Staying at home is not an option: Helping merchants boost cross-border e-commerce sales

The world is your address

WWV2013_23/11/2013_12:15_Logistiek & Fulfilment theather_Asendia - Staying at home is not an option

The world is your address

Staying at home is not an optionAgenda

1. The Distance Selling / e-Commerce market in Europe2. Cross border opportunities in Europe3. Drivers and barriers / customers requirements4. Opportunities in Switzerland and France5. Focus on the French market6. Asendia network


The Distance Selling/E-Commerce market in Europemarket definition - the distance selling industry

Online (e-shop)

Business to Consumer Business to Business

Domestic Cross Border

B2C Mail B2C ParcelIntegrates both channels and provides the most competitive delivery option depending on weight and/or value

Consumer’s perspective - any order made in an e-shop from a non domestic retailer.

DISTANCE SELLING

Mailings / Catalogues

T-Commerce Direct sellingMobile

e-Commerce

1 2 3 4 5 6


Global E-Commerce is growing rapidlyEurope is the largest market

Source: EMOTA/IMRG2012

1 2 3 4 5 6

UK; 90

France; 46

Germany; 45

Scandinavia; 29

Austria/Switzerland; 17

Benelux; 15

Spain; 11

Russia; 10

Italy; 10

Eastern Europe; 15

Other; 12

Source: EMOTA, 2012


European E-Commerce revenue by country in 2012three main markets UK, France, Germany (€ Bn) 1 2 3 4 5 6


Top 50 e-Merchants in 2011only 4 countries represented in the top 20

Ranking Country Online revenue (growth) in m€

Average cart value

Conversion rate

Ranking Country Online revenue (growth) in m€

Average cart value

Conversion rate

1 Amazon USA 12,917 (+38.00%) 90 € 6.30%26 The Carphone Warehouse UK 569 (+21.83%) 125 € 1.50%

2 Otto Group Germany 4,800 (+25.13%) 178 € 2.80%27 Weltbild Publishing Group Germany 545 (+17.82%) 120 € 2.50%

3 Tesco Stores UK 4,219 (+10.96%) 150 € 10.00%28 Migros-Genossenschafts Bund

Switzerland 539 (+1.81%) 139 € 3.17%

4 Staples USA 2,790 (+2.20%) 430 € 9.50%29 Play.com UK 530 (+10.42%) 50 € 8.50%

5 PPR France 2,780 (+20.87%) 88 € 2.10%30 Komplett Norway 526 (+1.08%) 200 € 2.27%

6 Home Retail Group UK 2,570 (+18.33%) 250 € 2.00%31 Darty.com France 518 (+15.88%) 340 € 2.30%

7 Shop Direct Group UK 1,630 (+8.87%) 90 € 3.00%32 Medion Germany 515 (+25.61%) 550 € 1.90%

8 Apple USA 1,360 (+28.00%) 85 € 1.10%33 Conrad Holding Germany 500 (+3.09%) 150 € 5.50%

9 Cdiscount France 1,348 (+14.24%) 110 € 4.30%34 Baur Versand Germany 499 (+59.52%) 100 € 2.50%

10 3 Suisses France 1,300 (+10.17%) 150 € 3.20%35 Wehkamp Netherlands 488 (+10.66%) 250 € 2.90%

