FIND E-COMMERCE SUCCESS IN 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 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 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 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. European countries (25 per cent on as Belgium or Switzerland – and • French e-commerce is one of the average in the UK and 40 per cent that amounts to roughly another fastest growing markets in Europe in Germany) – a significant statistic five million inhabitants, also with with transactions up 15 per cent for any retailer to consider. significant online spending habits. in 2015. • Online payment in France is a well- • And, finally, the French very much • Legislation is comparable to most established means of transaction: like other European products! EU countries. in June 2015, 81 per cent of those

France: A great opportunity for European online retailers Sectors

There’s no doubt the French online retail sector is in its ascendancy. It accounted for total revenues Top Five Purchase Categories of €56.8bn in 2014, up 11 per cent Source: FEVAD on the previous year. But what The bars represent the percentage of e-shoppers who do French consumers buy from made at least one purchase in the outlined product the internet and what European categories over a 12-month period. products do they buy?

Market Share Domestic Websites Online market sectors in France generally include: Travel 62 • Travel & tourism – holidays, flights, hotels • Services – tickets, subscriptions, Services 54 photo developing, • Cultural products – DVDs, CDs, books Cultural 52 products • Fashion – clothes, footwear, accessories, designer labels • Technical products – computers, Clothing 49 tablets • Beauty products – cosmetics, Electrical 39 fragrances goods • Homeware – furniture, household goods • Groceries Foreign Websites • Electrical goods – small and large, including white goods Technical 36 • Toys and games products • Sports equipment Cultural 21 • Car parts products

French e-commerce consumers are not afraid to buy cross border – Clothing 21 according to Fevad, as of June 2015, 45 per cent of internet users have made purchases on foreign sites. Toys & 10 They are more likely to buy technical games items – electronics, small appliances – and cultural products – DVDs, CDs, iTunes, books – from foreign Travel 9 websites. Fashion – clothes, shoes, bags – is fairly neck-and-neck between domestic and foreign websites and now accounts for over 50 per cent of market share domestically, a significant increase from five years ago when it only just touched 20 per cent.

7 A key factor in the positive growth Although these types of services A key factor in the progression of the clothing and footwear are growing year on year in the of legal downloading was the categories has been the marketing e-commerce industry, technical introduction of the tough anti-piracy and originality of companies like products (especially computer HADOPI legislation in 2009, after La Redoute and 3 Suisses, whose hardware and consumer electronics) months of debate and political fights, promotional sales seem to be and cultural products still rank high but the legislation was withdrawn almost permanently available. This as goods commonly purchased early in 2013. has appealed to French consumers online from foreign websites. As much as 27 per cent of online searching for the best bargains, Media products continue to shoppers purchased home although it may have had something register strong growth with figures decoration or beauty products in to do with the fact that these huge being influenced by the success 2014, while 24 per cent bought food French online mainstays have had to of websites such as Amazon.fr and produce. Grocery shopping compete with some traditional store- (over 16 million unique visitors per online is still not as popular as it based brands coming online like month), Discount (over 10 million is in Britain, for example, because Cache Cache and Zara, which have unique visitors per month) and Fnac French consumers don’t perceive it captured a small but significant part (almost nine million unique visitors as a cheaper alternative, despite the of the market. per month). People have been convenience and time saving. Other services, including ticket strongly encouraged by the French sales, photo developing, periodical, government to download music and other subscriptions, and films legally via the internet. were purchased by well over 50 per cent in 2014.

