Seminar dibs final

Conversion in the moment of buying

- don’t disappoint your customer

DIBS E-Commerce Survey 2011

• The purpose of The DIBS E-Commerce Survey is to give

a comprehensive overview of e-commerce in all

industries

• The survey covers Sweden, Denmark, Norway, Finland,

UK, Germany, France, Poland and Spain

• Interviews with over 9,000 Internet users and 333 online

retailers in the third quarter of 2011 by research agency

YouGov

• The study used Europe * for the sum of Finland, Great

Britain, Germany, France, Poland and Spain

SLIDE 2

Massive Market A growth opportunity for merchants

E-shoppers

77%

84%

86%

96%

95%

90%

85%

94%

92%

82%

90%

87%

94%

94%

89%

92%

95%

94%

0% 20% 40% 60% 80% 100% 120%

Spain

Poland

France

Germany

UK

Finland

Norway

Denmark

Sweden

Male Female

SLIDE 4

Average number of purchases (six month)

4,3

5,0

5,6

7,6

10,5

5,6

6,4

6,1

6,3

4,8

5,9

6,0

7,7

11,7

6,1

7,6

7,5

6,9

0 5 10 15

Spain

Poland

France

Germany

UK

Finland

Norway

Denmark

Sweden

Male Female

SLIDE 5

The Brits are

the most keen

on e-shopping

Average consumption

429

293

569

618

813

752

952

717

693

443

487

554

618

594

987

763

600

0 200 400 600 800 1000 1200

Spain

Poland

France

Germany

UK

Finland

Norway

Denmark

Sweden

2010 2011

SLIDE 6

Norwegians are

the top online

consumers

Euro

Total market per industry

26

28

24

54

13

17

12

21

18

0 10 20 30 40 50 60

Electronics

Household consumables

Home non consumables

Travel

Media

Clothes

Personal care

Services

Other

SLIDE 7

The online trave

market is a

massive 54 billion

euros

Billion euro

E-commerce is a safe place to sell

89%

98%

92%

93%

80% 85% 90% 95% 100%

Europe*

Norway

Denmark

Sweden

SLIDE 8

E-stores see

e-commerce

as a safe channel

Structural drivers Optimism for growth

Optimism for further growth, consumers

72%

65%

63%

79%

79%

89%

79%

82%

86%

68%

61%

76%

73%

87%

84%

85%

91%

0% 20% 40% 60% 80% 100%

Spain

Poland

France

Germany

UK

Finland

Norway

Denmark

Sweden

Same or more 2010 Same or more 2011

SLIDE 10

Growing optimism

in the largest

markets

Drivers of e-commerce, consumers

69%

61%

60%

59%

44%

4%

0% 20% 40% 60% 80%

Saves time/it's easy

Lower prices

Always open

To compare products and

prices

Larger product range

Other reason

SLIDE 11

Optimism for further growth, e-stores

67%

80%

63%

72%

16%

9%

12%

9%

9%

4%

7%

15%

0% 20% 40% 60% 80% 100%

Europe*

Norway

Denmark

Sweden

Less2 Same More

SLIDE 12

Commerce is going mobile The young are leading the way

E-stores offering mobile commerce

70%

21%

4% 4%

2% No

No, but we will soon

Yes, via own mobile site Yes, via apps

Yes, through other solutions

SLIDE 14

21% of the stores are about to

launch m-commerce

M-consumers

18%

16%

11%

7%

5%

3%

0%

5%

10%

15%

20%

15-24 25-34 35-44 45-54 55-64 65-74

SLIDE 15

M-commerce is

reaching out to

younger crowds

Years old

How m-consumers paid for the service or product

0% 20% 40% 60% 80% 100%

Spain

Poland

France

Germany

UK

Finland

Norway

Denmark

Sweden

By SMS By mobile bill By card By invoice

SLIDE 16

SMS is so far the

most used form

of payment

What they bought with their phone

16%

9%

14%

16%

25%

10%

6%

17%

18%

0% 5% 10% 15% 20% 25% 30%

Electronics

Household consumables

Home non-consumables

Travel

Media/ Entertainm…

Clothes and shoes

Personal care

Services

Other

SLIDE 17

M-commerce is

especially

success-ful for

services to be

consumed ”on the

go

Why they have not done m-commerce

59%

30%

14%

9%

5%

4%

15%

0% 20% 40% 60% 80%

Cannot see the need

Don´t feel safe

Too complicated

Want to see product

Not receive product

Need help

Other

SLIDE 18

Perceived need

is the key

Expectations for m-commerce, stores

29%

23%

27%

31%

29%

28%

26%

26%

0%

1%

2%

1%

0% 10% 20% 30% 40%

Europe*

Norway

Denmark

Sweden

Less Same More

SLIDE 19

M-stores in all

countries are

overwhelmingly

optimistic about

growth in m-

commerce

Perceived obstacles for m-commerce, stores

31%

26%

15%

12%

9%

3%

10%

16%

0% 10% 20% 30% 40%

No customers demand yet

Lack of Knowledge

Products not suitable

Lack of financial …

Lack of efficient platform

No trust in payment

Other

None

SLIDE 20

Two thirds of the

stores do not say

that there is no

customer demand

Commerce is going mobile Denmark

M-consumers per age group in Denmark

27% 26%

19%

11%

4%

7%

0%

10%

20%

30%

15-24 25-34 35-44 45-54 55-64 65-74

SLIDE 22

Over a quarter of

Danes below the age

of 34 are m-shopping

Years old

What Danish mobile consumers buy with their