11 Sainsburys UK 1,207 (+20.48%) 106 € 15.00%36 Delticom Germany 480 (+14.039%) 265 € 1.49%

12 Dixons Stores Group UK 1,017 (-8.52%) 300 € 2.00%37 Kingfisher UK 466 (+27.04%) 145 € 1.65%

13 Carrefour France 990 (+3.13%) 110 € 2.85%38 K-Mail Order Germany 432 (+15.20%) 90 € 2.00%

14 Vente Privée France 941 (+27.16%) 85 € 2.00%39 ASOS UK 410 (+27.75%) 95 € 2.40%

15 Next UK 928 (+38.51%) 130 € 2.70%40 E.Leclerc France 405 (+0.37%) 100 € 2.20%

16 John Lewis UK 905 (+26.85%) 120 € 5.70%41 Metro Group Germany 402 (+236.40%) 170 € 1.80%

17 ASDA UK 859 (+9.54%) 85 € 8.50%42 Privalia Spain 400 (+137.83%) 50 € 0.50%

18 Neckermann Grupper Germany 799 (+10.00%) 140 € 2.80%43 GetGoodGermanys.de Germany 400 (+33.33%) 160 € 2.40%

19 Marks & Spencer UK 789 (+11.56%) 100 € 4.30%44 Musikhaus Thomann Germany 390 (+6.85%) 100 € 2.40%

20 Comet Group UK 785 (+17.09%) 195 € 2.04%45 Findel UK 386 (-2.59%) 110 € 2.15%

21 Ocado UK 776 (+16.60%) 120 € 9.00%46 Hewlett-Packard USA 381 (+5.54%) 750 € 0.20%

22 MediaShopping.it Ita 740 (+8.82%) 400 € 3.00%47 N Brown Group UK 380 (+18.12%) 110 € 6.00%

23 eBuyer UK UK 724 (+27.53%) 300 € 2.00%48 Bol.com Netherlands 376 (+18.24%) 110 € 2.35%

24 Dell USA 719 (+0.84%) 640 € 1.00%49 Cyberport Germany 364 (+34.97%) 340 € 2.00%

25 Misco UK 688 (+9.03%) 430 € 3.40%50 LVMH France 359 (+19.67%) 480 € 1.80%

1 2 3 4 5 6


UK

Franc

e

Germ

any

Scand

inav

ia

Austri

a / S

witzer

land

Benel

ux

Spain

Italy

Easte

rn E

urop

e0%

5%

10%

15%

20%

25%

30%

14%

22%

27%

14%

18%

12%

20% 19%

27%

Average European growth

Source: EMOTA, 2012

E-Commerce growth by country in 2012two digits figures everywhere !

1 2 3 4 5 6


Source: TNS, Flash Eurobarometer 331, 2012

Cross-border opportunities in Europe% of retailers selling in at least one other EU country 1 2 3 4 5 6

61% of transactions failed because traders refusedto serve the consumers country (EC survey – 2010)


UK France Germany Scandinavia Benelux Spain Italy Eastern Europe0%

5%

10%

15%

20%

25%

EUaverage2011

Source: Eurostat 2011

Cross-border opportunities in Europe% of consumers buying online from another country

1 2 3 4 5 6

40% of European customers purchase on line, only 10% make their purchase from another country (EC survey – 2010)


Cross-border opportunities in Europecontinued growth potential

• Almost a quarter of persons aged 16-74 in the EU27 have never used the internet• Online is a way of life in Europe’s largest economies

Source: Emota

% of individuals who have never used the internet, 2011

1 2 3 4 5 6


Challenges - Europe cultural and legislative

◙ 27 countries in the European Union

◙ Own customs and tax authorities

◙ 23 official languages

◙ Plus Norway and Switzerland

◙ One single currency (Euro) & other currencies (GBP, SEK, NOK, CHF)

◙ A single EU customs territory with ‘no borders’, but…separate tax rules and regulations

1 2 3 4 5 6


Drivers and barriersreasons for/against cross border shopping

Source: IPC Cross border e-commerce report 2010

Main drivers for cross-border on-line shopping

Main barriers for cross-border on-line shopping

1. Pricelower prices, compare prices, better price due to lower taxes and exchange rates

1.No needCan find everything I need in my own country

2. Exclusive productsNot sold in own country

2. Lack of trustQuality of goods, not confident in receiving goods, warranty

3. Wider range of products 3. Possible high delivery costs

4. ConvenienceAny time of the day

4. Complicated & long return processes

1 2 3 4 5 6


What consumers requirevalue for money, certainty, predictability and information 1 2 3 4 5 6

Low shipping prices

Easy to compare (clear format, local currency) to simplify the decision process

No additional cost is a major requirement = total cost transparancy

Make the customer "feel at home"

Not always the fastest services, but reliable on-time delivery is the key

A customer will wait an extra day if the product they want is not found locally

BUT : the delivery promise must be kept

Full integration of the tracking data in the web portal, proactive notification of delivery

Simply and clear return process

Value for money

Certainty

Predictability

Information and trust


France and SwitzerlandFrance 3rd market in Europe / Switzerland a niche market

Revenue generated by e-commerce in FranceIn billion euros

2005 2006 2007 2008 2009 2010 2011

8.411.6

15.6

20

25

31

37.7

+25%

+24%

+22%

€37.7bn

€42.9bn

E-COMMERCE

TOTAL DISTANCE SALES

CHF5.3bn

TOTAL DISTANCE SALES

CHF4.2bn

TOTAL ONLINE SALES

2008 2009 2010 2011

4.65

4.85

5.1

5.3

+4%

Revenue generated by e-commerce in SwitzerlandIn billion Swiss Francs

1 2 3 4 5 6

= € 4.3 Bn

= € 3.4 Bn


French market Summary – key points

The French Distance Selling market is:

