E-commerce - Europe - February 2008

SUMMARY

Abstract

This report series covers the five leading economies of Western Europe. In part because e-commerce activities cover a variety of sectors, detailed information, even on the largest economies, is hard to come by. While educated estimates can be made for these larger markets, in many other parts of Europe e-commerce is just too small or lacking in data to be able to provide anything reliable. Some coverage of the e-commerce market of smaller European nations can be found in the Mintel report on Home Shopping, Retail Intelligence, 2007.

The subject of this report is e-commerce, and is limited to those items purchased via the Internet. The report therefore includes sales on the Internet by high-street retailers, mail order houses and pureplay Internet retailers.

While our spending figures refer to all B2C commerce via the Internet, the retail sales are a little more restrictive as to what is included. Downloadable music and films are included as part of our e-commerce retail sales. This is based upon the theory that if a consumer enters an outlet of HMV or Fnac, it is not because they want to buy a shiny new disc but the music or film that it contains that interests them.

Conversely sales related to travel, financial services and automobiles have been excluded from retail sales, as these are not included in standard country retail statistics. These areas have been included in our B2C commerce via the Internet (ie spending) figures however.

TABLE OF CONTENTS

Table of Contents

• Market in Brief
• The future is multi-channel
• Travel and services still ahead in online spending
• Consumer attitudes show a clear split
• Mixed goods players dominate
• European Summary and Outlook
• Report scope
• Technical notes
• Financial definitions
• Currencies
• Country codes
  • Figure 1: Country codes
• VAT
  • Figure 2: Europe: Standard VAT rates, 2006/07
• E-commerce infrastructure
  • Figure 3: Europe: PC penetration by household by country, 2006
  • Figure 4: Europe: Increase in households with at least one PC, 2005-07
  • Figure 5: Europe: Internet penetration by household by country, 2007
  • Figure 6: Europe: Percentage change in Internet users, 2005-07
  • Figure 7: Europe: Broadband penetration by household by country, 2007
• European e-commerce spending
• Market size
  • Figure 8: Europe: Estimated e-commerce market size by country, 2006/07Figure 9: Europe: Per capita spending via e-commerce, 2007
  • Figure 10: Europe: Spending via e-commerce as % all consumer spending, 2007
• E-commerce retail
  • Figure 11: Europe: Estimated e-commerce sales and growth, 2007
• Sales per capita
  • Figure 12: Europe: E-commerce retail sales per capita, 2007
• Growth
• Leading players
  • Figure 13: Europe: Top 20 e-commerce retailers, 2006/07 and 2007/08
• Consumer summary
  • Figure 14: Europe: General attitudinal levels by country, 2007
  • Figure 15: Europe: Breakdown of opinions by country, 2007
  • Figure 16: UK: France, Germany, Italy and Spain: Ten most popular opinions regarding the Internet, 2007
• Outlook and forecast
• Forecast
• Europe: Estimated online retail sales
  • Figure 17: Europe: Estimated online retail sales, 2007 and 2012
• Online retail sales as share of total retail sales
  • Figure 18: Europe: Estimated online retail sales as % of total retail sales, 2007 and 2012
• Outlook
• M-commerce
• Socialising the online retail experience with web 2.0
• Multi-channel, multi-channel, multi-channel
• France
• Market in brief
• E-commerce the source of growth
• Advancing technology driving potential
• Early movers taking up strong positions
• But many consumers still require convincing
• Broader market environment
• Positive factors
• Negative factors
• Population
  • Figure 19: France: Population trends, 2003-07
  • Figure 20: France: Population by age group, 2004-08
• Computer ownership and Internet access
  • Figure 21: France: Proportion of individuals having used a PC in last 3 months, 2006
  • Figure 22: France: Internet access and broadband connection rates, 2006-07
  • Figure 23: France: Breakdown of Internet users by age and gender, 2007
• Market in context
• Key analysis
  • Figure 24: France: Consumer expenditure via e-commerce, 2003-07
  • Figure 25: France: Products and services purchased online, 2007
  • Figure 26: France: Purchasers of items online by age group, 2007
• Loi Chatel
• Sector size and forecast
• Key analysis
• Online retail sales
  • Figure 27: France: Retail sales, 2003-07 and 2012
  • Figure 28: France: Online sales as a % of all retail sales, 2003-12
• Recent trends in French e-commerce
  • Figure 29: France: Breakdown of most popular retail spend areas online, 2006
