fit






10.8

8.2

47.5

22.4

8.9

7.2

0.9

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

25.1

7.2


6.2

Shop the World 108

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection



· France in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

62.3

47.2

64.5

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Convenience pays dividends

Some of the major drivers for distance selling clients include price transparency and conve-nience: The French appreciate 24/7 shopping independent of the location with a wide range of delivery options.

Drivers · France in % *

Globally


46.5

58.0

67.8

67.4

6.0

47.7

19.8

36.9

4.3

22.4

39.0

63.5

40.2

24.0

29.5

31.3

25.5


Shop the World 109




China[25.6]

Hong Kong[15.8]

1

2

3

4

5

USA[48.0]

Great Britain[46.2]

Germany[38.7]


France

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n France from 195 to 385 ** split into "further orders planned“ 43.5% France and "no further orders planned“ 3.3% France

Shopping with the neighbors

The Grande Nation is reluctant to order from abroad. France is slightly below the global aver-age when it comes to interna-tional eCommerce: 46.8% have already placed an order abroad. There is a certain skepticism among current non-users about their future plans to import from other countries: Almost a third would not consider ordering from abroad in the future.Although Germany is currently in third place behind the US and Great Britain, the French intend to purchase a greater number of products from Germany in the future. Other European countries

[52.5]

Canada[47.3]

Germany[71.6]

USA[70.2]

Great Britain[68.6]

Country information France Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing



20.8

46.832.4

Shop the World 110



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· France in % *

Barriers to ordering abroad · France in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Simple processes

French distance selling clients admit that complicated returns processes and language barriers discourage them from placing orders abroad to quite an ex-tent. Following the international trend, important drivers include greater availability of other products and lower prices.



51.3

41.8

36.7

32.8

36.0

17.1

50.3

37.1

52.4

27.8

36.1

44.2

35.9

41.2

67.5

15.9

65.3

32.5

3.6

Country information France Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Shop the World 111

Receipt of mailings and catalogs · France in % *


DIALOG MARKETING


· in % *,**

France

Globally

22.0 29.5 48.5

22.1 35.2 42.7



France

Globally

25.8 46.7 27.6

29.0 45.8 25.3

Response channel for mailings and catalogs · France in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

63.1 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n France from 396 to 505 ** scale from 1 "never“ to 6 "almost always“

High mailing density

In line with the high affinity for dialog marketing media, consumers in France regularly receive mailings and catalogs: 44.2% receive corresponding input for their purchasing deci-sion at least once a week. The-se media are also read more often compared to the global average and provoke a posi-tive response more frequent-ly. For the French, visiting the website is the most obvious way of contacting the sender of the advertising literature, followed by visiting a local re-tail outlet, which the French do more frequently than the international average. Other online responses (e.g. via Face- book, Twitter) and emails are used with a proportionally lower frequency.

Globally




Never

26.9

33.7

27.7

11.6 53.6

15.3

13.1

11.1

12.2

44.2

28.6

19.6

7.5

Country information France Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Country InformationGermany

Katja, Christian, and Judith

Germany’s eCommerce clients are active, fashion- conscious, service-oriented. They like to shop abroad.

Shop the World 113

11.7


The German economy * COUNTRY PROFILE GERMANY

Berlin3,450

Hamburg1,786



0.9


>

>

0.5

3.4

2011 2012 2013




Country information Germany



· 2013 in mn.· 2013· 2013 in %· 2013 in %

39.6 2.16.91.5

Following the recession in 2009, the German economy slowly started to pick up speed. Economic growth amounted to only 0.9% in 2012, and dropped to 0.5% in 2013. Nonethless, both the German government and leading economic insti- tutes anticipate a notable recovery in 2014. According to eco-nomic experts, GDP grew 0.6% in the first quarter of the year. They also forecast growth of al-most 2% for the entire year. An increase in domestic demand is a driving force. Low unemployment coupled with low inflation provide favorable condi-tions for an increase in consumer spending. These im- proved sales prospects see com-panies wanting to increase their investment, which in turn contributes to growth.

53.2

17.0

Munich1,350

Cologne1,002


Shop the World 114

23+4+1+5+22+28+17MEDIA USE IN GERMANY

34.0

131.3


28.8




2012 2013

39.8





>>


2011 2012 2013 2014 2015

18.6

84.0

18.4

18.1

18.3

18.5

2016

18.8



22.0

28.0

17.3

4.9

0.5

4.0

23.2

Internet use

The number of internet users in Germany sees only moderate growth. Internet user fig-ures have reached a level at which only marginal growth can be achieved. It is assumed that people in the 50+ age bracket will be key in this regard. Mobile devices are instrumen-tal in helping internet new- comers gain a foothold in the online world. Weak growth in spite of a stable economy

In 2013, overall advertising ex-penditure dropped despite the stable economy. An increase of 1.5% is expected for 2014. Only online advertising will increase significantly in 2015 (7.4%). Although extremely underrepresented in Germany, mobile spends grew 70.0% in 2013, and started to attract ad-vertisers’ attention.

Shop the World 115






DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

Fashion conscious

Germany is the second largest distance selling market in Eu-rope. According to the GermanE-Commerce and Mail Or-der Trade Association (bevh), goods turnover in the distance selling sector reached €48.3 bil-lion in 2013, far exceeding the Euromonitor forecast.

Some 30.0% of orders are atrib- uted to clothing, almost twice that of the global market (18%).

DISTANCE SELLING IN GERMANY

10,900.7

5,028.3

5,017.9

6,601.0

4,167.5

2,543.3

2,337.9

2,323.7

1,015.6

1,061.0

650.0

817.0

773.6

455.5

517.5

446.0

47.5


CAGR: 8.7%

Home shopping


10.1

9.5

8.3

31.2 49.1

7.0

3.8

2011 2012 2013e 2014e 2018e



10,592.3

42.6



1,597.6

545.5

567.8

Shop the World 116


94+684+16

Remote business paradise

Distance selling is omnipresentin Germany. It attracts an extremely wide range of custom-ers. Almost one in two people places more than 10 orders a year.


93.6

6.4

Germany

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

24.4

24.9

23.5

6.4

20.8

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

69.9

24.5

55.2

38.8

5.6 6.1

Yes73.8

Germany

Globally

Yes70.5

No26.2

No29.5

Yes No

Germany Globally Germany Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Germany from 23 to 514



More than 20 orders

Shop the World 117

Globally*

45.1


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



28.2









25.1

83.4

56.028.6

15.4

32.367.7

12.138.4

48.4

24.1

51.6

29.6

71.8

38.9

0.6

39.110.4

70.4

Heavy users: target group with purchasing power

Distinguished by a large num-ber of traits, the heavy user group in Germany is of particular relevance in the distance selling business. Heavy users have a high household income, and tend to live in rural regions. Most are aged between 30 and 49 (45.1%), followed by the over fifties (30.8%). Compared to global benchmarks, Germany’s heavy users are much more likely to belong to an older age group (50+) and have received a higher level of education. The affinity of German heavy users to traditional media is much lower than the global comparison.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Germany from 123 to 514 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6



***

Germany*

43.133.4

29.6

55.1

47.9

27.1

79.4

40.230.629.2

44.155.9

12.035.8

49.6

23.5

50.4

35.8

70.4

44.9

0.7

31.520.7

64.2

30.8

61.1


Shop the World 118

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery




Search for product information · Germany in % * Globally

35.5 35.5

53.2

30.5 23.4

47.5 44.2

21.2 23.9

46.7 45.8

53.7 42.5

29.8 25.1

12.0 15.1

6.2 15.1

7.9 9.7

36.6 37.8

Criteria for choosing a vendor · Germany in % *

Globally

56.0

51.5 40.6

6.8 13.7

20.7

8.2 8.8

23.2 26.6

15.7 14.9

48.9 51.7

16.0 12.9

35.3 20.8

32.3 22.6

30.2 25.7

35.8 45.2

17.9 18.5

21.5

Marketplaces and free returnsSearch engines, online market-places and reviews from other customers point the way to the right product. In the global comparison, free returns are particularly popular among German clients.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Germany from 478 to 502, multiple mentioning



Shop the World 119



Ø

44.536.5 19.026.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Germany from 474 to 494 ** scale from 1 "absolutely not useful" to 6 "very useful“

Bargain hunting

Search engines (64.1%) and price comparison websites (62%) know how to convince rational consumers and provide them with useful product in-formation. Nevertheless, more than a third of clients use cata-logs as a useful source of infor-mation.


Germany Globally





3.13.6

Ø

37.943.7 18.430.6 41.8 27.6

2.93.4

36.649.4 14.038.7 40.4 20.9Social media

Germany Globally

Advertising letters

2.73.1

34.852.5 12.833.9 37.6 28.5

2.63.4


44.125.1 30.918.9 45.1 36.0

3.63.9

28.96.9 64.16.5 28.7 64.8

4.84.8

30.18.0 62.09.1 31.7 59.1

4.64.6

41.630.4 28.129.9 43.9 26.2

Germany Globally


3.43.4

47.534.3 18.129.0 46.7 24.3

Germany Globally


3.23.4

46.138.6 15.434.8 43.1 22.1

Germany Globally


3.03.2

35.356.2 8.641.8 40.7 17.6

Germany Globally

Billboard advertise-ment

2.53.0

35.155.0 9.944.3 38.8 16.9

Germany Globally

Radio

2.52.9

44.217.9 37.919.3 44.2 36.6

Germany Globally


3.93.9

GermanyGlobally

Germany Globally

Germany Globally


Germany Globally


Germany Globally

Shop the World 120

Online PC


By telephone


By email


Online marketplace




retailer



Occasionally


Germany Global

84.0

2.2

1.7

3.1

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“ – PLACING ORDERSOnline marketplaces are extremely popular

For 84.0% of German distance selling clients, the PC is the most common medium for placing orders. Only 7.3% or-der via mobile devices, which is significantly lower than the global average. All other ordering methods play a minimal role in Germany. Online marketplaces play an important role, and are used frequently to very frequently by three quarters of German distance selling cli-ents. However, dispatchers who advertise their products on television struggle in the German target group. 79.1% claim nev-er to have used a TV shopping channel. Placing orders using traditional catalogs is much more appealing in Germany compared to the global avera-ge. Only one quarter never uses this method of ordering.

15.3 31.216.1

15.4 31.216.8

37.4

36.6

Germany

Globally

4.7 71.35.7

9.9 54.38.7

18.4

27.0

26.1 18.823.5

38.5 12.622.8

31.7

26.1

79.1 2.312.0

60.2 6.617.6

6.5

15.7

7.3

10.5

1.9

4.8




Seldom

Shop the World 121

Control is better

Germans like to play it safe: They mostly use online pay-ment systems, pay by invoice or direct debit and are reluctant to trust providers. Advance payments or payments using a credit card are therefore rarely preferred. In Germany, the latter method is used much less frequently compared to the global average and more than half of clients refuse to use a credit card at all. Cash on delivery, installment and debit card pay-ments are virtually unheard of in German.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Germany

Globally

53.5 13.8 18.8 13.9

29.3 9.8 18.7 42.3

81.3 12.3 4.0 2.5

55.8 16.3 16.1 11.7

45.6 29.0 17.3 8.2

53.4 16.1 15.5 15.0

23.3 20.7 28.3 27.7

56.0 15.5 16.4 12.1

13.0 18.5 34.0 34.5

54.4 15.8 16.3 13.4

23.9 9.4 17.7 49.0

33.3 12.9 20.1 33.7

84.0 9.6 4.1 2.3

78.0 9.5 8.1 4.4

95.1 2.41.51.1

55.1 10.8 15.7 18.4



Seldom

Shop the World 122


Detailed information regarding delivery period & delivery date when ordering

Fast delivery

Free delivery





Germany Globally

3.2

2.6

2.8

5.0

4.5

4.9

3.4

4.8

4.7


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Germany from 489 to 499 ** scale from 1 "absolutely not important“ to 6 "very important“

Highest expectations

People are used to getting what they want quickly in Germany. The maximum accepted time from click to delivery is 5 days, although shorter delivery times are more commonplace. Recip- ients attach great importance to detailed delivery information. Packstation collection booths are particularly important for heavy users.


1 2 3 4 5 6




5.0

6.5

Germany Globally

Shop the World 123

54+46

72+28

Number of returns per capita per year · Ø * Germany Globally

0.8

2.3

Return rate · in % * Germany Globally

5.9

Reasons for returns · Germany in % *



54.345.7

Germany Globally

Yes No

“CUSTOMER JOURNEY“– RETURNSGermany: The land of returns

Returns appear to be par for the course in Germany: 54.3% of German consumers have already returned goods at a return rate of 13.3%, making them global leaders. 66.8% of consumers said that the main rea-son why they returned the ordered product was that it did not fit. German clients of-ten turn their own home into a shopping temple by ordering several variants of the preferred product in order to have a systematic choice of sizes and options.

27.5

72.5





Product did not fit






15.6

9.6

66.8

35.1

37.1

3.2

3.6

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

29.9

5.7



13.3

Shop the World 124

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection



· Germany in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

62.1

65.4

78.4

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

24/7 – Around the clock

The most important drivers in the German distance selling business can be attributed to convenience: Shopping around the clock, convenient deliveries and simple price comparisons are top of the list.

Drivers · Germany in % *

Globally


54.4

72.0

85.1

59.5

4.4

41.2

13.5

37.9

2.0

15.4

44.2

64.1

26.6

31.0

16.8

32.2

24.5



Shop the World 125

54+21+25




Hong Kong[26.9]


1

2

3

4

5

Great Britain[47.0]

USA[44.6]

China[32.6]


Germany

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Germany from 242 to 400 ** split into "further orders planned“ 50.0% Germany and "no further orders planned“ 4.0% Germany

Ordering products from abroad is popular

More than half of German cli-ents have already experienced cross border shopping. How-ever, almost one quarter of German consumers do not or-der products from abroad and will not in the future. The preferred country for online shopping is and will continue to be Great Britain, closely followed by the US. In the future, Eu-ropean countries will become more important for ordering products.


Canada[38.2]

Great Britain[77.1]

USA[71.8]

France[63.6]

Country-chapter Germany



54.0

24.821.3


Shop the World 126



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· Germany in % *

Barriers to ordering abroad · Germany in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Variety abroad

The strongest drivers for for-eign orders are the availability of products and lower prices. However, some of the major barriers for purchasing abroad include a complicated product returns process and customs formalities.



60.3

27.7

62.5

52.9

38.0

14.9

57.2

36.7

65.6

33.4

48.9

45.2

42.7

51.3

80.3

5.5

65.0

26.1

3.7



Shop the World 127

Receipt of mailings and catalogs · Germany in % *


DIALOG MARKETING


Germany

Globally

20.8 34.5 44.7

22.1 35.2 42.7



Germany

Globally

30.8 51.9 17.3

29.0 45.8 25.3

Response channel for mailings and catalogs · Germany in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

77.1 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Germany from 405 to 514 ** scale from 1 "never“ to 6 "almost always“

Nationwide mailings

The receipt of mailings and catalogs is so widespread in Ger-many that only 3.1% of Ger-mans claim that companies never contact them using this method. One third of Germ-ans receive purchase informa-tion one or more times a week. While Germans read these of-fers more frequently than the global average, they are more reluctant to respond to mailings and catalogs in any other way. When they do respond, however, 77.1% visit the website while 43.6% follow up with a visit to a local retail outlet. Other response channels play a minor role, even in the global comparison.

Globally




Never

26.9

33.7

27.7

11.6 43.6

19.3

17.5

11.8

9.9

37.1

38.6

21.2

3.1



Country InformationGreat Britain

James

British consumers are enthusiastic online shop-pers, and lovers of online marketplaces. The No. 1 destination for cross border shopping is, and will remain, the United States.

Shop the World 129Country information Great Britain

11.6


The economy in Great Britain * COUNTRY PROFILE GREAT BRITAIN

Birmingham 2,273

London 8,923



0.3


>

>

1.91.1

2011 2012 2013





· 2013 in mn.· 2013· 2013 in %· 2013 in %

26.3 2.47.62.6

The economic upturn is picking up pace. Forecasts for 2014 estimate another increase in real GDP growth of 2.2% (fol-lowing 0.3% in 2012 and 1.9% in 2013). After several weak years, 2014 should see growth in the level of investment. Ex-ports contributing to almost one third of GDP should also increase in 2014. Nominal wages are growing strongly in the face of sinking inflation, which is favouring private consumers. Consumer credit volumes will also increase.

40.4

10.7

Manchester 2,216


West Yorkshire 1,605

Glasgow 1,140

Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Shop the World 130

27+4+1+6+41+16+5

Country information Great Britain

MEDIA USE IN GREAT BRITAIN

34.0

130.8


50.9




2012 2013

62.2





>>


2011 2012 2013 2014 2015

17.8

87.0

16.9

15.9

15.1

14.8

41.2

16.0

5.2

6.4

1.23.5

26.5

2016

18.6

Internet use

The internet has tradition in the UK and is used intensively by the population of 63 million. 87% had internet access in 2012, while 34% surfed via a permanent broadband connec-tion. The British have a new best friend – the smartphone. It is used by almost two thirds of the population.

World Cup and election cam-paigns

In the land of creative advertising, the internet has been the dominant medium since 2009. TV is the second most popular medium and will, like the inter-net, profit from the World Cup and the forthcoming elections.


Shop the World 131





DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

European champion

The largest distance selling market in Europe displays a relatively low average growth rate of 4% p.a. In spite of this, media products, Household appliances and DIY / gardening still hold potential. Fashion and food are always popular among the British – they look like retaining their position as best-sellers up until 2018.

11,020.0

3,696.3

3,283.9

6,253.4

4,094.8

2,947.9

1,985.7

7,034.8

1,128.8

1,714.0

977.2

1,144.3

731.9

329.4

1,009.2

626.3

230.5


CAGR: 4.0%

Home shopping


6.0

5.55.1

43.1 51.5

4.7

3.5

2011 2012 2013e 2014e 2018e



10,092.8

173.0


5,690.2

867.5

409.6

DISTANCE SELLING IN GREAT BRITAIN



Shop the World 132

94+6

Great Britain

84+16

Large user base

The kings and queens of distance selling are based in Great Britain. A high concentration of users are always closeat hand and order volumes are also extremely high.


94.4

5.6

Great Britain

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

20.8

15.8

28.1

5.6

29.7

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

62.7

32.8

55.2

38.8

4.5 6.1


Yes86.3

Great Britain

Globally

Yes70.5

No13.7

No29.5

Yes No

Great Britain Globally Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Great Britain from 22 to 504



Shop the World 133

Globally*

48.4


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +











20.7

79.2

36.633.9

29.5

27.972.1

20.838.0

47.825.8

52.2

25.9

90.4

52.5

0.7

31.99.3

74.1

Mobile savvy

Heavy users in distance sellingcan be characterized as having a high level of mobile internet usage. Almost three quarters ofthis important customer group have mobile access to the inter-net. From a global viewpoint, heavy users are found most frequently in rural areas, have a higher average age (50+) and appreciate the benefits of home delivery. Their affinity to online media is high, but still slightly below the global online average. The reluctance towards classic media and dialog marketing is clearly more pronounced. Only one in five heavy users feels a strong affiliation to traditional media.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Great Britain from 120 to 504 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Great Britain*

42.329.3

12.3

46.4

27.5

20.7

77.0

28.534.936.6

33.067.0

23.132.9

50.0

28.4

50.0

28.5

87.7

53.6

0.6

30.813.2

71.5

25.9

47.5


9.6


Shop the World 134


Search for product information · Great Britain in % * Globally

40.3 35.5

53.2

29.7 23.4

33.6 44.2

30.6 23.9

52.4 45.8

58.2 42.5

19.7 25.1

11.6 15.1

6.4 15.1

10.4 9.7

42.9 37.8

Criteria for choosing a vendor · Great Britain in % *

Globally

Search engines 60.0





Online marketplace

Catalog

Mail advertising

Social media platforms such as Face-book and Twitter











Free returns


Fast delivery

Free delivery



12.3 13.7

20.7

9.4 8.8

30.7 26.6

12.3 14.9

55.4 51.7

14.2 12.9

22.4 20.8

17.8 22.6

24.8 25.7

52.0 45.2

18.3 18.5

19.3

Search engines preferredIn the UK, search engines and online marketplaces are the preferred methods of searching for information. Furthermore, customer reviews have a strong influence on product selection.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Great Britain from 471 to 498, multiple mentioning



Shop the World 135

Acceptance of advertising media · in % *, **


Ø

45.435.0 19.726.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Great Britain from 478 to 492 ** scale from 1 "absolutely not useful" to 6 "very useful“

Demanding target group

The British are rather wary when it comes to advertising media. In general they do not consider advertising media to be particularly useful. All types of media are scrutinized with suspicion. Only search engines are considered to be usefull by two thirds of respondents.

USEFULNESS OF ADVERTISING MEDIA

Great BritainGlobally




3.13.6

Ø

37.850.4 11.830.6 41.8 27.6

2.73.4

33.954.8 11.338.7 40.4 20.9Social media


Advertising letters

2.53.1

31.657.2 11.233.9 37.6 28.5

2.53.4


46.129.5 24.318.9 45.1 36.0

3.43.9

28.45.5 66.26.5 28.7 64.8

4.84.8

39.414.6 46.19.1 31.7 59.1

4.24.6

37.052.1 10.929.9 43.9 26.2



2.63.4

44.141.5 14.429.0 46.7 24.3



2.93.4

34.353.1 12.634.8 43.1 22.1



2.63.2

27.165.7 7.241.8 40.7 17.6



2.23.0

29.064.7 6.344.3 38.8 16.9


Radio

2.22.9

44.731.9 23.419.3 44.2 36.6



3.33.9









Shop the World 136

Online PC


By telephone


By email






Occasionally


Great Britain Global

77.6

2.5

1.3

3.6

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“ – PLACING ORDERSOnline triumphs

The British preference for cer-tain ordering channels is only slightly different from the global trend. Placing orders online using a PC is the clear favorite at almost 78%. Around one in ten people prefers mobile access using a tablet or smartphone. The vast majority of people in Britain (79%) visit online mar-ketplaces to choose and order products. Independent online shops are relatively popular, but the products on offer do not compare to the comprehensive range found in online market-places. The traditional catalog or teleshopping ordering chan-nels rarely appeal.