• Annual growth over 20%• Total revenue to double by 2015

Growing fast

• Pre-payment, low returns, strategic position• Confident and loyal consumers

Easy to access

• Printed catalogs generates more online purchases

Very much attached to printed mail

KEEPIN

MIND

1 2 3 4 5 6


French market French consumers – Key figures

• 30.7 million buyers

• 13.7 transactions per buyer per year

• Average amount per transaction: 90 €

• 1688 € spend per year per buyer

1 2 3 4 5 6

WWV2013_23/11/2013_12:15_Logistiek & Fulfilment theather_Asendia - Staying at home is not an option 16

French web-users do not hesitate to buy online, but their loyalty depends on their purchasing experience

51% 66.5%of e-buyers will buy

again from the same website if

they are satisfied with their 1st

purchase

of web-users truste-commerce

websites(+2% vs. 2010)

96%of e-buyers are

satisfied with the online purchases

they made in the last 6 months

French e-buyers are generally confident and loyal.

French marketa market with loyal customers

1 2 3 4 5 6


French marketE-buyers delivery requirements in France

• 90% of e-buyers consider it useful, or even essential for 38% to have the choice between several delivery options*

• Localness is the first criterion of choice for a pick-up location

*IFOP Barometer of parcel delivery brand awarenessSeptember 2011 – on the basis of 486 e-buyers

1 2 3 4 5 6


French marketFocus on So Colissimo service

A MULTIPLE-CHOICE DELIVERY SERVICE IN 48 HOURS AT HOME OR ALTERNATIVE PICK-UP LOCATIONS IN METROPOLITAN FRANCE

With or without signature, according to your choice

HomeFor parcels up to 30kg

Outside the homeWith parcel storage for 10 working days – For parcels < 20kg

5,500 convenience stores in La Poste Group's PICKUP network

Choice of 10,000 La Poste collection points (Post office, delivery agency….)Home delivery by appointment in the

evening between 17.00 and 21.30 (in Paris)

33 self-service locker stations,available 24/7

1 2 3 4 5 6


French marketexamples of e-merchants using So Colissimo 1 2 3 4 5 6


French market The importance of mail as a media

Printed mailings and catalogues are a popular and effective way of prospecting the French market and building French consumers' loyalty.

Despite the explosion of e-communication, traditional printed mail remains an effective media channel in France.

of French people that receive addressed mail read it or take a look at it

25% of French Distance Buyers would stop ordering if they were not sent a catalog

"Would you keep buying online if you did not receive a printed catalog?"

No, probably not

Yes, definitely

Yes, maybe

56%

25%

19%

1 2 3 4 5 6



A few examples of printed mailing campaigns sent by pure players:

1 2 3 4 5 6



Even catalogs and magazines!

An e-buyer who receives a printed catalog is twice as likely to make an online purchase

1 2 3 4 5 6


Asendia networkour new global mail solutions company

1 2 3 4 5 6


Asendia networkDistance selling value chain

Following up and securing shipments

Tracking, Value-added servicesB2C ParcelColissimo

Reverse Logistics (return solutions)

IBRS/IBRS+Post test

Advice on customs issues

Identifying potential customersConsultancy, targeting, prospection, data management Web deduplication, rental, Address Doctor check and control addressesData management via MDS (back issue service, telesales)

Distributing mailingsMailings and catalogues, response managementDestineo Mail / IntegralPriority MailBusiness Reply ServiceAlliage Massenpost A or B destination CH Unsorted to fully coded and sortedLocal look mailingsIDM mailings

Managing ordersStorage, order processing, packaging,

shippingFulfilment,

PackstreamColissimo

B2C Parcel

DevelopmentPlanning

OptimisationLoyalty building

Creating communication & building loyaltyPlanning, technical support, manufacturingDestineo PrintGlobaddress RentalGlobaddress OptimisAddress Doctor

1 2 3 4 5 6


Asendia networkfacilitating cross-border e-Commerce : B2C parcel

2012 – 2013...

• Combining shared parcels networks

• Swiss Post, La Poste network with postal partners for home delivery

• Using the DPD parcels services in certain countries

• One cohesive network

• Designed for packet and parcel delivery across Europe

• Extension into the US and Asia

ASIA

USA

1 2 3 4 5 6


1 2 3 4 5 6

THANK YOU

FOR YOUR ATTENTION

Documents

Staying at home is not an option: Helping merchants boost cross-border e-commerce sales