• Website data
  • Figure 30: France: Number of active e-commerce websites, 2003-06
• Retail competitor analysis
• Leading players
  • Figure 31: France: Leading e-commerce players, 2007/08
• The consumer
• Consumer attitudes to e-commerce
• Key analysis
• Convenience is king
• But some concerns still remain
  • Figure 32: France: Ten most popular opinions on e-commerce by gender, November 2007
• How and where consumers access the Internet
  • Figure 33: France: Proportion of households with at least 1 PC, 2005 and 2007
  • Figure 34: France: Proportion of population having used the Internet in the past 12 months, 2005 and 2007
  • Figure 35: France: Most popular locations for Internet access, 2007
• Detailed view of Consumer Demographics:
• Further analysis
• Key analysis
  • Figure 36: Segmentation of nationals on basis of attitudinal statements towards online shopping, November 2007Figure 37: France: Breakdown of responses by respondent type, November 2007
• The Consumer -- Detailed demographics
• The Consumer -- Attitudes to shopping online
  • Figure 38: France: Attitudes to shopping online, detailed demographics, November 2007
  • Figure 39: France: Attitudes to shopping online, detailed demographics, November 2007
  • Figure 40: France: Attitudes to shopping online, detailed demographics, November 2007
• The Consumer -- Further analysis
  • Figure 41: France: Breakdown of respondent sub-group by demographic, November 2007
• Germany
• Market in brief
• The future -- e-commerce to benefit from high level of access
• Market growing as mail order goes online
• Mail order players lead
• A positive attitude to e-commerce
• Broader market environment
• Positive factors
• Negative factors
• Population
  • Figure 42: Germany: Population trends, 2002-06
  • Figure 43: Germany: Population, by age group, 2002, 2006 and 2010
• Computer ownership and Internet access
  • Figure 44: Germany: Proportion of individuals having used a PC in last 3 months, 2007
  • Figure 45: Germany: Penetration of Internet by age and gender, 2007
  • Figure 46: Germany: Internet access and broadband connection rates, 2006-07
• The economy
• Will consumers spend in 2008?
  • Figure 47: Germany: Gross domestic product, 1996-2007
• Market in context
• Key analysis
• Market value
  • Figure 48: Germany: Estimated total B2C online sales, 2003-08
  • Figure 49: Germany: Products and services purchased online, 2006
• Sector size and forecast
• Forecast
  • Figure 50: Germany: Retail sales, 2003-07 and 2012
  • Figure 51: Germany: Estimated breakdown of online sales by type of retailer, 2007
• Retail competitor analysis
• Leading players
  • Figure 52: Germany: Leading e-commerce players, 2007/08
• Market shares
  • Figure 53: Germany: Market share of leading players, 2006/07
• The Consumer
• Consumer attitudes to e-commerce
• Key analysis
• Convenience is king
• But some concerns remain
  • Figure 54: Germany: Most popular opinions on e-commerce by gender, November 2007
• Detailed view of Consumer Demographics
  • Figure 55: Germany: Key attitudes by age and affluence, 2007
• How and where consumers access the Internet
  • Figure 56: Germany: Population by number of PCs, 2005 and 2007Figure 57: Germany: Proportion of population having used the Internet in the past 12 months, 2005 and 2007
  • Figure 58: Germany: Most popular locations for Internet access, 2007
• Further analysis
  • Figure 59: Segmentation of nationals on basis of attitudinal statements towards online shopping, November 2007Figure 60: Germany: Breakdown of responses by respondent type, November 2007
• The Consumer -- Detailed Demographics
• The Consumer -- Attitudes to shopping online
  • Figure 61: Germany: Attitudes to online shopping, detailed demographics, November 2007
  • Figure 62: Germany: Attitudes to online shopping, detailed demographics, November 2007
  • Figure 63: Germany: Attitudes to online shopping, detailed demographics, November 2007
• The Consumer -- Further analysis
  • Figure 64: Germany: Breakdown of respondent sub-group by demographic, November 2007
• Italy
• Market in brief
• The future -- Conservative growth
• E-commerce yet to capture Italian hearts
• Technology attracts technophiles
• Lack of trust undermining the offer
• Broader market environment
• Positive factors
• Negative factors
• Population
  • Figure 65: Italy: Population trends, 2002-06
  • Figure 66: Italy: Population by age, 2007
• Computer ownership and Internet access
  • Figure 67: Italy: Proportion of individuals having used a PC in last 3 months, 2006
• Internet usage
  • Figure 68: Italy: Breakdown of Italian Internet users by age and gender, 2007