10.3 31.518.9

15.4 31.216.8

39.3

36.6

Great Britain

Globally

1.9 79.02.1

9.9 54.38.7

17.0

27.0

48.1 10.018.3

38.5 12.622.8

23.5

26.1

75.5 5.112.0

60.2 6.617.6

7.4

15.7

10.3

10.5

4.6

4.8



Online marketplace



retailer

Shop the World 137Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Debit cards lead the way

Debit cards, online payment systems, and credit cards are evidently the only types of payment option required in Great Britain. Debit cards are the most common form of pay-ment with more than half of all clients using debit cards fre-quently to very frequently. Af-ter debit cards, online payment systems and credit cards are used at approximately the same frequency but almost a third of consumers have not used a credit card yet.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Great Britain

Globally

31.4 7.0 17.3 44.3

29.3 9.8 18.7 42.3

85.1 10.2 3.6 1.1

55.8 16.3 16.1 11.7

81.3 7.7 5.2 5.8

53.4 16.1 15.5 15.0

72.3 11.4 9.3 6.9

56.0 15.5 16.4 12.1

77.2 12.6 7.6 2.5

54.4 15.8 16.3 13.4

18.0 10.6 25.9 45.4

33.3 12.9 20.1 33.7

90.5 5.7 2.31.5

78.0 9.5 8.1 4.4

10.5 11.8 27.1 50.6

55.1 10.8 15.7 18.4


Shop the World 138



Fast delivery

Free delivery






Great Britain Globally

3.1

2.6

3.3

5.2

4.4

4.9

2.8

4.7

4.3


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Great Britain from 468 to 495 ** scale from 1 "absolutely not important“ to 6 "very im-portant“

Delivery demands

To select the shipping company is rarely a defining factor – of greater significance is delivery time. On average, 5.2 days is a still acceptable delivery time and shipping should be free of charge where possible.


1 2 3 4 5 6



5.2

6.5


Shop the World 139Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

55+45 72+28

Number of returns per capita per year · Ø * Great Britain Globally

0.8

1.5

Return rate · in % * Great Britain Globally

5.9

Reasons for returns · Great Britain in % *



44.555.5


Yes No

“CUSTOMER JOURNEY“ – RETURNSReturns are part of the package

Some 44.5% of clients have al-ready returned a product. The main reason for returning a good is if it is unsuitable. De-fects regularly result in the cli-ent returning the product, too. Long delivery times and the availability of cheaper products elsewhere play hardly any role at all in purchase decisions.

27.5

72.5





Product did not fit






14.9

13.5

45.2

30.7

18.8

5.3

2.0

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

26.8

8.2


6.2

Shop the World 140

High delivery costs

Uncertain delivery



Long delivery times




No personal advice







Shopping 24/7



Lower prices

Greater selection


Barriers · Great Britain in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

68.3

56.1

72.3

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Shopping around the clock

Shopping around the clock is the main reason why the Britishare attracted to distance selling. Low prices and home deliveries also play a role.

Drivers · Great Britain in % *

Globally


58.3

52.0

82.5

70.0

3.7

41.7

22.5

33.1

1.2

24.4

52.9

73.8

47.1

18.8

22.7

25.5

30.3


Country profile · Media Use · Distance selling · "Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Shop the World 141

66+14+20

CROSS-BORDER SHOPPING– OVERVIEW



Germany[17.8]


1

2

3

4

5

USA[70.8]

China[36.7]

Hong Kong[31.0]


Great Britain

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Great Britain from 276 to 384 ** split into "further orders planned“ 62.2% GB and "no further orders planned" 4.2% GB

USA as a strong partner

Cross-border eCommerce is already widespread in the Unit-ed Kingdom. Two out of three clients like to use this medium to broaden their purchasing scope. Only one in five wants to continue to only purchase within the UK. The top destination for overseas orders is, and will remain, the United States. In thefuture, China and Hong Kong will be replaced by European countries in the rankings.

Canada[41.7]

France[40.9]

USA[89.5]


Germany[47.4]




13.8

66.4

19.8

Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Shop the World 142



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times







Drivers for ordering abroad· Great Britain in % *

Barriers to ordering abroad · Great Britain in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Selection and price areimportant

The British do not believe that products from abroad are better quality. However, the variety is considered and lower prices are enticing. Long delivery times and higher delivery costs are the main reasons preventing British consumers from buyingimports.



54.8

26.5

32.1

40.8

39.0

13.8

63.4

45.0

49.6

24.0

49.5

44.3

38.2

39.6

69.7

5.8

61.5

31.3

1.8


Shop the World 143Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Great Britain

Receipt of mailings and catalogs · Great Britain in % *


DIALOG MARKETING


· in % *,**

Great Britain

Globally

40.0 38.0 22.0

22.1 35.2 42.7



Globally

51.6 35.8 12.6

29.0 45.8 25.3

Response channel for mailings and catalogs · Great Britain in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

76.4 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Great Britain from 337 to 504 ** scale from 1 "never“ to 6 "almost always“

Ubiquitous offers

A large number of mailings andcatalogs are regularly sent to clients in Great Britain. Almost one in three has the opportuni-ty to browse through various offers once a week or more - the recipients, however, seldom take any notice of them. Only 22.1% regularly read adverti-sing material pushed through their letterbox. Other responses are even rarer. By far the most common response channel is visiting the provider‘s website. Occasionally, clients pay a visit to the local store.

Globally




Never

26.9

33.7

27.7

11.6 48.7

19.3

15.7

10.3

5.1

30.8

38.5

25.5

5.2


Country InformationIndia

Aparajita and Piyusch

Indian eCommerce customers are young, urban, and have high incomes. They love to shop for consumer electronics, fashion, and media products.

Shop the World 145Country information India Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing


The economy in India * COUNTRY PROFILE INDIA

Mumbai (Bombay)

19,422

Delhi 21,935



4.7


>

>

4.6

6.6

2011 2012 2013



Population, total · 2013 in mn. 1,258.4 ***


· 2013 in mn.· 2013· 2013 in %· 2013 in %

222.0 5.79.2

10.1

Economic growth in India has slowed considerably. With GDP growth of 4.6% in 2013, it was significantly below the real growth seen in 2011 (6.6%). IMF analysts predict a rise to 5.16% in 2014. The high bud-get deficit, stagnating industry production, and declining import numbers give cause for concern. At the same time, infrastructure projects are on hold due to delays in tendering, permit processing, and property acquisition. Consumer spending is subdued in the face of high inflation and crises-driven insecurity.

794.0

63.9

Hyderabad 7,578

Pune (Poona) 4,951

Kolkata (Calcutta)

14,283

Ahmadabad 6,210

Jaipur 3,017

Surat 4,438

Chennai (Madras)

8,523

Bangalore 8,275

The ten largest conurbations in India · 2011 in thousand. **

Shop the World 146

37+3+1+5+7+44+3

Country information India Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

MEDIA USE IN INDIA

1.1

68.7





2013

12.8





>>


2011 2012 2013 2014 2015

5.7

12.6

5.1

4.6

4.2

3.9

2016

6.4

7.0

44.6

2.8

4.90.6

3.4

36.6

Internet use

Internet use continuously in-creases in India. According to the World Bank, there were approx. 159 million internet users in 2012; this corresponds to 12.6% of the population. Mobile phones are the most important medium for going online in India. Accordingly, the Indian smartphone market grows rapidly.

Bollywood & newspapers

As a fast-growing advertising market with growth rates of 7.9% (2013) and 12.2% (2014), India is still strongly dominated by traditional media, especially by news-papers and TV. Despite high growth rates, online spending only amounts to 7%.

Shop the World 147






DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

Billion potential shoppers

Measured against the popula-tion, the Indian eCommerce is still underdeveloped. So far, Indian customers are mainly interested in consumer electronics, fashion, and media products. They are rather hes-itant to order other products.

DISTANCE SELLING IN INDIA

514.4

1,038.1

601.6

565.8

217.6

0.00.0

91.6

114.3

9.8

0.0

0.0

16.9

18.4

6.6

0.0


CAGR: 11.6 %

Home shopping


0.10.2

0.2

2.6 4.1

0.2

0.1

2011 2012 2013e 2014e 2018e



236.5

0.0


0.0

3.1

51.4

0.0

Shop the World 148


79+2184

+16

More orders in the future

Currently, four fifths of Indian consumers surveyed are distance selling clients. Although the number of orders is still below the global average, the future holds enormous poten-tial.


79.1

20.9

India

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

23.3

37.2

10.4

20.9

8.2

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

25.0

69.7

55.2

38.8

5.3 6.1

Yes85.8

India

Globally

Yes70.5

No14.2

No29.5

Yes No

India Globally India Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n India from 91 to 501

Country information India Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

More than 20 orders

Shop the World 149

Globally*

50.9


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +











72.9

94.1

58.019.0

23.0

28.371.7

28.668.4

49.5

43.1

50.5

14.3

98.4

93.1

1.3

0.8

85.7

Heavy users: Young and urban

The typical distance selling customer is mainly male and young. The under thirties age-group is disproportionately large. Most heavy users work and live in urban centers, live in households with children and have relatively high incomes. In terms of their affinity for media, heavy users are an ideal target group: In global comparison, all media are exception- ally popular, although online media sees the greatest take-up.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n India from 126 to 501 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

India*

43.516.2

3.0

11.2

69.4

69.7

88.8

44.726.129.2

43.456.6

36.357.5

48.3

40.2

51.7

23.3

97.0

88.8

0.9

4.41.8

76.7

6.9


1.6

5.9

2.3

Shop the World 150

Search engines





Online marketplace

Catalog

Mail advertising

Social media platforms, such as Facebook and Twitter











Free returns


Fast delivery

Free delivery




Search for product information · India in % * Globally

34.2 35.5

53.2

20.2 23.4

45.4 44.2

24.7 23.9

43.5 45.8

52.3 42.5

31.1 25.1

25.5 15.1

38.5 15.1

20.2 9.7

40.7 37.8

Criteria for choosing a vendor · India in % *

Globally

57.4

38.3 40.6

17.6 13.7

20.7

11.1 8.8

18.3 26.6

15.9 14.9

35.1 51.7

13.9 12.9

18.8 20.8

24.3 22.6

28.8 25.7

40.2 45.2

30.6 18.5

23.5

Customer service comes first

Social media play a comparatively important role in India when searching for products. Customer service is of above- average importance when select-ing a provider (30.6% versus 18.5% globally).

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n India from 391 to 480, multiple mentioning


Shop the World 151



Ø

35.36.6 58.126.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n India from 459 to 472 ** scale from 1 "absolutely not useful“ to 6 very useful“

Open for advertising

There is great openness for all advertising media in India. In addition to search engines and price-comparison sites, Indian consumers rate social media and online advertising as particularly useful. However, clas-sic ads in newspapers and magazines are eagerly studied as well.


India Globally




4.63.6

Ø

33.97.4 58.730.6 41.8 27.6

4.63.4

40.221.3 38.538.7 40.4 20.9Social media

India Globally

Advertising letters

3.93.1

32.18.0 59.933.9 37.6 28.5

4.63.4


36.38.5 55.218.9 45.1 36.0

4.53.9

24.22.8 73.16.5 28.7 64.8

5.14.8

28.84.9 66.39.1 31.7 59.1

4.94.6

38.510.3 51.229.9 43.9 26.2

India Globally


4.43.4

39.89.2 51.029.0 46.7 24.3

India Globally


4.43.4

39.08.1 52.934.8 43.1 22.1

India Globally


4.53.2

41.716.0 42.241.8 40.7 17.6

India Globally


4.13.0

40.625.8 33.544.3 38.8 16.9

India Globally

Radio

3.72.9

38.112.9 49.019.3 44.2 36.6

India Globally


4.33.9

India Globally

India Globally

India Globally


India Globally


India Globally

Shop the World 152

Online PC


By telephone


By email


Online marketplace




retailer

Use of different suppliers· in % *


Occasionally


India Global

52.4

6.0

8.9

7.8

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“ – PLACING ORDERSFlexible ordering channels

The number of Indian consumers who prefer to order via PC is still below the global average. However, the country sees itself as progressive when it comes to use of mobile de-vices. Traditional channels via telephone, mail, or email are also well liked. Ordering in a store with home delivery enjoys above-average popularity.

Indian consumers are very open to using different distance sell-ing providers: Online market-places are by far frequented the most. However, direct ordering from a provider’s online shop is popular as well. Teleshopping is used at least occasionally by more than 50% of distance sell-ing customers.

14.7 37.614.6

15.4 31.216.8

33.1

36.6

India

Globally

2.6 63.17.5

9.9 54.38.7

26.8

27.0

29.9 17.224.9

38.5 12.622.8

28.0

26.1

25.7 18.423.7

60.2 6.617.6

32.2

15.7

12.4

10.5

12.7

4.8



Seldom

Shop the World 153

Popular: Cash on delivery

Indian consumers most fre-quently pay for their distance selling orders per cash on delivery, by credit card, or by debit card. Cash in advance, direct debit or installment payments are used at least occasionally. Online payment systems seem not to have caught on so far. In the international comparison, Indian consumers use this option significantly less frequent-ly.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



India

Globally

27.2 10.0 22.1 40.8

29.3 9.8 18.7 42.3

11.3 12.8 28.4 47.5

55.8 16.3 16.1 11.7

40.8 14.2 25.4 19.6

53.4 16.1 15.5 15.0

38.0 13.8 22.4 25.7

56.0 15.5 16.4 12.1

51.2 16.8 16.7 15.3

54.4 15.8 16.3 13.4

36.7 17.9 24.6 20.7

33.3 12.9 20.1 33.7

64.9 12.2 13.6 9.3

78.0 9.5 8.1 4.4

18.3 16.7 26.4 38.7

55.1 10.8 15.7 18.4


Seldom

Shop the World 154



Fast delivery

Free delivery





India Globally

4.4

4.3

4.1

5.2

5.1

5.3

4.5

5.1

4.7


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n India from 460 to 472 ** scale from 1 "absolutely not important“ to 6 "very important“

Fast and affordable

Although long delivery times could be assumed due to the size of the country, customers in India have high demands: Consumers expect the delivery of their order within 5 days. Beyond that, delivery should befree of charge and support sta-tus tracking.


1 2 3 4 5 6



5.0

6.5

India Globally

Shop the World 155

30+70

72+28

Number of returns per capita per year · Ø * India Globally

0.8

0.6

Return rate · in % * India Globally

5.9

Reasons for returns · India in % *



29.5

70.5

India Globally

Yes No

“CUSTOMER JOURNEY“ – RETURNSProblem: Product quality

In the international comparison, the percentage of consumers in India who return goods (29.5%) is slightly higher. Accordingly, the return rate is slightly higher at 6.5%.

Looking at the reasons for returning goods, it is evident that product quality problems are the main reason for the high return rate. Returns due to faulty products or poor product quality are well above average in India. In contrast, returns because the article does not fit or because the consumer was generally unsatisfied with the article are of secondary importance.

27.5

72.5





Product did not fit






27.4

23.7

20.3

19.7

8.0

10.7

7.1

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

34.9

8.7

Country information India Country profile · Media Use · Distance selling · “Customer Jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

6.5

Shop the World 156

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection



· India in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

53.4

49.8

53.0

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Shopping everywhere

The most convincing argumentfor distance selling is the geo- graphical independence of the order. The unknown quality of the goods and a lack of personalservice are hindering factors.

Drivers · India in % *

Globally


49.9

52.3

64.2

74.6

26.0

21.1

21.5

33.4

12.2

27.3

56.9

55.7

47.0

32.3

32.0

24.8

35.1


Shop the World 157





Hong Kong[11.0]

1

2

3

4

5

USA[66.4]

Great Britain[24.2]

China[22.4]


India

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n India from 145 to 431 ** split into "further orders planned“ 31.5% India and "no further orders planned" 0.9% India

Domestic orders dominate

Cross-border shopping plays no significant role in India as yet: Only one third of Indi-an consumers surveyed has ordered from abroad. An increase in cross- border eCommerce is ex-pected in the future, however. More than half of consumers plan to purchase from abroad. So far, the US leads the list of countries with the largest share of overseas orders, followed by Great Britain. While the top spots are not expected to change, China will relin-quish its 3rd place to Japan.

Germany[33.5]

China[29.1]

USA[77.7]

Great Britain[45.3]

Japan[34.0]

Country information India Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing



53.0

32.4

14.6

Shop the World 158



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· India in % *

Barriers to ordering abroad · India in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Quality is key

Besides better availability, bet-ter product quality is the most important reason for placing an order abroad. High delivery costs, long delivery times, and fear of fraud are the largest obstacles.


58.2

21.7

42.9

41.2

29.7

17.5

56.1

33.0

44.9

22.7

43.5

33.1

32.6

43.3

67.7

67.1

40.9

50.3

22.2



Shop the World 159

Receipt of mailings and catalogs · India in % *


DIALOG MARKETING


· in % *,**

India

Globally

14.9 32.3 52.8

22.1 35.2 42.7



India

Globally

14.6 34.0 51.4

29.0 45.8 25.3

Response channel for mailings and catalogs · India in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

76.5 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n India from 411 to 501 ** scale from 1 "never“ to 6 "almost always“

Little advertisement – active response

Mailings and catalogs are rarely used in India: 27.5% of consumers do not receive advertisement in their mail. Indian consumers are far more interested in the information they receive than the average consumer and a good majority read it in detail. Compared to the global benchmark, response to dialog marketing is also almost twice as high. Indian consumers most frequently respond to dialog marketing by visiting the supplier’s website (76.5%). Almost half of recipients write emails, communi- cate via social networks, or visit the shop directly. Phone calls are frequently made.

Globally




Never

26.9

33.7

27.7

11.6 50.7

52.2

52.4

48.9

29.9

8.7

26.9

36.9

27.5


Country InformationItaly

Cristian and Massimiliano

Italian eCommerce customers live in rural areas, they are price-sensitive and like to order fashion and groceries.

Shop the World 161

9.2


Italian economy * COUNTRY PROFILE ITALY

Roma (Rome) 3,306

Milano (Milan) 2,916



-2.6


>

>

-1.8

0.6

2011 2012 2013




Country information Italy Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing


· 2013 in mn.· 2013· 2013 in %· 2013 in %

20.5 3.0

12.21.2

After a brief recovery in 2010 and 2011, Italy is headed into recession again. The economic performance shrunk by 2.6% in 2012 and by 1.8% in 2013. The domestic demand slumped in particular. The consequences of the crisis can mainly be felt in the labor market. The un-employment rate increased in 2013 to 12.2 %. The south of the country and the young popu-lation are particularly affected. Structural deficiencies are the main reason for the prolonged economic crisis: The corporate landscape is characterized by small under-capitalized family businesses, the labor market is inflexible, the public authorities highly indebted, research and development poorly developed,and the infrastructure is insuf-ficient. Because of these rea-sons, Italy will most likely re-main Europe’s problem child in the coming years.

39.1

12.7

Napoli (Naples) 2.348

Torino (Turin) 1,620


Shop the World 162

51+6+1+5+17+12+8MEDIA USE IN ITALY

22.1

159.5


27.9




2012 2013

41.3





>>


2011 2012 2013 2014 2015

6.2

58.0

6.16.

4

7.1

7.7

2016

6.2


16.5

12.1

8.2

5.40.4

6.0

51.3

Internet use

In 2012 only slightly more thanhalf of Italian population was online. In metropolitan areas, such as Rome or Milan, popu-lation benefits from high-speed networks, while the popula-tion of smaller towns is often still dependant on slow dial-up connections or increasingly switches to mobile internet via smartphones and tablets.

Slow recovery Due to the economic situation, advertising expenditures declined by 10% in 2013, with only a slight increase in inter-net spends. Overall adspends are expected to increase from 2016.

Shop the World 163





DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

Buon appetito!

With an average growth of 12.7 % per year, the Italian distance selling market is one of the fastest growing markets in Europe. Fashion, media prod-ucts, and, above all, groceries are very popular with Italian consumers.

DISTANCE SELLING IN ITALY

1,454.7

998.4

817.5

1,351.8

688.6

1,572.8

92.8

16.0

9.3

115.0

52.4

33.2

45.9


CAGR: 12.7%

Home shopping


1.21.2

1.2

6.0 10.5

1.2

1.1

2011 2012 2013e 2014e 2018e



924.1

42.1


857.4

97.5

125.1

202.8

190.7

177.8

223.2


Shop the World 164

83+1784

+16

Potential for growth Italians are quite familar with distance selling: more than 80% have placed an order on-line, which is comparable to the global average. However, there is a potential for growth: almost 50% plan to shop more in future.Use of distance selling · in % *

83.1

16.9

Italy

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

18.4

44.5

11.4

16.9

8.8

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

45.7

49.1

55.2

38.8

5.2 6.1


Yes86.9

Italy

Globally

Yes70.5

No13.1

No29.5

Yes No

Italy Globally Italy Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Italy from 68 to 500


More than 20 orders

Shop the World 165

Globally*

56.2


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +











45.8

85.8

38.035.4

26.6

29.870.2

25.750.5

45.0

24.4

55.0

29.9

87.1

47.3

1.0

17.76.1

70.1

Open for advertising

Distance selling clients in Ita-ly are very open to online and classic media. There are good chances to reach the target group using dialog marketing as well. Compared to the global average, heavy users in Italy are rather 30 - 49 years old, mobile savvy, and live in rural areas.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Italy from 116 to 500 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Italy*

48.828.4

20.2

55.7

51.3

40.9

85.1

30.433.536.1

43.256.8

31.441.5

50.1

22.9

49.9

37.0

79.8

44.3

0.7

21.95.2

63.0

19.4

52.7


12.9

Shop the World 166

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery




Search for product information · Italy in % * Globally

35.5

53.2

23.4

44.2

23.9

45.8

42.5

25.1

15.1

15.1

9.7

37.8

Criteria for choosing a vendor · Italy in % *

Globally

40.6

11.6 13.7

20.7

9.1 8.8

23.8 26.6

5.4 14.9

49.9 51.7

17.9 12.9

14.5 20.8

31.0 22.6

23.6 25.7

52.3 45.2

17.4 18.5

21.9

Price-sensitive consumersMore than half of the consum-ers surveyed in Italy indicates that they select their products via price comparison sites. How- ever, many users also simply "google" using common search engines.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Italy from 415 to 483, multiple mentioning


38.4

19.3

55.0

24.1

42.5

30.1

21.7

12.3

12.9

8.9

31.5

54.4

29.1

Shop the World 167



Ø

42.521.6 35.926.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Italy from 473 to 478 ** scale from 1 "absolutely not useful“ to 6 very useful“

High affinity for advertising

In Italy, advertisements are generally evaluated as useful for purchasing decisions with greater than average frequency. Search engines and price com-parison sites are most popular. Of the traditional media, cata-logs and TV ads are particular-ly liked.


Italy Globally




3.83.6

Ø

40.824.0 35.230.6 41.8 27.6

3.73.4

45.031.8 23.238.7 40.4 20.9Social media

Italy Globally

Advertising letters

3.33.1

43.725.1 31.233.9 37.6 28.5

3.63.4


46.015.4 38.618.9 45.1 36.0

4.03.9

25.44.6 70.06.5 28.7 64.8

4.94.8

25.65.3 69.19.1 31.7 59.1

4.94.6

48.625.0 26.429.9 43.9 26.2

Italy Globally


3.53.4

49.123.1 27.829.0 46.7 24.3

Italy Globally


3.63.4

44.430.4 25.234.8 43.1 22.1

Italy Globally


3.43.2

46.231.1 22.741.8 40.7 17.6

Italy Globally


3.33.0

48.729.8 21.544.3 38.8 16.9

Italy Globally

Radio

3.32.9

45.914.5 39.619.3 44.2 36.6

Italy Globally


4.03.9

Italy Globally

Italy Globally

Italy Globally


Italy Globally


Italy Globally

Shop the World 168

Online PC


By telephone


By email


Online marketplace




retailer



Occasionally


Italy Global

69.3

4.6

3.1

5.5

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERSMany roads lead to Rome

Italian consumers are open to all channels: On the one hand, 12 % of the Italian distance sell-ing clients already use tablets and smartphones as primary ordering channel. On the other hand, 13.2 % primarily order through traditional offline channels (by phone, in writing, in stores).When looking into the dis-tribution channels, a versatile image can be observed in com-parison to the the rest of the world. Online marketplaces, which are used by almost half of the consumers, are of highest importance. Opinions differ with respect to catalogs: The Italian target group contains slightly more intensive users as well as more opponents of cat-alog ordering. There is a small group that still favors teleshopping.