Most Popular Online Retail Categories in France as Percentage of internet shoppers (2014) 70% Source: FEVAD

Travel and Tourism 60% Services

Cultural Products 50%

Clothing / Fashion

Technical products 40%

Health and Beauty

Home decoration 30%

Food and produce 20% Small and large appliances

Games & Toys 10% Sports Items

Auto parts and equipment

62% 54% 52% 49% 39% 27% 27% 24% 20% 20% 17% 17%

France: A great opportunity for European online retailers gear, German electronics to Dutch producers and milk processors, is Where Does Europe Fit? music equipment, the French are stocked in Intermarché, Monoprix and Although businesses are constantly demonstrably curious consumers other big French supermarket chains. urged to focus on non-traditional and open to buying a variety of Scotch whisky has also long been an markets for export growth, the foreign products. Therefore, the export star and in 2014 accounted European heavyweight – France – market opportunities for European for £445m in sales to France. offers an ideal platform for European businesses – large and small – are companies that are selling cross- very sizable. border for the first time. The facts and figures support this It may seem counter-intuitive to picture, even in areas where you might assume the French consumer suggest that firms which have not ASENDIA TIP: previously traded abroad should take has little interest, such as food Learn from experience their first dip in international waters in and drink from countries other When you are entering a new market, the crisis-hit Eurozone, where growth than France – including the United it’s always important to learn from the is likely to be weak over the next few Kingdom. In the first half of 2015, experience of other foreign retailers years. Yet the French love countless British exports to France in this field who have found success there. Asendia European brands and products, totalled £678m, according to the has various case studies to help. whether it is clothing, housewares, or UK’s Food and Drink Federation. Find them at even food! From well-known British Wyke Farm from Somerset, one of www.asendia.com/casestudy fashion brands, Italian-made sports the UK’s largest independent cheese

Competition Number of Retail Websites A Fragmented Market Source: FEVAD While the internet retailing industry in France continues 164,200 to grow, it remains a fragmented 160,000 market with a handful of sites – just 0.5 per cent – generating 70 per cent of turnover. 138,000 140,000 The number of retail websites increased by 14 per cent to more 117,500 than 164,000 in 2014. Much of the 120,000 fragmentation in recent years has 102,000 been attributed to the emergence online of traditional brands from 100,000 various sectors. 81,900 The e-commerce market grew by 80,000 more than 14 per cent in Europe during 2014. 64,100 The online retail market continues 60,000 to be dominated in France by 47,300 Amazon.fr, providing a varied 35,500 marketplace for consumers having 40,000 expanded into fashion, stationery 22,900 and office supplies, groceries and 14,564 even car and motorbike parts. 20,000 8,911

0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

9 Amazon came under fire from members of the French Online Retail Sales in € (vs Percentage Growth) 2015 Source: The Centre for Retail Research government in 2013 for its dominance of the retail market, criticised for controlling prices and €70 UK preventing small and medium high street businesses from expanding. Germany €60 (16.2%) Nonetheless, consumers have not France €50 (23.1%) been put off and Amazon.fr continues to dominate, with 16,832,000 unique Spain visitors to the site per month. €40 Italy (17%) Top websites still include French €30 stalwarts such as Cdiscount Netherlands (10,501,000 unique visitors per €20 month), Fnac (8,847,000 unique Poland visitors per month) and Voyages- €10 Sncf (6,768,000 unique visitors Sweden (18.6%) (19%) per month). (16.8%) (15.5%) (21%) €61.84 €52.79 €36.53 €9.64 €7.51 €7.03 €5.12 €4.93

Top E-Commerce Sites in France (Jan–March 2015) Source: FEVAD

Unique visitors Unique visitors per month per month

1 Amazon 16,832,000 9 Vente-privee.com 5,479,000

2 Cdiscount 10,501,000 10 Leroy Merlin 5,146,000

3 FNAC 8,847,000 11 Darty 4,951,000

4 eBay 7,989,000 12 Booking.com 4,892,000

5 Voyages-Sncf.com 6,768,000 13 Rue du Commerce 4,770,000

6 Carrefour 6,544,000 14 E.Leclerc 4,440,000

7 La Redoute 6,272,000 15 Groupon 4,391,000

8 PriceMinister 6,233,000

Mail Order Companies Switching from a business model La Redoute’s website continues to based on catalogue orders to be one of the most visited websites The dominance of the textile a primarily online model has in France: seventh in the top 15 industry in the north of France proved complex. e-commerce sites in the first quarter means that most French mail order of 2015 with more than six million These companies have had to companies are located there too. visitors a month, an average of invest massively to adapt to 438,000 a day. Amazon attracted Although the major players have the requirements of the web, 16.8m unique visitors a month many subsidiaries, this category is repositioning themselves to target between January and March 2015, dominated by a handful of firms a younger market, upgrading their while Cdiscount, in second place, such as La Redoute, visible in other IT and operational processes, and attracted 10.5 million visitors a month. European countries since the mid- training their employees on new 1990s. Damartex and 3 Suisses are tools and practices. other prominent competitors.

