Central Europe B2C eCommerce Report 2014

Facts, Figures & Trends of 2012 and Forecast 2013 of the Central European B2C E-commerce MarketIncluding Infographics and Country Profiles of Leading and Emerging E-commerce Markets in Central Europe

www.ecommerce-europe.eu

Central Europe B2C E-commerce Report 2013

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Ecommerce Europe www.ecommerce-europe.eu

Table of Contents

PREFACE page 4

ABOUT ECOMMERCE EUROPE page 5

POWERED BY page 6

MEDIA PARTNERS page 10

Central EUROPE IN BRIEF page 11 - 18

Introduction page 12

Demographic Indicators page 13

Economic Indicators page 14

B2C ECOMMERCE IN Central EUROPE page 15 - 18

Central Europe B2C Ecommerce page 15

Online expenditure page 17

B2C Ecommerce overview page 18

Central EUROPEAN COUNTRIES page 19 114

Austria page 19

Czech Republic page 33

Germany page 48

Hungary page 64

Poland page 78

Switzerland page 95

Ecommerce Europe www.ecommerce-europe.eu Page 3

HOW TO GET INVOLVED page 111

BUSINESS PARTNERS page 112

MEDIA PARTNERS page 113

ECOMMERCE EUROPE MEMBERSHIP page 114

MORE REPORTS ON B2C ECOMMERCE page 115

EUROPEAN MEASUREMENT STANDARD OF B2C ECOMMERCE (EMSEC)

page 116 118

DEFINITIONS page 119-120

METHODOLOGY, ACKNOWLEDGEMENTS AND SOURCES

page 121

ABOUT THE AUTHORS page 122

B2C ECOMMERCE IN EUROPE AT A GLANCE page 123

COLOPHONE page 124

Franois Momboisse

President of Ecommerce Europe

Central Europe B2C EcommercePreface

B2C e-commerce in Central Europe is developing extremely well. In 2012 the total B2C e-commerce turnover, including online retail goods and services such as online travel bookings, events and other tickets, downloads etc., grew by nearly 20% to reach 75 bn. Ecommerce data in Ecommerce Europe reports are based on the European Measurement Standard for B2C Ecommerce (EMSEC).

This Central European B2C Ecommerce Report 2013 focuses on facts, figures, trends and forecasts for the Central European region. Ecommerce Europe is also publishing regional reports covering the other European regions: North, Central, East and West. In this report we compare key e-commerce and other data from Austria, Poland, Germany, Hungary and Switzerland.

Ecommerce Europe, representing e-commerce associations and e-commerce companies in Europe, wishes to thank all participating national associations and their individual research partners for providing data and information. We also extend our thanks to all participating company members, business partners and stakeholders for their involvement in making Ecommerce Europe reports possible. A special word of thanks to GfK for their close cooperation and involvement as well as granting access to exclusive data on industry sectors.

Ecommerce Europes mission is to promote the interests of B2C e-commerce in Europe. Ecommerce Europe offers a platform to guide and assist companies in identifying and accessing new markets in Europe and worldwide and also to provide information on this fascinating, fast-growing industry. To this end, Ecommerce Europe not only collects data and know-how, but also prepares in-depth reports including facts, figures, trends and forecasts on Europe, the various regions of Europe, and on leading and emerging countries and markets around the globe.

The aim of all our reports is to provide insight in order to help online retailers make the best possible decisions in support of their strategy to expand their business into new markets.

Brussels, January 2014

Wijnand Jongen

Vice-President and Chair of the Executive Committee


About Ecommerce Europe

Ecommerce Europe

Ecommerce Europe was founded by leading national e-commerce associations across Europe. Ecommerce Europe represents 4.000+ companies selling products and/or services online to consumers in Europe.

MissionTo advance the interests and influence of e-commerce in Europe through advocacy, communication and networking.

Goals Enhance the success of the European B2C e-commerce industry; Provide for a strong and effective representation of B2C e-commerce industry

in Brussels; Advance the interest of B2C e-commerce industry with relevant stakeholders

and institutions; In an environment where e-commerce companies feel at home; With new brand recognition and membership engagement at all levels.

National AssociationsEcommerce Europe welcomes and invites national associations in EU member states and EFTA countries representing (part of) the e-commerce B2C industry in their domestic market to join the association.

National Associations:


Our Report PartnersThis report is powered by the following partners

www.ecommerce-europe.eu Page 6 Ecommerce Europe

Hybris helps businesses on every continent sell more goods, services and digital content through every touch point, channel and device.

Hybris was founded in 1997 with a simple mission: to create superbly engineered commerce solutions. Over the years, the necessary ingredients for that have evolved multichannel, open standards, very high performance, data centricity, customer centricity and so our company and products have evolved.

RichRelevance is the global leader in omni-channel personalization. More than 160 companies in 40 countries use RichRelevance to turn data into actionable insight, which delivers the most relevant experience for consumers as they shop across web, store and mobile.

RichRelevance drives more than one billion decisions every day, and has delivered over $8 billion in attributable sales to its clients, which include Target, Marks & Spencer and PriceMinister.

Salesupply is a global e-business services company that enables online retailers to achieve profitable international growth faster, more efficiently and with relatively low costs.

Salesupply provides a full range of solutions ranging from research and strategy, to effective localisation of web shops, followed by complete operational support, traffic generation and brand management.

Henning HeesenE-Commerce Cross-Border-Specialist and Board member of Salesupply AG

There is a big quantitative gap between the markets analyzed in this reports: Germany with its population of 82 Million people generated an online turnover of more than 50bn in 2012, which is more than five times the volume of the runner up, Austria.

The enormous difference in (market) sizes makes it difficult to compare these markets. However, each market shows individual growth potentials that are interesting to look at. In Germany, we still see the remnants of a strong and deeply rooted culture of mail order distance selling. It is a tradition many businesses are only gradually abandoning. In addition, it is one of reasons behind Germanys comparatively high return rates: Mail ordering had the customers used to ordering various sizes and returning all that would not fit.

Poland for instance is an impressive example of a post-communist European member state that has succeeded in sustainably growing its internal market. This also shows in the fact that its e-commerce growth is the strongest in Europe.

