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GLOBAL ECOMMERCE PLATFORMS 2014 A Country-By-Country Look at the Top Retail Ecommerce Sites DECEMBER 2014 Rahul Chadha Contributors: Victor Aka, Sherry Antoine, Osbaldo Franco, Natalie Marin-Sharp, Man-Chung Cheung, Jennifer Jhun, Jeane Han, Jasmine Enberg, Hilary Rengert, Cindy Liu Read this on eMarketer for iPad EXECUTIVE SUMMARY Given Amazon’s dominance of the US market, it would be easy to assume that the ecommerce giant is well on its way to replicating its success globally. In some places it has, but a closer look at the major retail ecommerce sites in the core countries eMarketer covers reveals a great deal of variety in individual markets. In some countries, such as Russia and Indonesia, the ecommerce landscape remains populated by a large number of homegrown competitors who benefit from an understanding of local language and shopping practices. In regions like Western Europe, friendly trade policies along with small domestic markets for goods drive consumers to price shop in neighboring countries, driving up cross-border ecommerce. In a market like China, however, just a handful of companies—such as Alibaba Group and JD.com—dominate the landscape. Alibaba’s success is due in part to its establishment of a marketplace with low entry costs for retailers, while simultaneously solving logistics problems, such as providing merchants with a secure online payment method. This report is intended to give the reader an overview of the major retail ecommerce platforms operating in the 23 countries for which we offer forecasts. In addition, we have provided information about digital buyer behavior, popular product categories, payment methods, and mobile and cross-border commerce site preferences when available. KEY QUESTIONS ■■ ■■ ■■ What are the major retail ecommerce platforms in countries around the world? Retail Ecommerce Sales Worldwide, 2013-2018 trillions and % change $2.489 $2.197 $1.888 $1.592 $1.316 $1.077 25.9% 2013 22.2% 20.9% 2014 2015 Retail ecommerce sales 18.6% 16.4% 2016 2017 13.3% 2018 % change Note: includes products or services ordered using the internet via any device, regardless of the method of payment or fulfillment; excludes travel Source: eMarketer, Dec 2014 183001 www.eMarketer.com CONTENTS 2 Executive Summary 3Asia-Pacific 13Europe 36 Latin America 42 North America 45 Related eMarketer Reports 45 Related Links 46 Editorial and Production Contributors What are the popular retail ecommerce product categories in various markets? What are the most commonly used retail ecommerce payment methods in these countries? GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED2 ASIA-PACIFIC Consumers in the Asia-Pacific region show great variation in ecommerce site preferences by country. In more mature markets like Australia, Japan and South Korea, where use of banks is widespread and delivery and payment infrastructure suitably developed, digital buyers certainly use business-to-consumer (B2C) platforms like Amazon.com, but in some cases digital marketplaces still play an integral role in the digital shopping experience. Meanwhile, digital buyers in emerging markets such as Indonesia and India tend to rely more on consumer-to-consumer (C2C) platforms due to the lack of access to online payment options and barriers to deliveries. AUSTRALIA Top Ecommerce Sites Australia’s ecommerce landscape is crowded with international competitors—especially eBay-owned properties—according to October 2014 data from Experian Hitwise Australia. eBay Australia catalogued the highest number of visits, 23.1 million, during the week examined, accounting for 12.9% of retail site visits during that timeframe. The local edition of eBay-owned classifieds site Gumtree was second with 13.3 million visits and a 7.4% share, followed by eBay with 13.2 million, for a 7.4% share, and Amazon with 11.6 million, for a 6.5% share. [Note: The Australian version of Amazon’s site, Amazon.com.au, sells only ebooks]. Top 10 Retail Sites in Australia, Ranked by Total Visits, Week ending Oct 18, 2014 millions and % share of visits 1. eBay Australia Total visits % share of visits 23.1 12.9% 2. Gumtree AU Splashpage 13.3 7.4% 3. eBay 13.2 7.4% 4. Amazon 11.6 6.5% 5. OzBargain 1.9 1.1% 6. JB Hi-Fi Australia 1.8 1.0% 7. Bunnings Warehouse 1.6 0.9% 8. Apple 1.4 0.8% 9. AliExpress by Alibaba.com 1.4 0.8% 10. Target Australia 1.3 0.7% Source: Experian Marketing Services, Oct 21, 2014 181053 www.eMarketer.com The remaining top 10 ecommerce sites, with visitor shares of around 1% of less, included user-supported deals-posting site OzBargain, consumer electronics retailer JB Hi-Fi Australia and hardware chain Bunnings Warehouse, Apple’s site, Alibaba Group-owned discounts site AliExpress and department store chain Target Australia. The list reflects a landscape dominated by C2C resale sites, alongside options for B2C transactions. An Interactive Advertising Bureau Australia (IAB Australia) report citing September 2014 data from Nielsen Online Ratings said that grocery store websites drew relatively large audiences. While Amazon attracted the largest crowd of unique visitors—3.3 million—in the month studied, homegrown supermarket chain Woolworths drew an audience of 2.5 million, followed by domestic grocery retailer Coles (2.1 million) and Woolworths HomeShop (1.4 million). Locally based electronics and furniture merchant Harvey Norman, discount department store Big W, office supply store Officeworks and midrange department store Myer also made the top 10. Top 10 Retail Sites Among Internet Users in Australia, Ranked by Unique Visitors, Sep 2014 Unique Time per person Sessions per visitors person (mins:secs) (millions) 1. Amazon 3.3 24:10 3.5 2. Woolworths 2.5 19:32 3.1 3. Coles 2.1 17:27 3.2 4. Woolworths HomeShop 1.4 26:22 2.4 5. JB Hi-Fi 1.4 11:56 2.1 6. Target Australia 1.3 12:09 3.1 7. Harvey Norman 1.3 7:00 2.5 8. Big W 1.2 6:12 2.0 9. Officeworks 1.1 12:03 1.8 10. Myer 1.1 14:24 2.1 Source: Nielsen Online Ratings - Hybrid, "The Australian Online Landscape Review September 2014," Oct 20, 2014 181293 www.eMarketer.com Product Categories Similar to other developed markets, digital sales in Australia span a number of product categories. According to data from National Australia Bank (NAB) for January 2014, department and variety stores pulled in the largest share of retail ecommerce spending (34%), followed by homewares and appliances (17%), groceries and liquor (15%), media (12%) and fashion (11%). Personal and recreational goods, daily deals and electronic games and toys rounded out the list, but with just single-digit shares each. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED3 Payment Methods Retail Ecommerce Spending Share in Australia, by Product Category, Jan 2014 % of total Department and variety stores Homewares and appliances Groceries and liquor 12% Fashion 11% 6% 2% 17% 15% Media* 3% 34% Personal and recreational goods Daily deals Electronic games and toys Note: based on 12 month period ending Jan 2014; *includes books, movies and music Source: National Australia Bank (NAB), "Online Retail Sales Index: Indepth Report - January 2014" in association with Quantium, March 5, 2014 173938 www.eMarketer.com NAB data for the same month, broken down by age group, found that department and variety stores commanded the highest spending share among all age demographics, including those under 25. Homewares and appliances factored strongly into the ecommerce spending of all age groups, too. Consumers under age 25 purchased media and fashion via digital in greater percentages than other age cohorts did, while consumers ages 65 and above were the most likely to buy groceries and liquor digitally. Retail Ecommerce Spending Share in Australia, by Age and Product Category, 12 months ending Jan 2014 % of total <25 25-34 35-44 45-54 55-64 65+ Department and variety stores 34% 35% 34% 36% 35% 30% Fashion 18% 12% 10% 10% 9% 7% Media* 17% 13% 12% 10% 10% 9% Homewares and appliances 13% 15% 16% 18% 20% 19% Electronic games and toys 6% 2% 2% 1% 1% 1% Personal and recreational goods 5% 6% 6% 6% 6% 5% Groceries and liquor 4% 12% 16% 15% 18% 28% Daily deals 3% 4% 4% 3% 3% 2% Note: based on 12 month