France: A great opportunity for European online retailers Pure Players Clicks & Mortar Major Players Enterprises entirely leveraged French high streets are no different It is fair to say that Amazon is through the internet, pure players from many European ones, so enjoying top slot as the most visited are seeing some robust growth most larger brands have launched website in France at the moment in France through diversification websites as a matter of necessity and, as the table below shows, there and broadening their range. to connect with customers and is a huge difference in the number of Such companies have been busy develop their revenue via a different unique website visitors within the top creating marketplaces (third-party distribution channel. 15 companies. Electronics and white portals that create trust between goods retailer Darty, at eleventh in Innovation seems to be ongoing – the consumers and private or the table with just over 4.9 million some websites never stop developing, professional retailers) and online visitors a month, has less than a third like Fnac whose marketplace, when specialised stores. of Amazon’s visitors. it entered the online second-hand Pixmania, Rue du Commerce and market in 2009, was originally only many others have already created dedicated to trade but is now open their marketplace to compete to private consumers. Fnac.com also Private Sales with other websites. Amazon offers incentives like a cashback Private sales websites in France are has branched out in a number of service, developed in conjunction still dominated by Vente-privee. directions, for example. However, with specialist eBuyClub. com and showroomprive.com. They such initiatives required heavy Some stores were initially reluctant present limited-time “flash” sales investments and these businesses to go online, especially those of big brand clothing for the whole were forced to use their capital. retailers selling products less family, offering reductions of between Consequently, in 2010, a number adapted to deliveries due to their 30 and 70 per cent compared to in- of websites were sold to large size and weight, such as DIY chains store prices. They also offer travel and retail groups: PriceMinister to like Mr Bricolage, Castorama and leisure products, household items and Japanese Rakuten for around Leroy Merlin. Clearly, the latter even cars, in the case of Vente-privée. €200m; Mistergoodeal to M6; overcame its uncertainty and Grosbill to Auchan; and developed a strong e-commerce Cdiscount to Casino. strategy, enjoying over five million unique visitors a month in Q1 2015 and making the top 10 e-commerce sites most visited in France (see table). Other stores have produced a website simply to direct customers to their stores.

Categories of Players

e-commerce market €56.8 billion

e-commerce market Click & Mortar €56.8 billion Pure Players (Leroy Merlin, Fnac, Darty…)

B2C (Pixmania, Cdiscount, Private Sales C2C (Vente-privee.com…) (Price Minister, eBay…) Amazon…)