E-Commerce in Poland has attracted a lot of attention Online success in each Central European country needs a tailored approach


The Polish market has in recent times attracted the attention of many large international multichannel players, such as Tesco and Carrefour, and of course pure-play giant Amazon.

As in all other European regions, it is extremely important to evaluate the singularities of each market before entering it. The DACH region for instance does indeed consist of three German speaking markets, but selling to Switzerland as a non- EU country demands a completely different approach than to Germany

Pontus KristianssonVice President EMEA RichRelevance

The central European E-Commerce market is a very interesting one. The strongest region is the DACH Region comprising Germany, Austria and Switzerland, three very mature economies that have German as (one of the) official language(s). There is a considerable cross-border exchange of goods ordered online between these countries. Many traditional German mail-order retailers are already offering their products in the neighboring German speaking markets for a long time.

Swiss consumers are very active cross-border shoppers: they have ordered goods worth 657mn from foreign websites in the past year. One factor contributing to this is the fact that this relatively small country has comparatively high prices and that French and Italian are also official languages, which makes web shops form these countries more accessible for Swiss consumers.

Germany is of course a very interesting market for foreign online retailers: A high internet penetration, paired with rather affluent consumers and a deeply rooted mail order culture. Although the younger generation is increasingly hungry for new, exotic trends, in general it is very important to adjust your online offer to German expectations: Impeccable translation, detailed information, excellent customer service- and dont forget about the high return rates!

Central Europe offers countless opportunities! Online shoppers become increasingly interested in cross-border purchases


Hungary, Poland and the Czech Republic are young European Member States with a post- communist context; all three showing a promising market consolidation. As internet penetration is increasing, online shopping is becoming easier. Many foreign brands have launched their international e-commerce site in e.g. Polish in order to better target this market.

In markets such as Poland, the demand for products from other markets, e.g. from UK brands, is steeply increasing, which is positive for online retailers.

Altogether, the Central European Region is a very diverse one but nonetheless extremely promising market with countless opportunities in e-commerce!

Henk-Jan van der WeideVP Northern Europe & SA at hybris

What is your general impression of e-commerce in Europe? The e of e-commerce is disappearing. Online is a very important element in the route a customer follows, from the moment he or she has an idea to the actual transaction: the purchase path. E-commerce is no longer a thing that companies do as an additional channel, it has reached a phase of maturity and is now a fully integrated component of the customers purchasing journey.

Which European regions do you consider the most promising and why?Russia and Turkey are both important emerging European markets. However, we also need to consider Scandinavia. Scandinavia was hit harshly by the bursting of the dot-com bubble around the year 2000; the market grew more slowly than for example in the UK. Scandinavia is however now picking up pace.

What do you consider the important trends to be?The dominant trend is mobile: mobile commerce and mobile payments. Interesting possibilities consist, for example, in the ability to track customers, the integration of mobile into offline shop processes and the use of NFC technology for payments. Imagine that shop staff is equipped with a tablet that enables them to help the customer in a completely new way, even taking care of the checkout process. In short, the whole POS is going through a transition with mobile being a key element of this change.

What in your opinion is this years most overrated e-commerce trend?I believe QR Codes have been an overrated trend: it is too difficult to use, what with starting your app, having an Internet connection, scanning the code --altogether too complicated!

Which challenges do online retailers underestimate the most when expanding their e-business across Europe? Patience is key. Those new markets will still be out there in two years. If a company has 100 employees in The Netherlands and then tries to enter the German market with two dedicated staff members, this is not going to work. Selling in foreign markets is full of complexities. If companies want to succeed, they need to do it step by step, with a mature team and with patience.

Is there anything else you would like to share with our readers?I believe pure-players are being challenged by Amazon: Amazon wants to control 26% of the global e-commerce market by 2016. They are heavily investing in growth right now. Retailers who want to set themselves apart have to keep in mind that clients are seeking an omni-channel experience. I would strongly advise pure-players to go offline in regions where they have many customers. Research has shown that customers of omni-channel retailers are 200% more loyal than customers of pure players. Again, this is because of the role that different sales channels play in the customer journey from the instant that interest is ignited to the moment of sale: 50% of people will change from channel in every step they make in their purchasing journey. Many retailers are losing clients because they fail to offer a seamless experience across all touch-points.

The e in e-commerce is disappearingOffering a seamless experience across all touch-points is key for cross border growth


Our Media PartnersInterested in becoming a media partner? Contact us at [email protected]

Ecommerce Europe media partners are (inter)national publishers and/or publications related to the European e-commerce industry.

As the Internet continues to become a part of almost every aspect of our lives, the growing internationalization of the online retail sector places increasing demands on e-tailers to make rapid preparations for cross-border activity. Actors in the online trade sector are constantly being confronted with new challenges concerning legal issues, pricing, shipping, payment and supply. Strong partnerships are vital in order to tap into the cross-border market, optimise trade flows and ultimately increase profitability.

Ecommerce Europe is looking for media partners who publish on e-commerce in the following sectors: Affiliate marketing Customer service E-commerce systems Email marketing Fulfilment Hosting Payment solutions Research & consultancy Search Engine Optimization Etc.


Central Europe

Europe 312 bn + 19,0%EU 28 277 bn + 18,0%

Central Europe 75,9 bn + 19,9%Total B2C Ecommerce 2012 of goods & services

41%

79%

100%165 millionpeople live in Central Europe

131 millionpeople use the internet

68 millionpeople are e-shoppers

75,9 bnTurnover eCommerceGoods & services

47%

Services

53%

Goods

4,8%Estimated shareof online retailin total retail

Estimated 72% of active internet users are on social media

E-commerce GDP1,81%Total GDP 4.201 bn

1

2 3

Ranking Central Europein turnover (EUR million)

Powered by:

Ecommerce Europe 2013


info: [email protected]

2012 Key e-commerce facts at a glance

1 Germany 50.0002 Austria 9.8003 Switzerland 9.1004 Poland 4.1815 Czech Republic 1.8006 Hungary 6757 Slovakia 2758 Slovenia 150

GermanyPoland

Hungary

Czech Republic

AustriaSlovakia

Switzerland

Polish national E-commerce association:

Austrian national E-commerce association:

Central Europe in BriefIntroduction

The Central European region on which this report focuses covers the following countries (in alphabetic order): Austria, Czech Republic, Germany, Hungary, Poland, Slovakia, Slovenia and Switzerland. Switzerland is the only non-member of the European Union.

