The Belgian e-commerce market and the

BeCommerce Sector

Patrick MarckBDMV-ABMD/BeCommerce

patrick@bdma.be

BDMA Mission • Direct marketing is a marketing strategy aimed to create and

maintain a direct relationship with the consumer for mutual benefit.

• The Belgian Direct Marketing Association (BDMA) provides a platform for direct marketing users and providers to promote, protect and teach the ethical use of best practices in direct marketing to enhance consumer trust.– “Protect”: consumers and authorities– “Promote”: of professional standards and professional expertise– “Teach”: to enhance expertise and professional practice– “Ethical use”: best warrant for a long term relation with the consumer

Acquisition

Retention

+ Trust

MORE EFFECTIVE

DM

The BDMA stands for

• 450 member companies– 250 advertisers– 200 service providers

• 3.500 member contacts • 6 Sectors

• All members are bound by Code of Conduct and the decisions taken by the Surveillance Committee (collaboration with JEP)

• BDMV-ABMD is member of:

Interruption marketing

Preference permission marketing

Main issues

Building consumer trust in e-commerce & multichannel distance selling

Certified label Confidence in online payments Pro-active & re-active public relations Sector knowledge

Powered by the BDMA Largest platform of interactive & direct marketing professionals,

service providers and users Defending the sector’s interests based on Code of Conduct and

Surveillance Committee (complaint handling) Promoting interactive & direct marketing and distance selling Stimulating networking between service providers and users Organizing education towards professionals and schools

• To increase consumer trust in on & offline distance selling

• Some facts why a label makes sense“62% attaches greater importance to certification of e-

commerce sites” – People aging 25-34 are more open to purchase online and have

the most faith in e-commerce– People aging 55-64 have less faith in e-commerce, but a find it

very important if a site is certified (73%)Source: BIM Insites, June 2006

Internet figures speak for themselves– High internet penetration (+56%)– Only 20% of internauts buy online

Task Force Label; President: Jean-Noël Chamart (Mediadis.com)

...?

Certified label: why?

Difference between Belgium and France

% of the population connected to Internet

0

10

20

30

40

50

60

2000 2001 2002 2003 2004 2005

Belgium

France

% of internauts buying online

0

10

20

30

40

50

60

70

2001 2002 2003 2004 2005

Belgium

France

•France: no need for a certified label because consumer trust in e-commerce exists•Belgium FR: less internauts, but buying more online•Belgium NL: more internauts, but buying less online

52%

45%

48%

55%

30%

35%

40%

45%

50%

55%

Internauts e-shoppers

FR

NL

linguistical repartition internet users and e-shopping

FR NL

Certified label: why?

• How ?– By creating a Code of Conduct within the

BDMA Code (applying by a checklist)– By setting up a certification and a

monitoring process (firm procedure)– By using the Surveillance Committee as

the complaint handling organisation– By communicating the benefits for

consumers & distance sellers

Certified label: how?

Consumer friendly label– Thumb: OK– Green light: go for it– Guaranteed: it’s safe (based on market research)– BDMA blue: seriousness

Developed by Caribou

Certified label: what?

Certified label: the system

1/5 Comp. selected by

draw each year

CONTROL AUDIT

Also with mystery shopping procedure

Member accepts code & reglementation

Member completes checklist

Initial certification

carried out by auditor

Auditor reports to CS

INITIAL AUDIT

Auditor’s report agreed by CS

Trust in online payments

• Objectives– Creating an information exchange platform– Listen to Becommerce members’ concerns

• Realisations • Launch of Bancontact/MisterCash• Preparation of checklist for BeCommerce website• Prepare introduction Verified by Visa & MasterCard

SecureCode with banks • Discussion on security matters: recommendation

towards members

Task Force Online Payments; President: Pierre Willaert (Ogone)

Pro&Reactive PR

• Objectives– Increase trust in e-commerce– Increase visibility via

• Press releases • Annual press conference: May 2006• BeCommerce Awards ceremony: February 2006

– Château Sainte-Anne, Bruxelles– 99 sites for jury– 150 participants on event– Next edition: 13/02/2007– Consumer Awards by media partners (adds/banners for

online voting)

• BeCommerce consumer website

Task Force PR; President: Peter Burin (eBay)

BeCommerce website

BeCommerce Figures

Task Force Figures&Market ResearchPresident: Rik Decorte (Quelle)

Source: Ogone

BeCommerce Figures

Main evolutions : Total Sales

05 / 04 06/1Q05

Internet sales by pure Internet players: +108 % +60 %

Internet sales by multichannel: +26 % +35 %

Traditional sales by multichannel: -13 % -7 %

Rapid Growth of Internet Sales 2005 : Difficult Year for Mail Order, transition to Internet

Source: BeCommerce / Insites Survey

BeCommerce Figures

Main evolutions : payment methods

(in % of sales)

2005 1Q06

Pure Pl Multi-Ch Pure Pl Multi-Ch

Credit Card 73 2 62 3

At Order (debet cards) 19 1 33 1

Cash on delivery 2 10 1 12

Cash after delivery 5 57 4 58

Company Card 1 30 0 26

Pure Players tend to use credit card as payment methodTraditional players use Cash after delivery, and private financing cards

Source: BeCommerce / Insites Survey

BeCommerce Figures

BelgianConsumersBIM InSites

€1.2 billion

SuppliersBeCommerce

€340 million

PaymentsOgone

E-commerceexpenditures

Belgian &Internationalcompanies

E-commerceturnoverBelgian

companies

Tourism &ticketing

?? €

Source: BeCommerce / Insites Survey

BeCommerce Figures

Customers say

they bought € 1.200.000.000

on the Internet in 2005

Belgian e-commerce & multichannel companies say

they received € 340.000.000 in 2005

Where did the go to ?

Source: BeCommerce / Insites Survey

BeCommerce Figures

BeCommerce Figures

Consumer global spending on the Internet: € 1.200.000.000

Tourism and ticketing € 450.000.000 38%

Outside Belgium € 410.000.000 34%

Turnover by Belgian companies € 340.000.000 28%

Belgian turnover by Belgian companies € 260.000.000

multichannel € 60.000.000

pure Internet players € 200.000.000

International turnover by Belgian companies € 80.000.000

Source: BeCommerce / Insites Survey

10,1

28,1

14,2

18,1

6,5

8,7

1,12,2

0,551,12

Offline

Online

Source: EMOTA

Estimated sales in some countries in 2005 in billion euro

European context

Join BDMA/BeCommerce now! ● Certified label ● Market figures ● Defending your interests ● Legal advice ● Networking ● Education

Thank you for your attention !patrick@bdma.be