11 Trends Cross-border Sales As groceries are expected to be a According to social media agency, high earner from website sales in We Are Social, 12 per cent of French The growing propensity for the next few years in France, one consumers had bought something consumers to shop across borders of the big supermarkets, Carrefour, via their mobile phone within the highlights an increasing realisation has integrated NFC (near field past 30 days in Q4 2014. FEVAD that buying from another country communication)-enabled mobile figures show that 10.7 per cent of can provide lower prices and a kiosks into its physical stores to the population did so in Q1 2015. wider range of products or brands, provide a link between its online And research published by French aided by the fact that EU-wide laws and brick-and-mortar outlets. And marketing agency Criteo shows that provide protection when they do according to Le Lab, an e-commerce over 20 per cent of e-commerce so. French consumers are becoming research site founded by Vente- transactions in Q1 2015 in France particularly price savvy, which may Privée Consulting, “a store that makes were done via mobile devices. be contributing to them seeking five per cent of its turnover online This makes sense when you better value beyond their borders. can expect to increase their turnover consider how many people now by around 30 per cent through click The internet as a channel will benefit view their mobile device as their & collect”. greatly from this growing consumer main connection with the internet. awareness of cross-border purchasing Localisation of Websites InMobi’s research shows that 21 per because of its immediate advertising cent of mobile users in France access potential and the ease and speed One of the biggest hurdles that a the web primarily via their phones. with which businesses can offer their retailer will have to overcome is French users also split their daily products at their best prices. It’s an in relation to the local differences media time fairly evenly between opportunity that companies in other required of their website, in terms of various devices – 19 per cent on countries cannot afford to miss. language, the product offering, the mobiles, 22 per cent online or via a need for different sizes, colours or laptop and 15 per cent on a tablet, Deliveries designs, and in relation to customer versus 22 per cent watching television Despite these positive elements, service, where a retailer may have to (and 62 per cent of mobile web there are still a number of factors converse with consumers in a foreign users typically use their mobile while holding back the expansion of language. Localisation of offering will watching television). They also top internet retailing in certain markets require a lot of thought and we have the list for active apps usage around and France is no exception. Due to detailed some Dos and Don’ts (see the world (7.9 active apps compared specific country delivery options, page 16), including idiosyncrasies of with a global average of 6.8). retailers have to face differing the French online consumer which consumer expectations: some will need to be considered. require one-hour delivery slots, while others are happy to wait in all day. M-commerce Some buy for the convenience of As of March 2015, there were home delivery, while others prefer 68.5 million active mobile users to collect from the store or even in the country, according to opt for the growing trend of having telecommunications regulator Arcep, their purchase delivered to a secure with a penetration rate over 100 locker. Retailers will have to be per cent. This represents a French aware of these differences before revolution of a new kind as mobile extending their internet retailing devices become an increasingly offer into a foreign market. (See significant sales tool. It seems buying “French Consumers” on p14). on digital platforms is becoming the Trends are being set by the online habit for many French consumers. companies as well as by the Research by mobile technology consumers, especially the rise of company InMobi revealed that 55 per “click & collect” services. cent of French consumers had already spent money via their mobile phones in 2014.

France: A great opportunity for European online retailers Market Places Market places are third party of logistics: stock management Fnac have followed this trend websites that help to create trust and dispatching are generally the and opened their online stores (especially with the use of secure responsibility of the third-party to third parties: Pixmania and online payment) between the retailers, while the website takes Rue du Commerce to professionals consumers and private or professional care of customer service and claims. and Amazon and Fnac to private retailers. Host websites benefit from retailers (C2C). A number of the biggest French true supply chain cost-efficiency e-commerce websites have If you are not ready to invest in provided by such platforms. developed this model among creating a French version of your This type of market enables retailers pure players such as 2xmoinscher, website, testing the potential to diversify and to consolidate their PriceMinister or eBay. Amazon, through a marketplace could be offer, while bypassing the issue Pixmania, Rue du Commerce and a good alternative.

Online Market Place Mechanism

Increase in traffic and number of transactions

Increased revenue Growth based on Increase in the number enabling increased the increase of the of available products and in communication spend offer available the number of members