  • Figure 69: Italy: Internet connections and broadband penetration, 2006-07
• Market in context
  • Figure 70: Italy: Estimated consumer expenditure via e-commerce, 2003-07
  • Figure 71: Italy: Purchasers of items online in the previous 12 months, by age group, 2006-07
• Sector size and forecast
• Key analysis
  • Figure 72: Italy: Estimated e-commerce retail spend breakdown, 2007
  • Figure 73: Italy: All retail sales and estimated e-commerce retail sales, 2003-07 and 2012
• Retail competitor analysis
• Leading players
  • Figure 74: Italy: Leading e-commerce players, 2007/08
• The Consumer
• Consumer attitudes to e-commerce
• E-commerce, making shopping e-asier?
• But is it cheap or safe enough?
  • Figure 75: Italy: Most popular opinions on e-commerce by gender, November 2007
• Detailed view of consumer demographics
• Further analysis
  • Figure 76: Segmentation of nationals on basis of attitudinal statements towards online shopping, November 2007Figure 77: Italy: Breakdown of responses by respondent type, November 2007
• The Consumer -- Detailed demographics
• The Consumer -- Attitudes to shopping online
  • Figure 78: Italy: Attitudes to shopping online, detailed demographics, November 2007
  • Figure 79: Italy: Attitudes to shopping online, detailed demographics, November 2007
  • Figure 80: Italy: Attitudes to shopping online, detailed demographics, November 2007
• The Consumer -- Further analysis
  • Figure 81: Italy: Breakdown of respondent sub-group by demographic, November 2007
• Spain
• Market in brief
• The future -- online sales set to rocket
• Convenience driving online shopping
• Multi-channel model starting to dominate
• Broader market environment
• Positive factors
• Negative factors
• Population
• A growing population...
  • Figure 82: Spain: Population trends, 2002-06
• ...but also an ageing population
  • Figure 83: Spain: Population, by age group, 2002, 2006 and 2010
• Computer ownership and Internet access
• Growing -- but from a low base
  • Figure 84: Spain: Computer ownership, 2004-06
• Few silver surfers in Spain?
  • Figure 85: Spain: Computer ownership, by age group, 2006
  • Figure 86: Spain & EU 27: Levels of Internet access and broadband connections, 2006 and 2007
• The economy
• 2008 set for a slowdown?
  • Figure 87: Spain: GDP, 1996-2006
• Market in context
• B2C e-commerce
  • Figure 88: Spain: B2C E-commerce, 2000-06
  • Figure 89: Spain: B2C e-commerce as % of all consumer spending, 2000-06
• Sector size and forecast
• Online retail sales estimate
  • Figure 90: Estimated e-commerce sales, 2006 and 2007
• Online retail sales forecast
  • Figure 91: Spain: Estimated online retail sales, 2005-07 and 2012
• Retail competitor analysis
  • Figure 92: Spain: Leading online retailers, 2007/08
• Multi-channel
  • Figure 93: Spain: Online shoppers choice of webstore, 2006
• The Consumer
• Consumer attitudes to e-commerce
• Key analysis
• Convenience is king
• Trust remains an issue
• Frustration
  • Figure 94: Spain: Attitudes to shopping online, November 2007
• How and where consumers access the Internet
  • Figure 95: Spain: Where consumers have accessed the Internet, 2007
  • Figure 96: Spain: How consumers have accessed the Internet, 2005-07
• Further analysis
• Key analysis
  • Figure 97: Segmentation of nationalities on basis of attitudinal statements towards online shopping, November 2007Figure 98: Spain: Positive and negative clusters, by attitude statements, 2007
• The Consumer -- Detailed Demographics
• The Consumer -- Attitudes to shopping online
  • Figure 99: Spain: Attitudes to shopping online, detailed demographics, November 2007
  • Figure 100: Spain: Attitudes to shopping online, detailed demographics, November 2007
  • Figure 101: Spain: Attitudes to shopping online, detailed demographics, November 2007
• The Consumer -- Further Analysis
  • Figure 102: Spain: Positive and negative clusters, detailed demographics, 2007
• UK
• Market in brief
• Broadband driving growth?
• Silver surfers?
• Convenience of online shopping is its main appeal, but some still sceptical
• Online retail growth outpacing offline
• Offline brands set to dominate online
• Broader market environment
• Positive factors
• Negative factors
• Population trends
• Greying population good news for e-commerce retailers?
  • Figure 103: UK: British Internet usage profile, by gender, socio-economic group, age and working status, October 2007
  • Figure 104: UK: Population trends, by age band, 2002-12
  • Figure 105: UK: Population by age band, 2002-12
• Computer ownership and Internet access
• The growth of broadband
  • Figure 106: UK: Index of growth of dial-up and broadband Internet connections, September 2004-September 2007
• PC penetration