The eight countries cover an area of 1.036,000 km, or 4.3% of the 23.9 million km of the European continent (including Russia and Turkey).

Germany is the leading country of the region, with respect to the number of inhabitants, the size of the economy and B2C e-commerce. It is also the leading economy of Europe and second to the UK regarding B2C e-commerce turnover.

The total population of the region is 165,0 million inhabitants or close to 20.2% of the total European population.

Within Central Europe, Germany has the largest number of inhabitants (81,8mn), followed by Poland (38,5mn). Czech Republic has 10,5mn inhabitants; Hungary 9,9 mn; Austria 8,4 mn; Switzerland 7,9mn. Slovakia en Slovenia have the smallest number of inhabitants: respectively 5,4mn and 2,0mn.

Central EUROPES POPULATIONShare of Central European population, 01 January 2013


Austria

Hungary

Germany

Czech Republic

Poland

Switzerland

Slovakia

Austria; 5,1%

Czech Republic; 6,4%

Germany; 49,7%

Poland; 23,4%

Hungary; 6,0%

Slovakia; 3,3%

Slovenia; 1,2%

Switzerland; 4,8%

In terms of B2C e-commerce, the region is second to the Western European region.

Total B2C e-commerce turnover (including online goods and services) reached 76,3bn last year, an increase of 20,5% compared to 2011. The 2012 share of e-commerce in the regions GDP was 1,8%.

As in other parts of Europe, online Internet penetration and purchasing still widely differ in the various countries of Central Europe, according to the maturity of the market, the level of trust, the availability of the offer, the penetration of reliable payment options, reliable and affordable delivery options as well as Internet usage and penetration and consequently the number of e-shoppers.

Online sales grew yearly on average with 20% per year since 2010. The forecast is that growth will slow down, but still reach high single or low double-digits figures through to 2015.

M-commerce is set to boost regional e-sales in the coming years. The share is forecast to double this year to reach over 14% on average.

Central Europe (75,9bn) makes up 24,4%of the total online sales in Europe (311,5bn) in 2012.

While these figures are impressive, what is even more interesting for online retail are the numbers of e-shoppers and house-holds not only connected to the Internet but actually shopping online (e-households) and which goods and services they like to buy online.

All eight countries have an excellent to very good logistics infrastructure. On the Logistics Performance Index all eight rank between 4 -50 out of 156 countries. The Ranking is as follows: Germany, Austria, Switzerland, Poland, Slovenia, Hungary, Czech Republic and Slovakia.

Average annual online sales growth since 2009 (CAGR)

+23%

E-commerce share in Europe

B2C E-commerce in Central Europe


North9%

West52%

Central22%

South10%

East7%

E-commerce share in Europe

1.234 1.402

1.219

2.085

581

1.351

422 465

212 349

1.750

EU28 Europe CentralEurope

Austria CzechRepublic

Germany Hungary Poland Slovakia Slovenia Switzerland

B2C E-commerce in Central EuropeOnline Expenditure

Expenditure per online shopper, in euros, 2012Central EUROPES B2C E-COMMERCE

Central European consumers spent on average 1.219 online in 2012. This is far above the EU28 and European average of 1.234 and1.402 respectively.

Austrians spent most online in 2012 with an amount of 2.085. Switzerland ranks second with an average spend of 1.750. Germany is third in rank with respect to online spending (1.351).

These countries are followed by the Czech Republic with an average spend of 581, Poland with 422 and Hungary with 422.


Facts, Figures & Trends of 2012 and Forecast 2013 of the Austrian B2C E-commerce Market


Country Report Austria 2013

In cooperation with: aCommerce Team

Austria

Europe 312 bn + 19,0%EU 28 277 bn + 18,0%

Central Europe 75,9 bn +19,9% Austria 9,8 bn +16,7%

Total B2C Ecommerce 2012 of goods & services

55%

79%

100%

8,4 millionpeople live in Austria

6,6 millionpeople use the internet

4,7 millionpeople are e-shoppers

9,8 bnE-commerce turnoverGoods & services

E-commerce GDP3,19%Total GDP 307,0bn

1

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Ranking Northern Europein turnover (EUR million)




2012 Key data at a glance

Austrian Trustmark:

Austrian national E-commerce association:

Austrian e- shoppers48,8% 51,2%

Vienna

26% of the population uses Facebook


Powered by:

6,4%Estimated shareof online retailin total retail

Austria in brief

Institution: Federal Republic

Internet access: 79 %

URL country code: .at

Official language: German

Widely spoken foreign language(s):

English, Slovene and Hungarian

Country profile

Area: 83.858 km2Capital: ViennaCurrency: Euro (EUR)

Ecommerce Europewww.ecommerce-europe.eu

Page 21

Source: Eurostat, Wikipedia, 2013

79%of 8,4 million Austriansused the Internet in 2012

Austria, officially the Republic of Austria, is a federal republic and a landlocked country of roughly 8,47 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Hungary and Slovakia to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west.

The territory of Austria covers 83.855 square kilometres. Austria's terrain is highly mountainous due to the presence of the Alps; only 32% of the country is below 500 metres, and its highest point is 3.798 metres.

German in its standard form is the country's official language. Austria is a semi-presidential, parliamentary representative democracy comprising nine federal states. The capital and largest city, with a population exceeding 1,7 million, is Vienna.

Austria joined the European Union in 1995, and is a founding member of the OECD. Austria also signed the Schengen Agreement in 1995, and adopted the European currency, the euro, in 1999.

B2C E-commerce in Austria Expert opinion

Stephan Grad, Director of aCommerce Team


"The Austrian ecommerce market is currently evolving - we were not first movers in the market, but now as we see which strategies work in which industrie we are speeding up and doing our best to keep up with Germany & Switzerland. The aCommerce Team as Austrian eCommerce Association will do its best to support the Austrian eCommerce market with Know How to keep the momentum.