period ending Jan 2014; numbers may not add up to 100% due to rounding; *includes books, movies and music Source: National Australia Bank (NAB), "Online Retail Sales Index: Indepth Report - January 2014" in association with Quantium, March 5, 2014 173939 When Hewlett-Packard (HP) and RFi surveyed digital buyers in Australia in March 2014 about payment methods, they found 70% had used PayPal during the preceding 12 months, making it the country’s most widely used digital payment method. Next was direct debit (62%), followed by an electronic bill payment system owned by Australia’s four largest banks called BPAY (60%) and direct transfer (59%). www.eMarketer.com Payment Methods Used by Digital Buyers in Australia, March 2014 % of respondents PayPal 70% Direct debit 62% BPAY 60% Direct transfer 59% Note: in the past 12 months Source: Hewlett-Packard (HP) and RFi, "Australian Payments Research: Edition 6," May 16, 2014 175592 www.eMarketer.com CHINA Top Ecommerce Sites Ecommerce in China is heavily dominated by homegrown B2C retail companies—the most prominent of which are owned by ecommerce and internet services giant Alibaba Group—and by C2C transactions. According to a July 2014 QQSurvey poll of digital buyers in China, the most heavily used sites for purchasing digitally were Alibaba Group-owned properties, with C2C platform Taobao Marketplace used by 72.0% of respondents and B2C platforms Tmall (formerly known as Taobao Mall) and Jingdong Mall, or JD.com, used by 42.6% and 39.8% respectively. The remaining top 10 players, all of whom trailed the three leaders by a considerable margin, include Yihaodian, a grocery-focused B2C site owned in part by Wal-Mart; Alibaba-owned discount group-buying site MeiTuan; electronics retailer Suning; Alibaba.com; discount retailer vip.com; and Amazon’s China-specific site, Amazon.cn. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED4 Top 10 Retail Sites Used to Make Digital Purchases According to Digital Buyers in China, July 2014 % of respondents Retail and C2C Ecommerce Sales Share in China, by Site, H1 2014 % of total Taobao Marketplace 1. Taobao Marketplace 51.5% 72.0% Tmall 2. Tmall 24.6% 42.6% JD.com 3. JD.com 8.4% 39.8% Suning 1.6% 4. Yihaodian 12.0% Paipai.com 1.3% 5. Meituan 11.0% Jingdong Wanggou 1.1% 6. Dangdang 10.6% Amazon.cn 0.9% 7. Suning 7.7% Yixun 0.9% 8. Alibaba 7.6% vip.com 0.8% 9. vip.com 6.1% Dangdang 0.7% 10. Amazon.cn 5.9% Note: n=1,030; in the past 3 months Source: QQSurvey, "Q3 2014 Survey Report of China Online Shopping Prospects," July 6, 2014 180594 Yihaodian 0.7% Other 7.5% www.eMarketer.com Data from Analysys International Enfodesk for H1 2014 showed that Taobao Marketplace dominated combined retail and C2C ecommerce sales in China, accounting for 51.5%. Tmall, meanwhile, was responsible for 24.6%. JD.com was third with an 8.4% share. There was a sharp drop in share among the remaining key ecommerce platforms; none managed a sales share higher than 1.6%. Note: excludes travel Source: Analysys International Enfodesk, "H1 2014 China Ecommerce Statistics Report," Sep 17, 2014 180606 www.eMarketer.com When removing C2C platforms from the equation, Tmall emerged as the clear leader of retail ecommerce sales share with 57.4%, according to H1 2014 data from the China e-Business Research Center (CERC), followed by JD.com with 21.1%. The remaining players of note, each with single-digit shares, included smartphone manufacturer Xiaomi.com, electrical appliances retailer GOME’s site, discount brand retailer Vipshop, Suning, Amazon.cn, book retailer Dangdang.com, internet portal Tencent and cosmetics group-buying site Jumei. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED5 Retail Ecommerce Sales Share in China, by Site, H1 2014 % of total Top 10 Product Categories Purchased Digitally by Digital Buyers in China, July 2014 % of respondents Tmall.com 1. Clothing/accessories/shoes and hats/bags and suitcases 57.4% JD.com 21.1% Xiaomi.com 6.5% 3. Virtual products/recharge cards/certificate/coupon information 39.3% Gome.com.cn 3.0% 4. Cosmetics/personal care & wellness 38.4% Vip.com 1.9% 5. Mobile phones/digital products/household appliances 38.2% Suning.com 1.6% 6. Books/audio and video products/software 34.8% Amazon.cn 1.5% 7. Household items/home supplies 31.7% Dangdang.com 1.2% 8. Travel/air ticket reservations 16.7% Tencent 0.8% 9. Mother and baby products 15.9% Jumei.com 0.7% 10. Flowers/jewelry/gifts 8.8% Other 4.3% Note: excludes C2C and travel Source: China e-Business Research Center (CECRC) as cited in company blog, Aug 25, 2014 180583 78.8% 2. Food & beverages/health & wellness 44.2% www.eMarketer.com While Taobao Marketplace currently commands a greater proportion of sales, Tmall is expected to eventually overshadow its corporate cousin as China’s shoppers migrate to the larger and often more expensive brands featured on the site, according to analysts who spoke to The New York Times in response to Alibaba’s financial results for the quarter ended in September 2014. Product Categories Clothing and similar soft goods are popular items to purchase online, according to digital buyers in China polled by QQSurvey in July 2014. The survey found that 78.8% of respondents had purchased clothing, shoes, hats or similar accessories in the three months prior to polling. That was followed by products related to health and wellness, including food and beverages (44.2%); virtual products and card recharges (39.3%); cosmetics (38.4%); and mobile phones, digital products and household appliances (38.2%). Only 16.7% of respondents said they had made digital purchases of travel tickets. Note: n=1,030; in the past 3 months Source: QQSurvey, "Q3 2014 Survey Report of China Online Shopping Prospects," July 6, 2014 180595 www.eMarketer.com A poll of digital buyers in China conducted by China Internet Network Information Center (CNNIC) in November 2013 also found that apparel and accessories was the most popular product category for digital purchases, with 75.6% of respondents saying they had bought such goods electronically. Next were consumer packaged goods (45.1%), computing products and consumer electronics (43.3%), virtual cards (34.9%), handbags and briefcases (32.7%), personal care and beauty products (30.6%), and books, videos and other media (25.7%). Overall, the patterns were similar to those found in the QQSurvey poll. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED6 Leading Product Categories Purchased Digitally by Digital Buyers in China, Nov 2013 % of respondents Payment Methods Used by Digital Buyers in China, Japan and the US, 2013 % of respondents China Japan US Credit card 37.6% 63.4% 56.6% Debit card 25.2% 3.9% 44.2% Third-party payment services (Paypal, alipay, etc.) 52.2% 2.2% 39.7% Cash on delivery (COD) 40.6% 32.1% 22.5% Payment transfer via online bank 49.5% 14.9% 14.2% Payment transfer at store (convenience store, post office, etc.) 7.6% 34.2% 9.2% Emoney 9.1% 7.9% 8.8% Payment via telecom carrier 3.0% 3.9% 2.4% Other 0.4% 1.4% 3.6% Apparel & accessories 75.6% Consumer packaged goods (CPG) 45.1% Computing products & consumer electronics 43.3% Virtual cards (rechargeable cards, online game cards, etc.) 34.9% Handbags, briefcases, etc. 32.7% Personal care & beauty products 30.6% Note: China n=1,927; Japan n=1,796; US n=1,727; ages 15+ who have made purchases in the past year from retailers or providers located in the country where the respondent resided Source: Ministry of Economy, Trade and Industry (METI) - Japan, "2013 Ecommerce Report," Aug 26, 2014 Books, video, music, etc. 25.7% Home appliances 179239 22.7% Food and beverages 22.4% Stationary, office supplies 18.0% Note: ages 6+ who have made a digital purchase in the past 6 months Source: China Internet Network Information Center (CNNIC), "2013 China Online Shopping Market Report," April 21, 2014 177013 www.eMarketer.com Digital payments are making steady gains in China, according to January 2014 data from the CNNIC. Its research showed that the number of digital payment users there had climbed from 220.7 million (39.1% of internet users) in 2012 to 260.2 million (42.1% of internet users) in 2013. www.eMarketer.com Payment Methods A 2013 study of digital buyers in China conducted