18.8 33.714.4

15.4 31.216.8

33.1

36.6

Italy

Globally

11.4 53.59.8

9.9 54.38.7

25.2

27.0

45.2 15.618.7

38.5 12.622.8

20.4

26.1

61.7 8.016.1

60.2 6.617.6

14.2

15.7

12.0

10.5

5.5

4.8



Shop the World 169

Online payments well in the lead

Online payment is the most popular payment method in Italy, followed by credit cards. Also cash in advance and cash on delivery are used in Italy with above-average frequency. Direct debit, payment upon in-voice, and debit cards are used less frequently compared to theglobal average.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Italy

Globally

34.7 11.4 18.2 35.8

29.3 9.8 18.7 42.3

33.7 25.5 21.4 19.4

55.8 16.3 16.1 11.7

46.3 15.9 11.8 26.0

53.4 16.1 15.5 15.0

70.4 11.8 9.9 7.9

56.0 15.5 16.4 12.1

70.1 12.6 8.4 8.9

54.4 15.8 16.3 13.4

17.6 10.0 14.7 57.6

33.3 12.9 20.1 33.7

84.1 7.8 5.9 2.2

78.0 9.5 8.1 4.4

73.2 7.9 7.4 11.5

55.1 10.8 15.7 18.4


Shop the World 170



Fast delivery

Free delivery





Italy Globally

3.8

3.7

3.9

5.4

5.1

5.2

4.0

4.8

4.8


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Italy from 471 to 476 ** scale from 1 "absolutely not important“ to 6 "very important“

Realistic expectations

The accepted delivery time of 6.5 days as well as the delivery expectations are in line with the global reference values. Naturally, the price-conscious Italian consumers clearly prefer free deliveries.


1 2 3 4 5 6



6.5

6.5

Italy Globally

Shop the World 171

15+85

72+28

Number of returns per capita per year · Ø * Italy Globally

0.8

0.3

Return rate · in % * Italy Globally

5.9

Reasons for returns · Italy in % *



15.6

84.4

Italy Globally

Yes No

“CUSTOMER JOURNEY“– RETURNSHardly any returns

Returns are not common in Italy: So far only every sixth eCommerce customer re-turned ordered goods. Corre- spondingly, the number and rate of returns are also signifi-cantly below the international reference values. If the goods must be returned to the pro-vider, this is mostly caused by faulty products or if the consumer was generally unsatisfied with the product. Ordering of an incorrect product is another return reason in Italy occurring with above-average frequency.

27.5

72.5





Product did not fit






16.8

13.9

18.4

23.2

4.6

6.1

3.2

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

18.2

20.2


2.5

Shop the World 172

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection



· Italy in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

71.9

40.6

40.8

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Price-sensitive target group

Better prices are clearly the main reason for using distance selling in Italy. Overall, there is little concern regarding barri-ers to distance selling.

Drivers · Italy in % *

Globally


46.6

57.9

67.4

60.9

5.2

33.2

23.0

32.5

4.1

16.5

21.1

63.0

40.7

14.9

21.2

21.9

28.2


Shop the World 173

63+26+11




China[29.2]

France[25.0]

1

2

3

4

5

Great Britain[53.4]

Germany[52.8]

USA[35.7]


Italy

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Italy from 280 to 420 ** split into "further orders planned“ 61.2% Italy and "no further orders planned" 1.7% Italy

Shopping in the EURO zone

Italians are increasingly shop-ping abroad. Almost two thirds have already purchased from other countries and 27 % plan to do so in future. Great Brit-ain, Germany and the US are and will remain the preferred shopping destinations.

France[45.0]


Germany[59.0]

Great Britain[58.6]

USA[51.7]

Country information Italy Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing



26.5

62.9 10.7

Shop the World 174



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· Italy in % *

Barriers to ordering abroad · Italy in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Using price advantages

Lower prices are the main driv-er for international orders. Pos-sible barriers play a significant-ly lower role compared to the global average.



39.7

27.3

35.8

34.6

21.3

8.0

49.8

20.9

42.9

13.2

35.0

29.5

21.4

28.4

66.6

13.5

70.4

33.5

7.0


Shop the World 175

Receipt of mailings and catalogs · Italy in % *


DIALOG MARKETING


· in % *,**

Italy

Globally

14.6 29.6 55.7

22.1 35.2 42.7



Italy

Globally

23.9 46.1 30.0

29.0 45.8 25.3

Response channel for mailings and catalogs · Italy in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

72.5 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Italy from 406 to 500 ** scale from 1 "never“ to 6 "almost always“

Open dialog

Many Italian consumers receive mailings and catalogs very frequently and read them with great interest. Further-more, Italians love to respond: Visiting the website is clearly ahead - also globally. Paying a visit to the store of the adver-tising company is popular as well.

Globally




Never

26.9

33.7

27.7

11.6 56.5

30.4

27.1

14.5

14.2

34.2

38.8

22.1

4.8


CountryInformationJapan

Tomoki

Japanese online customers are highly educated,urban and have high incomes. They order almost everything, but better not from abroad.

Shop the World 177

17.9


The economy in Japan * COUNTRY PROFILE JAPAN

Tokyo 36,933

Osaka-Kobe 11,430



1.4


>

>

1.6

-0.4

2011 2012 2013




Country information Japan Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing


· 2013 in mn.· 2013· 2013 in %· 2013 in %

45.0 2.84.00.4

Japan‘s economy is in good shape. In 2013 the GDP increased by 1.6%, for 2014 the OECD predicts a growth of 1.5 %. The development is sustained by domestic demand. There are a couple of reasons for this trend. The significant inflation during the past years has been overcome through fiscal policy of the Bank of Japan. In addition the low exchange rate of the Yen supports the Japanese export economy. On the other side contrasting developments can be noticed. The increase in excise tax beginning of 2014 is considered a stumbling block for the economy‘s development. It affects numerous industries and private consumption. It is in discussion to provide low income households with extra cash payments in order to miti- gate the consequences.

78.1

30.5Sendai 2,401

Kyoto 1,804 Nagoya

3,300

Hiroshima 2,103

Fukuoka- Kitakyushu

2,845

Sapporo 2,714


Shop the World 178

42+3+12+22+15+6MEDIA USE IN JAPAN

27.9

109.4


19.6




2012 2013

24.7





>>


2011 2012 2013 2014 2015

43.0

79.1

42.1

41.4

40.5

39.0

2016

43.9


22.2

14.6

5.9

12.02.9

42.4

Internet use

By now, the number of sta- tionary internet users in Japan grows moderately only, while mobile communication is becoming more popular and shows a large growth. In particular, smartphones and tablets are the driving forces. While <20% of Japanese consumers used a smartphone in 2012, it was almost 25% one year later, with rising tendency.

Second-largest advertising

market

A stable growth of 2% is forecasted until 2016 for the sec-ond-largest advertising marketworldwide. Rather low growth is expected for the strongest growth driver internet, while growth rates of 2 % are forecasted for the dominant medi-um TV.

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Low growth rates

Due to a high level of market saturation, the third-largest distance selling market shows little growth only. Groceries, cosmetics, and healthcare products are the most popular categories purchased in Japan. Further growth is mainly ex-pected in consumer electronics, media products, groceries, and fashion.

DISTANCE SELLING IN JAPAN

12,746.3



3,905.3

2,795.5

8,606.8

6,201.9

2,667.2

2,477.3

8,217.3

1,590.0

1,682.7

2,848.3

1,085.4

1,023.3

2,739.0

619.8

413.0

208.1




DVDs, etc.)

housewares and home


Food + beverages


appliances


DIY and gardening


ments


House cleaning (detergent, chastener, etc.)

Development of Distance selling and share of total retail 2011 - 2018 · in EUR bn. *

CAGR: 4.8%

Home shopping


23.122.6

22.0

38.8 52.1

21.6

20.4

2011 2012 2013e 2014e 2018e



9,921.6

189.7


6,240.0

2,573.4

2,863.6

Shop the World 180

86+1484

+16

Saturated market

Japan features a strongly de-veloped distance selling mar-ket. Based on the Japanese consumer feedback, this will continue. 95% of surveyed users are planning to order at least as often as in the last 12 months.Use of distance selling · in % *

85.7

14.3

Japan

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

20.3

27.1

20.2

14.3

18.1

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

74.9

19.6

55.2

38.8

5.4 6.1


Yes47.7

Japan

Globally

Yes70.5

No52.3

No29.5

Yes No

Japan Globally Japan Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Japan from 44 to 514


Shop the World 181

Globally*

50.7


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



25.9









28.0

84.0

54.825.7

19.4

53.646.4

26.539.4

52.2

22.0

47.8

35.5

74.1

85.6

0.7

21.512.6

64.5

Urban structure dominant Japan‘s society is very much concentrated in urban areas. Accordingly, the majority of eCommerce customers lives in urban centers. The group of heavy users can be increasingly found in the group of older consumers, who do not work anymore. Within this group only 46.4% are using mobile devices, which is significantly below the global average.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Japan from 125 to 514 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Japan*

45.732.2

30.2

16.4

34.0

26.1

78.1

38.328.832.9

62.637.4

26.737.0

49.7

22.2

50.3

34.2

69.8

83.6

0.7

20.615.6

65.8

27.3

14.4


Shop the World 182

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery




Search for product information · Japan in % * Globally

23.4 35.5

53.2

6.9 23.4

54.0 44.2

29.3 23.9

45.7 45.8

40.3 42.5

24.2 25.1

9.1 15.1

9.2 15.1

7.1 9.7

17.7 37.8

Criteria for choosing a vendor · Japan in % *

Globally

44.3

34.2 40.6

7.8 13.7

20.7

6.1 8.8

39.3 26.6

10.3 14.9

64.2 51.7

4.8 12.9

13.0 20.8

24.0 22.6

18.5 25.7

62.8 45.2

11.5 18.5

6.9

The price mattersPrice comparison sites are the most important source for prod-uct information searches. Along with that, affordable prices and free-of-charge delivery are key criteria for selecting a distance selling provider.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Japan from 437 to 475, multiple mentioning


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Ø

55.020.4 24.526.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Japan from 408 to 465 ** scale from 1 "absolutely not useful" to 6 "very useful"

Price comparisons win In the eye of Japanese consumers price comparison web-sites are considered as most useful, followed by search en-gines. Consequently classic me-dia, such as advertising letters, billboard advertisement and radio are less valued within the Japanese target group.


Japan Globally




3.63.6

Ø

55.523.3 21.230.6 41.8 27.6

3.43.4

50.641.0 8.338.7 40.4 20.9Social media

Japan Globally

Advertising letters

2.83.1

49.933.4 16.833.9 37.6 28.5

3.13.4


57.714.0 28.318.9 45.1 36.0

3.83.9

34.84.9 60.36.5 28.7 64.8

4.64.8

29.34.7 66.09.1 31.7 59.1

4.84.6

53.424.5 22.129.9 43.9 26.2

Japan Globally


3.43.4

57.325.1 17.629.0 46.7 24.3

Japan Globally


3.33.4

52.034.5 13.534.8 43.1 22.1

Japan Globally


3.13.2

47.246.2 6.641.8 40.7 17.6

Japan Globally


2.73.0

37.555.5 7.044.3 38.8 16.9

Japan Globally

Radio

2.52.9

57.220.2 22.619.3 44.2 36.6

Japan Globally


3.63.9

Japan Globally

Japan Globally

Japan Globally


Japan Globally


Japan Globally

Shop the World 184


Online marketplace




Occasionally



Japan Global

Online PC


By telephone


By email


85.0

1.3

0.7

1.8

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERSOnline rules

85% of the Japanese distance selling clients mainly place their orders via PC. Around every tenth person uses a tablet or smartphone. Only 3 % use offline ordering chan-nels. This distance to offline channels can also be seen in the very limited use of catalogs, which are not even recognized anymore by almost half of the consumers. The extraordinary preference for online channels can be seen in the high usage intensity of online marketplaces. With around two thirds, Japanese consumers visit these places significantly more fre-quently than the global average. However, online shops follow with a significant gap in second place. Teleshopping is of almost no importance.

20.8 24.414.8

15.4 31.216.8

40.0

36.6

Japan

Globally

6.3 65.94.8

9.9 54.38.7

23.0

27.0

48.0 6.019.7

38.5 12.622.8

26.3

26.1

68.5 3.017.6

60.2 6.617.6

10.9

15.7

10.2

10.5

1.0

4.8

Ordering methods in the mail order business · in % *


Shop the World 185

One card for everything

Credit cards are the preferred payment method for 70% of Japanese consumers. With that, Japan is significantly above the global average. However, online payment systems, globally in second place, are virtually not used in Japan. Almost three fourths of all distance selling customers have never used these systems. All other payment methods are of little relevance.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Japan

Globally

15.6 3.0 11.4 70.0

29.3 9.8 18.7 42.3

45.8 19.9 22.6 11.7

55.8 16.3 16.1 11.7

56.4 14.8 17.3 11.5

53.4 16.1 15.5 15.0

60.8 17.9 13.0 8.2

56.0 15.5 16.4 12.1

66.9 13.0 16.2 3.9

54.4 15.8 16.3 13.4

74.0 14.2 8.2 3.7

33.3 12.9 20.1 33.7

84.6 9.2 4.6 1.6

78.0 9.5 8.1 4.4

88.6 5.9 2.5 3.0

55.1 10.8 15.7 18.4


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Fast delivery

Free delivery





Japan Globally

3.1

3.0

3.1

5.4

4.3

4.8

3.5

4.6

4.3


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Japan from 455 to 469 ** scale from 1 "absolutely not important" to 6 "very important“

Free delivery is important

For Japanese consumers it is most important to have free delivery of orders. An average transit time of 6.3 days is beingaccepted (global average).


1 2 3 4 5 6



6.3

6.5

Japan Globally

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86+14

72+28

Number of returns per capita per year · Ø * Japan Globally

0.8

0.3

Return rate · in % * Japan Globally

5.9

Reasons for returns · Japan in % *



13.7

86.3

Japan Globally

Yes No

“CUSTOMER JOURNEY“ – RETURNSReturns do not exist!

To return a product seems to be a sign of discourtesy in the opinion of Japanese distance selling customers. Barely every seventh consumer returned products in the past. The rate of returns is with 2% respectively low and significantly be-low the global average. A return is mainly caused by a faulty product. It almost never hap-pens in Japan that a product is returned because the consumer is generally unsatisfied with it. So far, it has been unthinkable in Japan to purposefully order several variants for selection.

27.5

72.5





Product did not fit






15.2

11.8

33.4

5.0

0.0

1.7

1.7

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

24.8

8.4


2.0

Shop the World 188

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection


DRIVERS & BARRIERS IN DISTANCE SELLING Barriers in mail order business

· Japan in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

58.2

45.5

71.4

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Pragmatic reasons

Comfortable home delivery, flexible opening hours, and complete price transparency are the central drivers for distance selling in Japan.

Drivers in mail order business · Japan in % *

Globally


40.7

62.5

68.8

60.6

4.0

44.0

15.0

22.7

1.6

20.7

56.9

72.1

32.6

15.6

14.2

30.7

21.0

Country information Japan Country profile · Media Use · Distance selling · “Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

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Great Britain[10.2]

Hong Kong[6.4]

1

2

3

4

5

USA[69.4]


China[17.9]


Japan

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Japan from 157 to 328 ** split into "further orders planned“ 34.8 % Japan and "no further orders planned“ 3.1 % Japan

Mentality of an export nation

Only 38% of Japanese consumers have ordered abroad before. Another 18% plan to do so in the future. Today international orders are mainly placed in the US or in other Asian countries (e.g. Chi-na). Going forward, the USA will be even more preferred in the future, the focus on Asian markets will be shifted towards Europe. As a result, China will become less important for Jap- anese cross-border shoppers.

France[23.2]

Germany[22.7]

USA[84.1]

Great Britain[31.2]

Canada[23.3]


Use of cross-border eCommerce·in % *


18.3

37.9

43.8

Shop the World 190



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· Japan in % *

Barriers to ordering abroad · Japan in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Skeptical attitude

When ordering from abroad, the fear of fraudulent intentionsis the major barrier for Japanesedistance selling clients. With more than 50% agreement, this value is significantly above the global average. Lack of product availability and lower prices are the main drivers for cross- border shopping.



57.1

39.3

33.9

43.4

18.6

13.2

54.3

49.2

34.7

27.7

55.9

50.4

31.8

33.5

78.8

8.1

50.9

29.2

1.4


Shop the World 191

Receipt of mailings and catalogs · Japan in % *


DIALOG MARKETING


Japan

Globally

25.7 42.5 31.8

22.1 35.2 42.7



Japan

Globally

43.7 44.4 11.8

29.0 45.8 25.3

Response channel for mailings and catalogs · Japan in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

51.0 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Japan from 355 to 514 ** scale from 1 "never“ to 6 "almost always“

Polite reservation

In Japan, mailings or catalogs are less common: 16% nev-er receive advertisement in their letterbox. Mailings are frequently read by barely one third. Only every tenth re- cipient responds to dialog mar-keting. The most commonly used response is a visit to the website of the advertising com-pany. However, the frequency is much below the global aver-age. Visits to the store are even rarer. However, response cards are used above global average.

Globally




Never

26.9

33.7

27.7

11.6 15.2

11.3

8.5

9.0

17.1

21.1

47.7

14.8

16.4

Country information Japan Country profile · Media Use · Distance selling · “Customer journey“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Country Information Mexico

Janina

Mexican online-shoppers are urban, active, and communicative. They are mobile-savvy and love advertising.

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35.0


Mexican economy * COUNTRY PROFILE MEXICO

Guadalajara 4,442



3.9


>

>

1.3

4.0

2011 2012 2013




Country information Mexico


· 2013 in mn.· 2013· 2013 in %· 2013 in %

23.8 4.94.93.8

After strong economic growth in 2011 and 2012, the economictrend in Mexico has significant-ly decreased in 2013. Growth was particularly slowed down by the low government spend-ing after the change of government at the end of 2012 and by weak exports caused by the limited demand for industrial goods in the US. There were also lower transfers of Mexicans living abroad. From 2014 on, investments and consumption are supposed to grow again. The new govern-ment has initiated comprehen-sive reforms for deregulations and privatization of the domestic market, which is expected to attract foreign investments.

73.5

7.6

Monterrey 4,100

Tijuana1,757

Toluca de Lerdo 1,702

Querétaro 1,101

Torreón 1,218

Ciudad Juárez1,332

Puebla 2,296

The ten largest conurbations in Mexico · 2011 in thousand. **

León de los Aldamas 1,613Ciudad de México

(Mexico City)20,142


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64+10+1+3+12+7+3MEDIA USE IN MEXICO

10.9

86.8


19.6




2012 2013

36.8





>>


2011 2012 2013 2014 2015

5.3

38.4

4.8

4.3

4.1

3.8

2016


12.2

6.53.0

3.21.4

9.764.0

5.9

Internet use

The Mexican government aims to increase internet usage. Only 38% of the population are currently online and broadband is expanding at a slow pace. A telecommunication re-form passed in 2013 to stimu-late competition and prevent companies from holding a dominant position in the market.

TV and online video

As a growing advertising mar-ket, Mexico will be strongly dominated by TV until 2016. However, online spends are de-veloping fast: with 38%, online advertisement showed the high-est growth of the entire region in 2013. Especially online video shows potential: 81.3% of all internet users watch an average of 107.2 videos per month.


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DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)


High growth rates

With an average growth of 16.5% per year, Mexico belongsto the fastest growing distance selling markets (globally +11%). Particularly sales in consumer electronics, media products, food, and homewares are expected to grow signifi-cantly over the next years.

DISTANCE SELLING IN MEXICO

416.4

1,392.1

761.9

1,592.7

760.5

75.8

41.1

333.0

250.0

710.6

107.3

23.8

15.3

35.5

66.5

47.5

34.1


CAGR: 16.5%

Home shopping


0.3

0.3

0.3

4.8 8.6

0.3

0.3

2011 2012 2013e 2014e 2018e



207.5

19.2


91.9

71.5

48.7

Shop the World 196

73+2784

+16

High potential in Mexico

More than two thirds of the Mexicans are already active in distance selling. And there is still room for growth: 50% of the surveyed users plan to shop more in the future.


72.8

27.2

Mexico

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

17.9

48.2

4.1

27.2

2.5

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

42.1

50.0

55.2

38.8

7.9 6.1


Yes77.7

Mexico

Globally

Yes70.5

No22.3

No29.5

Yes No

Mexico Globally Mexico Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1.275 to 11.265 ∙ n Mexico from 99 to 512

Country information Mexico Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Shop the World 197

Globally*

49.6


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



0.8









60.4

94.5

39.627.5

32.9

28.072.0

14.375.4

51.748.3

13.8

99.2

85.1

1.2

7.92.4

86.2

Heavy users: The wind of change

Mexican‘s ‚heavy users‘, (particularly active distance selling customers) have a clear profile:41.6% are younger than 30. They mostly come from the urban environment and live in large families. The affinity for communication media is particularly strong: To a large ex-tend they are mobile-savvy and love all kinds of advertising.


* Source: DHL Global Mail 2013 ∙ n Global from 2.661 to 11.265 ∙ n Mexico from 113 to 512 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Mexico*

44.117.0

3.2

17.5

67.8

61.1

89.2

27.628.843.6

44.056.0

20.067.1

52.3

38.9

47.7

23.7

96.8

82.5

1.2

9.83.2

76.3

8.8

14.9


41.6



Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery




Search for product information · Mexico in % * Globally

32.8 35.5

53.2

18.3 23.4

26.9 44.2

25.2 23.9

50.4 45.8

36.5 42.5

32.3 25.1

33.6 15.1

29.3 15.1

12.0 9.7

44.6 37.8

Criteria for choosing a vendor · Mexico in % *

Globally

44.5

35.2 40.6


20.6 13.7

20.7

9.5 8.8

20.3 26.6

12.6 14.9

47.6 51.7

13.3 12.9

16.1 20.8

34.7 22.6

29.0 25.7

39.8 45.2

23.6 18.5

19.8

Retailer websites are importantWebsites of merchants or manufacturers are the most important sources for product information searches in Mexico. Along with that, affordable prices and free-of-charge delivery are key criteria for selecting a distance selling provider.