Increased number of satisfied customers inducing increased number of visitors

13 French Consumers Buying Habits consumers see La Poste services of payments were done via PayPal as delivery options on your website with the rest split between cash, Online Buyer Profile they will inherently trust your cheques, bank transfers, pre-paid Buying on the internet in France is business to deliver. cards and so on. By the first half of fairly evenly balanced between men 2015, 81 per cent of online buyers paid Payment Security and women, with neither particularly with a bank/credit card, while others out-purchasing the other. The age While French people have been used “online portfolio” payment bracket buying the most online is the quite happy to buy using a credit services like Paypal. 25 to 34-year-olds, and professional card, consumers have become Preferred purchases people are buying more than manual even more confident buying online workers. Add these together and with plastic thanks in a large part In terms of what customers are you have a group of people who, at to improvements in payment looking for online, according to this time of their lives, probably have security. The channel is considered FEVAD’s Chiffres Clés 2015 the most disposable income. to be convenient, more familiar (“Key Figures 2015”), the top three and more trustworthy. product categories for online sales The older generation are certainly were divided as follows: tourism In 2004, only 45 per cent of internet not being left behind. The over 65s (32 per cent of e-commerce users purchased online with a bank/ and retired people are using the turnover by sector), clothing/shoes/ credit card. By 2014, 51 per cent of internet to buy and, interestingly, the home textiles (10 per cent) and online payments were made with a 16 to 24-year-old age bracket are not housewares (seven per cent). that far in front. credit or debit card. Sixteen per cent Delivery Options Online retailing remains popular among French consumers – the InMobi survey revealed that 49 per Preferred Online Payment Methods in France, 2014 cent of respondents in Q4 2014 had Source: Datamonitor bought something online within the past month. They buy online for 3% convenience and expect delivery to 4% be equally as convenient for them. 5% According to research conducted by Statista, when purchasing goods 5% or services online in France in the first half of 2015, 83 per cent of respondents chose home delivery, 7% 66 per cent chose delivery to a “pick up & go” location and 26 per cent selected delivery in store. Delivery is a 51% key ingredients for retailers hoping to tap into the online consumer market 10% in France. This feeling runs so deep that, according to one study, 79 per cent of respondents said that a “good” delivery service is one that delivers 16% on the same day the order is placed. Services such as Colisweb have sprung up in recent years, working Credit/Debit card with retailers to offer same-day Prepaid card delivery, whether an order is placed Paypal online or in store. Other money transfer

La Poste is a brand well recognised Bank transfer Prepaid voucher and trusted by French consumers, which is significant in increasing Cash or cheque Other sales conversion rates. If French

France: A great opportunity for European online retailers The French, with a traditional catalogue background based on years of mail order transactions, Products & Services Bought Online still enjoy buying goods with a Source: FEVAD catalogue in front of them, even when buying online. More than 70 per cent of online buyers have also indicated they Travel, Tourism buy goods on recommendations from friends and relatives and actively seek peer-to-peer advice before purchasing. Services Forty-seven per cent look for information on a product online even before they buy in store – Cultural though, according to the InMobi report, only 15 per cent claim that Products mobile research or advertising has influenced a purchasing decision. Twenty-five per cent will go to Clothing & the shop to look at the product before buying online with either Accessories a better offer or because the item is unavailable at the store. Although the average shopping Technical basket fell by four per cent from Products €85 in 2013 to €81 in 2014, the higher frequency of purchases compensates and maintains a Beauty & healthy growth. Personal Care

Housewares &

Furnishing

ASENDIA TIP: A choice of delivery options Food & Drink When it comes to delivery, reliability is as important as speed in France, and offering a choice of delivery options will give you a competitive edge. Asendia provides cost- Games & Toys effective and efficient international post and parcel solutions to France with unique access to the La Poste postal network. Services include: Cars • Colissimo, the largest provider of low-cost tracked postal services in France • PostTrack, an international 0% 10% 20% 30% 40% 50% 60% 70% tracked parcel solution aimed at e-commerce businesses.

2014 2013 2012 2011 2010 For more information, go to www.asendia.com/goods

15 ASENDIA TIP: Dos & Don’ts for the French market

Through its parent company La Poste, Asendia knows France inside and out, so we’re well placed to offer advice on how best to succeed in France.

1. Offer local payment options – for France, 4. Reassure the consumer by providing all the that’s the euro. French consumers are relevant information they need to make a quick comfortable with online payment methods – decision. Use European sizes, plenty of pictures, credit credit and debit cards as well as PayPal – and tell the story behind the product – including but ensure the options are clear. “made in” information – as the French love these details. 2. French is best. Translate your website, or at least include a translation option – and tie that 5. Offer different delivery options. Pick-up point in with your local advertising. Although most delivery – enabling shoppers to collect parcels of your customer contact will be online, it can close to home – is an increasingly popular be helpful to have French speakers on board, alternative to postal solutions in France. both for helping consumers and for dealing with 6. Get your logistics right: The French need French distributors. reassurance around delivery and returns – even 3. Don’t underestimate the importance of though return rates are low. They are used to the direct mail. Direct mail, associated vouchers reliability offered by La Poste and will expect and catalogues all have a high impact in France you to meet their expectations. Reliability and when it comes to influencing purchase decisions. choice is as – if not more – important than Asendia can help optimise delivery, reducing speed. cost and wastage, and get your material to the right people, at the right time.