B2C E-commerce in AustriaOnline Population and Expenditure

Year EUR

2013(e) 2.334

2012 2.085

2011 1.787

2010 1.383

Online Population 6,5 million

Population 8,4 million

Online buyers 4,7 million

At the end of 2012 there were 2,9 million e-households in Austria. The average expenditure was 2.085 per e-household.

Austria has a population of 8,4 million people. Nearly 6,5 million persons are connected to the Internet.

In total just over 4,7 million online buyers have bought goods and services online for 9,8 billion in 2012.

1,9 million persons have access to Internet but are not (yet) purchasing goods or services online.

AUSTRIAS B2C E-COMMERCE

Inactive

online

population

Expenditure per online shopper


Source: Ecommerce Europe 2013


Facts, Figures & Trends of 2012 and Forecast 2013 of the Czech B2C E-commerce Market


Country Report Czech Republic 2013

Estimated shareof online retailin total retail

Czech Republic

57%

70%

100%

10,5 millionpeople live in Czech



2,1 bnE-commerce turnoverGoods & services

E-commerce GDP1,18%Total GDP 152,9 bn

1

2 3






Czech Trustmark:

Czech national E-commerce association:

Prague

Estimated 54% social media users

28%Services 72%

GoodsEurope 312 bn + 19,0%

EU 28 277 bn + 18,0%Central Europe 75,9 bn + 19,9% Czech Republic 2,1 bn + 19,6%



Powered by:

2,7%

Czech Republic in brief

The Czech GDP per capita at current prices in 2012 was 20.200.

The Czech consumer confidence is going up since January 2012.

The small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany.

The auto industry remains the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. Foreign and domestic businesses alike voice concerns about corruption especially in public procurement.

Key economic indicatorsCzechS GROSS DOMESTIC PRODUCT PER CAPITA

Year In EUR

2013 (f) 14.750

2012 14.500

2011 14.800

2010 14.300

2009 13.500

Czech CONSUMER CONFIDENCE INDEX CCI on a three-month basis, 2012 - 2013

Current prices, 2009 - 2012


Source: Eurostat and IMF World Economic Outlook 2013

Source: Tradingeconomics.com and ISAE/ISTAT National Statistics office 2012 - 2013

-29,3% -29,8%-26,0%

-20,8% -19,0%-14,3% -14,5%

jul-12 oct-12 jan-13 apr-13 jul-13 oct-13 jan-14

Customers use the handsets to buy products including: Public transport Tickets, Parking, Digital content Event tickets,

Telecommunications operators state that more than 11% of Czech mobile customers already use their mobile devices as a means of payment

3%

30% 29%25%

13%

18-24 25-34 35-44 45-54 55+

B2C M-commerce in Czech Republic M-commerce

Source: FDIH Denmark

Top 10 Online purchased

goods and services:

1. Travel and Cultural

Activities

2. Film, Music, Books,

Games

3. Toys

4. Clothing, Shoes and

Jewelry

5. IT, Telecom and Photo

Penetration levels (in %)

Internet

Mobile

Smartphone

Tablet

POPULAR GOODS AND SERVICES PURCHASED THROUGH A MOBILE DEVICE

CZECH AGE STRUCTURE OF MOBILE SHOPPERS

Mobile subscriptions

reached 151per 100householdsin 2012.

How do Czechs buy on their mobile devices?

TOP 3 MOBILE PAYMENTS

1. Cash on delivery2. Bank Transfer3. Credit Card

Source: Mobilepaymentsworld 2012


Percentage of total population, 2012

Source: Ecommerce Europe Source: Worldbank.org, TNS Italia survey 2011

Mobile is becoming a key platform, and as mobiles get smarter and connections get faster, Internet access in Czech Republic is undergoing a step-change from fixed Internet to mobile.

49% of Internet users do not use mobile equipment for shopping at all. As many as 86% are satisfied with online shopping and 14% have had an negative experience.

Facts, Figures & Trends of 2012 and Forecast 2013 of the German B2C E-commerce Market


Country Report Germany 2013

Germany

Europe 312 bn + 19,0%EU 28 277 bn + 18,0%

Central Europe 75,9 bn +19,9% Germany 50 bn +21,6%


5%

85%

100%

81,8 millionpeople live in Germany



50 bnE-commerce turnoverGoods & services

E-commerce GDP1,88%Total GDP 2.666,4 bn

1

2 3


Ecommerce Europe 2013www.ecommerce-europe.euinfo: [email protected]


German Trustmark:

German nationalE-commerce association:

Berlin

50%Services

50%Goods


Powered by:


6,6%


Germany in Brief

Total population: 81.843.743

49,1 50,9

Median age: Male:Female:

Population growth

-0,2%

45,7 years44,7 years46,8 years

GERMANYS AGE STRUCTUREBy Age Group, 2012

Key Demographic Indicators


Source: World Bank2013Source:Worldfactbook, 2013

13,1% 10,8%

42,0%

13,3%

20,9%

0-14 15-24 25-54 55-64 65+

Germany covers an area of 357.022 square kilometers with a population of 10,5 million inhabitants.

The median age is 45 years. The largest share of the population (42,0%) is between 25-54 years old.

Germany has 40,7 million households. Approximately 61%live in urban areas

The population is shrinking at an average annual rate of -0,19%.

The demographic development is characterized by three trends: increasing longevity, decreasing birth rates and an increasing percentage of population from foreign origin.

German is the official language. English and French are widely spoken foreign languages.

B2C E-commerce in GermanyCross - Border

6% 6%7%

10%

13%

2009 2010 2011 2012 2013 (e)

GERMANYS CROSS- BORDER E-COMMERCEPercentage of e-commerce purchased at foreign sites, 2009-2013

Germany


According to research by OC&C, German online retailers sold products worth 423mn to French customers and goods worth 175mn to Dutch customers in 2013.

German customers ordered goods worth 200mn from Great Britain and packages containing merchandise for approximately 263mn came from the US.

The trade surplus of German cross-border online sales over purchases is valued by OC&C at 13mn.