* Source: DHL Global Mail 2013 ∙ n Global from 9.386 to 10.617 ∙ n Mexico from 372 to 465, multiple mentioning


Shop the World 199

Usefulness of advertizing media · in % *, **


Ø

37.210.2 52.526.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Mexico from 455 to 462 ** scale from 1 "absolutely not useful“ to 6 very useful“

Divine target group

In Mexico, advertising is great fun: It addresses interested consumers who see online advertising and social networks as very useful compared to the global average. Also all classic media channels are well per- ceived in Mexico.

Mexico Globally




4.43.6

Ø

34.39.3 56.430.6 41.8 27.6

4.53.4

41.018.8 40.138.7 40.4 20.9Social media

Mexico Globally

Advertising letters

3.93.1

33.012.2 54.933.9 37.6 28.5

4.43.4


34.67.3 58.118.9 45.1 36.0

4.53.9

24.66.4 69.06.5 28.7 64.8

4.94.8

25.66.7 67.79.1 31.7 59.1

4.84.6

42.015.6 42.329.9 43.9 26.2

Mexico Globally


4.13.4

41.911.8 46.329.0 46.7 24.3

Mexico Globally


4.23.4

40.520.2 39.334.8 43.1 22.1

Mexico Globally


3.93.2

43.821.1 35.141.8 40.7 17.6

Mexico Globally


3.83.0

41.524.2 34.344.3 38.8 16.9

Mexico Globally

Radio

3.72.9

34.011.5 54.519.3 44.2 36.6

Mexico Globally


4.43.9

MexicoGlobally

MexicoGlobally

Mexico Globally


Mexico Globally


Mexico Globally



Shop the World 200

Online PC


By telephone


By email



Online marketplace



retailer




Occasionally


Mexico Global

54.9

7.6

5.0

8.7

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“ – PLACING ORDERS

There are many ways to reach the goal

Mexicans like to order digitally:More than half of all users order online on their PC; an-other 11% use mobile devices, and 9% send emails to place their orders. Ordering in a store with home delivery also enjoys above-average popularity. Mex-icans use tradtitional catalogs more frequently than the global average. The same is true for teleshopping. More than half of all respondents claimed to be active teleshoppers. In comparison, fewer Mexicans than the global average use online shops and online marketplaces.

25.4 24.814.0

15.4 31.216.8

35.8

36.6

Mexico

Globally

15.6 38.413.5

9.9 54.38.7

32.5

27.0

34.7 16.418.9

38.5 12.622.8

30.1

26.1

46.7 7.620.1

60.2 6.617.6

25.7

15.7

11.4

10.5

12.4

4.8



Shop the World 201

Many possibilities

Payment in the distance selling business is not an easy decision to make in Mexico. There are many solutions offered in the market. The debit card is used significantly more often com-pared to the global average; on the other hand, the use of credit cards and online payment systems does not reach the global reference values. However, cash in advance, cash on delivery and direct debit are widely common in Mexico. Payment upon invoice seems slightly less popular than globally common.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Mexico

Globally

29.0 12.5 25.2 33.3

29.3 9.8 18.7 42.3

42.5 11.9 27.5 18.1

55.8 16.3 16.1 11.7

50.4 14.8 19.4 15.4

53.4 16.1 15.5 15.0

59.6 14.7 13.8 11.9

56.0 15.5 16.4 12.1

65.3 16.5 11.4 6.8

54.4 15.8 16.3 13.4

38.8 12.7 26.7 21.8

33.3 12.9 20.1 33.7

71.3 16.2 9.2 3.2

78.0 9.5 8.1 4.4

34.0 12.8 29.1 24.1

55.1 10.8 15.7 18.4

Country information Mexico Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Shop the World 202



Fast delivery

Free delivery






Mexico Globally

4.5

4.7

4.5

5.5

5.4

5.6

4.7

5.4

5.2


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Mexico from 459 to 463 ** scale from 1 "absolutely not important“ to 6 "very important“

High expectations

Accepted delivery times in Mex- ico are slightly higher than the global average. However, high demands are made to trans-port. Free and fast delivery is important, as well as information about the delivery date and track and trace data.


1 2 3 4 5 6



7.3

6.5

Mexico Globally

Shop the World 203

15+85

72+28

Number of returns per capita per year · Ø * Mexico Globally

0.8

0.3

Return rate · in % * Mexico Globally

5.9

Reasons for returns · Mexico in % *



14.5

85.5

Mexico Globally

Yes No

“CUSTOMER JOURNEY“ – RETURNSLow return rates

Only 14.5% of the distance sell-ing clients in Mexico return ordered goods. This value is sig-nificantly lower than the global average of 27.5%. The per capita of return deliveries is also very low; only 3% of the orders are returned. If, however, a return delivery is made, the reasons often relate to quality: a defec-tive product was delivered or the product quality is disap-pointing. Also, faulty product descriptions and incorrectly delivered products are very fre-quent reasons for returns. Very rarely, a product is returned because it does not fit or people don't like it.

27.5

72.5





Product did not fit






25.7

29.5

9.2

7.4

0.0

27.9

7.6

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

35.2

11.2


3.0


Shop the World 204

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection


Country profile · Media Use · Distance selling · "Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing


· Mexico in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

47.6

33.3

77.7

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Convenient and flexible

The most important drivers inthe Mexican mail order busi-ness can be attributed to con-venience: shopping at any time and convenient deliveries.

Drivers · Mexico in % *

Globally

* Source: DHL Global Mail 2013 ∙ n Global from 10,509 to 10,864 ∙ n Mexico from 465 to 508

63.2

40.6

72.7

55.7

8.3

33.9

47.6

60.6

2.6

34.6

51.8

59.4

51.5

22.3

34.8

36.2

47.3


Shop the World 205

37+47+16



Canada[8.7]

European countries[8.6]

1

2

3

4

5

USA[87.1]

China[14.5]

Hong Kong[8.7]


Mexico

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Mexico from 172 to 434 ** split into "further orders planned“ 35.9% Mexico and "no further orders planned“ 1.4% Mexico

Shopping in the US

Cross-border shopping plays no significant role in Mexico as yet:Only one third of Mexican consumers surveyed has ordered from abroad. An increase in cross-border eCommerce is ex-pected in the future, however. About half of consumers plan to purchase from abroad.

The US is and will remain by far the most popular shopping des-tination for Mexicans.

Japan[22.1]

France[16.5]

USA[92.0]

Canada[30.0]

China[22.6]




46.6

37.3

16.2



Shop the World 206



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times








Drivers for ordering abroad· Mexico in % *

Barriers to ordering abroad · Mexico in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Using advantages abroad

In Mexico, people hope for higher product quality and a greater selection when ordering abroad. However, most important is the the availability of cer-tain products in foreign coun-tries.

* Source: DHL Global Mail 2013 ∙ n Global from 7,289 to 10,689 ∙ n Mexico from 375 to 503

58.2

30.6

48.8

42.4

36.5

7.4

57.4

29.1

49.0

25.9

34.7

36.3

44.6

46.1

78.1

37.2

56.2

54.0

24.5


Shop the World 207

Reception of mailings and catalogs · Mexico in % *


DIALOG MARKETING


· in % *,**

Mexico

Globally

8.8 32.0 59.2

22.1 35.2 42.7



Mexico

Globally

14.0 40.9 45.1

29.0 45.8 25.3

Response channel for mailings and catalogs · Mexico in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

86.3 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Mexico from 460 to 512 ** scale from 1 "never“ to 6 "almost always“

High interest, active response

Mailings and catalogs are fre-quently received in Mexico. Mexican consumers are far more interested in the infor-mation they receive than the average consumer and a good majority read it in detail. Com-pared to the global benchmark, response to dialog marketing is significantly higher. Mex-icans most frequently respond to dialog marketing by visiting the supplier‘s website (86,3%). About half of recipients com-municate via social networks, write emails, or visit the shop directly. Phone calls are fre-quently made.

Globally




Never

26.9

33.7

27.7

11.6 43.1

50.6

49.1

30.8

13.1

22.1

42.1

28.0

7.8

Country information Mexico Country profile · Media Use · Distance selling · "Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

CountryInformationThe Netherlands

Mirella and Nick

Dutch eShoppers live in rural areas and have rather high incomes. They are price-sensitive and would buy anything that makes their home more comfortable.

Shop the World 209

3.1


Dutch economy * COUNTRY PROFILE THE NETHERLANDS



-1.3


>

>

-0.8 1.0

2011 2012 2013




Country information The Netherlands



· 2013 in mn.· 2013· 2013 in %· 2013 in %

6.92.48.32.5

The Netherlands are in a dif-ficult economic situation. Af-ter a short recovery phase in 2011, the economy declined in the following two years and the projections for 2014 are also tentative. The Centraal Planbu-erau (CPB; Office for Central Planning) expects a slight upward trend of approx. 1%. The economy is particular-ly suffering from low private consumption. In the face of the weak real estate mar-ket and declining wages, consumers act very hesitant. Foreign investors, however, continue to trust in the Dutch investment climate. The advan-tages of the business location are, among others, enterprise- friendly approval procedures, generous legal standards, and a high willingness to invest.

10.9

2.7


Amsterdam1,049

Rotterdam1,010

Shop the World 210

25+6+1+4+32+21+11MEDIA USE IN THE NETHERLANDS

39.4

117.5


43.4




2012 2013

52.0





>>


2011 2012 2013 2014 2015

3.9

93.0

3.8

3.8

3.8

4.0

2016



32.6

21.5

11.0

4.10.1

5.9

24.8

3.9

Internet use

In the Netherlands, the internetis part of everyday life. 93% of the population are online; approx. 39 broadband accesses are counted on 100 inhabitants.The increase in using mobile devices is particularly signifi-cant. Smart phones have become an important part of daily life and are used by 52% of the population.

High potential for mobile

spends

After two weak years, a positive growth of 1.2% is forecasted for the advertising market in 2014. Since 2011, the internet is the strongest medium. High penetration of tablet PCs and smartphones underrepresented in the Netherlands.

Shop the World 211

Home improvement

Apart from the global bestsellers such as clothing, consumer electronics and media products, the Dutch like to or-der products that make them feel comfortable at home, par-ticularly food, housewares, DIY and gardening.

DISTANCE SELLING IN THE NETHERLANDS

1,064.3



853.8

823.9

756.3

585.1

74.6

68.9

734.3

246.0

280.1

78.2

287.7

224.3

29.8

96.6

89.1

28.8




DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)


CAGR: 5.7%

Home shopping


0.4

0.40.4

4.4 5.7

0.3

0.2

2011 2012 2013e 2014e 2018e



873.3

25.3



499.1

58.2

43.7

Shop the World 212

81+1984

+16

Almost on a global level

In the Netherlands, the use of distance selling as well as the order volumes per user are slightly below global average.


81.4

18.6

The Netherlands

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

19.2

41.3

14.3

18.6

6.6

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

63.5

27.6

55.2

38.8

8.9 6.1


Yes57.3

The Netherlands

Globally

Yes70.5

No42.7

No29.5

Yes No

The Netherlands Globally The Netherlands Globally

DISTANCE SELLING IN THE NETHERLANDS

* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n The Netherlands from 49 to 512



Shop the World 213

Globally*

46.2


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +











24.4

79.4

45.032.9

22.1

31.668.4

14.335.7

50.2

25.5

49.8

31.3

97.3

44.2

0.8

28.2

68.7High income in rural areas

Compared with the global average, Dutch distance sell-ing customers are rather old and live in small households in rural areas.In contrast, Dutch heavy users have higher incomes, tend to be middle-aged, and many of them live with children in their household.

DISTANCE SELLING IN THE NETHER- LANDS

* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n The Netherlands from 112 to 512 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6



***

The Netherlands*

41.333.6

4.9

56.3

39.7

23.4

72.7

32.338.629.0

44.355.7

15.231.7

49.6

25.1

50.4

37.9

95.1

43.7

0.7

28.924.2

62.1

28.3

55.8


21.8

2.7

Shop the World 214

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery




Search for product information · The Netherlands in % * Globally

26.3 35.5

53.2

26.4 23.4

52.3 44.2

15.2 23.9

46.4 45.8

13.0 42.5

20.7 25.1

12.2 15.1

4.6 15.1

3.2 9.7

21.9 37.8

Criteria for choosing a vendor· The Netherlands in % *

Globally

51.3

31.6 40.6

7.2 13.7

20.7

9.7 8.8

14.0 26.6

19.9 14.9

50.4 51.7

16.5 12.9

24.7 20.8

17.8 22.6

32.7 25.7

46.2 45.2

18.2 18.5

21.6

Bargains preferred

The Dutch search for product information mainly on price comparison sites (52.3%). On the contrary, online marketplaces are visited significantly less frequent (13%).

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n The Netherlands from 410 to 472, multiple mentioning



Shop the World 215



Ø

49.133.8 17.126.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n The Netherlands from 451 to 457 ** scale from 1 "absolutely not useful“ to 6 "very useful“

Big challenges

The Dutch are rather wary when it comes to advertising media. In general they do not consider advertising media to be particularly useful. Only price comparison websites and serach engines are considered to be usefull by more than 50% of respondents.


Globally





3.23.6

Ø

39.743.1 17.130.6 41.8 27.6

2.93.4

39.242.2 18.638.7 40.4 20.9Social media Globally

Advertising letters

3.03.1

38.147.9 14.133.9 37.6 28.5

2.83.4


50.027.3 22.718.9 45.1 36.0

3.43.9

37.19.2 53.76.5 28.7 64.8

4.54.8

31.77.4 60.99.1 31.7 59.1

4.64.6

42.036.4 21.629.9 43.9 26.2Globally


3.23.4

50.235.8 14.029.0 46.7 24.3Globally


3.03.4

43.742.3 14.034.8 43.1 22.1Globally


2.93.2

41.948.3 9.841.8 40.7 17.6Globally


2.73.0

35.654.0 10.444.3 38.8 16.9Globally

Radio

2.62.9

47.524.0 28.519.3 44.2 36.6Globally


3.53.9

The NetherlandsGlobally

Globally

Globally


Globally


Globally

The Netherlands

The Netherlands

The Netherlands

The Netherlands

The Netherlands

The Netherlands

The Netherlands

The Netherlands

The Netherlands

The Netherlands

The Netherlands

The Netherlands

Shop the World 216




Occasionally


The Netherlands Global

Online PC


By telephone


By email


82.7

0.9

1.0

3.7

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERSOrdered via PC

At 87.2%, the PC is the primary way of ordering in distance sell-ing in the Netherlands. This figure is significantly higher than the global level (75%). In contrast, the use of mobile devices is below global average. All other ordering meth-ods play a minimal role in the Netherlands. Online market-places are not frequently used in Holland to order goods, yet. Only 33.4% of all distance selling customers use such plat-forms often / very often for their orders. This will probably change, when amazon launches it‘s Dutch website. The usage of online shops does not reach the global level either. Tele- shopping is of interest for few Dutch distance selling customers: only 28.5% use this way of ordering (vs. 39.9% globally).

22.6 22.416.2

15.4 31.216.8

38.9

36.6

The Netherlands

Globally

10.8 33.412.8

9.9 54.38.7

43.0

27.0

38.3 12.319.8

38.5 12.622.8

29.6

26.1

71.5 2.715.0

60.2 6.617.6

10.8

15.7

8.5

10.5

3.1

4.8




Online marketplace



retailer

Shop the World 217

Credit card is left standing

Online payment systems such as Paypal are most frequently used by Dutch distance selling customers (34.7%). This is followed, by payment in advance, used often/very often by 18.1%, pay-ment upon invoice (15.8%), and by debit card (14.2%). In international comparison, the low affinity for using credit cards is significant. Hire-purchase/financing are of no importance in the Netherlands: 93.6% have never chosen this payment- option.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



The Netherlands

Globally

61.8 12.0 17.9 8.3

29.3 9.8 18.7 42.3

81.0 11.1 6.9 1.0

55.8 16.3 16.1 11.7

44.1 14.1 23.7 18.1

53.4 16.1 15.5 15.0

47.8 21.0 24.7 6.6

56.0 15.5 16.4 12.1

32.6 16.0 35.6 15.8

54.4 15.8 16.3 13.4

27.5 12.0 25.9 34.7

33.3 12.9 20.1 33.7

93.6 2.9 3.2 0.3

78.0 9.5 8.1 4.4

58.5 10.0 17.4 14.2

55.1 10.8 15.7 18.4



Shop the World 218



Fast delivery

Free delivery





The Netherlands Globally

3.6

3.7

3.6

5.1

4.3

4.9

3.5

4.6

4.6

Max. accepted order time· Ø in days *

3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n The Netherlands from 454 to 461 ** scale from 1 "absolutely not important“ to 6 "very important“

Lightning-fast delivery

It must be fast: In the Nether-lands, the accepted delivery time is with 4.9 days lower thanthe global average. The requirements for deliveries are at a level similar to the global profile. Shipment-tracking is significantly less important.


1 2 3 4 5 6




4.9

6.5


Shop the World 219

31+69

72+28

Number of returns per capita per year · Ø * The Netherlands Globally

0.8

1.1

Return rate · in % * The Netherlands Globally

5.9

Reasons for returns · The Netherlands in % *



31.3

68.7


Yes No

“CUSTOMER JOURNEY“– RETURNSReturns with a system

The distance selling customer in the Netherlands likes to use re-turns pointedly: Almost a third of all customers (31.3%) made returns last year. The return rate was at 9%. Both cases are above global average. The most frequent reason for returns is ordering several alternatives for selection (33.5% vs. 15.5% globally).

27.5

72.5





Product did not fit






11.6

7.2

22.6

31.6

33.5

3.9

3.9

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

30.4

7.1



9.0

Shop the World 220

High delivery costs

Uncertain delivery



Long delivery times




No personal advice






Shopping 24/7



Lower prices

Greater selection



· The Netherlands in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

44.2

32.5

71.9

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Convenient delivery

Getting the ordered goods de-livered, is where Dutch customers see the big advan- tage of distance selling (71.9%). High delivery fees are often an obstacle (44.8% vs. 36.6% globally).

Drivers · The Netherlands in % *

Globally


30.3

51.2

68.5

54.6

3.2

44.8

21.2

20.9

3.8

15.5

40.3

65.8

29.4

17.6

17.3

18.5

9.8



Shop the World 221




China[22.3]


1

2

3

4

5

Germany[42.0]

USA[41.0]

Great Britain[31.3]


The Netherlands

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n The Netherlands from 165 to 347 ** split into "further orders planned“ 46.8% The Netherlands and "no further orders planned“ 2.9% The Netherlands

50:50 domestic vs. abroad

One half of the Dutch distance selling customers have already ordered abroad; the other half has so far only ordered within the country‘s borders. A large part plans to continue to re-frain from ordering abroad. At 39.7%, this value is significantly higher than the international average (20.5%). Prefered des-tinations for cross-border shop-ping are Germany and the US, followed by Great Britain and China.

China[34.0]


USA[66.1]

Germany[57.2]

Great Britain[52.1]





49.7 39.7

10.6

Shop the World 222



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· The Netherlands in %

Barriers to ordering abroad · The Netherlands in %

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Lower prices

It must be inexpensive. In the Netherlands, the most important driver for ordering abroad are lower prices (69%). At the same time, delivery fees are the highest barrier for cross- border shopping (57%). Protec-tion from counterfeits and data security are of hardly any im-portance.



57.0

21.6

31.8

34.8

28.4

17.1

51.5

28.1

39.0

16.7

37.3

42.5

24.4

38.5

66.1

6.6

69.0

33.8

2.1



Shop the World 223

Reception of mailings and catalogers · The Netherlands in % *


DIALOG MARKETING


· in % *,**

The Netherlands

Globally

23.7 32.5 43.8

22.1 35.2 42.7



Globally

29.2 51.3 19.6

29.0 45.8 25.3

Response channel for mailings and catalogers . The Netherlands in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

61.1 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n The Netherlands from 394 to 512 ** scale from 1 "never“ to 6 "almost always“

High mailing density

Many Dutch distance selling customers receive catalogs and mailings at least once a week (39.8% vs. 26.9% globally). Reading such offers is at glob-al level. As many as 43% state they often read the product of-ferings. Further reactions are rather hesitant, though. Apart from visiting stores (54.3% vs. 48.6% globally), all other re-sponse channels are used less frequently than in global aver-age.

Globally




Never

26.9

33.7

27.7

11.6 54.3

19.0

15.3

6.1

5.4

39.8

24.7

26.9

8.6



The Netherlands

Country InformationPoland

Kasia and Maria

Polish eCommerce customers are rather young and price-sensitive but hesitant to use mobile devices.


6.1


Polish economy * COUNTRY PROFILE POLAND

Warszawa (Warsaw) 1,718



1.9


>

>

1.6

4.5

2011 2012 2013




Country information Poland


· 2013 in mn.· 2013· 2013 in %· 2013 in %

13.12.9

10.40.9

The Polish economy is slowly gaining speed again, after growth was as low as 1.9% of the GDP in 2012 and decreased to 1.6% in 2013. The forecast for 2014 is more optimistic. The outlooks range from 2.2% ac-cording to the European Com-mission to 2.7% as forecasted by Morgan Stanley Bank. Janusz Jankowiak, Head Economist at Polish Business Roundta- bles, sees the net exports as the main driver of growth. Domes- tic demand can probably not add too much to the recovery in the mid-term. The background of this is foremost to be found in the difficult labor situation. The unemployment rate has continuously increased for the past two years and added up to 10.4% at the end of 2013.

26.8

5.5


Shop the World 226

52+7+2+7+20+5+7MEDIA USE IN POLAND

16.6

132.7


15.5




2012 2013

35.0





>>


2011 2012 2013 2014 2015

1.6

65.0

1.6

1.5

1.6

1.7

2016

1.6

Country information Poland Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

20.3

4.57.0

7.0

1.87.1

52.3

Internet use

Due to multi-billion dollar in-vestments into the systematic expansion of the broadband network, almost two thirds of all Polish use the internet to-day; mobile communication also gains more and more im-portance. From 2012 to 2013 alone, the number of smart phone users doubled to approx. 13 million which means market penetration of 35%.

Goodbye to newspapers & magazines

After three years of massive decline in advertising expendi-tures, a slight increase of 0.6% is expected for 2014. At 7.3% in 2014, the internet spends show the highest growth rate. For newspapers and magazines, a dramatic decline of about -20% per annum is forecasted until 2016.

Shop the World 227





DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

Diversely interested

The Polish particularly like to buy consumer electronics and clothing via distance selling; media products rank third on their wish list. Household appli-ances follow suit. Other things high on the list: cosmetics and furniture.