For more information on our services, go to www.asendia.com/services

Prospects The forecast for e-commerce in France is bright. According to the Centre for Retail Research, Projected Digital Buyers in France in Millions e-commerce is “the fastest growing retail market in Europe”. Online sales across the UK, Germany, France, 2016 30.4 Sweden, The Netherlands, Italy, Poland and Spain are expected to hit €185.39bn in 2015 (up 18.4 per cent 2015 29.8 on 2014) and reach an anticipated €219.44bn in 2016.

It seems buying on digital platforms 2014 29.2 is fast becoming the habit for many French consumers and anyone considering e-commerce business 2013 28.1 in France has a clear opportunity, as long as they embrace multichannel shopping – the French have 26.0 27.0 28.0 29.0 30.0 31.0 made it clear they want flexibility, convenience and value.

France: A great opportunity for European online retailers Growing Product Online Percentage Market Share Categories by Country (2014-2015) Many categories are expected to Source: The Centre for Retail Research successfully grow during the next five years. Housewares and home 15.2% furnishings internet retailing is UK 13.5% expected to increase by a CAGR (Compound Annual Growth Rate) 11.6% of nine per cent in constant value Germany 10% terms over the next three years. The category could benefit from 7.8% Sweden the “green” trend emerging among 7.6% French consumers’ expectations.

8.4% Media products’ internet retailing is European average 7.2% also likely to perform well, thanks to the development of internet 7.4% The Netherlands downloading, although many 7.1% French people are not willing to pay for downloads, despite the 8% France judicial and political battle about 6.9% downloading. 3.5% Spain Finally, Clothing and footwear 3% internet retailing is expected to increase by a CAGR of six per 3.3% Poland cent in constant value terms over 2.8% the next three years, thanks to a 2.5% growing number of bricks-and- Italy 2.1% mortar stores going online. Food and drink internet 0% 5% 10% 15% retailing is expected to grow quickly, but less rapidly than 2015 2014 most other categories, due to its still expensive image. Percentage of retail sales, excluding vacations, auto, gas and tickets. Sales weighted transactions. Therefore, grocery retailers should try to keep their prices keen and bring added value services to their offering. For instance, Auchandirect.fr reduced the prices on over 500 daily products and applied In response to growing Here are some: a decreasing tariff to its home international market opportunities German-French delivery service. In 2015, it also for European businesses, there is www.francoallemand.com/ launched a click-and-collect point plenty of advice and help available. Austro-French Chamber of in Paris with plans for a second For more information consult Commerce one in place, to give consumers the International Chamber of ccfa.at/ even greater choice and flexibility. Commerce: British in France International Chamber www.britishinfrance.com/b04busi.html of Commerce Spanish in France www.international-chamber.co.uk/ www.cocef.com/fr/ Alternatively, visit your respective Swedish in France country’s chamber of commerce. ccsf.fr/