by Ministry of Economy, Trade and Industry (METI) – Japan found that buyers heavily relied on third-party payment systems such as Alibaba Group’s Alipay or PayPal in order to purchase items and goods. In fact, 52.2% of respondents said they used a third-party payment system, making it the most popular payment scheme in the poll. However, online bank transfers were nearly as popular, with 49.5% of respondents using the method. And nondigital payment options were especially high— 40.6% of respondents in China still used cash on delivery (COD) to buy items, a percentage higher than the 37.6% who said they used a credit card. INDIA Top Ecommerce Sites As India’s ecommerce landscape matures, various platforms have jockeyed for market share and dominance. According to a survey of consumers conducted by Jana in March 2014, 36.7% named homegrown platform Flipkart as their favorite online retailer. Amazon’s local outpost, Amazon.in—which functions only as a marketplace for local sellers due to government regulations—was not far behind, named by 14.5% of respondents. Another domestic platform focusing on fashion and lifestyle products, Myntra, ranked third at 9.3%. (In May, Flipkart acquired Myntra in a deal that several analysts saw as a means of staving off competition from the increasingly encroaching Amazon.) India’s version of online classifieds site OLX.com, owned by South Africa-based Naspers, was next with a 7.7% share, while a similar percentage named marketplace Snapdeal. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED7 Favorite Retail Sites Among Online Shoppers in India, March 2014 % of respondents Flipkart 36.7% Amazon 14.5% Myntra OLX 9.3% 7.7% Snapdeal Ecommerce in India remains dominated by the online travel industry, which accounted for 71% of ecommerce revenues in January 2014, according to data from Macquarie Research. Online retail, or “etailing,” made up 16% of ecommerce revenues, financial services accounted for 6% and classifieds for 5%. 7.3% Source: Jana survey, Oct 23, 2014 181473 www.eMarketer.com August 2014 data from comScore found that fashionfocused platform Jabong.com drew the largest number of total unique visitors for the month, at 27.6 million. Next were Amazon sites (18.8 million), Flipkart (17.2 million), Snapdeal (11.3 million), eBay (10.8 million), Myntra (9.2 million) and Homeshop18.com (5.8 million), the website of the TV shopping channel of the same name. Top 7 Retail Sites Among Internet Users in India, Ranked by Unique Visitors, Aug 2014 millions 1. Jabong.com 27.6 2. Amazon sites 18.8 3. Flipkart.com 17.2 4. Snapdeal.com 11.3 5. eBay 10.8 6. Myntra.com 5.8 9.2 7. Homeshop18.com Note: ages 15+ who access the internet from home or work locations via desktop/laptop Source: comScore Media Metrix, Oct 14, 2014 181358 Product Categories www.eMarketer.com Flipkart, Amazon and Snapdeal appear to have emerged from a pile of competitors to battle it out for market leadership. The trio have each either invested or raised hundreds of millions of dollars in their respective platforms in 2014, according to an October 2014 blog post from Forrester Research analyst Satish Meena. Ecommerce Revenue Share in India, by Segment, Jan 2014 % of total Financial services 6% Classifieds market 5% Other 2% Etailing 16% Online travel industry 71% Source: Macquarie Research, "Indian E-commerce - Tip of the iceberg," Feb 7, 2014 174013 www.eMarketer.com A survey of internet users in India conducted by comScore in June 2014 found that apparel attracted the highest number of unique visitors for the month, at 26.6 million. Next were computer software (10.7 million), comparison shopping sites (10.2 million) consumer electronics (8.4 million), computer hardware (6.7 million) and healthcare (6.6 million). While home furnishings drew only 1.8 million unique visitors, those shoppers spent a significant amount of time on furnishings sites, averaging a visit length of 8.3 minutes. Only consumer electronics shoppers spent a higher amount of time, on average, on the retail sites they visited. Thus far, the entry of foreign ecommerce players has been somewhat limited by government regulations restricting the operation of foreign-funded retailers in India. While international platforms like Amazon and Japan’s Rakuten are clearly interested in establishing a B2C presence in India, they face an uphill battle to do so. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED8 Top 10 Product Categories Among Internet Users in India, Ranked by Unique Visitors, June 2014 Unique visitors Average (millions) minutes per visitor 1. Apparel 26.6 6.4 2. Computer software 10.7 7.9 3. Comparison shopping 10.2 4.4 4. Consumer electronics 8.4 9.3 5. Computer hardware 6.7 7.5 6. Healthcare 6.6 4.5 7. Retail—movies 4.5 4.0 8. Jewelry/luxury goods/accessories 3.4 5.8 9. Books 2.7 4.3 10. Home furnishings 1.8 8.3 Note: ages 15+ who access the internet from home and work locations via desktop/laptop Source: comScore Media Metrix, Oct 20, 2014 181224 www.eMarketer.com Payment Methods There are certainly parties in India working hard to make online payments a fixture in ecommerce transactions, but these efforts face challenges due to low rates of banking access among much of the population. An October 2014 article in The Economic Times reported that Ankit Khanna, senior vice president for product management at Snapdeal, had said cash on delivery made up 50% to 60% of the payments made by its customers. In a May 2014 article, Mint, a business newspaper in India, citing figures from the Internet and Mobile Association of India (IAMAI), reported that about 44% of online payments in India—made overwhelmingly for transactions related to travel, financial services and online retail—were completed using internet banking. Debit cards accounted for 32% of transactions and credit cards, for 21%. The balance of transactions used either mobile wallet, prepaid cash cards or mobile money transfers. INDONESIA Top Ecommerce Sites Business-to-consumer retail sites have yet to take root in Indonesia. Instead, consumers typically rely on grassroots consumer-to-consumer platforms to shop and buy online. According to a panel survey of online shoppers conducted by Jana in March 2014, C2C classifieds platform Tokobagus (which changed its name to OLX.co.id in May 2014) was considered the favorite online retailer by 38.9% of respondents. Next was China-based Alibaba, at 14.7%; Kaskus, a popular online forum with a C2C platform within it called Jual Beli, with 14.0%; Berniaga, another C2C platform, with 11.5%; and Lazada, a B2C site backed by Germany-based venture capital firm Rocket Internet that operates in several Southeast Asian countries, with 9.6%. Favorite Retail Sites Among Online Shoppers in Indonesia, March 2014 % of respondents Tokobagus 38.9% Alibaba 14.7% Kaskus Berniaga Lazada 14.0% 11.5% 9.6% Source: Jana survey, Oct 23, 2014 181474 www.eMarketer.com Foreign-owned companies do not factor notably into the ecommerce landscape in Indonesia due to government regulations limiting their activities there. Product Categories Similarly to other Asia-Pacific countries, travel is a major category for ecommerce in Indonesia. A survey of internet users in the country conducted by Nielsen in Q1 2014 found that 55% of respondents intended to purchase or reserve an airline ticket online during the next six months, while 46% said they planned to book a tour or hotel during that period. Four in 10 respondents planned to purchase an ebook, while 37% intended to purchase clothing, shoes or accessories. Also, 34% said they would purchase tickets for a live event online. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED9 In December 2013, MasterCard Worldwide polled a subset of mobile digital buyers who had a bank account, finding that 19.2% had purchased apparel or accessories via a mobile phone during the preceding three months. The same percentage of respondents, 19.2%, had bought a mobile device, app or accessory over the same time period. The next most popular categories were music downloads (18.2%), airline tickets (14.3%), movie tickets (13.8%) and digital entertainment content (12.3%). Leading Product Categories Purchased via Mobile Phone by Mobile Buyers in Select Countries in Southeast Asia, Dec 2013 % of respondents ia o nd I la a M i ys s ne a s ne i pp ili Ph in S e or p ga nd la i ha T am 19.2% 22.5% 16.7% 25.3% 28.6% 22.2% Mobile devices, apps and accessories Music downloads (e.g., iTunes, MP3.com) Coupon/deal sites 19.2% 20.9% 30.0% 24.0% 29.1% 27.5% 18.2% 15.5% 25.8% 13.3% 17.5% 20.3% 9.9% 20.9% 12.5% 35.3% 11.5% 14.4% Movie tickets 13.8% 22.5% 10.0% 26.0% 13.2% 13.7% 8.9% Toys and gifts 11.8% Ebooks 11.3% 15.5% 8.3% 14.0% 20.5% 15.0% 11.6% 11.7% 12.7% 11.5% 17.6% 8.5% 14.2% 8.0% 9.0% 17.0% 8.0% 7.7% 12.4% Online gaming products/ services (e.g., Xbox Live) 7.9% 4.7% Books, CDs, DVDs 6.4% 10.1% 7.5% Payment Method Share of Ecommerce Transactions in Select Countries in Asia-Pacific, 2012 % of total Card 73.8% 4.5% 2.1% 1.5% 0.3% 17.8% Japan 56.0% 3.5% 6.6% 0.3% 0.9% 32.7% Australia 53.4% 22.5% 20.0% 0.7% 1.3% 2.1% Indonesia 26.0% 39.0% 2.7% 0.1% 1.2% 31.0% Philippines 24.6% 20.1% 13.9% 7.5% 2.3% 31.6% Thailand 24.5% 30.0% 4.8% 1.4% 0.8% 38.5% India 24.0% 29.3% 1.5% 4.0% 3.7% 37.5% 15.0% 20.4% 44.3% 1.9% - 18.4% 8.6% 56.1% 8.6% 0.3% 1.2% 25.2% 8.5% China 7.8% Vietnam 14.3% 17.8% 10.8% 10.0% 12.4% Home appliances and electronic products 11.8% 12.4% Items from supermarkets/ 5.9% superstores Digital entertainment content 8.3% 10.0% 8.1% 10.5% 5.4% 5.0% 9.3% 8.1% 7.8% 7.8% 9.2% 7.3% 8.5% 9.8% 7.7% 9.2% Note: read as 53.4% of ecommerce transactions in Australia were by credit card; *includes real-time and offline bank transfers; **includes local card schemes, pre-pay cards or vouchers, post-pay methods requiring payment at an affiliated outlet or store, e-invoices and digital currency Source: WorldPay, "Your Global Guide to Alternative Payments" in collaboration with First Annapolis Consulting, Jan 17, 2014 171853 Hotel accommodations 9.9% 14.0% 10.0% 10.7% Computer software 7.9% 10.1% 6.7% 6.0% 11.1% 12.4% Tickets for concert, performing arts, etc. 8.9% 4.7% 3.3% 7.3% 8.1% Travel packages, promos, etc. 4.9% 10.1% 10.8% 8.0% 6.4% 11.1% Emagazines 5.9% 7.8% 6.7% 2.7% 6.0% 11.1% Magazine, newspaper subscriptions 8.4% 7.0% 4.2% 8.0% 4.3% 3.9% Bank Ewallets Mobile Direct Other** transfers* debits South Korea 8.3% 10.7% 15.4% Airline tickets 12.3% Payment methods—or the absence of them—remain a significant barrier to ecommerce in Indonesia. Digital shoppers in Indonesia are heavily reliant on bank transfers in order to make payments. A WorldPay report found that bank transfers constituted 39.0% of payments related to ecommerce transactions in 2012, the most recent year for which data was available. The next most commonly employed payment method were cards, used in 26.0% of transactions, followed by ewallets (2.7%), direct debit (1.2%) and mobile payments (0.1%). It should be noted that an assortment of other payment methods—among them local card schemes and prepaid cards—accounted for 31.0% of all transactions. tn e Vi Apparel & accessories Personal care & beauty products Payment Methods www.eMarketer.com Although mobile payment schemes were barely used by consumers in Indonesia according to the WorldPay data, a poll of mobile phone users conducted by Ericsson in August 2014 found that 42% of respondents were interested in using mobile payments for online shopping. 4.6% Note: ages 18-64 who have a bank account and have made a purchase via mobile phone in the past 3 months Source: MasterCard Worldwide, "Online Shopping Survey 2013: Asia-Pacific," Feb 26, 2014 174064 www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED10 JAPAN Product Categories Purchased Digitally Among Digital Buyers in China, Japan and the US, 2013 % of respondents Top Ecommerce Sites China Japan Rakuten remains the dominant presence in Japan’s desktop ecommerce market, attracting 39.2 million unique visitors in September 2014, according to comScore Media Metrix. Amazon sites were second, drawing 35.2 million visitors. Price comparison site Kakaku ranked third, drawing 19.3 million visitors, although it does not actually sell products. Next were Yahoo Japan Auctions (17.9 million), Yahoo Shopping (17.4 million), online retailer and video-on-demand (VOD) service DMM.com (15.8 million) and Apple sites (9.9 million). Top 10 Retail Sites in Japan, Ranked by Unique Visitors, Sep 2013 & Sep 2014 millions and % change Sep 2013 Sep 2014 % change 1. Rakuten 36.2 39.2 8% 2. Amazon sites 42.4 35.2 -17% 3. Kakaku.com 22.9 19.3 -16% 4. Yahoo Japan Auctions 25.5 17.9 -30% 5. Yahoo Shopping 34.1 17.4 -49% 6. DMM.com 11.9 15.8 33% 7. Apple worldwide sites 12.6 9.9 -21% 8. DMM.com Online Shopping 11.0 9.6 -13% 9. Nico Nico Ichiba 8.6 5.8 -33% 10. DMM.com PC Software 6.6 4.6 -30% Note: ages 15+ who access the internet via home or work PC Source: comScore Media Metrix, Oct 30, 2014 181567 www.eMarketer.com In March 2014, Euromonitor reported that Rakuten controlled 28% of the internet retailing market in Japan, and that the company had moved focus to its mcommerce efforts. US Apparel and accessories 21.4% 43.8% 56.9% Books and magazines 45.5% 48.8% 47.4% Music and video 41.5% 33.5% 39.0% Consumer products, furniture, interior decor 26.8% 30.8% 38.6% PC, mobile and communications devices, etc. 46.5% 28.8% 28.9% AV systems 46.9% 17.5% 28.7% Pharmaceuticals and cosmetics 37.6% 31.0% 27.4% Video games 41.0% 13.6% 24.7% Food & beverages, alcoholic drinks 75.9% 55.2% 23.5% Office supplies & stationaries 13.3% 19.5% 20.1% Home appliances 63.2% 27.4% 19.7% Sporting goods 19.6% 12.9% 14.7% Baby products 15.9% 6.7% 12.1% Auto 13.6% 6.9% 11.5% Other 4.4% 3.0% 8.7% Have not made purchases in past year 0.0% 0.1% 0.1% Note: China n=1,803; US n=1,491; Japan n=1,704; ages 15+ who have made purchases in the past year from retailers or providers located in the country where the respondent resided; includes physical goods only; excludes cross-border purchases Source: Ministry of Economy, Trade and Industry (METI) - Japan, "2013 Ecommerce Report," Aug 26, 2014 179240 www.eMarketer.com Payment Methods Japan’s digital buyers have shown a strong willingness to rely on cards to pay for their purchases. A poll of internet users conducted by NTTCom Research and japan.internet.com in September 2014 found that 55.9% of those polled used a magnetic or integrated circuit card to pay for their digital purchases, making it the most popular payment method among digital buyers. The next most popular payment method was a smartphone or mobile phone (22.3%). Product Categories The survey of digital buyers conducted by METI discovered that food, beverages and alcoholic drinks was the most popular product category among respondents, purchased by 55.2% of those polled. Books and magazines (48.8%) was next, then apparel and accessories (43.8%), music and video (33.5%), pharmaceuticals and cosmetics (31.0%) and consumer products, furniture and interior decor (30.8%). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED11 Digital Payment Methods Used by Internet Users in Japan, Sep 2014 % of respondents Top 10 Retail Sites in South Korea, Ranked by Unique Visitors, Aug 2014 millions Currently using IC/magnetic card 1. 11st.co.kr 13.8 2. Gmarket.co.kr 13.8 55.9% Currently using mobile phone/smartphone 22.3% 3. Auction.co.kr Currently using PC 12.9 4. WeMakePrice 15.9% Have used mobile phone/smartphone in the past but not currently using 5.6% Have used IC/magnetic card in the past but not currently using 2.9% 5. Interpark.com 7.7 6. Ssg.com 6.9 7. Gsshop.com 6.8 8. Ticketmonster.co.kr 6.3 9. Coupang.com Have used PC in the past but not currently using 2.2% 10. Lotteimall.com Not using 5.8 5.0 Source: Nielsen KoreanClick (formerly KoreanClick) as cited in company newsletter, Sep 23, 2014 27.8 Note: n=1,076 ages 10+ Source: NTTCom Research and japan.internet.com, "2nd Emoney Survey" as cited in press release, Sep 24, 2014 180842 7.9 www.eMarketer.com A September 2014 report from CyberSource concurred with the NTTCom Research/japan.internet.com data, also finding that credit cards were the most common method of payments among online buyers. It also noted that major ecommerce players usually offered some form of payment-on-delivery option, generally consisting of either cash on delivery, or the use of some kind of payment card. Consumers in Japan also make use of “konbini,” convenience stores where cardless consumers can make a payment for an online transaction. 