Facts, Figures & Trends of 2012 and Forecast 2013 of the Hungarish B2C E-commerce Market


Country Report Hungary 2013

Hungary

Europe 312 bn + 19,0%EU 28 277 bn + 18,0%

Central Europe 75,9 bn +19,9% Hungary 675 mn +35,5%


16,2%

68,7%

100%

9,9 millionpeople live in Hungary



675 mnE-commerce turnoverGoods & services

E-commerce GDP2,3%Total GDP 96.968 mn

1

2 3

Ranking Northern Europein turnover (EUR million)

Ecommerce Europe 2013www.ecommerce-europe.euinfo: [email protected]


Hungarian Trustmark:

Hungarian nationalE-commerce association

40%Services

60%Goods

Budapest


Powered by:


1,2%


B2C E-commerce in HungaryShare of goods and services

Source: FDIH Denmark

Top 10 Online purchased goods and services:

1. Travel and Cultural Activities2. Film, Music, Books, Games3. Toys4. Clothing, Shoes and Jewelry5. IT, Telecom and Photo

Penetration levels (in %)

InternetMobile SmartphoneTablet

The turnover of online goods were estimated at 60% of total

online sales at 675 mn.

The shares of online goods and services in 2012 were 60% or in turnover 405 million for online goods and 270 million e-services, which is 40%.

In 2012, approximately 23% of all Internet users made purchases online,.

The share of online transactions in total retail sales continued to rise to 1,7% in 2012. This was an increase of 14% over 2011. This share is expected to continue to grow this year as more Internet-users are getting more confident in shopping online.

The double-digit growth of sales via the Internet is promising.675 mn

total online sales

422Average expenditure2012 per e-shopper



Goods60%

Service40%

Facts, Figures & Trends of 2012 and Forecast 2013 of the Poland B2C E-commerce Market Prepared by Ecommerce Europe in cooperation with e-Commerce Polska, the Association for E-commerce in Poland


Country Report Poland 2013

In cooperation with: E-commerce Polska

Poland

Europe 312 bn + 19,0%EU 28 277 bn + 18,0%

Central Europe 75,9 bn +19,9% Poland 4,1 bn +24,9%


23%

70%

100%

38,5 millionpeople live in Poland



4.181 mnE-commerce turnoverGoods & services

E-commerce GDP1,10%Total GDP 381.204 mn

1

2 3






Poland Trustmark:No Trustmark available

Poland nationalE-commerce associationE-commerce Polska

Warsaw


63%Services

37%Goods


Powered by:


1,7%


Poland in brief

Institution: Republic

Internet access: 70 %

URL country code: .pl

Official languages: Polish

Widely spoken foreign language(s):

German

Country profile

Area: 312.685 km2 Capital: WarsawCurrency: Zloty (PLN)

Of 26,9 million Polesused the Internet in 2012

70%


Source: Eurostat, Wikipedia, 2013

The Republic of Poland, is located in Central Europe, bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus to the east; and the Baltic Sea and Kaliningrad Oblast (a Russian enclave) and Lithuania to the north.

The total area of Poland is 312,685 square kilometres making it the 69th largest country in the world and the 9th largest in Europe. With a population of over 38.5 million people, Poland is the 34th most populous country in the world and the sixth most populous member of the European Union.

Poland is a unitary state consisting of 16 voivodeships or provinces.

During the early 1990s Poland was able to transform its economy into one of the most robust in Central Europe. Poland joined the European Union in 2004.

The official language in. n Poland is Polish (97.8% speak Polish at home).

English and German are the main foreign languages spoken.

B2C e-commerce in PolandMain markets and players

Rank

1 Groupon.pl

2 Gruper.pl

3 Citeam.pl

The most popular price comparison sites in Poland are Ceneo.pl (Allegro Group), Nokaut.pl, Okazje.info.pl andskapiec.pl

Top 5 most popular E-Commerce Sites in

Poland

1. Allegro.pl (Group) (10 .842 .351 real users)

2. Nokaut.pl (2.539.272)

3. Groupon (2.531.361)

4. Okazje.info (2.100.810)

5. Skapiec.pl (1.610.672)

TOP 3 Group Buying Sites


Source: Megapanel/PBI

Source: Megapanel/PBI

The Polish group Allegro.pl,operating amongst others a marketplace, remains the unchallengesd local market leader. Next to nearly 11 million active users, it boasts a brand awareness of more than 88%. However, foreign competitors such as Groupon and eBay are catching up.

There are many foreign players active on the Polish market, such as Tchibo (Germany), BonPrix (France), Zalando (Germany), Amazon (USA).

Groceries ordered frequently online are coffee/tea, bulk goods, sweets, drinks and spices

Facts, Figures & Trends of 2012 and Forecast 2013 of the Swiss B2C E-commerce MarketPrepared by Ecommerce Europe in cooperation with VSV ASVAD, the Association for E-commerce in Switzerland


Country Report Switzerland 2013

Switzerland

Europe 312 bn + 19,0%EU 28 277 bn + 18,0%

Central Europe 75,9 bn +19,9% Switzerland 9,1 bn +15,5%


66%

80%

100%

7,9 millionpeople live in Switzerland



9,1bnE-commerce turnoverGoods & services

E-commerce GDP1,85%Total GDP 491,1 bn

1

2 3






Swiss Trustmark:GARANTIE

Swiss nationalE-commerce associationVSV ASVAD

Bern


63%Services

37%Goods


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5,0%


B2C E-commerce in SwitzerlandMarket Sectors

SwitzerlandS B2C E-COMMERCE


Source: VSV ASVAD / GFK February 2014

Percentage of online buyers having purchased an item from thesecategories in 2012 and 2013

Market sectors (in %) 2012 2013

Multimedia, Electronics 28,2% 28,7%

Clothing & Accessories 26,9% 27,1%

Food 16,6% 16,1%

Home and Living 8,0% 8,1%

CDs, DVDs, Books 6,8% 6,1%

Other 13,5% 13,9%

Despite Multimedia and Electronics heading up the ranking of products sold online in terms of turnover, the category of which most items are shipped in quantitative terms are Clothing and Accessories. The return rate in this sector is with 44% comparatively high.

Top sites visited in Switzerland

are:

Rank Online retailers

1 Ricardo.ch

2 Amazon.com

3 eBay.de

4 Swiss Railways

5 Apple.com

Click & Collect grocery services are offered by e.g. Coop@Homeand LeShop.