17 Mobile Internet Mobile Internet which handles complaints on any The Internet Rights Forum offers illicit online content or fraud. a mediation service for consumer Mobile technology, in terms of The latter is run in co-operation e-commerce disputes. In addition, smartphones and tablets, has with a special police unit dealing the European Commission sponsors permeated very quickly into the with Internet and information- a multilingual Electronic Consumer consumer base. By 2015, annual technology crime. Dispute Resolution mechanism sales of smartphones in Europe are (www.ecodir.org). predicted to reach 150 million, while The Internet Rights Forum is a state- 40 million tablets will be purchased, funded organisation that monitors Cofrac (Comité français from a standing start in 2009. The public policy issues concerning the d’accréditation at launch of the Amazon Kindle Fire internet. It consults regularly with www.cofrac.fr) also provides tablet, the continued evolution of industry and the government, issuing certification of electronic-service Apple’s iPhone and smartphones reports and recommendations and providers, such as organisations from other handset manufacturers tracking jurisprudence in the Internet providing certified electronic is widening consumer adoption, domain. In addition, it publishes an signatures. In addition, France leading many shoppers to have such annual guide to e-commerce for recognises certification from other technology with them at all times. consumers. EEA countries. The growing presence of these The EU personal data directive and VAT technologies in consumers’ pockets French law forbid the collection and use of personal data without VAT rates vary among European will enable them to research countries. For example, Luxembourg products and to check prices in the subject’s consent. Regarding e-commerce, the directive forbids applies 17 per cent VAT, compared stores, but it will also allow them to 20 per cent in France. The VAT to purchase the items from the the transfer of consumer data to states that are not members of the position when a European business cheapest retailer through the same exports goods to France mainly . This change in how European Economic Area (EEA; the EU plus Iceland, Liechtenstein and depends on whether the French and where consumers access the customer is registered for French internet will provide that channel Norway), unless these countries provide an adequate level of data TVA, or is unregistered (for example, with further growth opportunities a consumer or a very small business). and is likely to give sales growth protection—known as safe harbours. added momentum in the medium A European business does not and longer term. Consumer Protection usually need to charge VAT on ec.europa.eu/consumers/cons_ goods exported to France, if it info/10principles/en.pdf meets two conditions: it obtains a Regulations valid TVA registration number for Certification the French customer and shows it Data Privacy Companies can use the Chamber (including the FR prefix) on the sales In 1995 the EU passed the Directive Trust seal for business-to-business invoice; and it obtains and keeps on the Protection of Personal Data e-commerce as a quality mark. This documentary proof of export. If both (95/46), which applies to data held is run by the International Chamber these conditions are met, the export on paper or electronically. France of Commerce and is supported by will be zero-rated. Any European adopted this directive in 2004 (Law the Paris Chamber of Commerce and business exporting to France should 2004/801 of August 6th, 2004), Industry (Chambre de commerce et regularly check whether its level of thus updating the existing legal basis d’industrie de Paris). sales to TVA-unregistered customers (Law 78/17 of January 6th, 1978). in France requires it to register for Compliance is the responsibility of The French food-retail association TVA under the distance-selling rules. the National Commission on and the mail-order and distance- VAT and Customs information Freedom of Information selling association also have a can be found on the European (Commission nationale de trustmark for e-commerce websites, Commission website: l’informatique et des libertés—CNIL). the L@belsite (www.labelsite.org), www.ec.europa.eu The CNIL supports two which signals compliance with a consumer-protection websites: European Code of Conduct and is signal-spam.fr helps consumers and linked into EEJ-Net, a network of businesses identify and report spam, out-of-court redress mechanisms and internet-signalement.gouv.fr, operating in the EU/EEA countries.

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19 References and Sources This whitepaper is compiled from FEVAD a variety of sources that are in the www.fevad.com public domain including research papers, websites, industry and Médiamétrie financial publications and other www.mediametrie.com industry and economic data. These Benchmark Group are listed here. It is designed to www.benchmark-group.co.uk provide an overview of markets in the regions and countries Euromonitor International specified and should not be used www.euromonitor.com as a definitive reference point. This whitepaper is meant for sole use by Centre for Retail Research www.retailresearch.org the recipient and is not for general circulation. We have endeavoured Le Journal du Net to use reliable and credible sources www.journaldunet.com for the data included, however we cannot guarantee its accuracy. It European Commission should not be relied upon as such. www.ec.europa.eu Due to variations in definitions, dates CREDOC and time periods data sources should www.credoc.fr not be used for comparison purposes. BBC News magazine This whitepaper and the opinions www.bbc.co.uk/news/magazine expressed herein are current at the Cellular News time of production however may www.cellular-news.com change in the future. InMobi www.inmobi.com GlobalWebIndex www.globalwebindex.net

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