Post on 01-Jun-2015
description
EMOTA represents 3,500 multi‐channel/online retailers in 15 countries
• 15 European countries
• 16 member associations
• 3,500 companies
• € 290 billion turnover
• 83% of European e‐commerce
‐1‐
167
209
250
298
350
185
215
249 284
318
84
122
193
259
338
15 20 33
45 56
‐
50
100
150
200
250
300
350
2009 2010 2011 2012 2013
€ Billion Europe
N. AmericaAsia Pacific
ROW
+17%
+12%
+26%
E‐commerce turnover by region
‐2‐
In 2013, European E‐Commerce will reach a turnover of €350 billion Growth
+30%
Source: EMOTA, 2013Note: B2C E‐commerce turnover includes online travel, digital downloads and event tickets; excludes online gaming and financial services
UK, France and Germany account for 60% of European E‐CommerceEuropean E‐commerce turnover by country 2013 (€ billion)
Source: EMOTA, 2013Note: B2C E‐commerce turnover includes online travel, digital downloads and event tickets; excludes online gaming and financial services
‐3‐
UK
France
Germany
Scandinavia
Austria/Switzerland
Benelux
Russia
Italy
SpainEastern Europe
Other
111
52
46
33
20
16
13
13
1218 17
average European growth
E‐Commerce is growing very fast throughout Europe
+0%
+5%
+10%
+15%
+20%
+25%
+30%
+16%+14%
+23%
+13% +13%
+10%
+15%+14%
+30%
+24%
E‐commerce growth estimate by country in 2013
Source: EMOTA, 2013
‐4‐
+17%
E‐Commerce can potentially create 1.5 million jobs in Europe
0,0
1,0
2,0
3,0
4,0
2013 2014 2015 2016 2017 2018
million
Source: EMOTA, 2013
European E‐Commerce employment estimate
‐5‐
2.3
3.8
2.7
3.03.3
3.5+ 1.5 million jobs in 5 years
Cross‐border online sales will grow twice as fast as domestic sales
0
100
200
300
400
500
600
2013 2014 2015 2016 2017 2018
306 346 377 407 436 462
4456
6983
99116
€ Billion
Source: EMOTA, 2013
European E‐Commerce market forecast
350
402446
491535
Domestic
Cross‐border
‐6‐
578
+21%
CAGR ’13‐18
+9%
Source: Eurostat, 2013Note: % of population who ordered goods or services over the Internet from national sellers / from sellers from other EU countries in the last 12 months
However, only 11% of consumers currently shop online across borders
‐7‐
Domestic vs. cross‐border internet purchases
‐
5
10
15
20
25
30
35
‐ 10 20 30 40 50 60 70
Cross‐border
Domestic
EU avg. 2012
Digital Agenda target 2015
GAP
In fact, consumers are more worried about international delivery
0% 5% 10% 15% 20% 25% 30% 35%
Uncertainty on rights
Data privacy
Payment security
No delivery
Guarantee
Returns
Long delivery times
Concerns about cross‐border vs. domestic online purchases
Source: Civic Consulting/TNS, 2011Note: % of consumers reporting concerns about buying products online in their own country vs. in another EU country (sample: 29.010 individuals)
‐8‐
% domestic % increase cross‐border
In addition, only 25% of retailers sell across borders
0%
10%
20%
30%
40%
50%
Proportion of retailers selling in at least one other EU country
EU average
Source: TNS, Flash Eurobarometer 359, 2013
‐9‐
25%
In fact, many retailers are deterred by legal/tax and payment issuesBarriers to cross‐border sales for retailers
0% 10% 20% 30% 40% 50%
Language differences
Customer service
Own restrictions
Complaints resolution
Delivery costs
Different tax regulations
Geographic distance
Risk of fraud/non‐payments
Different consumer laws
Source: TNS, Flash Eurobarometer 359, 2013Note: % of retailers reporting obstacles to cross‐border sales to other EU countries
‐10‐
The cross‐border parcel distribution market is highly concentrated
0
10
20
30
40
50
60
2009 2011 2014
€ Billion
Source: ATKearney 2012, European Commission 2013
European parcel market
43.647.2
53.4
Domestic
Cross‐border
‐11‐
+6%
+4%
CAGR