DISTANCE SELLING IN POLAND

654.4

1,174.6

870.5

756.2426.1

348.6

232.5

96.6

367.0

448.9

419.1

178.6

132.5

30.0

60.7

46.9

26.6

Development of tdistance selling and share of total retail 2011 - 2018 · in EUR bn. *

CAGR: 12.2%

Home shopping


0.10.1

0.1

4.5 7.1

0.1

0.1

2011 2012 2013e 2014e 2018e



475.4

19.8


64.1

254.9

47.2


Shop the World 228

86+1484

+16

High usage rates

In Poland, distance selling is very popular. Of the target group surveyed, 86% shopped online. Furthermore, a strong increase in orders and users is predicted for the future.


86.1

13.9

Poland

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

20.3

38.4

13.6

13.9

13.8

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

49.3

44.3

55.2

38.8

6.4 6.1


Yes85.1

Poland

Globally

Yes70.5

No14.9

No29.5

Yes No

Poland Globally Poland Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Poland from 54 to 509


More than 20 orders

Shop the World 229

Globally*

42.5


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +











39.0

87.1

47.226.3

26.4

45.554.5

24.944.4

50.5

36.2

49.5

20.4

96.5

65.6

0.7

27.23.6

79.6

Average profile

The profile of the Polish dis-tance selling client represents the global average. However, the slightly higher educational level, hesitant mobile internet use, and rather high affinity for online media and dialog mar-keting are remarkable. Heavy useres tend to be young with high incomes.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Poland from 106 to 509 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Poland*

38.830.3

3.3

38.8

52.9

37.2

85.9

35.929.035.1

57.742.3

27.940.0

50.4

30.9

49.6

27.1

96.7

61.2

0.6

26.55.7

72.9

21.3

34.4


3.5

Shop the World 230

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery




Search for product information · Poland in % * Globally

43.6 35.5

53.2

30.4 23.4

56.5 44.2

24.6 23.9

48.6 45.8

57.3 42.5

24.8 25.1

15.4 15.1

12.3 15.1

7.3 9.7

41.9 37.8

Criteria for choosing a vendor · Poland in % * Globally

64.9

48.3 40.6

15.5 13.7

20.7

9.8 8.8

43.8 26.6

18.0 14.9

55.1 51.7

10.7 12.9

13.9 20.8

16.3 22.6

31.6 25.7

39.3 45.2

13.7 18.5

20.9

Marketplaces are important

Consumers like to search for information through search engines, online marketplaces or price comparison sites. Cus- tomer reviews are also highly popular.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Poland from 437 to 495, multiple mentioning


Shop the World 231



Ø

46.927.5 25.626.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Poland from 483 to 491 ** scale from 1 "absolutely not useful“ to 6 very useful“

Online search and catalogs

Polish consumers rate price comparison sites and search engines high in usefulness. Ad-ditionally, the catalog continues to be a well-esteemed medium in Poland.


Poland Globally




3.53.6

Ø

46.825.4 27.830.6 41.8 27.6

3.53.4

41.434.3 24.338.7 40.4 20.9Social media

Poland Globally

Advertising letters

3.33.1

40.828.3 31.033.9 37.6 28.5

3.53.4


48.419.9 31.718.9 45.1 36.0

3.73.9

23.34.5 72.26.5 28.7 64.8

5.04.8

26.06.7 67.29.1 31.7 59.1

4.94.6

44.629.1 26.329.9 43.9 26.2

Poland Globally


3.53.4

46.732.0 21.329.0 46.7 24.3

Poland Globally


3.23.4

45.430.7 24.034.8 43.1 22.1

Poland Globally


3.33.2

40.741.1 18.241.8 40.7 17.6

Poland Globally


3.03.0

41.039.1 19.944.3 38.8 16.9

Poland Globally

Radio

3.02.9

46.113.2 40.719.3 44.2 36.6

Poland Globally


4.13.9

Poland Globally

Poland Globally

Poland Globally


Poland Globally


Poland Globally


Shop the World 232

SeldomOnline PC


By telephone


By email



Online marketplace




retailer



Occasionally


Poland Global

76.1

3.0

1.3

5.1

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERSOnline preferred

Ordering methods used in Po-land reflect the global average. However, mobile devices are less popular.The vast majority of people in Poland visit online mar-ketplaces to choose and order products. Independent online shops are relatively popular, but the products on offer do not compare to the comprehensive range found in online market-places.

10.4 36.917.2

15.4 31.216.8

35.5

36.6

Poland

Globally

6.8 65.56.9

9.9 54.38.7

20.8

27.0

31.6 13.327.2

38.5 12.622.8

27.9

26.1

54.0 6.120.2

60.2 6.617.6

19.8

15.7

6.7

10.5

4.8



7.8

Shop the World 233

Credit card? No, thanks!

The credit card ranks among the unpopular payment methods inPoland: The number of people refusing to pay by credit card is 58.4% and, with that, almost twice as high as the global aver-age. Online payment systems, however, are used particularly often in Poland; 46% of distance selling clients use them frequently. Compared to the global average, prepayment is also rather popular in Poland. Debit cards and financing are of hardly any importance.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Poland

Globally

58.4 16.7 13.3 11.6

29.3 9.8 18.7 42.3

51.0 21.5 16.5 11.0

55.8 16.3 16.1 11.7

32.4 13.6 18.8 35.2

53.4 16.1 15.5 15.0

53.0 13.8 20.2 12.9

56.0 15.5 16.4 12.1

52.2 20.3 16.7 10.8

54.4 15.8 16.3 13.4

24.2 11.9 18.3 45.6

33.3 12.9 20.1 33.7

85.4 10.1 3.0 1.4

78.0 9.5 8.1 4.4

65.8 13.1 11.6 9.5

55.1 10.8 15.7 18.4


Seldom

Shop the World 234



Fast delivery

Free delivery






Poland Globally

4.0

4.0

3.9

5.2

4.7

5.3

4.0

4.9

4.6


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Poland from 483 to 492 ** scale from 1 "absolutely not important“ to 6 "very important“

Hurry up, please!

For Polish mail order clients, every minute counts: Speed is the core of each delivery. Addi-tionally, people expect free and transparent delivery. Alterna- tive pick-up solutions are of sig-nificantly higher importance in Poland than in global average.


1 2 3 4 5 6



4.3

6.5

Poland Globally

Shop the World 235

82+18

72+28

Number of returns per capita per year · Ø * Poland Globally

0.8

0.4

Return rate · in % * Poland Globally

5.9

Reasons for returns · Poland in % *



18.3

81.7

Poland Globally

Yes No

“CUSTOMER JOURNEY“– RETURNSReturn-free zone

Returns are very rare in Poland. As little as every fifth distance selling client admits to a return and, with that, contributes to a return-rate of only 3.4% which is way below average. The main reasons for returns in Poland are defects to the products or their quality; however, these are of less importance than in international comparison. An-other reason that is listed with above-average frequency is a differing product description, or having ordered or received the wrong product. Problems based on ill-fitting, disliking or having ordered a selection of products emerge significantly less frequently.

27.5

72.5





Product did not fit






24.8

18.7

15.3

19.2

2.6

3.7

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

23.9

14.0


3.4

2.6


Shop the World 236

High delivery costs

Uncertain delivery







No personal advice






Shopping 24/7



Lower prices

Greater selection




· Poland in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

69.8

53.8

84.0

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

A host of good reasons

Polish mail order clients clear-ly are offenders by conviction: Comfortable delivery, high flexibility in time, and easy bar- gaining are all good reasons.

Drivers · Poland in % *

Globally


54.9

68.5

83.1

68.0

7.5

34.9

38.4

23.2

2.0

15.8

52.5

75.3

40.2

20.0

13.8

30.6

49.7


Shop the World 237

34+53+13




Great Britain[22.6]

Hong Kong[14.4]

1

2

3

4

5

USA[32.2]

Germany[32.1]

China[24.0]


Poland

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Poland from 146 to 409 ** split into "further orders planned“ 30.4% Poland and "no further orders planned“ 3.7% Poland

Shopping without limits

As of now, Poland is a little be-hind on ordering from abroad; in the future, people intend to shop much more across the country's borders. 86.8% in-tend to order from abroad. The US and Germany are on the top ranks there; in the future, the German eCommerce mar-ket will benefit in particular. Highest growth rates are to be expected. Many other European neighbors, such as Great Britain and France, are also on the list of many consumers.

France[43.2]


Germany[75.9]

USA[61.9]

Great Britain[47.6]




52.7 34.1

13.2


Shop the World 238



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times







Drivers for ordering abroad

Poland in % *

Barriers to ordering abroad Poland in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Product quality counts

The drivers for ordering abroad are different: Broader selection of products and higher availability as well as bargains are typical reasons, while product quality and the protection against counterfeits are really strong points in Poland.


* Source: DHL Global Mail 2013 ∙ n Global from 7.289 to 10.689 ∙ n Poland from 365 to 480

57.4

40.0

41.0

54.2

40.2

5.6

57.7

32.2

47.9

22.8

42.9

45.8

19.8

43.3

77.8

39.7

49.7

45.9

22.4


Shop the World 239

Reception of mailings and catalogs · Poland in % *


DIALOG MARKETING


· in % *,**

Poland

Globally

19.9 31.7 48.4

22.1 35.2 42.7



Poland

Globally

31.9 45.9 22.2

29.0 45.8 25.3

Response channel for mailings and catalogs · Poland in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

83.6 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Poland from 376 to 509 ** scale from 1 "never“ to 6 "almost always“

Great pleasure in reading

Reception of mailings and catalogs via mail does not yet reach the international level. It is particularly positive, though, that above-average pleasure in reading and dealing with these mailings can be seen: 48.4% read intensively whatever finds its way into their mailboxes at home. The preferred response channels are diverse: The digital path to the provider is clearly preferred (visiting the website: 83.6%); however, people also like to go to a store. A short call or, particularly, is used by more consumers in Poland than on average.

Globally




Never

26.9

33.7

27.7

11.6 61.4

38.7

37.7

22.8

25.1

18.5

32.6

39.9

9.0

Country information Poland Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Country Information Russia

Margarita, Jenya and Ilyana

Russian eCommerce customers are mostly female, young, working, and relatively high earning. They use catalogs for shopping- inspirations.

Shop the World 241

23.5


Russian economy * COUNTRY PROFILE RUSSIA

Moscow 11,472

Saint Petersburg 4,842

* Source: Fischer World Almanac 2014, Germany Trade & Invest ** Source: Metropolitan areas with 1 million inhabitants and more; United Nations, Department of Economic and Social Affairs, Po-pulation Division (2012). World Urbanization Prospects: The 2011 Revision, CD-ROM Edition.*** Source: Copyright © IHS, 2013. All rights reserved **** Source: Copyright © IHS, 2013. All rights reserved


3.4


>

>

1.3

4.3

2011 2012 2013




Country information Russia Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing


· 2013 in mn.· 2013· 2013 in %· 2013 in %

49.42.95.66.8

Russian politicians and econo- mists are unsatisfied with the domestic economic trend. Growth has been declining for three years in a row - from 4.3% in 2011 to 1.3% in 2013. For 2014, a 2.5% increase of GDP is expected. The IMF de-mands reforms as Russia is living off its capital. In the fu-ture, investments are planned to be the preferred driver for growth, as stated by the Cen-tral Bank of the Russian Feder- ation. The ruble is to be carefully devalued so as to offer Russian industrial goods cheaper on the world markets. Nevertheless, an increase of the unemployment rate is expected for 2014 due to the closing of non-profitable in-dustrial companies.

100.8

18.4

Novosibirsk 1,472

Yekaterinburg1,348

Chelyabinsk 1,128

Samara1,165

NizhniyNovgorod

1,253

Omsk 1,153

Rostov-on-Don 1,089

Kazan1,142

The ten largest conurbations in Russia · 2011 in thousand. **

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49+5+2+12+23+3+6MEDIA USE IN RUSSIA

14.5

183.5


19.4




2012 2013

36.2





>>


2011 2012 2013 2014 2015

9.4

53.3

8.7

8.0

7.2

6.3

2016

10.1


22.5

2.75.8

12.8

1.85.2

49.2

Internet use

A solid majority of all Russian citizens is using the internet; However, the quality of the in-ternet access heavily depends on the location. The Rus- sians' favorite toy is the mobile phone, particularly the intelli-gent smartphone. In large cit-ies such as Moscow, market penetration is at western level already; smaller regions still lag behind.

No.1 driver of growth in Eastern Europe

The Russian advertising market continues to grow at 8% - 9% per year. Until 2016, media rev- enues in Russia account for almost half of all Eastern Eu-ropean adspends. By absolute numbers, however, the market still lags far behind Western Eu-ropean countries such as Ger-many or France.

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Everything for homes and gardens

Russia is the largest distance selling market in Eastern Eu- rope. Russian customers order consumer electronics in dis-tinctly above-average num-bers. Also, they enjoy working in their homes and gardens, as shown by the comparably high orders of household appliances and gardening equipment.

DISTANCE SELLING IN RUSSIA

4.681.6


4.495.8

2.763.4

2,439.3

1,971.7

1,473.3

950.7

832.8

736.4

1,244.8

716.5

1,309.5

950.3

210.6

249.1

131.3

60.1




DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments




CAGR: 11.9%

Home shopping


2.62.8

3.2

13.8 21.9

3.3

3.4

2011 2012 2013e 2014e 2018e



2,723.2

32.1


346.0

550.3

389.7


Shop the World 244

84+16

78+22

Great potential

More than three quarters of all respondents order via distance selling. In the future, an increase in both the number of customers and the frequency of ordering is expected.


78.0

22.0

Russia

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

15.1

48.5

10.0

22.0

4.5

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

45.3

49.6

55.2

38.8

5.1 6.1


Yes71.4

Russia

Globally

Yes70.5

No28.6

No29.5

Yes No

Russia Globally Russia Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Russia from 70 to 512


Shop the World 245

Globally*

46.4


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



1.5









37.7

88.5

54.127.0

18.8

35.564.5

14.663.8

63.3

35.8

36.7

13.7

98.5

87.1

1.0

17.04.6

86.3Heavy users are female

Almost wo thirds of the Russian heavy users are female. Com- pared with the global average, they are rather young, well educated, live in households with children and have an com-parably high household income. Affinity towards media is rather high, especially dialog marketing is particularly popu-lar in this target group.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Russia from 111 to 512 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Russia*

44.028.7

2.3

15.0

51.2

35.4

84.1

35.729.434.9

46.853.2

21.149.8

52.4

27.4

47.6

21.7

97.7

85.0

0.7

22.96.3

78.3

17.8

12.9


Shop the World 246


Search for product information · Russia in % * Globally

41.6 35.5

53.2

28.3 23.4

40.9 44.2

22.3 23.9

42.4 45.8

29.8 42.5

36.9 25.1

15.3 15.1

18.3 15.1

6.0 9.7

36.3 37.8

Criteria for choosing a vendor · Russia in % * Globally

Search engines 50.6





Online marketplace

Catalog

Mail advertising

Social media platforms such as Face-book and Twitter











Free returns


Fast delivery

Free delivery



18.0 13.7

20.7

7.5 8.8

28.5 26.6

20.9 14.9

54.7 51.7

11.1 12.9

12.4 20.8

24.3 22.6

20.3 25.7

44.9 45.2

15.5 18.5

30.2

Catalog highly popular

In Russia, the use of online marketplaces is still relatively insignificant. Instead, catalogs are used comparatively often to find inspiration for purchases.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Russia from 399 to 477, multiple mentioning


Shop the World 247



Ø

42.829.1 28.126.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Russia from 460 to 473 ** scale from 1 "absolutely not useful" to 6 "very useful“

Useful research tools

In Russia, research via search engines and price-comparison sites is seen as the most useful source when searching for de- sired products. The high affinity towards catalogs comes again visible: 45.3% assign top grades for their usefulness.


RussiaGlobally




3.53.6

Ø

44.034.2 21.830.6 41.8 27.6

3.23.4

38.944.4 16.838.7 40.4 20.9Social media

RussiaGlobally

Advertising letters

2.93.1

40.428.5 31.133.9 37.6 28.5

3.53.4


40.914.9 44.218.9 45.1 36.0

4.13.9

27.54.5 68.16.5 28.7 64.8

4.94.8

32.49.4 58.29.1 31.7 59.1

4.64.6

46.735.2 18.129.9 43.9 26.2

RussiaGlobally


3.13.4

46.431.2 22.529.0 46.7 24.3

RussiaGlobally


3.33.4

40.442.6 17.034.8 43.1 22.1

RussiaGlobally


3.03.2

43.140.1 16.941.8 40.7 17.6

RussiaGlobally


3.03.0

37.945.7 16.444.3 38.8 16.9

RussiaGlobally

Radio

2.82.9

42.212.5 45.319.3 44.2 36.6

RussiaGlobally


4.23.9

RussiaGlobally

RussiaGlobally

RussiaGlobally


RussiaGlobally


RussiaGlobally

Shop the World 248

SeldomOnline PC


By telephone


By email


Online marketplace




retailer



Occasionally


Russia Global

73.9

2.5

2.5

5.3

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERSOrdering method: Online!

Russian distance selling clients primarly place orders online, whether via PC (73.9%) or mo-bile devices (8.6%). Ordering in a store and having the product delivered home is also popu-lar in Russia compared to the global average. Russians prefer to oder from online shops or marketplaces, even though the frequency is significantly lower compared to global references.

18.6 28.418.0

15.4 31.216.8

35.0

36.6

Russia

Globally

24.4 27.917.4

9.9 54.38.7

30.3

27.0

47.5 9.625.1

38.5 12.622.8

17.9

26.1

70.1 4.218.2

60.2 6.617.6

7.5

15.7

8.6

10.5

7.2

4.8



Shop the World 249

No favorite payment method

Cash on delivery and prepay-ment are the most widely-used payment otions in Russia. Credit cards and online pay-ment is used much less fre-quently compared to the global average and about half of clients never use them. Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Russia

Globally

57.7 15.5 14.3 12.5

29.3 9.8 18.7 42.3

24.4 26.7 26.7 22.2

55.8 16.3 16.1 11.7

36.4 23.4 23.4 16.8

53.4 16.1 15.5 15.0

78.9 8.8 8.3 4.1

56.0 15.5 16.4 12.1

44.7 21.6 20.6 13.2

54.4 15.8 16.3 13.4

44.5 17.4 18.5 19.6

33.3 12.9 20.1 33.7

90.0 4.1 3.6 2.3

78.0 9.5 8.1 4.4

51.1 13.4 20.3 15.2

55.1 10.8 15.7 18.4


Seldom

Shop the World 250



Fast delivery

Free delivery





Russia Globally

4.0

4.3

4.0

5.3

4.8

5.1

4.5

5.0

5.0


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Russia from 461 to 473 ** scale from 1 "absolutely not important“ to 6 "very important“

Long distances take time

Russians show a high tolerance for delivery-times. At an aver-age of 12.4 days, the accepted order time is almost twice as long as in global average. How-ever, there are high demands to logistics.


1 2 3 4 5 6



12.4

6.5

Russia Globally

Shop the World 251

13+87

72+28

Number of returns per capita per year · Ø * Russia Globally

0.8

0.3

Return rate · in % * Russia Globally

5.9

Reasons for returns · Russia in % *



12.5

87.5

Russia Globally

Yes No

“CUSTOMER JOURNEY“– RETURNSHardly any returns

In Russia, returns are hardly of any importance. Only 13% have returned products; globally, theaverage is more than twice as high. When returning a prod-uct, the most common reasonsare non-fitting products, defectsor poor product quality.

27.5

72.5





Product did not fit






26.1

8.0

38.1

30.1

8.0

8.0

2.0

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

32.1

4.0


3.2

Shop the World 252

High delivery costs

Uncertain delivery







No personal advice






Shopping 24/7



Lower prices

Greater selection



· Russia in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

55.4

48.1

40.7

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Exclusive products

Exclusivity of the products is a strong driver for eCommerce in Russia. Major barriers are the questionable product qual-ity and concerns about product piracy.

Drivers · Russia in % *

Globally


67.3

44.8

68.8

56.1

6.1

35.3

28.2

22.0

3.8

46.3

62.6

66.4

48.4

19.0

24.1

28.7

51.1


Shop the World 253




Great Britain[20.4]

Hong Kong[19.9]

1

2

3

4

5

China[65.6]

USA[49.5]

Germany[26.4]


Russia

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Russia from 216 to 363 ** split into "further orders planned“ 53.1% Russia and "no further orders planned“ 1.7% Russia

Grand nations among them-selves

Half of all Russian distance sell-ing customers (54.8%) have purchased in foreign coun-tries. Another 35% can imagi-ne themselves ordering from abroad in the future. Only 10% remain cautious, much less than the global comparison. The US and China remain the top tar-get countries for cross-border shopping, both at present and in the future.

Great Britain[37.5]

France[32.1]

USA[64.1]

China[63.1]

Germany[52.2]

Country information Russia Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing



35.3

54.8

9.9

Shop the World 254



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times







· Russia in % *

Barriers to ordering abroad · Russia in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Lower prices are tempting

The strongest drivers for foreignorders are lower prices and the availability of products. How-ever, some of the major barriers for purchasing abroad include long delivery times and compli-cated returns processes.



46.1

37.0

39.0

43.7

34.0

12.3

60.2

41.2

52.7

21.5

35.7

34.3

17.9

38.3

68.9

46.4

73.5

53.6

33.2


Shop the World 255

Receipt of mailings and catalogs · Russia in % *


DIALOG MARKETING


Russia

Globally

27.4 35.5 37.0

22.1 35.2 42.7



Russia

Globally

31.1 44.9 24.1

29.0 45.8 25.3

Response channel for mailings and catalogs · Russia in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

77.6 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Russia from 383 to 512 ** scale from 1 "never“ to 6 "almost always“

Cautious behavior

Mailing frequency in Russia is slightly below the global aver-age. Russians also read and re-spond to direct marketing initiatives less often. By far the most common response chan-nel is visiting the provider‘s website. Clients also pay a visit to the local store.

Globally




Never

26.9

33.7

27.7

11.6 41.5

31.3

21.1

15.9

13.0

22.1

36.7

29.9

11.3


Country Information South Korea

Jacklyn

South Korean distance selling clients live in large households in urban areas. They are price-sensitive, love advertising and like to shop in the US.

Shop the World 257Country information South Korea

8.3


The economy in South Korea * COUNTRY PROFILE SOUTH KOREA

Seoul 9,751



2.0


>

>

2.8

3.7

2011 2012 2013





· 2013 in mn.· 2013· 2013 in %· 2013 in %

13.23.73.11.3

In 2013, the economy in South Korea began to pick up pace with a real growth of 2.8%. A growth in GDP of 3.5% (Ko-rea Automotive Research Insti- tute) to 4.1% (Deutsche Bank) is expected for 2014. Another positive indicator is that em-ployment is increasing, especially in regular jobs. Youth un-employment still remains high however, with official figures of 7.7% for people between 15 and 29 years of age. The Korean economy is highly dependent on exports and reacts sensi- tively to changes in the global economy. Stronger competition from Japan due to a weaker yen and a high level of debt in private households also remain risk factors.