phone

7%

1%

3%

34%

18%

3%

0%

28%

20%

0% 10% 20% 30% 40%

Electronics

Household consumables

Home non consumables

Travel

Media

Clothes

Personal care

Services

Other

SLIDE 23

Travel is a large

part of the m-

commerce market

Mobile payment methods consumers used in

Denmark

45%

25%

25%

5%

SMS

Mobile phone bill

Card

Invoice

SLIDE 24

In Denmark, 58% of

m-consumers have paid via SMS

How to pay Finding the right payment methods across Europe

Preferred payment method - Consumer

42%

9%

17%

7%

1%

18%

1%

3%

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

Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/ financing

Other method

SLIDE 26

Card is the most

popular method,

but not in every

country

How to choose payment method

53%

52%

12%

11%

7%

3%

6%

3%

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

Safest

Easiest

Billed later

Cheapest

Only method available

Possibility to finance

I get bonus points

Other

SLIDE 27

Safe and easy,

that’s the triggers

Reason for abandoning a purchase

32%

30%

25%

22%

20%

19%

17%

4%

15%

0% 10% 20% 30% 40%

Uncertain conditions

Not preferred payment

Lack of confidence

Technical problems

Insufficient information

Registration process

Payment process

No in-store delivery

Other

SLIDE 28

30% of the

consumers have

abandoned a

purchase due to

lack of payment

alternative

How to pay? Scandinavia

Preferred payment methods in Denmark

87%

4%

3% 2% 0% 3% 0% 0%

Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/financing

Other method

SLIDE 30

The Dankort dominates the

market

Preferred payment methods in Sweden

42%

24%

24%

2% 0% 4% 1% 1%

Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/financing

Other method

SLIDE 31

Three main alternative

methods

Payment methods preferred in Norway

65%

9%

10%

3%

0%

10% 1% 0%

Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/financing

Other method

SLIDE 32

Card has the strongest appeal

Preferred payment methods in Finland

28%

41%

17%

3%

0% 6%

3% 0% Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/financing

Other method

SLIDE 33

Internet transfer is big

How to pay? Selected contries

Preferred payment methods in UK

71%

4%

1%

1%

0%

19%

1% 1% Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/financing

Other method

SLIDE 35

People pay with the plastics

Preferred payment methods in Germany

9%

5%

50%

4%

1%

24%

1% 6% Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/financing

Other method

SLIDE 36

Cards dominate, with

micropayments being very

popular

Preferred payment methods in France

65% 4%

3%

2%

1%

17%

3% 3%

Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/financing

Other method

SLIDE 37

Cards and micropayments

Preferred payment methods in Poland

9%

42%

3%

33%

2%

4% 2% 3%

Card

Direct via Internet bank

Invoice

Cash on delivery

Mobile telephone

Micropayment services

Instalment/financing

Other method

SLIDE 38

Cash on delivery is more

popular than elsewhere

Cross border opportunities

E-consumers who shopped abroad

32%

12%

20%

14%

16%

42%

49%

47%

31%

32%

0%

25%

15%

19%

43%

53%

51%

33%

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

Spain

Poland

France

Germany

UK

Finland

Norway

Denmark

Sweden

2010 2011

SLIDE 40

Euro

Why shop abroad

42%

39%

11%

8%

5%

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

Product not found at home

Lower price than at home

Lower tax/VAT

Product to be used there

Other

SLIDE 41

Conversion in the moment of buying A dificult choice

DIBS Mobile – standard design

Mobile app/page - customized

Internet payment – standard design

SIDE 45

Internet payment - custumized

SIDE 46

Internet payment - custumized

SIDE 47

Internet payment - custumized

SIDE 48

Internet payment - custumized

SIDE 49

Internet payment - custumized

SIDE 50

Summary A huge market opportunity, still in its infancy

E-commerce on the move

• E-commerce is well established among all consumer segments and it is a disruptive force in all industries

• It is a massive market opportunity for merchants, total value estimated to amount to 213 billion Euro for 2011

• Still a fraction of total consumption and consumers do just above one purchase per month

• Wide varieties in paying preferences across Europe, merchants have to take actions to cater for different preferences

• The choice of how to integrate the payment functionality have an effect on the conversion in the shop

• M-commerce is gaining tractions – Is it time to be a part of this?

SLIDE 52

Thanks for your time

Bo Knoblauch

bk@dibs.dk

+45 2788 9220

SLIDE 53