With a share of 16,1%, Switzerland has a very well developed online food market. In 2013, Swiss online buyers bought groceries worth 608mn.

Online payments and preferencesPayments & VAT

72% of the Swiss mobile users stillwould prefer to use a laptop/desktop to make the purchase. 26% still dont feel secure. 14% still find mobile purchase too complicated. 10% complains that certain paymentfeatures were not available (credit card) and 9% think that payment is still too complex.


VAT overview Switzerland

Threshold CHF 100.000

Standard VAT rate 8%

Reduced VAT rates 2,5%

Where to register Swiss Federal Tax Administration and Swiss Federal Customs Administration

8%Standard VAT-rate

Web shops with a turnover exceeding CHF 100.000 per year must be registered for VAT in Switzerland.


TOP ONLINE PAYMENT METHODSIn percentage of total online population

Source: International VAT Management, Van Driel Fruijtier Resseler

Invoice; 18,2%

Credit cards; 16,8%

Advanced payment;

12,7%Paypal; 10,9%

SOFORT; 9,5%

Cash payment ; 9,5%

Direct Debet; 7,1%

Cash on delivery; 6,6%

PostFinance; 7,7%

Ecommerce EuropeHow to get involved?

Who can be involved? E-commerce associations, voting members of Ecommerce Europe: association

membership Companies selling products and/or services online: EU webshop register /

company membership Preferred suppliers to the European e-commerce industry: business partnership Organizations and NGOs related to e-commerce industry: associative

partnership European institutions, consumer organizations and stakeholders: partners for

dialogue

Why get involved? Be a part, get involved or stay informed on public affairs initiatives that define

your business. Take advantage of research publications, receive several B2C E-commerce Reports for free. Learn from position papers, webinars and white papers by leading ecommerce associations, companies and preferred business

partners. Show youre engaged by displaying the Ecommerce Europe member or business

partner logo. Network, meet and greet with colleagues at Round Tables sessions in European capitals and at the yearly Global E-commerce Summit.


Our Business PartnersInterested in becoming a business partner? Contact [email protected]


Our Media PartnersInterested in becoming a media partner? Contact us at [email protected]

Ecommerce Europe media partners are (inter)national publishers and/or publications related to the European e-commerce industry.

As the Internet continues to become a part of almost every aspect of our lives, the growing internationalization of the online retail sector places increasing demands on e-tailers to make rapid preparations for cross-border activity. Actors in the online trade sector are constantly being confronted with new challenges concerning legal issues, pricing, shipping, payment and supply. Strong partnerships are vital in order to tap into the cross-border market, optimise trade flows and ultimately increase profitability.

Ecommerce Europe is looking for media partners who publish on e-commerce in the following sectors: Affiliate marketing Customer service E-commerce systems Email marketing Fulfilment Hosting Payment solutions Research & consultancy Search Engine Optimization Etc.


Company Members

Ecommerce Europe Company Members are B2C companies selling products and/or services online to consumers in Europe. Company membership is open to all B2C online companies at 950 per year.

Benefits for COMPANY MEMBERS include:

Exclusive Ecommerce Europe business partner logo Yearly European B2C E-commerce Report (1,950) 5 Regional Reports on European B2C E-commerce (3,950) 2 Full Conference Packages Global E-commerce Summit Free entrance to 3 Ecommerce Europe pre-conferences Free entrance to Round Table meetings in 8 European cities Pro-active involvement white papers and position papers

Ecommerce Europe membershipInterested? Feel free to contact us: [email protected]

Business partners

Ecommerce Europe business partners are preferredsuppliers of the European e-commerce industry.The cost is 8,500 per year upon balloting.

Benefits for PREFFERED BUSINESSPARTNERS include:

Exclusive Ecommerce Europe business partner logo Yearly European B2C E-commerce Report (1,950) 5 Regional Reports on European B2C E-commerce (3,950) 2 Full Conference Packages Global E-commerce Summit Free entrance to 3 Ecommerce Europe pre-conferences Free entrance to Round Table meetings in 8 European cities Pro-active involvement white papers and position papers


Ecommerce Europes reports on B2C e- commerceInterested? Order at [email protected]

European B2C Ecommerce Report 2013: 1.950

5 European regional reports 2013: 790 per report including 30 Infographics and in-depth Country Profiles

Western Europe ReportBelgium, France, Ireland, Netherlands, and United KingdomCentral Europe ReportAustria, Poland, Germany, Hungary, Poland and SwitzerlandCentral Europe ReportAustria, Poland, Germany, Hungary and TurkeyNorthern Europe ReportDenmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and SwedenEastern Europe ReportRomania, Russia, and Ukraine

All European reports (5 regional reports + European Report): 2,950All-In-One Ecommerce Report Package: 4.950(European and Global Report + 5 European Regional Reports + 5 Regional/Continental Reports)

Global B2C Ecommerce Report 2013: 2.450

Regional /continental reports: 950 per report

North America: USA, Mexico and CanadaLatin America: Brazil, Argentina, Chile and othersAsia-Pacific: Japan, China, India, Australia, Indonesia, Vietnam, South Korea etc.MENA REGION: Middle East and North AfricaBRIC Countries: Brazil, Russia, Indonesia, China and other economic entities

All-In-One Ecommerce Report Package: 4.950(European and Global Report + 5 European Regional Reports + 5 Regional/ContinentalReports)

Tailor-made reports are available upon request:

[email protected].


EMSEC

EMSEC aims to provide guidelines to measure and monitor B2C e-commerce in order to enable all European countries to provide data with respect to the penetration of B2C ecommerce in a standardised way. All Ecommerce Europe figures and estimates are based upon the EMSEC, unless otherwise noted. The EMSEC agrees with data and research by GfK.

The EMSEC reports on sales figures for the total B2C e-commerce in Europe and in country profiles based on total sales of goods and services.

Total sales of goods and services are based according to the areas/sectors/ classification of areas and sectors as laid down on the next few pages.

All data are reported in the national currency of the country involved are converted into euros according to the average (annual) rate of exchange as provided by the European Central Bank (ECB). Growth rates are calculated and measured by the B2C e-commerce sales in national currency.

