Why Italy´s e-commerce market should be in your radar

digital allee www.digitalallee.com

tw: @digitalallee

The e-commerce market in Italy

August 2013

© digitalallee-ubequitysrl all rights reserved

Disclaimer

All data and information of this presentation have been collected

from public available sources

As it includes several forward looking statements it should be clear

that there may be a significant margin of error in the projections

Any investment or decision should be made after a detailed due

diligence and digital allee is no way responsible for any decision

taken after looking at this presentation

We furthermore may change or include any information without any

further notice

E-commerce market includes travel, digital downloads and event

tickets, gaming and gambling is excluded


Asia Pacific region will be largest B2C e-commerce

market by 2016 in terms of global market share

3

34%

32%

24%

4% 4% 2%

North America Asia Pacific W Europe C. E. Europe Latin America Middle East Africa

31%

38%

21%

4% 4% 2%

2013 2016

Source: digital allee calculations on e-marketer data July 2013 http://www.emarketer.com/Article/B2C-Ecommerce-Climbs-Worldwide-Emerging-Markets-Drive-Sales-Higher/1010004

$1,2 tr $1,9 tr

+52%

Market share by geographic area


Italy as a market is expected to grow strongly, China

and India are hot growth areas in emerging markets

4

142%

86%

58%

41% 40% 38% 38% 36% 34% 34% 30% 28% 28% 27% 25%

0%

20%

40%

60%

80%

100%

120%

140%

160%Total growth rate from 2013 to 2016 in absolute terms

for selected geographies

Source: digital allee calculations on e-marketer data July 2013


Despite the gloomy macroeconomic forecasts, e-

commerce is expected to grow at 16% per year till ´16

5

34%

23%

16%

12% 12% 11% 11% 11% 10% 10% 9% 9% 9% 8% 8%

0%

5%

10%

15%

20%

25%

30%

35%

40% Compounded average growth rate (CAGR) for selected

geographies from 2013-2016



Italy is expected to catch up mature markets as it still

has a low penetration rate of online buyers

6

49%

55%

44%

74%

68% 73%

36%

24%

40%

76% 81%

87%

75%

81% 78%

67%

62%

51%

80%

75% 77%

40%

27%

43%

79% 83%

89%

76%

82% 79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Digital buyers penetration rate on total retail buyers for

selected countries



17,7%

7,5% 6,9% 6,6% 6,5%

4,0% 4,0% 3,5%

2,8% 2,4% 2,2%

1,7% 1,4% 1,3% 1,1%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

20,0%

Italy is third after China and Spain as 7% more buyers

will turn to e-commerce in the next 3 years

Total increase of digital buyers penetration from 2013

to 2016 for selected countries

7



-10.000

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

0% 5% 10% 15% 20% 25% 30% 35% 40%

USA

China

Italy

India

Russia

Brazil

Spain

Norway

Germany

Netherlands Sweden

UK

France

ball size equals the

market size of e-

commerce market

Italy is considered an emerging market and it is

expected to grow more than mature markets

Source: digital allee calculations on e-marketer data July 2013, OECD, World Bank

GDP per capita in

2016 in USD

Componded average

yearly growth rate of

e-commerce sales

2013-2016

Prioritization matrix for slected e-commerce markets

8 © digitalallee-ubequitysrl all rights reserved

-60

-50

-40

-30

-20

-10

0

10

20

Jan-2

010

Feb

-2010

Ma

r-2

010

Apr-

2010

Ma

y-2

010

Jun-2

010

Jul-2

010

Aug-2

010

Sep-2

010

Oct-

2010

No

v-2

010

De

c-2

010

Jan-2

011

Feb

-2011

Ma

r-2

011

Apr-

2011

Ma

y-2

011

Jun-2

011

Jul-2

011

Aug-2

011

Sep-2

011

Oct-

2011

No

v-2

011

De

c-2

011

Jan-2

012

Feb

-2012

Ma

r-2

012

Apr-

2012

Ma

y-2

012

Jun-2

012

Jul-2

012

Aug-2

012

Sep-2

012

Oct-

2012

No

v-2

012

De

c-2

012

Jan-2

013

Feb

-2013

Ma

r-2

013

Apr-

2013

Ma

y-2

013

Jun-2

013

Jul-2

013

until 29 years 30-49 years 50-64 years 65 years and over total

Consumer confidence in Italy is picking up, particularly

among younger age groups

Consumer confidence index by age group in Italy

Consumer confidence = Financial

situation over next 12 months

9

Source: ISTAT, national statistics bureau


94%

4%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Only PC

Smartphone

Tablet

Italians are still using PCs to shop online, mobile

commerce is still a green field to explore

Devices used to purchase a product

10

Source: Survey on 75k individuals representing the Italian population

http://www.contactlab.com/ecommercereport


16%

20%

42%

22%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Only a little

No change

More

Significantly more

Those using mobile devices to shop say that the

presence of an app would increase their purchases

11



How much would a mobile app increase your purchases?

(out of those responding they are purchasing with smartphone/tablet in

previous question


0% 0% 1% 1% 4%

10%

19%

35%

16% 14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2 3 4 5 6 7 8 9 10

A survey shows that many buyers are happy with their

experience, but there is further room to improve

12

How would you rate your purchase experience in the last 12 months

(1 = very poor, 10 = excellent)




70%

41%

29%

31%

25%

27%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Free pick up of the broken product and replacement

Lean and fast procedures with no extra cost to cancel thepurchase

Call center should be always available

Option to replace the product at a physical retail store

Coupon issue for future purchases

Partial reimbursement also after the product is in use

Special discounts to be used in following months

In case of bad experiences return policies and

customer care are key services

13

In case of a negative experience, what do you expect an e-commerce

firm seller to do?




0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Paying with a monthly rate during 1 or more years

The presence of a quality seal

More certainties regarding sensible data and security

More easy and convenient to send back items that are notwanted

More convenient prices

Payment could be authorized after the goods arrival

Payment through smartphone

Direct billing on banking acocunt

Presence of direct contact point with seller (phone/e-mail/chat)

Payment, security, easy logistics and a customer care

are key issues influencing the purchase behavior

14

Source: Survey on 75k individuals representing the italian population


How much would the following things influence your purchase behavior

A lot Not much


Why Italy´s e-commerce market should be in your radar

Self Improvement

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