FIND E-COMMERCE SUCCESS in FRANCE Hints, Tips and Local Knowledge for Reaching the French Consumer
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FIND E-COMMERCE SUCCESS IN FRANCE Hints, tips and local knowledge for reaching the French consumer Why France? • Market Guide • Trends • Opportunities • Competition Regulation • Dos and Don’ts • Consumer Analysis Asendia is an international partnership between La Poste and Swiss Post. Table of Contents Introduction 3 Asendia 3 La Poste 3 The French Market 4 The Story So Far 4 Market Leader Online 5 Key Indicators 6 Why Enter the French Market? 6 Sectors 7 Market Share 7 Sales Share Per Product Category 8 Where Does Europe Fit? 9 Competition 9 A Fragmented Market 9 Categories of Players 11 Major Players 11 Trends 12 Cross-border Sales 12 M-commerce 12 Market Places 13 French Consumers 14 Dos and Don’ts 16 Prospects 16 Growing Product Categories 17 Mobile Internet 18 Regulations 18 Data Privacy 18 Consumer Protection 18 Certification 18 VAT 18 Asendia - Who we are 19 Sources 20 France: A great opportunity for European online retailers Introduction Europe’s e-commerce market is burgeoning, offering very exciting opportunities for online retailers across a variety of sectors. The French market is relatively easy to enter and be successful in. Logistics are less complex than entering other countries and distribution costs can be low. For these reasons, France is often the first country that European e-commerce retailers will enter when expanding cross border. There are many things to consider and planning is essential, because naturally the market is not exactly the same as in other European markets. Here at Asendia, we have been helping European companies successfully distribute their goods across France for years and have collated all the information we have acquired in this guide to help you profit from international sales. Asendia La Poste Asendia is an alliance between La Poste is the historical postal two equal partners, La Poste and operator in France and today is Swiss Post. It was created to realise Europe’s second-largest postal service the joint benefits of new delivery provider. The group had a turnover solutions and expanding global of €22bn in 2014. For many French logistics services for our customers. people, La Poste represents a public service, proud to assume its four roles: The partnership ensures growth, underscores our commitment to • universal postal service excellence and creates sustainable • newspapers and press delivery value, not only for our valued • local development customers and shareholders, • fighting against banking exclusion. but also for our employees. Groupe La Poste invested more than €1bn in 2014 on general modernisation to reach an unprecedented quality of service and become a major European services group. 3 The French Market Regardless of fluctuating domestic multiplying – up to 34.7 million in The Story So Far consumption levels, online retailing 2014, 6.4 per cent more than the It is a fact that French households continued to grow in double digits, same period a year earlier – it offers have suffered from the effects of up by 15 per cent in 2014, putting European businesses a sales outlet the world recession, experiencing France firmly among the global with enormous scope. continuing high levels of trendsetters, averaging increases With 56 million internet users unemployment and static salaries. in online sales of 15 to 20 per cent. across France – 84 per cent of the Their online buying propensity, Excluding food, French consumers population, most of them shopping however, has increased – nearly two- now purchase nine per cent of on the internet – it’s easy to see thirds of French people now buy traditional retail goods online. that there is a large potential for remotely, representing millions of The news from FEVAD, the French European companies. And what’s transactions a year. e-commerce and distance selling more, nearly 50 per cent of the In fact, online shopping figures have federation, is that French consumers population – that’s 30 million people seen a phenomenal 500 per cent spent nearly €57bn on online – are Facebook users, where they are increase since 2000. purchases in 2014. exposed to vigorous advertising and personal recommendations. The numbers speak for themselves Expanding into neighbouring in this dynamic market – despite European markets therefore a difficult economic environment, presents exciting opportunities distance selling in France hit an all- for competitive growth. With the time high of more than €60bn in 2014. number of online shoppers in France Online Percentage Market Share by Country 2014 and 2015 Source: Centre for Retail Research 2014 UK 13.5% 15.2% 2015 Germany 10% 11.6% Sweden 7.6% 7.8% Europe (average) 7.2% 8.4% Netherlands 7.1% 7.4% France 6.9% 8% Spain 3% 3.5% Poland 2.8% 3.3% Italy 2.1% 2.