Cross‐border market shares
Other
29%30%
31%
71%70%
69%
Cross‐border distribution prices are twice as high as domestic ones
‐
5
10
15
20
25
30
Domestic and cross‐border parcel distribution prices
‐12‐
Source: FTI, 2011Note: Domestic and weighted average cross‐border prices for 1 kg. parcels
€
Domestic
Cross‐border
Beside low prices, consumers want easy returns and track & traceRelative importance of delivery offerings
0% 10% 20% 30% 40% 50% 60% 70% 80%
Dynamic rerouting
Alternate delivery
Same‐day delivery
Express delivery
Delivery notifications
Delivery windows
Security of delivery
Track & trace
Ease of returns
Price of delivery
Source: BCG, 2013Note: survey of 1,500 consumers in late 2012 ‐ % of respondents – top 3 answers
‐13‐
Basics
Value‐added services
Premium services
Operators need to provide advanced services to suit consumer needsEasy returns
Click & collect
Track & trace
Parcel lockers
‐14‐
Fast delivery solutions
Fixed time windows
The European payments market is also highly concentrated
0
5
10
15
20
25
30
35
40
45
50
2005 2010 2015
€ Billion
Source: ATKearney 2013, Nilson Report 2013
European payments market
3337
50
Bank transfers
Credit/debit cards
‐15‐
Europe cards market shares
Other
34%40%
45%
55%53%
47%
10%
6%
5%ChequesInternet/mobile
3%
140%
100% 97%
129%
95% 85%
27%
71%
46%59%
39%
20%
40%
60%
80%
100%
120%
140%
2006 2008 2010
indexCross‐border electronicpaper
Evolution of payment processing unit costs
‐16‐
Cross‐border payment transaction costs are surging significantly
Source: ATKearney, 2013Note: index: 2006 =100%
SEPA electronic
SEPA paper
Domestic paperDomestic electronic
Payment transaction costs vary widely by country
‐17‐
Comparison of payment transaction costs by country
‐
0,2
0,4
0,6
0,8
1,0
1,2
1,4
100 200 300 400 500 600 700
Cost per transaction(€)
Payment costs per capita (€)
EU average
Source: McKinsey, 2013
We favor harmonization of consumer legislation across the EU
‐18‐
Consumer Rights Directive
Information requirements:• Order button with “obligation to pay”• Delivery/payment restrictions indicated before order
Price transparency:• No pre‐ticked boxes for extra services• No payment / telephone surcharges
Standard withdrawal right:• Withdrawal period: 14 days• Reimbursement within further 14 days
However, we need to balance interests and avoid excessive burdens
‐19‐
Data Protection Regulation
Benefits:• Rules valid throughout Europe• Elimination of notifications• Single supervisory authorityfor companies
Issues:• Explicit consent• Third‐party access to data• Information requirements / data protection officers
• Constraints to profiling• Right to be forgotten/ to data portability
Tax rates need to be standardized to create a level playing field
• Harmonize VAT rate structure across EU:– Same VAT rates for similar goods/services– Same VAT rates for similar online / offline goods– Same VAT exemptions
• Accelerate implementation of one‐stop‐shop for VAT
• Avoid tax arbitrage by non‐EU multinational companies– Harmonize corporate income taxes– Eliminate internal EU tax havens– Apply taxes on revenues generated in each country
‐20‐
EMOTA is developing a European trustmark for cross‐border shopping
‐21‐
European harmonization of national trustmarks
• Harmonize codes of conduct
• Accredit national trustmarks
• Promote European trustmark
EMOTA commits to drive international e‐commerce growth in Europe
‐22‐
EMOTA Borderless Digital Commerce Commitment
Consumers
Providers
Merchants
Governments
• Govern and guide international e‐commerce development
• Inform e‐commerce industry with standard reporting
• Proactively listen and respond to needs of key stakeholders