INTERNET RETAILING in DENMARK 11 Jan 2012 HEADLINES

INTERNET RETAILING IN DENMARK 11 Jan 2012 HEADLINES

Internet retailing grows by 14% in current value terms to reach DKK16 billion in 2011 Convenience, accessibility and lower prices are the key reasons behind internet sales growth in 2011 Internet retailing is a very fragmented channel with the leader Bestseller A/S holding a 6% value share Internet retailing is expected to record a 10% constant value CAGR over the forecast period

COMPETITIVE LANDSCAPE

Internet retailing is a very fragmented market area in Denmark. The leading player, Bestseller A/S, only held a 6% current value share in 2011. The 68% share held by “others” is accounted for by a large number of small operators. Bestseller A/S is a trusted “bricks-and-clicks” retailer and is skilled and experienced in providing an excellent online shopping experience for consumers. The other leading operators such as Apple, Coop NETtorvet, Elgiganten and H&M were originally store-based operators and are thus online with well-known and trusted brands, and large price-competitive product offers. This creates greater consumer trust as the brands are known beforehand. All of the leading operators rely on strong retail and product brand names, as well as wide product offers. Elbodan, Apple and Dell offered competitive prices on consumer electronics and domestic electrical appliances. In addition, Apple also recorded strong growth in sales of digital music. Bestseller, Hennes & Mauritz (H&M) and Ellos targeted the dynamic growth trend in clothing and footwear internet retailing.

NATIONAL BRAND OWNERS AND THEIR BRANDS

Company Name (NBO) Brand (GBO) Apple Inc Apple (Apple Inc) Bestseller A/S Bestseller (Bestseller A/S) Bon'A Parte A/S Bon'A Parte (Bon'A Parte A/S) Botex Bis Amba Botex (Botex Bis Amba) Computer City A/S Computer City (Computer City A/S) Coop Danmark A/S Coop NETtorvet (FDB Group), Irma torvet (FDB Group) Dansk Supermarked A/S Bilkashoppen (Dansk Supermarked A/S) Dell A/S Dell (Dell Inc) Deres Design A/S Deres (Deres Design A/S) Elbodan A/S Proshop (Elbodan A/S) Elgiganten Kokkenland A/S El Giganten (Dixons Retail Plc) Ellos A/S Ellos (PPR SA) Hennes & Mauritz (H&M) A/S H&M (H&M Hennes & Mauritz AB) IKEA A/S IKEA (Inter Ikea Systems BV) Lampeland A/S Lampeland.dk (Lampeland A/S) Matas A/S Matas (Matas A/S) Med24 ApS Med24 (Med24 ApS) Merlin A/S Merlin (Merlin A/S) Oriflame International ApS Oriflame (Oriflame Cosmetics SA) Pixmania SAS Pixmania (Dixons Retail Plc) Yves Rocher Yves Rocher (Yves Rocher SA) Source: Passport by Euromonitor International

FORECAST

DEFINITIONS AND METHODOLOGY

Internet Retailing Sales of consumer goods to the general public via the Internet.

Internet retailing includes sales generated through pure e-commerce web sites and through sites operated by store-based retailers.

Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. Also includes orders placed through the web for which payment is then made through a storecard, an online credit account subsequent to delivery or on delivery of the product. This payment may be by any mode of payment including postal cheque, direct debit, standing order or other banking tools. Includes mobile retailing (m-commerce): consumers use wireless devices such as mobile phone, PDA, BlackBerry, to connect to Internet and purchase the goods online. Excludes sales of wallpapers and ringtones. Includes digital music and movie downloads.

Internet retailing excludes sales of: (a) Products generated over consumer-to-consumer sales sites, such as eBay. All sales over such sites are excluded, even if they were generated by companies operating through the site; (b) Sales of motor vehicles, motorcycles and vehicle parts; (c) Tickets for events (sports, music concerts etc) and travel; (d) Sales of holiday packages; (e) Revenue generated by online gambling sites; (f) Quick delivery services of food, magazines, household goods and DVD rentals, for example: MaxDelivery.com, LicketyShip.com, Netflix.com, LoveFilm (g) Returned products/unpaid invoices.

Example brands include Amazon.com, Zappos.com, Apple.com, Tesco.com, Dell.com, Coles Online, Quelle, Americanas

Methodology This report is derived from Euromonitor International’s Passport information system. Industry research is carried out by a global team of more than 600 in-country analysts and is based on a core set of research techniques: National-level desk research, company research and analysis, store checking, trade interviewing with national players and market analysis International-level desk research, multinational company research and analysis, trade interviewing with international players and market analysis