34.6

5.8


Daegu 2,450

Daejon 1,520

Gwangju 1,486

Busan 3,398

Incheon 2,601

Suweon 1,140

Ulsan 1,089


Shop the World 258

38+2+1+4+30+21+4

Country information South Korea

MEDIA USE IN SOUTH KOREA

37.6

110.4





2013

Internet use

Nowhere in the world are smartphones as popular as in South Korea. 73% of the population own a smartphone. In the global race to provide the fastest mobile internet, the government in Seoul is pushing ahead with plans to extend the internet with broadband cables, which should allow users to surf at previously unattained speeds.

High-speed internet and mobile ads

Advertising expenditures are expected to grow by 7.9% in 2014. Especially mobile ad spending will increase with the development of smartphones and tablets. Various advertising platforms based on smartphones have emerged.





>>


2011 2012 2013 2014 201510

.1

84.1

8.9

8.38.4

7.8

2016

10.8 30.4

21.6

3.6

3.70.7

1.6

38.4

73.0


Shop the World 259


Well-stocked refrigerators

In the highly developed South-Korean distance selling market, food is the most popular prod-uct category, which will also grow in the future. Fashion, consumer electronics and me-dia products are next on the list.

DISTANCE SELLING IN SOUTH KOREA

3,690.3


2,278.3

2,234.0

1,955.7

1,705.8

840.7

746.7

4,410.8

688.6

839.5

1,093.1

220.3

208.3

1,019.3

246.2

189.5

110.5




DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments




CAGR: 5.3%

Home shopping


4.75.4

5.7

21.8 28.0

5.7

5.8

2011 2012 2013e 2014e 2018e



3,053.6

90.4


3,151.6

855.3

1,231.3


Shop the World 260

88+1284+16

Distance selling fever

Almost 90% of all South Ko- reans surveyed make use of the possibilities that distance sell-ing offers. In addition, the ma-jority of current non-users also expressed a desire to purchase products via distance selling in the future.Use of distance selling · in % *

88.4

11.6

South Korea

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

21.2

31.9

15.7

11.6

19.5

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

62.3

30.5

55.2

38.8

7.2 6.1


Yes76.6

South Korea

Globally

Yes70.5

No23.4

No29.5

Yes No

South Korea Globally South Korea Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1.275 to 11.265 ∙ n South Korea from 43 to 521



More than 20 orders

Shop the World 261

Globally*

60.0


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +


Education · in % Lower level of education Medium and higher level of education

14.3









43.3

91.9

39.736.4

23.9

31.868.2

34.252.3

54.5

19.1

45.5

21.4

85.7

91.7

0.9

8.15.4

78.6

All under one roof

Large households - In South Korea, distance selling clients including heavy users often livein households with children or three or more adults. They are increasingly found in urban centers and have a relatively close affinity to media. Above all, online media know how ap-peals to South Koreans. The in-creased use of mobile internet, especially among heavy users, supports this fact. The profile of heavy users is also characterized by a high concentration of middle-aged people. 60% are between 30 and 49 years old.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n South Korea from 132 to 521 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

South Korea*

48.725.1

24.5

7.7

45.3

44.4

89.6

37.530.132.4

41.059.0

37.846.4

49.3

26.2

50.7

29.0

75.5

92.3

0.7

9.95.9

71.0

20.9

8.3



Shop the World 262

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery




Search for product information · South Korea in % * Globally

39.8 35.5

53.2

23.0 23.4

58.9 44.2

15.1 23.9

28.4 45.8

39.9 42.5

12.8 25.1

6.4 15.1

14.5 15.1

18.2 9.7

38.8 37.8

Criteria for choosing a vendor · South Korea in % *

Globally

46.3

29.8 40.6

17.6 13.7

20.7

11.8 8.8

35.2 26.6

17.9 14.9

66.0 51.7

7.4 12.9

12.2 20.8

8.2 22.6

22.0 25.7

39.8 45.2

14.8 18.5

23.5

Price-sensitive target group

The key criteria for selecting a distance selling company include affordable prices and special offers. A particular preference is therefore shown for price comparison websites.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n South Korea from 456 to 500, multiple mentioning



Shop the World 263



Ø

40.29.8 50.026.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n South Korea from 490 to 495 ** scale from 1 "absolutely not useful“ to 6 "very useful“

High advertising affinity

The usability assessment of al-most all advertising media is above the global average. A high degree of use is primarily attributed to online media such as price comparison websites and search engines as well as television advertising.


South KoreaGlobally




4.33.6

Ø

48.214.4 37.430.6 41.8 27.6

4.03.4

48.027.8 24.238.7 40.4 20.9Social media

South KoreaGlobally

Advertising letters

3.43.1

46.316.4 37.333.9 37.6 28.5

3.93.4


50.011.3 38.618.9 45.1 36.0

4.13.9

23.63.2 73.26.5 28.7 64.8

5.04.8

23.51.8 74.69.1 31.7 59.1

5.14.6

49.726.9 23.429.9 43.9 26.2

South KoreaGlobally


3.43.4

54.319.1 26.629.0 46.7 24.3

South KoreaGlobally


3.73.4

47.527.2 25.334.8 43.1 22.1

South KoreaGlobally


3.53.2

52.227.1 20.841.8 40.7 17.6

South KoreaGlobally


3.43.0

46.534.9 18.644.3 38.8 16.9

South KoreaGlobally

Radio

3.12.9

48.316.2 35.519.3 44.2 36.6

South KoreaGlobally


3.93.9

South KoreaGlobally

South KoreaGlobally

South KoreaGlobally


South KoreaGlobally


South KoreaGlobally


Shop the World 264

Online PC


By telephone


By email



Online marketplace




retailer



Occasionally


South Korea Global

70.5

6.5

1.5

1.7

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERSMobile: anything is possible

South Koreans are mobile- savvy. 15.3% specify mobile devices as their preferred ordering method. The PC is the number 1 ordering channel, but is less dominant compared to the global average. When searching for products, South Koreans prefer to visit online marketpla ces rather than independent online shops. Ca t- alogs are seldom used in South Korea, whereas teleshopping enjoys great popularity. While around 60% refrain from using this ordering channel globally, only a 20% do so in South Korea.

23.3 15.621.8

15.4 31.216.8

39.3

36.6

South Korea

Globally

8.7 54.16.4

9.9 54.38.7

30.8

27.0

39.6 4.627.2

38.5 12.622.8

28.6

26.1

20.4 13.716.2

60.2 6.617.6

49.7

15.7

15.3

10.5

4.5

4.8



Shop the World 265

Credit card in 1st place

In South Korea, the credit card is the payment method of choice. Two out of three distance selling clients use their credit card for eCommerce frequently to very frequently. Advance payment and debit card payment are second and third on the list. Installment purchases are used to a similar extent. Compared to the global average, installment purchases are quite popular in South Ko-rea. Online payment, payment by invoice or cash on delivery are rarely used.

Cash on delivery

Prepayment

Direct debit

Credit card


“CUSTOMER JOURNEY“ – PAYMENT METHODS



Debit card

Invoice

Payment options· in % *


South Korea

Globally

10.1 4.2 18.8 67.0

29.3 9.8 18.7 42.3

66.1 18.2 11.8 3.8

55.8 16.3 16.1 11.7

41.0 15.5 20.8 22.6

53.4 16.1 15.5 15.0

33.8 18.0 33.1 15.0

56.0 15.5 16.4 12.1

66.5 19.5 11.3 2.7

54.4 15.8 16.3 13.4

55.9 17.8 18.3 8.0

33.3 12.9 20.1 33.7

35.9 15.0 34.6 14.5

78.0 9.5 8.1 4.4

46.0 13.9 23.8 16.4

55.1 10.8 15.7 18.4



Shop the World 266



Fast delivery

Free delivery






South Korea Globally

4.0

3.7

3.6

5.2

5.0

5.1

3.8

5.0

4.6


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n South Korea from 481 to 495 ** scale from 1 "absolutely not important“ to 6 "very im-portant“

Fastest possible delivery

South Korean distance selling clients push for fast deliveries and do not like waiting longer than 4 working days for their order. In addition to high ex-pectations for delivery speed, free delivery and tracking op-tions for the consingment are a must.


1 2 3 4 5 6



3.9

6.5


Shop the World 267

36+64

72+28

Number of returns per capita per year · Ø * South Korea Globally

0.8

1.0

Return rate · in % * South Korea Globally

5.9

Reasons for returns · South Korea in % *



36.163.9


Yes No

“CUSTOMER JOURNEY“ – RETURNSQuality issues

One in three distance selling clients has already returned an ordered product. The value for South Korea is therefore much higher compared to the global average. On the other hand, the return rate is slightly lower than the international reference value. The main reason for re-turning goods is the poor qual-ity of the product - a problem that appears to recur frequent-ly. Reasons for returning goods often include the client's dissatisfaction with a product or a faulty product. South Koreans rarely order a selection of sever-al products in different sizes.

27.5

72.5





Product did not fit






19.4

21.2

21.9

43.5

0.6

5.0

6.9

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

49.2

8.6


5.2


Shop the World 268

High delivery costs

Uncertain delivery







No personal advice






Shopping 24/7



Lower prices

Greater selection




· South Korea in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

66.1

42.4

55.0

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Bargain hunters

Price transparency and low prices are the main drivers for distance selling in Korea. Con-venient shopping from any- where at any time is also im-portant.

Drivers · South Korea in % *

Globally


23.8

61.1

66.4

67.6

8.1

18.3

13.7

17.0

3.1

21.9

66.0

72.8

53.1

17.0

18.0

29.2

34.2


Shop the World 269




Hong Kong[6.6]

Great Britain[5.9]

1

2

3

4

5

USA[84.1]

Japan[19.1]

China[7.8]


South Korea

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n South Korea from 152 to 396 ** split into "further orders planned“ 31.8% South Korea and "no further orders planned" 2.8% South Korea

USA in shopping focus

South Koreans are still slightly hesitant about placing orders abroad. Approximately one third of consumers surveyed had never placed an order abroad and did not plan to place any orders in the future. If goods are imported, then the country of preferen-ce is the USA. Almost 90% of South Koreans who currently purchase from abroad also in-tend to search for the products of choice in the United States in the future. South Korea's neigh-bor Japan is in second place, al-beit far behind the USA. In the future, Germany, Canada and Great Britain will join Japan as key import destinations.

Canada[22.5]

Great Britain[21.8]

USA[89.6]

Japan[41.7]

Germany[23.7]




30.8

34.6 34.6


Shop the World 270



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times







Drivers for ordering abroad· South Korea in % *

Barriers to ordering abroad · South Korea in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Appealing variety

Foreign countries offer South Korean clients a product variety unavailable in their own coun-try. Affordable prices only play a secondary role in their deci-sion to purchase products from abroad. Long delivery times and high delivery costs are the main reasons discouraging South Ko-reans from buying imports.



61.0

38.5

30.2

47.2

29.9

10.5

64.6

39.4

55.2

17.4

30.9

40.9

18.0

29.9

77.0

28.1

45.0

33.0

17.8


Shop the World 271

Reception of mailings and catalogs · South Korea in % *


DIALOG MARKETING


South Korea

Globally

26.7 41.1 32.2

22.1 35.2 42.7



South Korea

Globally

34.9 49.2 16.0

29.0 45.8 25.3

Response channel for mailings and catalogs · South Korea in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

65.4 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n South Korea from 383 to 521 ** scale from 1 "never“ to 6 "almost always“

Low frequency and response

Although a similar number of clients as the global average receive mailings and catalogs, they are received less frequent-ly. Only 5.4% of South Koreans receive direct marketing offers once a week or more. Reading and response rates are signifi-cantly below the global average. Ho wever, if clients respond to advertising, they usually visit the website of the advertiser, respond via Twitter, Facebook & Co. or pay a visit to the local store.

Globally




Never

26.9

33.7

27.7

11.6 32.7

33.5

13.9

26.8

7.3

5.4

36.0

45.4

13.2



Country Information Spain

Miriam

Spanish online shoppers are mobile-savvy and easy-going. They like to avoid carrying home the groceries.

Shop the World 273Country information Spain Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

7.6


Spanish economy * COUNTRY PROFILE SPAIN

Madrid 6,405

* Source: Fischer World Almanac 2014, Germany Trade & Invest ** Source: Metropolitan areas with 1 million inhabitants and more; United Nations, Department of Economic and Social Affairs, Po-pulation Division (2012). World Urbanization Prospects: The 2011 Revision, CD-ROM Edition.*** Source: Copyright © IHS, 2013. All rights reserved **** Source: Copyright © IHS, 2013. All rights reserved


-1.6


>

>

-1.20.1

2011 2012 2013





· 2013 in mn.· 2013· 2013 in %· 2013 in %

13.93.4

26.31.4

The international finance crisisin 2007 resulted in bursting of a speculative bubble in the realestate sector in Spain and caused a serious economic cri-sis, from which the country has not yet recovered. The economy shrunk in 2012 by 1.6 % and in 2013 by 1.2 %. National debt, social expenditures, and interest charges increased enor-mously. Every fourth Span-iard is currently unemployed. Despite that, Spain is daring to hope. According to the Sta-tistical Office INE, a small, ex-port-driven economic growth has been observed in the two last quarters of 2013, which is also supposed to continue in 2014. Fiscal consolidation, fi-nancial market reform, and structural reforms are in prog-ress and the unemployment rate is supposed to decrease as well in 2014.

31.1

8.1


Barcelona 5,488

Shop the World 274

40+9+1+7+21+16+6

Country information Spain Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

MEDIA USE IN SPAIN

24.3

108.3


44.2




2012 2013

55.4





>>


2011 2012 2013 2014 20154.

5

72.0

4.4

4.34.

6

5.5

2016

4.6

21.0

16.5

6.0

6.60.59.5

40.0

Internet use

In 2012 72% of all Spaniards used the Internet. Almost one fourth surfed via a fixed broad-band access. Mobile communi-cation is becoming increasingly important for the population. With a market share of 55%, smartphones little by little replace the home PC and laptop as preferred tool for using the Internet.

Television is changing

Since three years, positive growth can be recorded for the advertising market. Despite an anticipated trend of possible closures or privatizations in the TV sector, TV remains the strongest medium.

Shop the World 275

Meals on wheels

Spain is one of the upcoming distance selling markets of Southern Europe. Spanish customers in particular like to avoid carrying home the week-end shopping: Grocery orders represent approx. 20% of the market. Close behind: fashion; followed by media products and electronics.

DISTANCE SELLING IN SPAIN

1,810.1


906.7

757.6

1,354.7

910.7

310.1

298.0

1,854.9

63.1

90.7

370.8

119.6

91.6

15.7

258.9

190.3

22.4




DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments




CAGR: 13.0%

Home shopping


0.6

0.60.5

6.5 11.2

0.5

0.4

2011 2012 2013e 2014e 2018e



1,211.8

16.4


1,249.9

338.1

15.5


Shop the World 276

83+1784

+16

Positive market development

With an already high use den-sity, but a currently low order frequency, Spanish consumers are optimistic regarding their future shopping intentions.


83.1

16.9

Spain

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

21.3

41.9

11.0

16.9

8.9

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

51.2

43.1

55.2

38.8

5.6 6.1


Yes71.3

Spain

Globally

Yes70.5

No28.7

No29.5

Yes No

Spain Globally Spain Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Spain from 56 to 506


Shop the World 277

Globally*

53.4


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +











25.8

76.6

35.938.1

26.0

19.280.8

19.249.9

55.0

29.7

45.0

23.7

97.8

61.4

0.7

29.41.4

76.3

Few single households

Spanish distance selling clients show certain characteristics: More than half are middle-aged and have a rather high educa-tion. Not even 5% live in single households. The smartphone is the preferred choice for Inter-net usage (almost two thirds). However, media are generally considered with a rather low affinity. Globally compared, this is mainly true for online media. The heavy users in Spain tend tobe female. A disproportionallylarge number originates from lower and medium income lev-els.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Spain from 128 to 506 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Spain*

51.325.2

5.0

33.7

41.0

30.8

72.1

28.836.934.3

32.667.4

26.944.1

49.3

23.5

50.7

32.5

95.0

66.3

0.7

24.34.7

67.5

16.9

38.6


2.2

Shop the World 278

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery




Search for product information · Spain in % * Globally

41.0 35.5

53.2

16.8 23.4

33.3 44.2

26.6 23.9

49.4 45.8

43.2 42.5

26.5 25.1

12.3 15.1

14.7 15.1

7.3 9.7

36.9 37.8

Criteria for choosing a vendor · Spain in % *

Globally

44.0

32.3 40.6

16.9 13.7

20.7

6.5 8.8

16.1 26.6

7.4 14.9

51.5 51.7

15.8 12.9

28.6 20.8

22.0 22.6

24.5 25.7

51.4 45.2

21.9 18.5

17.0

Product selection takes place onlineProvider and manufacturer websites are the favorite sourcesfor the distance selling customers in Spain. However, online marketplaces are also gladly used.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Spain from 419 to 473, multiple mentioning


Shop the World 279



Ø

52.124.0 23.926.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Spain from 464 to 468 ** scale from 1 "absolutely not useful“ to 6 "very useful“

Social media quite popular

Search engines and price com-parison sites are the most useful media in Spain. Overall, Span-ish consumers are rather cau-tious when assessing the useful-ness of the different advertising media.


SpainGlobally




3.53.6

Ø

51.424.8 23.830.6 41.8 27.6

3.53.4

45.632.9 21.438.7 40.4 20.9Social media

SpainGlobally

Advertising letters

3.23.1

48.520.7 30.833.9 37.6 28.5

3.73.4


53.813.9 32.218.9 45.1 36.0

3.83.9

38.79.0 52.26.5 28.7 64.8

4.44.8

40.89.7 49.59.1 31.7 59.1

4.34.6

48.027.9 24.129.9 43.9 26.2

SpainGlobally


3.43.4

54.226.2 19.629.0 46.7 24.3

SpainGlobally


3.43.4

47.832.7 19.534.8 43.1 22.1

SpainGlobally


3.23.2

49.536.2 14.441.8 40.7 17.6

SpainGlobally


3.13.0

46.335.7 18.044.3 38.8 16.9

SpainGlobally

Radio

3.12.9

56.815.3 27.919.3 44.2 36.6

SpainGlobally


3.83.9

SpainGlobally

SpainGlobally

SpainGlobally


SpainGlobally


SpainGlobally

Shop the World 280

Online PC


By telephone


By email


Online marketplace




retailer



Occasionally


Spain Global

70.0

2.3

2.6

6.8

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“– PLACING ORDERSOnline or on site

A majority of consumers pre-fers ordering online via the PC. However, Spanish distance selling clients slightly pre-fer ordering at the local store and have the purchases delivered to their homes. Providers offering their products via on-line marketplaces have the best chances. Furthermore, customers use online shops more often than the global average.

12.8 33.511.6

15.4 31.216.8

42.1

36.6

Spain

Globally

10.8 44.56.4

9.9 54.38.7

38.3

27.0

41.5 8.626.2

38.5 12.622.8

23.7

26.1

64.2 3.118.4

60.2 6.617.6

14.3

15.7

9.9

10.5

8.5

4.8



Shop the World 281

No purchases on credit

Online payment systems and credit cards are the most im-portant payment methods for Spanish distance selling clients.While credit cards are used comparatively less frequently, online payment systems are relatively common in Spain. The same applies to debit cards, which are used significantly more often in Spain compared to the global average. Advance payments and payments upon invoice are used much less fre-quently. Around two thirds never use this payment methods. Financing and installment purchases are currently of no importance.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Spain

Globally

30.9 10.6 26.0 32.5

29.3 9.8 18.7 42.3

37.7 20.3 26.4 15.7

55.8 16.3 16.1 11.7

64.0 12.8 15.0 8.2

53.4 16.1 15.5 15.0

54.6 16.5 20.9 8.0

56.0 15.5 16.4 12.1

68.7 12.5 12.3 6.6

54.4 15.8 16.3 13.4

23.6 8.8 23.7 43.9

33.3 12.9 20.1 33.7

81.8 9.1 7.2 1.9

78.0 9.5 8.1 4.4

36.8 9.1 25.5 28.6

55.1 10.8 15.7 18.4


Shop the World 282



Fast delivery

Free delivery





Spain Globally

4.1

4.2

4.4

5.4

4.9

5.0

3.8

5.0

4.7


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Spain from 463 to 471 ** scale from 1 "absolutely not important“ to 6 "very important“

High demands

While a whole week is acceptedfor distance selling deliveries, high demands are placed on the supplier. Options for delivery to different locations, e.g. shops, drop boxes, or supermarkets, are particularly requested in Spain.


1 2 3 4 5 6



7.1

6.5

Spain Globally

Shop the World 283

20+80

72+28

Number of returns per capita per year · Ø * Spain Globally

0.8

0.4

Return rate · in % * Spain Globally

5.9

Reasons for returns · Spain in % *



20.2

79.8

Spain Globally

Yes No

“CUSTOMER JOURNEY“– RETURNSAverage return rate

The number of returns by Span- ish distance selling clients is slightly below average. Approx. every fifth returned something in the past. The number of re-turns and the return rate are also very low. Therefore, it is not a surprise that many product return reasons are mentioned significantly less frequently: In particular, non-fitting products or general dissatisfaction with the product are less important in Spain than globally. Defec- tive products are the main rea-son for returns.

27.5

72.5





Product did not fit






17.6

16.5

9.3

15.4

9.5

5.7

5.9

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

16.6

5.9


4.8

Shop the World 284

High delivery costs

Uncertain delivery







No personal advice






Shopping 24/7



Lower prices

Greater selection



· Spain in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

61.0

32.3

69.8

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Convenience counts

24/7 shopping with convenient delivery and affordable prices is for Spanish customers the main reason for buying online.

Drivers · Spain in % *

Globally


54.7

45.3

69.7

44.6

2.9

40.3

35.3

49.6

2.4

23.2

39.5

63.5

47.6

14.7

25.7

28.2

31.8


Shop the World 285

61+26+13




Germany[31.8]

Hong Kong[20.5]

1

2

3

4

5

Great Britain[48.6]

China[44.6]

USA[41.8]


Spain

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Spain from 263 to 405 ** split into "further orders planned“ 58.6 % Spain and "no further orders planned" 2 % Spain

No clear import favorite

Spanish consumers already liketo frequently order from abroad. More than 60% use this possibility. Furthermore, every forth user plans to purchase from abroad in the future. Cur-rently there are no preferences in the shopping destination when ordering from abroad. The same is expected for the future. However, Great Britain, China, USA, and Germany are popular. In the future, these countries will be increasingly visible on the shopping map. Also the neighbouring country France will join this group in the future. China

[50.8]

France[45.3]

USA[66.6]

Great Britain[58.2]

Germany[55.8]

Country information Spain Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing



26.0

60.6

13.4

Shop the World 286



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· Spain in % *

Barriers to ordering abroad · Spain in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Complicated returns

Main drivers for cross-border shopping are the availability of products and lower prices. Long delivery times and com-plicated return processes are seen as obstacles.