181308 www.eMarketer.com Product Categories Data from Statistics Korea (KOSTAT) shows that travel related services were responsible for the largest share of the country’s B2C and C2C ecommerce sales in 2013, accounting for 16.7%. The next most popular category was clothes, fashion and related goods (16.3%), then household goods, automotive parts and accessories (11.1%), home appliances and telecom equipment (10.6%), food and beverage (8.4%), and computers and computer accessories (8.0%). SOUTH KOREA Top Ecommerce Sites According to Nielsen KoreanClick data for August 2014, B2C platform 11Street and eBay-owned marketplace Gmarket tied for drawing the largest numbers of unique visitors for the month, each with 13.8 million. The next most popular site was eBay’s Auction.co.kr site (12.9 million), social commerce site WeMakePrice (7.9 million), auction and retail site Interpark.com (7.7 million), department store Shinsegae’s website Ssg.com (6.9 million), home shopping television network GS Home Shopping’s website Gsshop.com (6.8 million), daily deal site Ticketmonster.co.kr (6.3 million), retailer Coupang.com (5.8 million) and home shopping TV network site Lotteimall.com (5.0 million). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED12 EUROPE B2C and C2C Ecommerce Sales in South Korea, by Product Category, 2012 & 2013 billions of South Korean won, % of total and % change 2012 % of total 2013 % of % total change Travel arrangements and reservation services 5.58 16.4% 6.45 16.7% 15.6% Clothes, fashion, related goods 5.55 16.3% 6.26 16.3% 12.7% Household goods, automotive parts and accessories 3.66 10.7% 4.26 11.1% 16.4% Home appliances, telecom equipment Food & beverage 3.75 11.0% 4.08 10.6% 8.7% 2.89 8.5% 3.25 8.4% 12.2% Computer and computerrelated appliances 3.06 9.0% 3.07 8.0% 0.4% Cosmetics 1.95 5.7% 2.09 5.4% 7.5% Goods for infants and children Sports and leisure appliances 1.66 1.33 4.9% 3.9% 2.02 1.71 5.2% 4.4% 21.6% 27.9% Books 1.27 3.7% 1.20 3.1% -6.0% Agricultural and fishery products 0.96 2.8% 1.13 2.9% 18.2% Office appliances, stationary 0.42 1.2% 0.47 1.2% 13.4% Music CDs, videos and instruments 0.14 Software 0.08 0.4% 0.2% 0.15 0.08 0.4% 0.2% 7.4% 1.0% Flowers 0.05 0.1% 0.05 0.1% 2.0% 1.73 5.1% 2.25 5.8% 29.8% 34.07 100.0% 38.49 100.0% 13.0% Other Total Note: includes B2B and B2G from online shopping; numbers may not add up to total due to rounding Source: Statistics Korea (KOSTAT), "E-commerce and Cyber Shopping Survey in 2013 and in the Fourth Quarter 2013," Feb 25, 2014 174818 www.eMarketer.com Payment Methods Credit cards are the preferred online payment method in South Korea, used in 74.9% of transactions in 2013, according to KOSTAT. Money transfers were the second most popular option, accounting for 19.9% of transactions. The low trade barriers, small domestic markets and ease of price comparison shopping in both the EU-5 and the Nordic countries have helped drive the popularity of cross-border shopping in Western Europe. Companies like Germany-based Zalando have taken advantage of these characteristics by building ecommerce platforms that span a variety of countries, providing localized language for individual markets. Russia sits apart with a crowded ecommerce sector characterized by some large homegrown internet players and a number of smaller domestic upstarts all scrabbling for market share. DENMARK Top Ecommerce Sites In Denmark, online book seller Saxo accounted for 2.2% of digital purchases, making it the top B2C ecommerce site in the country in 2013, according to Foreningen for Dansk Internethandel (FDIH). Amazon accounted for the second highest share of digital purchases at 2.0%. The next three sites—electronics and appliances retailer Elgiganten, shoes and apparel seller Zalando and online department store CDON—all commanded a 1.8% share. Top 5 Retail Sites in Denmark, Ranked by Share of Digital Purchases % of total Online Payment Method Share in South Korea, 2012 & 2013 % of transactions 1. Saxo 2.2% 2. Amazon 2.0% 2012 2013 3. Elgiganten 1.8% Credit cards 74.1% 74.9% 4. Zalando 1.8% Money transfers 20.2% 19.9% Emoney 2.4% 1.6% 5. CDON 1.8% Other 3.3% 3.6% Source: Statistics Korea (KOSTAT), "E-commerce and Cyber Shopping Survey in 2013 and in the Fourth Quarter 2013," Feb 25, 2014 174820 www.eMarketer.com Note: n=4,732 ages 18-64; read as saying Saxo accounted for 2.2% of the total number of ecommerce purchases made by digital buyers in Denmark in 2013 Source: Foreningen for Dansk Internethandel (FDIH), "Dansk e-handelsanalyse, Årsrapport 2013" as cited by Ecommerce Europe, Oct 9, 2014 180816 GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES www.eMarketer.com ©2014 EMARKETER INC. ALL RIGHTS RESERVED13 Product Categories Tickets, either for entertainment or travel, are a popular purchase category among digital buyers in Denmark, according to a survey of digital buyers conducted by Statistics Denmark in May 2014. The government agency found that 65% of digital buyers had purchased theater, concert or cinema tickets digitally in the previous year, while 60% had bought plane, train or ferry tickets that way. Next were clothes, sports and recreational equipment (57%); holiday accommodations (55%); furniture and other household goods (40%); internet, TV or phone bills (38%); movies or music (37%); and electronics (29%). Products/Services Purchased Digitally by Digital Buyers in Denmark, May 2014 % of respondents Theater, concert or cinema tickets 65% Plane, train or ferry tickets 60% Clothes, sports and recreational equipment 57% Holiday accommodations A poll of consumers conducted by PostNord in January 2014 that accounted only for sales of physical goods found clothing was the most popular product category, purchased by 38% of respondents during the previous year. Next were home electronics (29%), books (26%), movies on DVD or Blu-ray (14%), and cosmetics, hair and skincare products (14%). Leading Product Categories Purchased Digitally by Consumers in Select Nordic Countries, Jan 2014 % of respondents Denmark Finland Norway Sweden Books 26% 24% 32% 38% Clothing 38% 29% 34% 34% Home electronics 29% 24% 36% 32% Movies (DVD/Blu-ray) 14% 16% 16% 17% Cosmetics, hair and skincare 14% 12% 17% 17% Computer games/video games 12% 8% 12% 14% CDs 10% 12% 10% 12% Home furnishings/furniture 12% 10% 9% 12% Footwear 13% 9% 12% 11% Sports/leisure 14% 10% 18% 10% Note: ages 18-79; in the past 12 months; excludes services such as digital downloads, hotels, tickets and travel Source: PostNord, "E-commerce in the Nordics 2014" conducted by TNS Sifo, May 20, 2014 175424 55% Furniture, toys and other items for the home 40% www.eMarketer.com Payment Methods Denmark’s digital shoppers rely heavily on debit and credit cards to make digital purchases. A poll of digital buyers conducted by FDIH in Q4 2013 found that 87% of respondents had made their most recent online purchase with a debit or credit card. Invoices followed at 4%, then online banking payments (4%), PayPal (3%) and click and collect with in-store payment (1%). Internet, TV or phone subscriptions 38% Movies or music 37% Electronics 29% Computer hardware 28% Books, ebooks, magazines, newspapers 26% Video or computer games 20% Financial services 17% Groceries 15% Medicine 10% Online learning materials 9% Note: among those who have made a digital purchase in the past year Source: Statistics Denmark, "It-anvendelse i befolkningen 2014," Oct 27, 2014 181625 www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED14 Digital Buyers in Select Nordic Countries Who Have Made a Digital Purchase from a Foreign Ecommerce Site, Oct 2014 % of respondents Payment Method Used for Last Digital Purchase According to Digital Buyers in Denmark, Q4 2013 % of total Debit/credit card 87% Invoice 4% Norway Finland 50% Denmark Online banking payment 4% 38% Sweden PayPal 3% 31% Total 43% Note: ages 18-79; excludes services such as concert tickets, digital downloads, hotels and travel; in the past three months Source: PostNord, "E-commerce in the Nordic region, Q3 2014," Nov 5, 2014 Ordered online and paid in-store 1% Other 1% 181711 Note: n=1,089 