  • Figure 107: UK: Percentage of households with home computer and Internet connections, 1998/99-2006
• Economy
  • Figure 108: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12
• Market in context
• Key analysis
• B2C e-commerce
• IMRG
• ONS
• Sector size and forecast
• Key analysis
• Non-store retailers' sales
  • Figure 109: UK: Non-store retailers sales forecast, 2003-12
• Estimated online retail sales
  • Figure 110: UK: Estimated online retail sales, 2003-07
• Online retail sales forecast
  • Figure 111: UK: Estimated online retail sales, 2005-07 and 2012
• The future
• Store-based retailers driving growth
• Order online collect in store
• Retail competitor analysis
• Key analysis
• A multi-channel future for e-commerce
• Tesco dominates retailing online as well as offline
• Amazon number 2
• Argos, the most multi-channel?
  • Figure 112: UK: Leading online retailers, sales estimates 2007/08
• Market shares
  • Figure 113: UK: Leading online retailers, estimated market share, 2007/08
• The Consumer
• Key findings
• Consumer attitudes to e-commerce
• Convenience and pricing
• Trust
  • Figure 114: UK: Attitudes to shopping online, November 2007
• Male v. Female priorities
  • Figure 115: UK: Attitudes to shopping online, male v. female priorities, November 2007
• The 45-54-year-olds online shopping profile
• How and where consumers access the Internet
  • Figure 116: GB: Where consumers have accessed the Internet, 2007
  • Figure 117: GB: How consumers have accessed the Internet, 2005-07
• The consumer -- further analysis
  • Figure 118: Segmentation of nationalities on basis of attitudinal statements towards online shopping, November 2007
• Key analysis
• Main issues
  • Figure 119: UK: Attitudes to shopping online, cluster analysis, November 2007
• The Consumer -- Detailed demographics
• The Consumer -- Attitudes to shopping online
  • Figure 120: UK: Attitudes to online shopping, detailed demographics, November 2007
  • Figure 121: UK: Attitudes to online shopping, detailed demographics, November 2007
  • Figure 122: UK: Attitudes to online shopping, detailed demographics, November 2007
• The Consumer -- Further analysis
  • Figure 123: UK: Attitudes to shopping online, cluster analysis, November 2007
• Amazon Europe
  • Figure 124: Amazon Europe: Sales as share of all non-food retailers in Europe, 2002-06
• Strategic evaluation
• Background
• Financial performance
  • Figure 125: Amazon Europe: Estimated financial performance, 2003-07
• e-commerce offering
• Websites
• Market positioning
• Brands
• Product offer
  • Figure 126: Amazon Group: Date of introduction of product categories, 27 November 2007
• Pricing
• Operational issues
• Loyalty card
• Advertising and marketing
• Arcandor
• Strategic evaluation
• Background
• Neckermann.de
• Financial performance
  • Figure 127: Arcandor: Group financial performance, 2004-07
  • Figure 128: Arcandor: Group financial results, 9 months to end September 2006 & 2007
• e-commerce sales
• e-commerce offering
• Websites
  • Figure 129: Karstadtquelle: Major websites, 2008
• Recent developments
• Argos
• Strategic evaluation
• Background
• Financial performance
  • Figure 130: Argos: Financial performance, 2002/03-2006/07
  • Figure 131: Argos: Multi-channel development, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Asda Stores Ltd
• Background
• Financial performance
  • Figure 132: Asda Stores Ltd: Group financial performance, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Bruno Bader
• Background
• Financial performance
• e-commerce offering
• Market positioning
• Product offer
• Pricing
• e-commerce
• buch.de internetstores
• Background
• Financial performance
  • Figure 133: Buch.de: Group financial performance, 2003-07
• e-commerce offering
  • Figure 134: Buch.de: Online shops, 2007
• Product offer
  • Figure 135: Buch.de: Sales mix by product and region, 2006
• Marketing
• Camif France
• Strategic evaluation
• Background
• Financial performance
  • Figure 136: Camif: Group financial performance, 2002-06
  • Figure 137: Camif: Breakdown of sales revenue by fascia, 2006
• e-commerce offering
• Websites
• Market positioning
• Product offer
  • Figure 138: Camif: Breakdown of turnover by product, 2006
• Brands
• Pricing
• CHL
• Background
• Financial performance
  • Figure 139: CHL: Estimated sales revenue from B2C operations, 2005-07
• e-commerce offering
• Products
• B2B operations
• Operational issues
• Conrad
• Strategic evaluation
• Background
• Financial performance
  • Figure 140: Conrad: Group financial performance, 2002-06
• e-commerce offering
• Websites
• Products
• Pricing
• Operational issues
• Debenhams
• Background
• Financial performance