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% France: A great opportunity for European online retailers Market Leader Online France’s internet economy accounts Top Five Mature European E-commerce for more than five per cent of GDP Countries 2014, in Turnover (€ billion) and the figure is set to rise. In fact, Source: E-commerce Europe Europe as a whole is leading the e-commerce growth – €423.8bn €130 in 2014 – representing a rise of more than 14 per cent, with the UK, €120 Germany and France accounting for 60 per cent of European €110 e-commerce activity. In comparison, North America’s e-commerce market €100 grew by only 12 per cent. According to Ecommerce Europe €90 and Fevad, France is the third largest e-commerce market in Europe, after €80 the UK and Germany, and in the top ten globally. Whatever figures €70 you look at, it’s clear France is a dominant force in e-commerce. €60 What’s driving this continued growth €50 in e-commerce in France? To begin with, the number of both online UK retailers and online shoppers has €40 increased year on year. In 2014, the Germany number of online retailers in France €30 grew by 14 per cent to 164,200. France €20 Second, internet penetration and Netherlands broadband speeds continue to €10 improve across France, creating Switzerland more users on a daily basis – especially in rural areas – and, €127.2 €71 €56.8 €14 €12.7 subsequently, empowering more and more online shoppers. Third, while French consumers have a number of expectations which Revenue Generated by E-commerce we will discuss in this document in France (in € Billions) and Number later, they are confident online €56.8 shoppers and have less fear of online of Active E-merchants €51.1 purchasing than other nations. They Source: FEVAD 164,200 are also attracted by home and €45 other delivery options. 138,000 €37.7 And finally, with less money in their pockets, French consumers have €31 117,500 turned in their droves towards cheaper distribution channels, €25 100,400 especially e-commerce, as they see €20 81,900 true benefits using the internet with €15.6 its competitive prices and instant 64,100 €11.6 47,300 discounts. France is clearly an 35,500 attractive market for e-commerce. 22,900 2006 2007 2008 2009 2010 2011 2012 2013 2014 5 Key Indicators With a population of more than 66 million people in France – more Internet Users and Online Buyers Source: Médiamétrie and FEVAD or less the same as the UK – spread over nearly 552,000km² – that’s over twice the area of the UK and around 60m 56m the same area as Germany, Benelux, 54m and Austria taken together – it is no 50m wonder that among the 56 million 50m internet users, nearly eight out of 10 shopped online in 2014. 38m 40m 39m 40m This can be attributed not only to 35m 35m the improved broadband coverage 33m 31m 32m across the country, especially in more 29m 30m 28m 30m rural areas, but also to the increasing 26m 24m use of mobile phones and tablets to 24m 22m access the internet. French consumers 18m 20m seem to be acutely aware of the 20m convenience of internet shopping. 13m 11m Not only have they found it 10m convenient, they are increasing their spending. The average spend of the French e-commerce shopper in 2014 0m was €1,625, more than double the amount spent in 2007. Customers 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 bought on the internet an average of 20 times last year and the average Number of internet users Number of online buyers spend was €81 per transaction. Why Enter the • There is a history of long-term surveyed by Fevad had paid for business relationship between something online using a bank French Market? France and its European card in the preceding six months; Brimming with potential, there are neighbours. 38 per cent also used other forms many good reasons for opening of online payment. • According to research by the up your business to the French European Commission, French • Direct marketing constraints are market, whether B2C or B2B, and e-consumers are above average limited compared to other markets. maximising your profits: in Europe when it comes to For instance, in Germany, Spain or buying goods and services in Italy, databases are compiled on • With a population of more than another EU language via the an opt-in basis only, thus limiting 66 million, France is the second internet. They also perform well possibilities for prospection, largest mainland European when it comes to knowing where whereas France uses the opt- consumer market behind Germany. to get information and advice out principle. • France is in the top ten in the about cross-border shopping. • Targeting the French market world for revenue generated by • The number of returned items – 10 means accessing neighbouring e-commerce and third in Europe per cent – is low compared to other French-speaking markets such after Germany.