44.9

32.2

34.0

31.8

37.9

9.6

49.3

26.7

55.9

21.2

36.9

40.0

37.5

38.0

71.2

6.3

70.9

38.7

6.3


Shop the World 287

Receipt of mailings and catalogs · Spain in % *


DIALOG MARKETING


Spain

Globally

13.2 35.3 51.5

22.1 35.2 42.7



Spain

Globally

18.7 54.5 26.9

29.0 45.8 25.3

Response channel for mailings and catalogs · Spain in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

79.9 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Spain from 455 to 506 ** scale from 1 "never“ to 6 "almost always“

Catalogs are appreciated

Only one in twenty Spanish distance selling clients does not receive any mailings or cata-logs. The frequency, however, is slightly below the international level. Almost one fifth receives communication mate-rial of this type once or sever-al times a week. Spanish consumers like to read direct mails. They also tend to respond more frequently. 79.9% visit the web-site while 56.8% follow up with a visit to a local retail outlet. Off-line response channels, such as phone calls or response cards, are used less frequently.

Globally




Never

26.9

33.7

27.7

11.6 56.8

37.1

30.3

13.6

5.4

20.2

41.0

32.5

6.3


Country Information Switzerland

Laura

Swiss e-consumers mainly live in rural areas and love to shop abroad, preferably in Germany and France

Shop the World 289Country information Switzerland


1.2


Swiss economy * COUNTRY PROFILE SWITZERLAND

Zurich 1,183



1.1


>

>

1.91.8

2011 2012 2013





· 2013 in mn.· 2013· 2013 in %· 2013 in %

3.42.23.2

-0.2

As opposed to the European Union, Switzerland has expe-rienced noticeable economic growth over the past years. As early as 2012, the economy grewby 1.1%; in 2013, growth even increased to firm 1.9%. Partic- ularly the domestic demand keeps the economy going, sup-ported by a low unemploymentrate of 3.2%. Foreign trade, however, is suffering from the high rate of the Swiss franc andthe crisis in Europe. Yet, the experts of the Swiss Economics Ministry Seco expect, that the export sectors will benefit from the reflating world economy in 2014.

5.1

1.3


Shop the World 290

29+4+1+11+14+24+17

Country information Switzerland


MEDIA USE IN SWITZERLAND

41.9

135.3


42.7




2012 2013

54.0





>>


2011 2012 2013 2014 2015

4.5

85.2

4.54.5

4.4

4.4

2016

4.5

13.5

24.2

17.8

10.8

0.6

4.3

28.7

Internet use

The internet is clearly inte- grated into the Swiss‘s every day life and fast internet connec-tions are available almost everywhere. As smartphones are spreading, the use of mobile internet is becoming more frequent. As many as 54% of all Swiss already own a smartphone. Thus, the alpine coun-try belongs to the mobile world elite.

Online video, TV, and cinema

At 0.3%-0.6%, future growth of adspends will be lower than in the past. However, advertising expenditures for online video, TV, and cinema are growing strongly. Innovative formats also contribute to an increase in out of home advertising.

Shop the World 291


Food and homewares

Apart from the main order- categories such as clothing, consumer electronics and me-dia products, the Swiss particularly like to order food and household appliances.

DISTANCE SELLING IN SWITZERLAND

852.1


767.9

629.2

432.0

354.4

174.6

153.6

481.9

314.0

398.8

102.7

171.2

155.9

36.9

79.1

61.1

56.2




DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments




CAGR: 4.2 %

Home shopping


0.90.9

0.9

3.5 4.4

0.8

0.7

2011 2012 2013e 2014e 2018e



745.3

54.0



359.8

91.2

43.6

Shop the World 292

86+1484

+16

Still more potential

In Switzerland, distance selling is widespread and will continueto gain momentum. 69.2% of current non-users express the desire to purchase products viadistance selling in the near fu-ture.


85.9

14.1

Switzerland

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

24.0

37.0

15.2

14.1

9.8

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

70.7

22.3

55.2

38.8

7.0 6.1


Yes69.2

Switzerland

Globally

Yes70.5

No30.8

No29.5

Yes No

Switzerland Globally Switzerland Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1.275 to 11.265 ∙ n Switzerland from 52 to 521



Shop the World 293

Globally*

53.5


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



28.6









27.3

82.6

43.340.6

16.1

34.465.6

17.131.2

53.2

18.2

46.8

18.1

71.4

22.0

0.6

27.923.8

81.9

Middle-aged heavy users

About 80.0% of distance selling clients can be found in rural areas. They are mostly between 30 and 49 years old, have con-siderable incomes, and every fourth respondent lives in a single-household. The profile of heavy users is characterized by an even higher focus on middle- aged people. Additionally, the affinity of heavy users towards classic media is significantly be-low global level.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Switzerland from 100 to 521 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6



***

Switzerland*

45.629.7

30.2

80.3

49.3

29.5

76.1

33.441.225.4

37.562.5

16.930.4

49.7

24.7

50.3

25.9

69.8

19.7

0.6

31.720.9

74.1

28.3

78.0


Shop the World 294

Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery



“CUSTOMER JOURNEY“ – SEARCHING FOR PRODUCT INFORMATIONSearch for product information · Switzerland in % * Globally

33.0 35.5

53.2

26.2 23.4

37.4 44.2

19.0 23.9

53.3 45.8

32.9 42.5

34.8 25.1

17.3 15.1

7.5 15.1

8.9 9.7

33.2 37.8

Criteria for choosing a vendor · Switzerland in % * Globally

51.2

35.3 40.6

9.3 13.7

20.7

9.4 8.8

19.3 26.6

24.4 14.9

47.7 51.7

12.6 12.9

23.3 20.8

29.1 22.6

29.4 25.7

43.3 45.2

18.8 18.5

22.8

Online leads the wayWebsites of dealers or manufacturers and search engines point customers the way to the right product. In Switzerland, people use catalogs more often than on global average.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Switzerland from 445 to 491, multiple mentioning



Shop the World 295



Ø

44.337.1 18.626.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Switzerland from 468 to 483 ** scale from 1 "absolutely not useful“ to 6 "very useful“

Catalogs are appreciated

While all other traditional me-dia channels are unpopular for the Swiss, catalogs are the only medium received positively compared to the global average.For 42.8% of all respondents, catalogs are the third-most use-ful advertising medium, rank-ing behind search engines and price-comparison websites.


SwitzerlandGlobally





3.13.6

Ø

39.140.5 20.430.6 41.8 27.6

3.03.4

37.848.4 13.938.7 40.4 20.9Social media

SwitzerlandGlobally

Advertising letters

2.83.1

34.452.4 13.133.9 37.6 28.5

2.63.4


45.026.1 28.918.9 45.1 36.0

3.63.9

32.410.9 56.66.5 28.7 64.8

4.54.8

37.012.9 50.09.1 31.7 59.1

4.34.6

42.736.2 21.129.9 43.9 26.2

SwitzerlandGlobally


3.13.4

51.829.3 18.929.0 46.7 24.3

SwitzerlandGlobally


3.23.4

46.536.7 16.834.8 43.1 22.1

SwitzerlandGlobally


3.13.2

41.047.7 11.341.8 40.7 17.6

SwitzerlandGlobally


2.83.0

35.057.4 7.644.3 38.8 16.9

SwitzerlandGlobally

Radio

2.42.9

41.016.2 42.819.3 44.2 36.6

SwitzerlandGlobally


4.13.9

SwitzerlandGlobally

SwitzerlandGlobally

SwitzerlandGlobally


SwitzerlandGlobally


SwitzerlandGlobally

Shop the World 296

SeldomOnline PC


By telephone


By email


Online marketplace




retailer



Occasionally

* Source: DHL Global Mail 2013 ∙ n Global from 9,270 to 9,446 ∙ n Switzerland from 441 to 448

Switzerland Global

78.8

2.3

3.4

5.5

75.0

3.2

2.1

4.4


No ordering in stores

Who is still ordering in a store these days? The Swiss certainly don‘t. They are obviously using their PC to find the products they want. Almost 80% choose this possibility as their primary way of ordering.

Swiss prefer to order from online shops. Online marketplaces, however, are consider-ably less popular compared to the global average. With the offline channels, the classic catalog clearly ranks before teleshopping. While every fourth person claims to never use cata-logs, it is 76% when it comes to ordering from TV.

10.5 40.218.1

15.4 31.216.8

31.2

36.6

Switzerland

Globally

20.6 32.015.4

9.9 54.38.7

32.0

27.0

27.9 20.823.9

38.5 12.622.8

27.4

26.1

76.5 4.111.6

60.2 6.617.6

7.7

15.7

8.9

10.5

0.9

4.8




Shop the World 297

Invoice me, please!

Swiss distance selling clients prefer to pay for goods after receiving them: 44.4% fre-quently use this payment op-tion. Credit cards are used sim- ilarly often. However, 20% of all respondents never use a credit card for their purchase. Online payment systems, which are quite popular elsewhere, are rarely used in Switzerland.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Switzerland

Globally

20.0 11.7 24.3 44.0

29.3 9.8 18.7 42.3

70.9 14.1 10.4 4.7

55.8 16.3 16.1 11.7

45.4 22.5 17.7 14.4

53.4 16.1 15.5 15.0

80.5 9.7 4.0 5.7

56.0 15.5 16.4 12.19.0

14.2 32.3 44.4

54.4 15.8 16.3 13.4

44.9 16.7 20.0 18.4

33.3 12.9 20.1 33.7

84.7 6.9 4.5 3.9

78.0 9.5 8.1 4.4

78.0 8.4 6.4 7.1

55.1 10.8 15.7 18.4



Seldom

Shop the World 298



Fast delivery

Free delivery





Switzerland Globally

2.8

2.5

2.9

5.0

4.1

4.8

2.9

4.7

4.4


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Switzerland from 471 to 487 ** scale from 1 "absolutely not important“ to 6 "very important“

Swiss calmness

Accepted delivery times in Switzerland are slightly higher than the global average. Re- quirements for logistics services are also rather moderate.


1 2 3 4 5 6




7.4

6.5


Shop the World 299

34+66

72+28

Number of returns per capita per year · Ø * Switzerland Globally

0.8

1.1

Return rate · in % * Switzerland Globally

5.9

Reasons for returns · Switzerland in % *



34.1

65.9


Yes No

“CUSTOMER JOURNEY“– RETURNSSwitzerland - The land of returns

In Switzerland, returns are common. Every third customer has already returned a product. The average number of returns per capita is also higher than on global average. Reasons for returning goods can attributed to three main aspects: In most cases, the product simply did not fit. Also, it is quite common that people do not like the product or that the customer takes his shopping experience home and orders multiple variants to have a wider choice.

27.5

72.5





Product did not fit






16.1

6.8

59.9

44.0

31.7

3.3

0.7

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

26.9

8.8



9.4

Shop the World 300

High delivery costs

Uncertain delivery







No personal advice






Shopping 24/7



Lower prices

Greater selection



· Switzerland in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

41.4

43.6

68.6

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Convenience rules

In Switzerland, convenience isof high importance in distance selling: 24/7-shopping, location-independent orders, and a flexible delivery are the main drivers.

Drivers · Switzerland in % *

Globally


51.2

54.4

79.5

69.1

3.4

46.1

18.3

35.0

3.8

23.9

46.5

64.3

38.9

30.9

18.5

27.3

21.2



Shop the World 301




Great Britain[24.1]

China[14.3]

1

2

3

4

5

Germany[62.3]

France[41.6]

USA[37.3]


Switzerland

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Switzerland from 369 to 451 ** split into "further orders planned“ 71.7% Switzerland and "no further orders planned" 5.7% Switzerland

Who invented it?

The Swiss – this could be the answer to the question about the country that discovered ordering abroad. After all, just over three fourths of all customers in Switzerland have al-ready used cross-border shop-ping. This value is significantly higher than the global average. Additionally, only 11% of respondents do not intend to order from abroad. Preferred shopping destinations are Ger-many and France, followed by the US and Great Britain.

Great Britain[42.2]


Germany[77.5]

France[58.1]

USA[56.2]





11.6

77.4

11.0

Shop the World 302



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· Switzerland in % *

Barriers to ordering abroad · Switzerland in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Great variety and low prices

It is well-known that Switzer-land has high living expenses. It is thus not surprising that customers are driven to look for cheaper prices abroad. But awider variety of products offered in other countries is evenmore important.



59.7

19.4

52.2

44.1

29.5

7.0

46.8

32.9

60.3

23.2

30.5

34.2

30.4

33.6

81.5

3.6

77.2

42.9

1.4



Shop the World 303

Reception of mailings and catalogs · Switzerland in % *


DIALOG MARKETING


· in % *,**

Switzerland

Globally

33.0 37.1 29.9

22.1 35.2 42.7



Switzerland

Globally

40.7 45.2 14.1

29.0 45.8 25.3

Response channel for mailings and catalogs · Switzerland in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

75.7 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Switzerland from 389 to 521 ** scale from 1 "never“ to 6 "almost always“

A lot to read

Almost 50% of Swiss consumers receive mailings and catalogs at least once a week. Only 5.8% of all mailboxes remain empty. No wonder, that the Swiss can hardly keep up with reading and responding. By far the most common response channel is visiting a website, followed by visiting a store. Compared to the global average, reply cards are used comparably often in Switzerland.

Globally




Never

26.9

33.7

27.7

11.6 47.3

22.1

16.3

8.7

19.5

47.4

29.9

16.8

5.8



Country InformationTurkey

Jasmin and Onur

Turkish online shoppers are young, urban, modern, and modest. They are still very focused on their domestic market.

Shop the World 305Country information Turkey Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

20.4


The economy in Turkey * COUNTRY PROFILE TURKEY

Istanbul 10,953



2.2


>

>

3.9

8.8

2011 2012 2013





· 2013 in mn.· 2013· 2013 in %· 2013 in %

15.54.89.87.5

After a moderate growth of 2.2% in 2012, the Turkish economy is on its way to recovery. The Turkish government has forecasted a growth of 4.0% for2014. Private consumption re-mains a significant pillar of the economy. Investments are in-creasingly being made in majorenergy and transportation proj-ects in order to support the government‘s goals: to reduce the high dependency of local pro-duction on imported energy and raw materials, to increase value contribution in the production chain, and to grow international competitiveness. The Turkish central bank wants to fight inflation with a tight mo-netary policy.

49.5

4.6


Adana 1,423

Bursa 1,659

Gaziantep 1,160

Ankara 4,074

Izmir 2,842 Konya

1,023

Shop the World 306

51+2+1+7+19+18+2

Country information Turkey Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

MEDIA USE IN TURKEY

10.5

90.8


14.0




2012 2013

29.6

Internet use

In Turkey, about half of the population is online, but broadband distribution is not yet high. Only 11% of inhabitants have access to broadband. That should change soon. The num-ber of broadband subscribers is to increase to at least 30 million (~40%) by 2023, the 100-year anniversary of the existence of the Turkish Republic.

Adverstising market

The strongest growth of the advertising market (15.1% in 2014) is predicted to continue until 2016. TV spending still makes up more than 50% of total expenditures. With high growth rates, the share of Internet advertising spend continues to grow but is still far from replacing TV as the most powerful medium.





>>


2011 2012 2013 2014 20153.

1

45.1

2.7

2.4

2.2

2.0

2016

3.4

19.4

18.1

1.9

6.31.02.3

50.9

Shop the World 307

Convenient grocery shopping

With a size of € 2.9 bn, the Turk- ish distance selling market still has strong growth potential. Turkish customers in particular enjoy purchasing food online. Orders make up al-most 25% of the market, which makes it quite unique. Almost as popular: consumer electronics.

DISTANCE SELLING IN TURKEY

870.6



1,292.1

677.2

356.9

226.6

340.3

222.6

561.0

101.0

167.6

77.3

87.2

43.5

23.9

33.9

25.3

0.0




DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)


CAGR: 12.4%

Home shopping


0.7

0.7

0.7

2.6 4.7

0.7

0.5

2011 2012 2013e 2014e 2018e



404.4

0.0


720.8

49.3

55.6

Shop the World 308

73+2784

+16

Distance selling is evolving

Currently, the use of distance selling in Turkey is still at a relatively low level. But a strong increase in users and orders is predicted for the future.


73.3

26.7

Turkey

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

More than 20 orders

No orders

14.8

46.3

7.0

26.7

5.3

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

41.3

52.2

55.2

38.8

6.5 6.1


Yes74.2

Turkey

Globally

Yes70.5

No25.8

No29.5

Yes No

Turkey Globally Turkey Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n Turkey from 78 to 516


Shop the World 309

Globally*

41.5


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



9.5









48.9

89.1

36.927.5

21.978.1

26.944.6

52.1

43.3

47.9

29.1

90.5

91.4

0.6

24.44.1

70.9

Young, urban, modern

The profile of a heavy user of distance selling in Turkey can be clearly differentiated from the global reference image by several features. This crucial target group is considerably younger, more urban, and more familiar with electronic media. The smartphone is a constant companion in day-to-day life. Over three-fourths of these customers already use mobile devices. In addition, they have a lower household income than the global average and are more likely to live in large households with several adults.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n Turkey from 113 to 516 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active distance selling users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

Turkey*

47.418.6

15.8

10.0

49.2

44.2

83.7

30.934.534.7

41.758.3

29.949.1

50.9

34.0

49.1

33.9

84.2

90.0

0.8

16.54.5

66.1

15.2

8.6


35.6

Shop the World 310


Search for product information · Turkey in % * Globally

38.0 35.5

53.2

22.5 23.4

51.2 44.2

28.5 23.9

43.9 45.8

37.7 42.5

32.3 25.1

25.3 15.1

32.9 15.1

12.9 9.7

50.3 37.8

Criteria for choosing a vendor· Turkey in % *

Globally

Search engines 60.3





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery



13.6 13.7

20.7

7.7 8.8

25.1 26.6

9.4 14.9

42.2 51.7

18.7 12.9

26.7 20.8

16.1 22.6

25.5 25.7

35.4 45.2

18.3 18.5

17.2

Many "likes“ are convincing

Besides search engines and price comparison websites, recommendations from friends and social media platforms are are most important for productinformation in Turkey.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n Turkey from 371 to 464, multiple selections


Shop the World 311



Ø

42.020.2 37.826.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n Turkey from 434 to 447 ** scale from 1 "absolutely not useful“ to 6 very useful“

Good standing for media

Turkish consumers perceive advertising quite valuable. This applies especially to online me-dia. Typical of the country is the strong orientation towards recommendations in social net-works and product recommen-dations in online shops.


Turkey Globally




3.93.6

Ø

44.423.6 32.130.6 41.8 27.6

3.73.4

39.933.8 26.338.7 40.4 20.9Social media

Turkey Globally

Advertising letters

3.33.1

35.417.8 46.933.9 37.6 28.5

4.13.4


39.114.6 46.318.9 45.1 36.0

4.23.9

23.27.7 69.16.5 28.7 64.8

4.94.8

28.27.6 64.29.1 31.7 59.1

4.84.6

42.026.0 32.029.9 43.9 26.2

Turkey Globally


3.73.4

46.326.4 27.429.0 46.7 24.3

Turkey Globally


3.63.4

44.128.6 27.334.8 43.1 22.1

Turkey Globally


3.53.2

45.425.7 28.941.8 40.7 17.6

Turkey Globally


3.63.0

37.144.9 18.044.3 38.8 16.9

Turkey Globally

Radio

3.02.9

45.220.1 34.719.3 44.2 36.6

Turkey Globally


3.93.9

Turkey Globally

Turkey Globally

Turkey Globally


Turkey Globally


Turkey Globally

Shop the World 312


Online marketplace




Occasionally



Turkey Global

Online PC


By telephone


By email


57.2

5.7

2.2

12.0

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“ – PLACING ORDERSOnline orders below average

The number of Turkish consumers who prefer to order via PC is still below the global average. However, the country sees itself as pro-gressive when it comes to use of mobile devices. Ordering via email or in a store with home delivery enjoys above- average popularity. In com-parison to global penetration, online marketplaces are used cautiously in Turkey.

10.1 31.922.7

15.4 31.216.8

35.3

36.6

Turkey

Globally

7.8 43.415.6

9.9 54.38.7

33.2

27.0

32.4 11.227.3

38.5 12.622.8

29.1

26.1

46.6 7.723.9

60.2 6.617.6

21.8

15.7

11.4

10.5

11.5

4.8



Shop the World 313

Credit cards versus PayPal

Credit cards preferred - this is the most used payment methodamong Turkish distance selling clients. It is of high relevance for more than three-fourths of them. In contrast, the use of online payment systems is significantly less popular. More than half of the surveyed consumers have never used this payment option. Debit cards and direct debiting systems have slightly increased in use.

Cash on delivery

Prepayment

Direct debit

Credit card





Debit card

Invoice



Turkey

Globally

6.6 6.3 10.9 76.1

29.3 9.8 18.7 42.3

25.9 27.2 21.3 25.7

55.8 16.3 16.1 11.7

69.4 17.0 7.1 6.5

53.4 16.1 15.5 15.0

46.4 25.4 17.0 11.3

56.0 15.5 16.4 12.1

56.7 19.4 9.2 14.8

54.4 15.8 16.3 13.4

54.1 19.9 13.7 12.3

33.3 12.9 20.1 33.7

52.5 16.0 15.1 16.4

78.0 9.5 8.1 4.4

44.2 21.2 15.5 19.0

55.1 10.8 15.7 18.4


Shop the World 314

Turkey Globally



Fast delivery

Free delivery





4.0

4.0

5.4

5.0

5.3

4.6

5.2

5.1


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n Turkey from 442 to 456 ** scale from 1 "absolutely not important“ to 6 "very important“

Clear expectations

Turkish customers have clear expectations with regards to their delivery: Orders should be delivered quickly and free of charge. Consumers demand detailed information regarding the delivery, and a selection ofshipping providers.


1 2 3 4 5 6



3.8

6.5

Turkey Globally

Shop the World 315

78+22

72+28

Number of returns per capita per year · Ø * Turkey Globally

0.8

0.6

Return rate · in % * Turkey Globally

5.9

Reasons for returns · Turkey in % *



22.4

77.6

Turkey Globally

Yes No

“CUSTOMER JOURNEY“ – RETURNSProduct quality to be optimized

22% of distance selling custom-ers in Turkey returned ordered goods, slightly below the global average of 27.5%. If prod-ucts are returned the main reasons are poor product qual-ity and product errors. It is not common to order several variants for selection.

27.5

72.5





Product did not fit






24.8

14.8

35.8

36.1

2.4

2.6

6.2

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

37.2

2.5


5.3

Shop the World 316

High delivery costs

Uncertain delivery







No personal advice






Shopping 24/7



Lower prices

Greater selection



· Turkey in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

64.7

33.6

74.8

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Convenience & price

The most important drivers for distance selling can be attributed to convenience: shopping around the clock, location inde-pendent ordering and delivery locations to choose from. Low prices and product comparisons are also very important.