  • Figure 141: Debenhams: Group financial performance, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• DSG International (including PIXmania)
• Strategic evaluation
• Background
• Financial performance
  • Figure 142: DSGi: Group financial performance, 2002/03-2006/07
  • Figure 143: DSGi: Online sales, 2005/06 and 2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• eBay Inc
• Strategic evaluation
• Background
• Financial performance
  • Figure 144: eBay Inc: Group financial performance, 2003-07
• e-commerce offering
• How e-bay works
• Market positioning
• Product offer
• Pricing
• Operational issues -- Safe payments/PayPal
• Advertising and marketing
• Fnac
• Strategic evaluation
• Background
• Financial performance
  • Figure 145: Fnac: Group financial performance, 2003-07
• Discontinued operations
• e-commerce offering
  • Figure 146: Fnac: Website information by country, 2006
• Product offer
  • Figure 147: Fnac: Breakdown of turnover by product category, 2006
• Brands
• Operational issues
• HMV Group
• Background
• Financial performance
  • Figure 148: HMV Group: Group financial performance, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Hoepli Multimedia
• Background
• Financial performance
• e-commerce offering
• Products
• John Lewis Direct
• Background
• Financial performance
  • Figure 149: John Lewis department stores: Financial performance, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Kesa Electricals
• Strategic evaluation
• Background
• Financial performance
  • Figure 150: Kesa Electricals: Group financial performance, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Klingel
• Strategic evaluation
• Background
• Financial performance
  • Figure 151: Klingel: Estimated group financial performance, 2002-06
• e-commerce offering
  • Figure 152: E-commerce offering of the various Klingel websites
• Market positioning
• Operational issues
• Lagardère Services
• Background
• Financial performance
  • Figure 153: Lagardère Services: Group financial performance, 2004-06
• e-commerce offering
• Littlewoods Shop Direct Group Ltd
• Strategic evaluation
• Background
• Financial performance
  • Figure 154: Littlewoods Shop Direct Group Ltd: Group financial performance, 2002/03-2006/07
• e-commerce offering
  • Figure: Littlewoods Shop Direct: e-commerce sites, 2008
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Next Directory
• Strategic evaluation
• Background
• Financial performance
  • Figure 155: Next Directory: Group financial performance, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Ocado
• Background
• Financial performance
  • Figure 156: Ocado: Financial performance, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Ooshop
• Background
• Financial performance
• e-commerce offering
• Products
• Operational issues
• Otto Europe
• Strategic evaluation
• Background
• Financial performance
  • Figure 157: Otto Europe: Group financial performance, 2002/03-2006/07
• e-commerce sales
• e-commerce offering
  • Figure 158: Otto Group: European websites, 2008
• Market positioning
• Brands
• Product offer
• Recent developments
• Play.com
• Background
• Financial performance
• e-commerce offering
• Market positioning
• Product offer
• Pricing
• Redcats
• Strategic evaluation
• Background
• Financial performance
  • Figure 159: Redcats: Group financial performance, 2003-07
• Discontinued operations
• Turnover by region
  • Figure 160: Redcats: Breakdown of turnover by market, 2005
  • Figure 161: Redcats: Breakdown of turnover by sales channel, 2006
• e-commerce offering
  • Figure 162: Redcats: Group websites, 2007
• Product offer
  • Figure 163: Redcats: Breakdown of turnover by product category, 2005
• Brands
• Pricing
• RueDuCommerce
• Background
• Financial performance
  • Figure 164: Rue du Commerce: Financial performance, 2004-06
• e-commerce offering
• Products
  • Figure 165: Rue du Commerce: Breakdown of sales by product category, 2006
• Services
• C2C offer
• J Sainsbury
• Background
• Financial performance
  • Figure 166: Sainsbury's Supermarkets, 2002/03-2006/07
• e-commerce offering
• Market positioning
• Brands
  • Figure 167: Sainsbury's Supermarkets: Own-label food portfolio
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Tchibo
• Background
• Financial performance
  • Figure 168: Tchibo: Group financial performance, 2002-06
• e-commerce offering
• Product offer
• Brands
• Advertising and marketing
• tesco.com
• Strategic evaluation
• Background
• Financial performance
  • Figure 169: tesco.com: Financial performance, 2003-07
  • Figure 170: tesco.com as share of UK sales and operating profit, 2003-07
• e-commerce offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Environment