European Measurement Standard for E-commerceEMSEC

Definition of B2C e-commerce sales

Definition of B2C e-commerce: Any B2C contract on the sale of products or services fully or partly concluded by a technique for distance communication.

Technique for distance communication: means that can be used for communication regarding the offer made by the trader and concluding an contract, without the necessity of the consumer and trader being in the same place at the same time.

Contract: an contract whereby sole or partly use is made of one or more techniques for distance communication within the framework of a system organized by the trader for the distance sale of products and/or services, up to and including the moment that the contract is concluded;

Classification of B2C E-commerce

The following classification in Table 1 provides an overview of areas and sectors included in EMSEC.

Online purchases of the following items are excluded from EMSEC: Transactions between private

individuals/consumers (C2C) such as auctions and marketplaces and between businesses (B2B)

Online gambling and gaming Car and motor vehicles Houses and real estate Utilities (e.g. water, heating, electricity) Mortgages, loans, credit cards, overdrafts Savings accounts, funds, stocks & shares, bonds.

B2C e-commerce therefore includes all online transactions between businesses and consumers using desktop computers, laptops, tablets, smartphones, point-of-sales and smart-wearibles, such as webshop, physical store (online instore), e-mail, QR-code, catalogue, etc. B2C e-commerce includes Value Added Tax (VAT) or other sales tax, delivery costs and Apps, but exclude returns.


Event Tickets

Event Tickets

Tickets for concerts and festivals

Tickets for cinema and theater

Tickets for zoos and amusement parks

Tickets for museums

Tickets for sport matches



Fashion

Clothing Shoes & Personal lifestyle

Underwear & Upperwear Shoes

Children's wearJewellery, Bijoux, Watches & others fashion accessories (e.g. sunglasses)

Swimwear & Sportswear

Nightwear & legwear Bags, wallets, suitcases

Electronics

Consumer Electronics Information Technology (IT) Household Electronics

Photo-equipment IT hardware (pc's, laptops, tablets etc.)

MDA: air-conditioning, dishwashers, wash machines and other white goods

Audio-equipment Computer Software

TV/video-equipment Music- instruments

Car - electronics (navigation, audio etc.)

USB-sticks, DVD/CD-recordable, ink cartridges, computer accessories

SDA: equipment forpersonal care, homecomfort, kitchenappliances

Food/Nearfood/Health

Food/Nearfood Health & Beauty

Food & Beverages Personal care & Hygiene

Fresh produce Baby care

Packaged consumer goods Perfume

Detergents/household cleaning OTC

Animal feed

Tobacco

Sports & Recreation

Sport & Recreation

Sports hardware (e.g. football, tennis rackets)

Bicycles & accessories

Articles for camping and recreation

Toys

Toys

Indoor and outdoor toys

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Travel

Package Travel Flight Tickets & Accommodations

Package travel Flight Tickets

Private Transport if booked through a tour operator

Hotel stays

Apartment/bungalow/camping site

-> all of the above not booked in combination with other travel-parts

Media & Entertainment

Media & Entertainment

Music (physical, download & streaming)/Spotify based on new subscriptions

Video (DVD, blue-ray, downloads)

Games hardware & games software

Books & e-books

Apps

New subscriptions newspapers ands magazines (no single copy sales)

Telecom

Telecom

Smartphones, mobile phones & Phone devices

Telefax and answering machines

Headsets & Accessoires (mobile) phones

Prepaid cards and tariffs of new phone subscriptions

Insurances

New indemnity, Life and Health Insurances

Liability insuranceCar insuranceFire and theft insurance

ANW-gap insurance (insurance for receiving a payment in addition to a survivor's allowance)

Health Insurance BaseHealth insurance -additional

Bike/caravan/motorbike/ scooter insurance

Annuity insurancepension

Disability insurance entrepreneurs

Accident insuranceBoat insurance

Life insuranceFuneral insurance

Disability insurance -private

Legal assistance insuranceHome insurance

Endowment insurance based on savings

Mortgage related disability insurance

Travel insurance (continuous/annual + short-term) Insurance package

Endowment insurance based on investments

Mixed insurance (=endowment insurance + life insurance)

Others

Services Products

Dating based on new subscriptions

Cars and parts

Articles for animals

Other Services Flowers & Plants

Optician (excl. sunglasses, hearing-aid)

Adult

Page 118

DefinitionsDefinitions related to internet, e-commerce and online retailing

Broadband access: the availability of broadband is measured by the percentage of households that are connectable to an exchange that has been converted to support DSL-technology, to a cable network upgraded for Internet traffic, or to other broadband technologies. It includes fixed and mobile connections (source: Eurostat)

Cross-border e-commerce: percentage of e-commerce purchased at foreign sites

E-commerce (or electronic commerce), a subset of e-business, is any B2C contract on the sale of products or services fully or partly concluded by a technique for distance communication.

E-commerce GDP: total amount of goods and services online divided by the total Gross Domestic Product (GDP).

Economic Freedom Index: the Index of Economic Freedom is an annual guide published by The Wall Street Journal and The Heritage Foundation, Washington's No. 1 think tank. For over a decade, The Wall Street Journal and The Heritage Foundation have tracked the march of economic freedom around the world with the influential Index of Economic Freedom.

E-households: amount of households that uses the Internet for personal gain.

E-household expenditure: expenditure per household that bought goods or services in the past year.

European Measurement Standard for E-commerce (EMSEC): aims to provide guidelines to measure and monitor B2C e-commerce in order to enable all European countries to provide data with respect to the penetration of B2C ecommerce in a standardised way.

E-services (or electronic services) are defined as: Deeds, efforts or performances whose delivery is mediated by information technology. Such e-service includes the service element of e-retailing, customer support, and service delivery. This definition reflects three main components- service providers, service receiver and the channels of service delivery (i.e., technology). (Jennifer Rowley, Professor Information and Communications, Manchester Metropolitan University, UK)

Inactive online population: users that have access to the Internet but have not (yet) purchased goods or services online in the past year.


DefinitionsDefinitions related to internet, e-commerce and online retailing

Logistics Performance Index (LPI): The Logistics Performance Index (LPI) measures the logistics "friendliness" of 155 countries. It helps countries identify the challenges and opportunities they face in their trade logistics performance and what they can do to improve, The Index is developed by the World Bank, is based on a worldwide survey of operators on the ground such as global freight forwarders and express carriers .