Drivers · Turkey in % *

Globally


43.7

64.7

74.4

75.0

17.7

21.5

25.8

50.3

7.0

33.9

54.3

63.3

47.8

22.3

34.6

41.6

61.3

Country information Turkey Country profile · Media Use · Distance selling · “Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

Shop the World 317




Great Britain[15.4]

Germany[12.1]

1

2

3

4

5

USA[49.1]

China[40.4]

Hong Kong[18.5]


Turkey

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n Turkey from 91 to 357 ** split into "further orders planned“ 21.6% Turkey and "no further orders planned" 0.6% Turkey

Opening towards the world

Distance selling orders in Tur-key are still very focused on the home market. Only one in five has ever considered a foreign country for orders. However, there is a high future interest for cross-border shopping. Almost 60% of the surveyed users are planning to order abroad. Pre-ferred destinations will be the US and Germany.

France[33.4]

Japan[29.0]

USA[78.2]

Germany[56.6]

China[37.3]

Country information Turkey Country profile · Media Use · Distance selling · “Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing



48.0

22.229.9

Shop the World 318



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times






Drivers for ordering abroad· Turkey in % *

Barriers to ordering abroad · Turkey in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Unknown territory

A lack of experience with international purchases is holding back cross-border commerce today. Barriers to ordering abroad are widely spread.



53.3

48.6

61.9

56.3

43.5

23.1

58.3

32.2

47.7

32.9

50.6

40.6

38.7

50.0

74.1

41.3

68.7

44.6

20.8

Country information Turkey Country profile · Media Use · Distance selling · “Customer jour-ney“· Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Shop the World 319

Reception of mailings and catalogs · Turkey in % *


DIALOG MARKETING


· in % *,**

Turkey

Globally

15.3 38.8 45.9

22.1 35.2 42.7



Turkey

Globally

19.2 41.6 39.2

29.0 45.8 25.3

Response channel for mailings and catalogs · Turkey in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

82.5 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n Turkey from 394 to 516 ** scale from 1 "never“ to 6 "almost always“

Response will take place online

Mailings and catalogs are rarely used in Turkey: 29,1 % of consumers do not receive ad-vertisement in their mail. Tur-kish consumers are more interested in the information they receive than the aver-age global consumer. Online responses to marketing campaigns such as visiting websites or chats and social media are actively used. Email and telephone are also relatively frequent communication channels. Directly visiting a store of an advertiser is also a common response in Turkey.

Globally




Never

26.9

33.7

27.7

11.6 39.9

41.5

30.2

25.2

9.9

11.0

24.5

35.5

29.1

Country information Turkey Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing

Country InformationUSA

Adam

American distance selling clients like mobile devices and they are the world champions in online shopping.

Shop the World 321Country information USA Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

67.4


The economy in the US * COUNTRY PROFILE USA

New York- Newark 20,104

Los Angeles- Long Beach- Santa Ana

13,223



2.8


>

>

1.91.9

2011 2012 2013





· 2013 in mn.· 2013· 2013 in %· 2013 in %

120.72.67.41.5

The US currently sees an eco-nomic upswing, albeit a slow one. Assuming that the bud-get-consolidation debate does not escalate further, and no large external influences im-pact the economy, the chances are good that the US will see faster growth in 2014 than in the past (2013: real approx. 1.9%). The revival of private spending, which benefits from an ongoing decline in unemployment, greater purchas-ing power in many US house-holds, and a stable financing environment could all have a positive effect.

205.5

42.8

Washington, D.C. 4,634

Dallas-Fort Worth 5,143

Houston 7,785

Chicago 9,545

Philadelphia 5,841

Boston 4,772

Atlanta 4,875

Miami 5,971

The ten largest conurbations in the US · 2011 in thousand. **

Shop the World 322

39+10+1+5+21+14+10

Country information USA Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shopping · Dialog marketing

MEDIA USE IN THE USA

28.0

98.7


43,5




2012 2013

56.4

Internet use

In 2012, 81% of people in the US used the internet, even though broadband access is still a pro-blem. Only 28 out of 100 inha-bitants have access to broadband. The technical require-ment for wide mobile use of the internet lies in smartphones, which have seen a dramatic increase - from 44% in 2012 to 56% in 2013.

Solid growth on first place

In 2016, the US remains the world’s largest advertising mar-ket by far. With solid growth of 4%-5%, the US also contributes most to the increase in global advertising spends. TV will continue to hold its position as the strongest media channel until 2016. Internet spends will increase at 18% within the next two years, mostly driven by mobile, social and video platforms.





>>


2011 2012 2013 2014 201514

3.2

81.0

136.

9

130.

5

125.

8

120.

2

2016

149.

3

21.7

13.7

10.7

4.70.510.2

38.5

Shop the World 323






DVDs, etc.)

Housewares and home


Food + beverages


appliances


DIY and gardening


ments



chastener, etc.)

The superlative

When it comes to mere shipping of goods, the US is unrivaled. Even if the mar-ket is below the global level, with average growth of 7.3% p.a., there is much potential for growth in household appliances, media products, and food.

DISTANCE SELLING IN THE US

46,922.0

16,409.0

18,121.8

40,037.1

20,605.0

9,003.0

7,869.5

7,576.2

5,197.715,829.4

5,658.9

3,964.4

2,965.4

4,306.7

2,103.0

1,973.8

227.2


CAGR: 7.3%

Home shopping


77.473.5

69.9

176.4 268.0

65.9

54.7

2011 2012 2013e 2014e 2018e



32,263.9

202.8


4,534.4

4,850.5

6,551.4

Shop the World 324


86+1484

+16

eCommerce cradle

In the US, distance selling is part of everyday life: At 86%, the rate and number of orders are above the global average. Almost a third of customers intend to order online more frequently in the future.Use of distance selling · in % *

86.0

14.0

USA

Globally

83.5

16.5


1 to 5 orders

6 to 10 orders

11 to 20 orders

No orders

19.9

30.1

21.3

14.0

14.7

20.5

35.9

15.2

16.5

12.0



12 months


12 months


12 months

65.7

29.4

55.2

38.8

4.9 6.1

Yes68.4

USA

Globally

Yes70.5

No31.6

No29.5

Yes No

USA Globally USA Globally


* Source: DHL Global Mail 2013 ∙ n Global from 1,275 to 11,265 ∙ n USA from 117 to 1.022


More than 20 orders

Shop the World 325

Globally*

45.2


Age · in % <30 yrs. 30-49 yrs. 50 yrs. +



4.9









26.0

78.4

40.037.5

22.4

25.574.5

14.333.8

60.0

24.8

40.0

21.9

95.1

61.8

0.7

34.117.8

78.1

Women as heavy users

In the US, almost two thirds ofall heavy users of distance sell-ing are women. This group is older (50+), rather well educated, and largely involves smaller rural households. In line with their above-aver-age use of mobile devices to access the internet, many heavy users prefer online advertising. Product information distributed via traditional channels is rather unpopular in this target group.


* Source: DHL Global Mail 2013 ∙ n Global from 2,661 to 11,265 ∙ n USA from 236 to 1,022 ** media affinity for online / classic / dialog marketing, if at least one medium from the respective area was rated 5 or 6 on a scale of 1 "absolutely not useful" to 6 "very useful" *** the top third of most active mail order users

44.327.1

14.4

36.4

46.9

36.5

80.8

33.734.232.1

45.754.3

22.443.0

50.0

28.6

50.0

29.4

85.6

63.6

0.7

23.411.2

70.6


***

USA*

37.631.9

7.8

40.3

41.3

29.8

76.2

34.436.229.4

38.461.6

17.532.4

50.2

30.6

49.8

25.6

92.2

59.7

0.7

33.316.8

74.4

30.0

38.2


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Search engines





Online marketplace

Catalog

Mail advertising












Free returns


Fast delivery

Free delivery


“CUSTOMER JOURNEY“ – SEARCHING FOR PRODUCT INFORMATIONSearch for product information · USA in % * Globally

42.0 35.5

53.2

26.9 23.4

31.4 44.2

29.9 23.9

53.0 45.8

51.7 42.5

23.5 25.1

11.8 15.1

10.1 15.1

9.5 9.7

40.4 37.8

Criteria for choosing a vendor · USA in % *

Globally

57.1

51.7 40.6 Good customer service

10.1 13.7

20.7

11.7 8.8

27.4 26.6

12.3 14.9

56.0 51.7

11.7 12.9

23.9 20.8

14.2 22.6

19.4 25.7

54.8 45.2

24.9 18.5

20.8

Google fans

While search engines are used to select products, the key criteria for choosing a supplier are free delivery and cheap prices.

* Source: DHL Global Mail 2013 ∙ n Global from 9,386 to 10,617 ∙ n USA from 869 to 984, multiple mentioning


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Ø

43.231.8 25.026.1 43.8 30.1

Online advertising

* Source: DHL Global Mail 2013 ∙ n Global from 10,218 to 10,384 ∙ n USA from 941 to 961 ** scale from 1 "absolutely not useful" to 6 "very useful"

Online advertising popular

Consumers in the US rate ad-vertising more critically than the global average. Search en-gines and price comparison websites are ranked the most useful.


USA Globally




3.43.6

Ø

38.542.3 19.130.6 41.8 27.6

3.03.4

33.653.4 13.038.7 40.4 20.9Social media

USA Globally

Advertising letters

2.63.1

31.550.2 18.333.9 37.6 28.5

2.83.4


44.026.5 29.518.9 45.1 36.0

3.53.9

27.49.4 63.26.5 28.7 64.8

4.74.8

37.316.6 46.19.1 31.7 59.1

4.24.6

39.539.8 20.729.9 43.9 26.2

USA Globally


3.13.4

43.336.8 19.829.0 46.7 24.3

USA Globally


3.13.4

33.449.1 17.534.8 43.1 22.1

USA Globally


2.83.2

28.062.5 9.541.8 40.7 17.6

USA Globally


2.33.0

35.851.9 12.444.3 38.8 16.9

USA Globally

Radio

2.62.9

40.625.3 34.119.3 44.2 36.6

USA Globally


3.73.9

USA Globally

USA Globally

USA Globally


USA Globally


USA Globally

Shop the World 328

Online PC


By telephone


By email


Online marketplace




retailer



Occasionally

* Source: DHL Global Mail 2013 ∙ n Global from 9,270 to 9,446 ∙ n USA from 867 to 879

USA Global

79.4

3.0

1.0

2.4

75.0

3.2

2.1

4.4

“CUSTOMER JOURNEY“ – PLACING ORDERSOnline ordering wins

Almost 90% of orders are made online - preferably via PC. This rate is significantly higher than the global average. Other ordering methods play a less important role in the US. Respondents use online mar-ketplaces where they can find products of various providers particularly often. Online shops of individual manufacturers or retailers are also very popular in the US. Sometimes, people also order from catalogs, while teleshopping, in comparison, is of no relevance for the majority.

12.2 31.115.2

15.4 31.216.8

41.4

36.6

USA

Globally

4.3 63.37.8

9.9 54.38.7

24.5

27.0

33.5 9.926.7

38.5 12.622.8

29.9

26.1

63.6 3.623.3

60.2 6.617.6

9.6

15.7

10.3

10.5

3.9

4.8

Ordering channels · in % *


Seldom

Shop the World 329

Credit cards: the popular choice

At 67%, the credit card is by far the most frequently used payment method – including when compared to the global benchmark. This is not too surprising given that the credit card was actually born in the US. The debit card, the credit card’s little sister, is also a popular payment method. Slightly more than 50% of Americans also use online payment sys-tems on occasion. Cash on delivery and direct debit are rather unusual in US distance selling and are rarely used.

Cash on delivery

Prepayment

Direct debit

Credit card


“CUSTOMER JOURNEY“ – PAYMENT METHODS



Debit card

Invoice



USA

Globally

13.0 5.6 14.7 66.7

29.3 9.8 18.7 42.3

88.5 5.7 3.2 2.7

55.8 16.3 16.1 11.7

76.9 7.5 7.0 8.7

53.4 16.1 15.5 15.0

78.0 9.4 6.4 6.2

56.0 15.5 16.4 12.1

81.5 10.4 6.1 2.0

54.4 15.8 16.3 13.4

30.9 17.3 25.4 26.4

33.3 12.9 20.1 33.7

90.0 5.6 3.0 1.3

78.0 9.5 8.1 4.4

45.7 10.0 14.4 29.8

55.1 10.8 15.7 18.4


Seldom

Shop the World 330

USA Globally



Fast delivery

Free delivery




Other collection points (supermarket, kiosk, gas station)

2.8

2.7

3.4

5.4

4.9

5.0

3.2

4.8

4.5


3.6

3.5

3.7

5.3

4.8

5.1

3.8

4.9

4.7

* Source: DHL Global Mail 2013 ∙ n Global from 10,270 to 10,462 ∙ n USA from 943 to 962 ** scale from 1 "absolutely not important" to 6 "very important“

Long distances - fast delivery

Despite the size of the country, people expect their order to arrive within six days. Apart from free and fast delivery, Americans also want to be in-formed about the status, time and date of their delivery.


1 2 3 4 5 6



6.3

6.5

USA Globally

Shop the World 331

64+36 72+28

Number of returns per capita per year · Ø * USA Globally

0.8

1.0

Return rate · in % * USA Globally

5.9

Reasons for returns · USA in % *



36.0

64.0

USA Globally

Yes No

"CUSTOMER JOURNEY“ – RETURNSMany returns

Compared to the global benchmark, the number of distance selling clients returning goods is rather high, at 36%. The return rate is also signifi-cantly higher than the global average, at 6.8%.If goods are returned, it is mostly because people simply did not like the product, or product quality does not meet expectations. More frequently than on global average, Ameri-cans return goods because they ordered the wrong product.

27.5

72.5





Product did not fit






10.2

8.0

25.4

32.0

9.6

4.3

4.5

Globally

32.3

30.0

17.8

13.3

8.5

37.7

29.9

15.5

5.8

3.9

25.8

13.5


6.8

Shop the World 332

High delivery costs

Uncertain delivery







No personal advice






Shopping 24/7



Lower prices

Greater selection



· USA in % *

50.8

54.6

72.6

63.5

7.8

59.1

46.0

67.3

57.3

52.8

72.4

Globally

36.6

24.2

34.4

3.9

25.8

48.5

64.9

44.1

21.5

22.0

29.8

34.1

Convenience rules

Distance selling allows shop-ping around the clock; additionally, the goods are conveniently delivered to the doorstep.

Drivers · USA in % *

Globally


63.9

45.3

75.1

67.2

6.1

49.1

18.5

29.0

2.5

32.1

44.0

69.5

49.5

12.6

15.6

25.6

21.1


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Japan[20.2]

Canada[31.2]

1

2

3

4

5

China[48.1]

Great Britain[40.5]

Hong Kong[22.4]


USA

* Source: DHL Global Mail 2013 ∙ n Global from 4,738 to 8,807 ∙ n USA from 381 to 785 ** split into "further orders planned“ 38.1% USA and "no further orders planned" 5.7% USA

Few orders from abroad

So far, only two fifths of distance selling clients have shopped internationally; this is slightly lower than the global comparison. However, two-thirds of Americans plan to shop abroad in the future. US shoppers mainly order in Chi-na, Great Britain, and Canada. In the future, China will lose its leading position. The top destinations for cross-border shopping will than be English- speaking Great Britain and Canada followed by Japan.

Canada[69.8]

Germany[38.5]

Great Britain[70.9]

China[44.0]

Japan[46.0]

Country information USA Country profile · Media Use · Distance selling · “Customer jour-ney“ · Drivers & barriers in distance selling · Cross-border shop-ping · Dialog marketing



23.6

43.8

32.6

Shop the World 334



Lower prices

Greater selection


feiting


Customs clearance




Long delivery times







· USA in % *

Barriers to ordering abroad · USA in % *

Globally

73.3

24.2

62.9

41.2

11.7

Globally

53.7

31.6

41.3

41.3

33.3

12.5

56.1

35.7

50.8

24.5

41.6

39.5

31.6

39.3

Availability and prices

If Americans order from abroad, it is often because products are not available in the US or because people ex-pect lower prices.High delivery costs and long delivery times speak against ordering from abroad. Another barrier is the more difficult process involved in product returns.



62.3

31.6

31.1

38.4

39.3

21.7

69.4

48.9

54.8

30.8

51.1

40.8

40.6

41.9

65.2

12.4

53.6

29.1

3.7


Shop the World 335

Receipt of mailings and catalogs · USA in % *


DIALOG MARKETING


USA

Globally

23.1 44.5 32.4

22.1 35.2 42.7



USA

Globally

35.0 48.0 17.0

29.0 45.8 25.3

Response channel for mailings and catalogs · USA in % * Globally

Website visits

Visits to stores or

branch offices

Other online


Twitter, Facebook,

newsletter

registration, etc.)

Email

Phone call

Business reply card

74.7 73.4

48.6

30.0

24.5

18.4

12.6

* Source: DHL Global Mail 2013 ∙ n Global from 8,788 to 11,265 ∙ n USA from 801 to 1,022 ** scale from 1 "never“ to 6 "almost always“

A lot of mail, a lot of reluctance

In the US, there is a reciprocal relationship between the num-ber of mailings received and the willingness to respond to them. While almost two thirds of Americans receive mailings and catalogs at least once a month (more frequently than the global average), only one third actually reads them. Only 17% of respondents respond to dialog marketing.The most frequent form of response from people who are interested in what the mailing has to offer is visiting the sup-plier’s website, store or retail outlet. The response card is hardly ever used in this highly digitized country.

Globally




Never

26.9

33.7

27.7

11.6 46.9

18.8

14.3

17.6

7.1

33.1

41.3

17.7

7.8


Shop the World 336

22

Gender (quota) · in % * Male Female

Age (quota) · in % * 16-24 yrs. 25-34 yrs. 35-44 yrs. 45-54 yrs. 55-64 yrs.

Occupation · in % * Employed Unemployed

Education · in % * Lower educational level Medium and higher level of education

14

Community size · in % * Rural (<50,000 inhabitants) Non-rural/urban (>50,000 inhabitants)

Household type · in % * Single 2-person household without children Household with children Household with 3 adults

Mobile Internet usage · in % * Yes NoGross household income · in % * Low income Medium income High income 34

3432

4654

2243

50

18

50

29

86

64

2311

71

22

36

2117

AU AT BR CA CN FR DE IN IT JP MX NL PL RU KR ES CH TR UK US

522 510 512 512 1,040 505 514 501 500 514 512 512 509 512 521 506 521 516 504 1,022

Countries analyzed / number of cases per country

Methodology

Quantitative online survey using an online access panel

Basic population

Online population in 20 coun-tries; country-dependent quota process by age and gender .

Sample size

n = 11,265

Weighting

The total value is calculated as a weighted mean with every coun-try contributing 5% to the total; case figures are shown as un-weighted values .

Interview duration

approx . 13 minutes (median)

Field time

Oct . 28th to Nov . 15th, 2013

Notes on the methodology used: Rounding differences

Due to the fact that figures have been rounded, the total might be not exactly 100 per cent .

Appendix Methodology: Study design and sample size

Methodology: Study design and sample size

* Source: DHL Global Mail 2013 ∙ All values in %, n (total) = 9,525-11,265

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Usage of distance selling and number of orders in the previous yearHow often have you bought goods via distance selling in the last 12 months?

Future ordering behavior (current users)How often do you think to buy goods via distance seilling in the next 12 months?

Non-users of distance selling-future plansCould you envisage to buy goods via dis-tance selling in the next 12 months?

GenderPlease indicate your gender .

AgeHow old are you?

OccupationAre you employed?

EducationWhat is your level of education?

Community sizeHow large is the community or town you live in?

Minors in the householdHow many people in your household are minors?

Household typeHow many people live with you in your household?

Mobile Internet usageWhere do you use the internet?

Gross household incomeHow much is your gross annual household income?

Search for product informationIf you wish to place an order via distance selling: How and where do you get your initial information about the products?

Criteria for choosing a distance selling vendorWhich of the following criteria is par-ticularly important when selecting a distance selling vendor (Internet and/or catalog)?

Usefulness of advertising mediaHow useful do you find the following media in obtaining this information?

Distance selling order channelsHow often have you personally used mail order in the last 12 months using the following media?

Use of different distance selling suppliersAnd where have you ordered in the last 12 months?

PaymentAnd how have you paid for your goods in the last 12 months?

Accepted order timesWhat delivery times do you find accept-able when buying by distance selling?

Requirements for deliveryThe focus now is on the delivery of the products that you have ordered: How important to you are the following aspects relating to the delivery?

Percentage of users who returned goods and number of returns How many returns have you personally made in relation to orders in the last 12 months?

Appendix Questionnaire

Reasons for returnsFor what reasons have you personally returned goods to the vendor? DriversFrom your point of view, what are the advantages of buying by distance selling?

BarriersFrom your point of view, what are dis-advantages of buying by distance selling?

Use of cross-border eCommerce Have you ever ordered goods from abroad? Can you imagine yourself order-ing abroad in future?

Previous cross-border shopping by countryIn which countries have you already made orders?

Future cross-border shopping by countryIn which countries can you imagine yourself ordering abroad in the future?

Drivers for cross-border shoppingFrom your point of view, what are the ad-vantages for ordering abroad?

Barriers to ordering abroadFrom your point of view, what are the disadvantages of ordering ordering abroad?

Receipt of mailings and catalogsHow often have you received advertising or catalogs by mail in the last 12 months?

Reading mailings and catalogsHow often do you read advertis-ing or catalogs that you receive by mail?

Response to mailings and catalogsAll in all: How often have you responded to advertising or catalogs received in the mail in the last 12 months, e .g . by visit-ing the relevant website, placing an order, visiting the store, etc .?

Response channel for mailings and catalogsHave you already responded in the specified manner to advertising or catalogs received by mail in the last 12 months?

Questionnaire

Shop the World 338

Deutsche Post AG

Represented by the Board: Dr. Frank Appel, CEO Ken Allen Roger Crook Jürgen Gerdes John Gilbert Lawrence A. Rosen Angela Titzrath

Chairman of the Supervisory Board:Prof. Wulf von Schimmelmann

Commercial Register: District Court of Bonn, HRB 6792VAT ID .: DE 169838187

Address:Charles-de-Gaulle-Straße 20 ZIP/ Town: 53113 Bonn Phone: +49 / (0) 228 / 18 20

Contact:Email: [email protected] Website: www.dhl.com

Study design and implementation:Deutsche Post AG, Market Research Service Center/ MRSC

Project management: Susanne Fischer, Deutsche Post AG

Project management and editorial: Birgit Bünnigmann, Bettina Schletter, Gabriele Thümmler, Simone Weithöner, all of Deutsche Post AG

Layout: Meavision Media GmbH

Regulating authority according to Article 5 (1) No. 3 German Telemedia Act for the Carriage of letters weighing up to 1,000 Grams: Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway (BNetzA), Tulpenfeld 4, 53113 Bonn, Phone: +49 / (0) 228 / 14-0, www.bundesnetzagentur.de

Commercial property rights: All of the texts, photos, data and graphical designs used in this document are protected by copyright and database rights. This content may only be used with the prior consent of the rights holder.

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