ages 18-64 Source: Foreningen for Dansk Internethandel (FDIH), "Dansk e-handelsanalyse, Q4 2013," Jan 16, 2014 168433 www.eMarketer.com When Bring surveyed digital buyers of physical goods in Denmark this year, it also found that credit and debit cards were by far the most popular methods by which to make online payments. Nearly nine of 10 respondents preferred using a card to make a digital purchase. Preferred Payment Method for Digital Purchases Among Digital Buyers in Select Nordic Countries, 2014 % of respondents Domestic vs. Cross-Border B2C Ecommerce Sales in Denmark, 2010-2013 billions of Danish kroner 62.4 Finland Norway Sweden 89% 28% 57% 38% Micropayments 4% 8% 13% 5% Internet bank** 2% 40% 13% 23% 40.0 Invoice 2% 17% 13% 29% 8.0 Cash 1% 2% 2% 2% Installments 0% 2% 1% 1% Other 2% 3% 1% 2% Note: ages 18+; physical goods only; *credit/debit card; **payment via internet bank Source: Bring, "E-handelsrapporten 2014," Sep 18, 2014 180600 www.eMarketer.com FDIH has also noted an increase in cross-border ecommerce sales in recent years. It found that cross-border B2C ecommerce sales totaled DKK17.2 billion ($3.1 billion) in 2013, accounting for more than one-quarter of Denmark’s B2C ecommerce sales. It also found that sales from websites in Denmark increased by 7.1% between 2012 and 2013, while sales from foreign sites increased by 37.6% during the same period. Denmark Cards* 63% 54.7 46.0 32.0 17.2 12.5 9.0 37.0 45.2 42.2 www.eMarketer.com Cross-Border Ecommerce As in the other Nordic countries, cross-border ecommerce in Denmark is aided by mutually intelligible languages in the region (with the exception of Finland), along with the increased product offerings that come from shopping foreign sites. Price is also a strong factor, as the Nordic markets are all individually quite small and prices generally more expensive than other regions of the world. A survey of digital buyers in Denmark conducted by PostNord in October 2014 found that 38% of consumers polled had made a cross-border digital purchase during the previous three months, a rate slightly lower than the regional average. 2010 Domestic 2011 2012 2013 Cross-border Source: Foreningen for Dansk Internethandel (FDIH), "Dansk e-handelsanalyse, Årsrapport 2013," Feb 7, 2014 169789 www.eMarketer.com Digital buyers in Denmark were also willing to make purchases from sellers located farther afield than the other Nordics. When Statistics Denmark polled digital buyers in Denmark in May 2014, 46% said they had bought something from a merchant in another European Union (EU) country. Moreover, 20% of respondents had made a purchase from a country outside of the EU. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED15 Geographic Location of Sellers from Which Digital Buyers in Denmark Have Made Purchases, May 2014 % of respondents Domestic merchants 86% Merchants in other EU countries 20% 46% Merchants outside of the EU Note: among those who have made a digital purchase in the past year Source: Statistics Denmark, "It-anvendelse i befolkningen 2014," Oct 27, 2014 181624 Product Categories A report from Asiakkuusmarkkinointiliitto (ASML) found that tourism and travel accounted for the largest portion of Finland’s B2C ecommerce sales in H1 2014 at 36%. Gambling and betting accounted for the next largest share at 11%, followed by consumer electronics and IT (10%), apparel (7%), automotive and boating products (6%), housing and energy (4%) and tickets (3%). www.eMarketer.com B2C Ecommerce Sales Share in Finland, by Industry, H1 2014 % of total FINLAND Top Retail Sites Tourism and travel TNS Gallup Finland polled internet users in Finland in May 2014 to discover the leading domestic sites. Its data, which excludes travel and distinctly foreign ecommerce sites such as Amazon, found that 39% had used online department store CDON, making it the most popular ecommerce site among shoppers in Finland. Next was the national betting agency Veikkaus (32%), followed by live event ticket seller Lippupalvelu (30%), movie theater chain Finnkino (27%), live event ticket site Lippupiste (25%), retailer Verkkokauppa (24%), online department store NetAnttila (24%), home and fashion retailer Ellos (22%), retailer Hobby Hall (21%) and electronics store Gigantti (19%). Gambling and betting 11% 36% Leading Retail Sites Among Internet Users in Finland, May 2014 % of respondents CDON 39% Veikkaus 32% Lippupalvelu 30% Finnkino 27% Lippupiste (Lippu.fi) 25% Verkkokauppa.com 24% NetAnttila.com 24% Ellos Hobby Hall Gigantti 22% 21% 19% Note: n=1,005 ages 15+ who have ever bought a good/service from the site; includes localized foreign ecommerce sites such as Zalando; excludes travel and distinctly foreign ecommerce sites such as Amazon Source: TNS Gallup Finland, "Online Shopping 2014," June 6, 2014 181309 www.eMarketer.com Consumer electronics and IT 10% Apparel (includes sportswear) 7% Automotive, boating (includes supplies) 6% Housing and energy 4% Tickets (includes entrance and cinema tickets) 3% Other 23% Note: includes purchases of all digital content, goods and services; includes value-added tax and shipping/delivery fees; total B2C ecommerce sales for H1 2014=€4.9 billion Source: Asiakkuusmarkkinointiliitto (ASML), Finnish Commerce Federation and TNS Gallup Finland, "Finnish E-commerce 2014: Facts about the statistics and online shopping 2014/H1," Oct 2, 2014 180532 www.eMarketer.com Data released by Bring in September 2014 reported different shopping category priorities among respondents to its poll, but its results reflect the substantially different response options offered, which were limited to physical goods and excluded travel, gambling, tickets and other services. It found that 42% of respondents had purchased clothing or shoes, topping the list of product categories. Next was books (40%), then small electronics and household items (29%), beauty and cosmetics (22%), sports items (14%), physical music media (14%) and photography (14%). The “other” category—which included sectors such as personal care and beauty, healthcare (including contact lenses and eyeglasses), kitchen and cleaning supplies (including appliances) and other goods and services—accounted for a significant 23% of ecommerce sales. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED16 Payment Methods Product Categories Purchased Digitally by Digital Buyers in Select Nordic Countries, 2014 % of respondents Denmark Finland Norway Sweden Clothing/shoes 36% 42% 36% 42% Books 26% 40% 36% 40% Small electronics and household items 23% 29% 38% 25% Beauty/personal care/cosmetics 17% 22% 22% 22% Sports items 15% 14% 18% 14% Brown goods (e.g., small appliances like TVs and stereos) 14% 13% 7% 13% Photography 11% 14% 17% 14% Music (CD/vinyl) 11% 14% 13% 14% Toys 11% 13% 10% 13% 9% 11% 10% 11% Health products Preferred Payment Method According to Digital Buyers in Select Nordic Countries, Jan 2014 % of respondents Denmark Note: ages 18+; in the past 12 months; physical goods only Source: Bring, "E-handelsrapporten 2014," Sep 18, 2014 180622 According to a January 2014 study by TNS Sifo for PostNord, 41% of digital buyers polled in Finland preferred to use a credit or debit card to pay for a purchase. The second most popular method was invoice (27%), then direct payment via a bank (17%) and PayPal, Payson or some similar service (5%). One in 10 respondents said they didn’t know or weren’t sure what payment method they preferred. This survey accounted only for purchases of physical goods, not for services. www.eMarketer.com When PostNord polled consumers in Finland in January 2014, it also found that clothing topped the list of product categories purchased digitally, with 29% of respondents saying they had made such a purchase during the previous 12 months. Home electronics and books were tied for the second most popular product category at 24%, followed by physical movie media (16%), beauty products (12%), CDs (12%), home furnishings/furniture (10%) and sports and leisure items (10%). Again, PostNord only accounted for purchases of physical goods, not services. Leading Product Categories Purchased Digitally by Consumers in Select Nordic Countries, Jan 2014 % of respondents Denmark Finland Norway Sweden Against