Mobile commerce (or m-commerce, mCommerce) is the ability to conduct commerce, using a mobile device e.g. a mobile phone, a PDA, a smart phone, a tablet or other (emerging) mobile equipment.

Mobile subscriptions: mobile cellular telephone subscriptions are subscriptions to a public mobile telephone service using cellular technology, which provide access to the public switched telephone network. Post-paid and prepaid subscriptions are included (source: Eurostat)

Online buyer (or e-shopper, e-buyer) is defined as an individual who regularly bought or ordered goods or services over the internet.

Online expenditure: spent per user who purchased goods or services online.

Online Retail (or e-retail, electronic retail or retailing or even e-tailing) is the selling of retail goods and services on the Internet. In the limited sense of the word, sectors such as online leisure travel, event tickets, downloading music or software are not included. Online-only retail shops are often referred to as pure players.

Penetration levels: the percentage of a population using the internet, mobile, smartphone and tablet devices.

Retail sales are defined as the selling of mainly goods from businesses to individuals from a traditional or so-called bricks-and-mortar shop.

The Ease of Doing Business Index is developed by the World Bank, averages the country's percentile rankings on 9 topics, made up of a variety of indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2010. The Index covers 185 countries.


Methodology , Acknowledgements and Sources

This report could only be realized by consulting a greatmany sources, available in the various countries andregions in Europe and around the globe. The wide variety of sources include public domain publications, blogs, websites, industry and financial specialist publications, regional and local news, annual reports, press releases, etc. etc. Sometimes the information sourced are contradictory. Sometimes different figures and data were given by different sources within the same country, f.e. due to different definitions. In our reports and country profiles we have mentioned different sources, definitions and the different outcomes of such reports, studies and interpretations. This report is meant solely for use by the recipient and is not for circulation. This report is based on information thatwe consider reliable, but we cannot vouch for its being accurate or complete, nor should it be relied upon as such. Opinions expressed are our current opinions as of the date of this report.

The sources consulted include, but are not limited to:

(Inter)national Associations Ecommerce Europe Distansehandel Norge (Norway) FDIH (Denmark) KAUPPA (Finland) SDH (Sweden)

Corporate sources A.T. Kearney Deloitte Facebook Forrester GfK Google Hybris Innopay Planet Retail SaleSupply Social Bakers Twitter TNS NIPPO VDFR VAT Management

Publications eMarketer E-commercefacts.com Eurostat Internet Retailing

Other sources Digital Hub Development Agency

(DHDA) European Commission Eurostat European Central Bank (ECB) European Banking Association (EBA

Clearing) International Monetary Fund (IMF) International Telecommunications

Union (ITU) Internetworldstats National Statistics offices The Heritage Foundation United Nations (UN) CIA: World Factbook World Economic Forum


About the authorsQuestions? Feel free to contact our researcher

Jorij Abraham, Director Research & Advice

Jorij Abraham (1972) has been part of the international e-commerce community since 1997. He has been manager e-commerce at Bijenkorf, TUI and Sanoma Media and Director of Consulting as Unic

Since 2013 he is Director of Research & Advise at Ecommerce Europe. He is also director of the eCommerce Foundation, a research institute offering practical ecommerce research and benchmark services.

Aad Weening, Advisor International eCommerce

Aad Weening (1941) has been involved in distance selling and retail practically all his working life. From 1966 until 1979 he offered legal and economic advice as well as lobbying services.

From 1979 he managed the Dutch Mail Order Association (today Thuiswinkel.org), first in the Netherlands first, later on a European level. Between 1993 and 2006 he served as Secretary General of the European Distance Selling Trade Association (EMOTA). Currently Weening is Senior Advisor at Ecommerce Europe.

Bert Nagelvoort, Senior Researcher

Bert Nagelvoort (1977) has been working for Ecommerce Europe since 2014. He is involved in international e-commerce and develops the Ecommerce Europe reports. He studied Business Administration at the Radboud University Nijmegen and has a great interest in the international (digital) economy.

Previously, Bert has worked as Projectmanager / Consultant in the financial services.

Janine Nthlichs, Editor

Janine Nthlichs (1982) is the editor-in-chief of the international e-commerce news site E-commercefacts.com. Throughout the past years, she has worked on various e-commerce related publications and events, including the European Cross-Border Round Tables and the Global E-Commerce Summit; and is a regular jury member of the Cross-Border E-Commerce Awards at the Global E-Commerce Summit in Barcelona.

Previously, Janine has worked for Kantar Media in Paris. Having studied in the Netherlands and Hungary.


Europe 2012 Key data at a glance

West 158,bn + 18,0%

Central 76,3 bn + 20,5%

South 32,4 bn + 29,3%

North 28,5 bn + 15,1%

East 13,6 bn + 33,0% Total B2C Ecommerce of goods & services

48%

64%

100%820 millionpeople live in Europe

529 millionpeople use the internet


5%Estimated shareof online retailin total retail

350 million social media users

16,0 trn GDP 2012

1

3

Top 5 e-commerce countries in turnover (EURO million)

1 United Kingdom 96.1932 Germany 50.0003 France 45.0004 Hungary 12.9695 Russia 10.302




Figures and data in compliance with GfK

In cooperation with Salesupply and Hybris

Top 5 emerging countries in % growth

1 Turkey 75%2 Austria 61%3 Ukraine 41%4 Hungary 35%5 Romania 33%

2

550.000estimated online business

2, ,jobs directly or indirectly via e-commerce

3,5 billionnumber of parcels annually (e)

Europe 312 bn +19%EU28 277 bn +18%

3,5% Contribution Internet

Economy to GDP

5,5%(17bn)

Estimated

M-commerce

Central Europe B2C EcommerceColophon

National Associations:

Ecommerce Europe Rue Trves 59-61B-1040 Brussels - Belgium Tel: +32 (0) 2 502 31 34

Website: www.ecommerce-europe.euContact us at: [email protected] For reports: [email protected] Twitter: @Ecommerce_eu

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Central Europe B2C eCommerce Report 2014

Retail

Transcript of Central Europe B2C eCommerce Report 2014