invoice Norway Sweden 36% 8% 27% 14% 80% 41% 67% 32% Direct payment via bank 3% 17% 3% 20% PayPal, Payson or similar 6% 5% 14% 8% Other/unsure/don't know 3% 10% 2% 4% Debit or credit card Note: ages 18-79; excludes services such as digital downloads, hotels, tickets and travel Source: PostNord, "E-commerce in the Nordics 2014" conducted by TNS Sifo, May 20, 2014 175626 www.eMarketer.com A separate study of digital buyers in Finland conducted in 2014 by Bring found that payment made via an internet bank was the most popular payment method, used by 40% of respondents. The next highest response was for credit or debit cards (28%), then invoices (17%) and micropayments (8%). Preferred Payment Method for Digital Purchases Among Digital Buyers in Select Nordic Countries, 2014 % of respondents Books 26% 24% 32% 38% Clothing 38% 29% 34% 34% Home electronics 29% 24% 36% 32% Cards* Movies (DVD/Blu-ray) 14% 16% 16% 17% Micropayments Cosmetics, hair and skincare 14% 12% 17% 17% Computer games/video games 12% 8% 12% CDs 10% 12% 10% Home furnishings/furniture 12% 10% Footwear 13% Sports/leisure 14% Denmark Finland Norway Sweden 89% 28% 57% 38% 4% 8% 13% 5% Internet bank** 2% 40% 13% 23% 14% Invoice 2% 17% 13% 29% 12% Cash 1% 2% 2% 2% 9% 12% Installments 0% 2% 1% 1% 9% 12% 11% Other 2% 3% 1% 2% 10% 18% 10% Note: ages 18+; physical goods only; *credit/debit card; **payment via internet bank Source: Bring, "E-handelsrapporten 2014," Sep 18, 2014 Note: ages 18-79; in the past 12 months; excludes services such as digital downloads, hotels, tickets and travel Source: PostNord, "E-commerce in the Nordics 2014" conducted by TNS Sifo, May 20, 2014 175424 Finland 180600 www.eMarketer.com www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED17 Cross-Border Commerce Consumers in Finland are avid cross-border digital buyers, especially when it comes to buying from other Nordic countries. An April 2014 poll by PostNord of digital buyers in Finland who had made a cross-border purchase at another Nordic country in the prior three months found that 22% had made a purchase from Sweden, 4% from Denmark and 2% from Norway. However, no cross-border buyers in other Nordic countries made any purchases from Finland. When it polled internet users in the Nordic countries earlier in 2014, Bring came away with a similar result. It found 47% of respondents in Finland had made a cross-border purchase of a digital good during the preceding 12 months. Cross-Border Digital Buyers in Select Nordic Countries, 2014 % of internet users Finland 47% Norway Cross-Border Digital Buyers in Select Nordic Countries Who Made Purchases from Other Nordic Countries, April 2014 % of respondents Denmark 35% Total 43% Sweden 12% 6% Note: ages 18+; purchased physical goods from a foreign merchant in the past year Source: Bring, "E-handelsrapporten 2014," Sep 18, 2014 0% - 0% 0% 180603 1% 2% - 1% 18% 22% 17% - Finland Norway Sweden Note: ages 18-79; in the past 3 months; excludes services such as concert tickets, digital downloads, hotels, tickets and travel Source: PostNord, "E-commerce in the Nordics, Q1 2014," May 7, 2014 175665 www.eMarketer.com A more recent survey of Nordic consumers conducted by PostNord found that cross-border ecommerce uptake had widened. In October 2014 polling, half of digital buyers surveyed in Finland said they had made a cross-border ecommerce purchase during the preceding three months. Only consumers in Norway had made more cross-border ecommerce purchases. Digital Buyers in Select Nordic Countries Who Have Made a Digital Purchase from a Foreign Ecommerce Site, Oct 2014 % of respondents Norway 63% Finland www.eMarketer.com FRANCE Top Ecommerce Sites While digital buyers in France appear to favor homegrown businesses when it comes to favorite ecommerce sites, retailers in the country face a significant challenge from at least one US-based company. Data from Médiamétrie//NetRatings and Fédération du E-commerce et de la Vente à Distance (FEVAD) showed that Amazon had the highest number of average monthly visitors for the period lasting from April to June of 2014 by a notable degree, with 15.60 million—a third of internet users. Its nearest competitor, discount retailer Cdiscount, managed 9.12 million, followed by brick-and-mortar entertainment retail chain Fnac and US-import eBay, with around 8.4 million visitors each. 50% Denmark Total Sweden Norway - Sweden 44% 4% Denmark Finland 47% Denmark 38% 31% 43% Note: ages 18-79; excludes services such as concert tickets, digital downloads, hotels and travel; in the past three months Source: PostNord, "E-commerce in the Nordic region, Q3 2014," Nov 5, 2014 181711 www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED18 Top 15 Retail Sites Among Internet Users in France, Ranked by Average Monthly Unique Visitors, Q2 2014 Average monthly unique visitors (millions) % of internet users Average daily unique visitors (thousands) 1. Amazon Top 10 Retail Sites in France, Ranked by Digital Buyer Reach, May 2014 % reach 1. Amazon.fr 56% 15.6 33.5% 1,669 2. Cdiscount 9.1 19.6% 723 3. Fnac 8.4 18.1% 628 4. eBay 8.4 18.1% 986 5. PriceMinister 7.2 15.5% 572 5. vente-privee.com 6. Voyages-sncf.com 6.8 14.6% 463 6. La Redoute 7. Carrefour 6.4 13.7% 461 8. La Redoute 6.0 12.9% 411 2. Fnac 36% 3. Voyages-sncf.com 4. Cdiscount.com 7. 3 Suisses 25% 22% 17% 16% 9. vente-privee 5.8 12.5% 972 8. Booking.com 10. Leroy Merlin 5.1 11.0% 322 9. Apple/iTunes 14% 11. Booking.com 5.0 10.7% 305 12. Rue du Commerce 4.8 10.4% 287 13. E.Leclerc 4.3 9.4% 275 14. Groupon 4.2 9.0% 422 15. Darty 4.2 8.9% 240 Note: all locations Source: Médiamétrie//NetRatings and Fédération du E-commerce et de la Vente à Distance (FEVAD) as cited in press release, Sep 25, 2014 181040 www.eMarketer.com The remainder of France’s top ecommerce destinations, all with less than half of Amazon’s visitor total, included ecommerce platform PriceMinister; Voyages-sncf.com, the website of France’s railway operator; hypermarket chain Carrefour; apparel and housewares mail order company La Redoute; home improvement chain Leroy Merlin; hotel site Booking.com; ecommerce pure player Rue du Commerce; hypermarket chain E.Leclerc; daily deals purveyor Groupon; and electronics retailer Darty. The Médiamétrie//NetRatings and FEVAD report also found that Amazon was the most popular B2C ecommerce site in France among digital buyers. According to the report, 56% of digital buyers surveyed had made a purchase on Amazon at least once during the preceding six months. In second was Fnac with 36%, followed by Voyages-sncf.com (35%), Cdiscount (25%), flash-sales site Vente-privée (22%), La Redoute (17%), mail order company 3 Suisses (16%), Booking.com (15%), Apple sites and iTunes (14%) and PriceMinister (13%). 35% 15% 13% 10. PriceMinister Note: who purchased at least once in the past 6 months Source: Médiamétrie//NetRatings and Fédération du E-commerce et de la Vente à Distance (FEVAD), "10ème baromètre des comportements d'achats multicanaux des internautes," July 2014 as cited in press release, Sep 26, 2014 181031 www.eMarketer.com Product Categories While data on popular digital shopping categories in France is scant, a report from DHL, citing data from Euromonitor International, offered information on the most popular product categories for distance selling, a term that refers to products bought from home either digitally or by nondigital means such as phone, fax or mail order. However, Euromonitor estimated that online shopping would account for 25.4% of total retail in 2014, while nondigital home shopping only 3.0%. When it came to the types of products purchased, Euromonitor found apparel and footwear accounted for the highest amount of distance sales in France in 2013, at €4.24 billion ($5.65 billion), followed by food and beverages, at €3.84 billion ($5.12 billion), consumer electronics and computers, at €3.22 billion ($4.29 billion), physical media products, at €3.91 billion ($5.21 billion), beauty and personal care products, at €1.01 billion ($1.35 billion) and household and consumer appliances, at €720 million ($960 million). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED19 Purchases made on mobile devices, meanwhile, leaned more toward digital goods than physical ones. According to a January 2014 InMobi survey of mobile internet users in France, 32% of respondents had purchased digital goods via a mobile device, making it the most popular product category for digital purchases. Physical goods were purchased by 29% of those polled. Twenty-one percent of respondents said they had purchased either financial items or goods or services related to travel over mobile. Surprisingly, entertainment was the least popular category, with only 14% of respondents saying they had made purchases of that type via mobile device. According to JDN (Le Journal du Net), use of digital bank cards in transactions continues to grow, albeit at a somewhat unsteady clip. According to its data, digital bank card transactions in France grew 15.5% year over year in Q1 2014. Digital Bank Card Transaction Growth in France, Q1 2007-Q1 2014 % change vs. same quarter of prior year 39.4% 35.5% 30.9% 28.5% Items that Mobile Internet Users in France Have Purchased via Mobile, Jan 2014 % of respondents 22.1% 18.7% 15.5% Digital goods 32% Physical goods 29% Financial 21% Travel 21% Entertainment 29.1% 14% Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2007 2008 2009 2010 2011 2012 2013 2014 Source: JDN (Le Journal du Net), "La croissance de l'e-commerce s'établit à 9% au 1er trimestre," April 11, 2014 Note: 55% of respondents have spent money on an activity via mobile Source: InMobi, "Global Mobile Media Consumption" conducted by Decision Fuel and On Device Research, Feb 21, 2014 174493 170046 GERMANY www.eMarketer.com Payment Methods www.eMarketer.com Top Ecommerce Sites According to PostNord data for 2013, digital buyers in France showed a clear preference for plastic or online payment services when paying for digital purchases. PostNord’s data showed that 55% of digital buyers preferred using a debit or credit card for their digital purchases. The next most popular means was PayPal or a similar method, named by 36% of respondents. The rest of the methods offered, including direct bank payments and cash on delivery, barely registered among respondents. Preferred Payment Method for Digital Purchases According to Digital Buyers in the EU-5, 2013 % of total France Germany Italy Spain UK Debit or credit card 55% 14% 25% 34% 58% PayPal or similar 36% 38% 55% 49% 38% Against invoice 3% 36% 1% 1% 2% Direct payment through bank 2% 9% 5% 1% 1% COD 2% 1% 13% 13% 1% Unsure/don't know 2% 2% 0% 2% 1% The German version of Amazon’s website dominates the country’s retail ecommerce landscape, according to data from the October 2014 EHI Retail Institute and Statista. Their report found that Amazon.de generated €5.79 billion ($7.72 billion) in sales in 2013, more than twice the €1.88 billion ($2.51 billion) in sales reported for Amazon’s nearest competitor, the website of mail order retailer Otto Group. Far behind were shoe and clothing specialist Zalando, computer and electronics retailer Notebooksbilliger.de, clothing retailer Bonprix, computer retailer Cyberport.de, coffee retailer and cafe chain Tchibo, electronics retailer Conrad.de, computer and electronics online store Alternate.de and the German-language site for clothing retailer H&M. Note: ages 15-79; excludes services such as digital downloads, hotels, tickets and travel; numbers may not add up to 100% due to rounding Source: PostNord, "E-commerce in Europe 2014," Feb 12, 2014 171423 www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED20 Top 10 Retail Sites in Germany, Ranked by Sales, 2013 millions of € 1. Amazon.de* €5,787.0 Products Purchased Digitally According to Digital Buyers in Germany, July 2014 % of respondents Clothes & shoes 69% 2. Otto.de Consumer electronics/electronics/telecom €1,880.0 57% 3. Zalando.de €702.0 Books 4. Notebooksbilliger.de €498.9 Hobby, recreational and household-related 56% 52% 5. Bonprix.de €410.5 Furniture and decorations (including home textiles) 28% 6. Cyberport.de €404.4 Flowers, plants, garden products 20% 7. Tchibo.de €400.0 Other 21% 8. Conrad.de €389.6 Note: n=1,039; in the past 12 months Source: Bundesverband E-Commerce und Versandhandel (bevh) and e-velopment, "Verlässlichkeit und Vertrauen beim Online-Kauf," Sep 30, 2014 9. Alternate.de €366.9 10. Hm.com/de/ €303.7 180642 Note: excludes discounts, returns and VAT; *excludes service-based sales (e.g., Amazon Marketplace sales), sold items shipped internationally and sales generated by other digital stores (e.g., Audible.de, de.BuyVIP.com, Javari.de and Prime Instant Video) Source: EHI Retail Institute and Statista, "E-Commerce-Markt Deutschland 2014" as cited in press release, Oct 21, 2014 182118 www.eMarketer.com Product Categories A poll of digital buyers in Germany conducted by Bundesverband E-Commerce und Versandhandel (bevh) and e-velopment in 2014 found that clothes and shoes were the most popular product category for digital purchases, bought by 69% of respondents during the preceding year. The next most popular category was consumer electronics (57%), then books (56%), household and recreational goods (52%), furniture and decorations (28%) and flowers and garden products (20%). www.eMarketer.com A separate survey of internet users in Germany, conducted by A.T. Kearney in July 2014, found that electronics was the most popular ecommerce product category, with 90% of respondents saying they had made a purchase in that sector during the previous three months. Fashion and apparel (88%) followed close behind, as did books (80%) and services (77%). Internet Users in Germany Who Have Made a Digital Purchase, by Product Category, July 2014 % of respondents Electronics 90% Fashion and apparel 88% Books 80% Services 77% Home furnishings 66% Sports and outdoor 66% Music and games 66% Tickets 63% Beauty products 62% Home appliances 58% Toys, kids and babies Household items Groceries 49% 40% 36% Note: ages 16+ who access the internet at least once per week; in the past 3 months Source: A.T. Kearney, "Connected Consumers Are Not Created Equal: A Global Perspective," Nov 12, 2014 182092 GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES www.eMarketer.com ©2014 EMARKETER INC. ALL RIGHTS RESERVED21 Payment Methods When BITKOM polled digital buyers in Germany in 2014, it found that 63% used an invoice to pay for digital purchases, making it the most widely used payment method in the country. Next were online payment service providers like PayPal (56%), then direct debit (46%), credit cards (29%), instant bank transfer service (26%), prepayment (24%) and cash on delivery (9%). Among buyers ages 14 to 29, however, online payment service providers were the most widely used payment method. Payment Methods Used for Digital Purchases According to Digital Buyers in Germany, by Age, 2014 % of respondents in each group 14-29 30-49 50-64 65+ Total Invoice 52% 69% 63% 64% 63% Online payment service providers (e.g., PayPal, ClickandBuy) 54% 57% 60% 49% 56% Direct debit 51% 46% 45% 37% 46% Credit card 23% 33% 28% 30% In an extremely detailed breakdown of payment method use by demographic and platform among mcommerce buyers via mobile devices, Creditreform Boniversum and bevh found that the use of mobile payment service providers had increased among both men and women between spring 2013 and spring 2014, while the use of traditional payment methods (described as invoices or credit cards) had declined over the same period. Payment Methods Used for Mobile Purchases According to Smartphone and Tablet Mcommerce Buyers in Germany, by Demographic, Spring 2013 & Spring 2014 % of respondents in each group Mobile payment service providers* Traditional payment methods** Network service providers Spring 2013 Spring 2014 Spring 2013 Spring 2014 Spring 2013 Spring 2014 Male 46.8% 49.2% 41.4% 36.2% 10.1% 13.0% 29% Female 40.8% 50.2% 42.9% 38.2% 13.3% 9.3% Age Gender Instant bank transfer service (e.g., Sofort-Überweisung, Giropay) 32% 26% 25% 17% 26% 18-29 44.2% 50.3% 37.2% 38.0% 13.2% 9.2% Prepayment 25% 26% 23% 20% 24% 30-39 45.3% 47.0% 42.5% 36.4% 11.3% 13.6% Cash on delivery 14% 9% 6% 4% 9% 40-49 40.4% 50.6% 49.5% 35.9% 9.1% 12.8% 50-59 45.9% 53.7% 36.1% 38.0% 16.4% 7.4% 60-69 47.4% 43.9% 47.4% 38.6% 5.3% 14.0% Note: bought digitally at least once in the past 12 months Source: BITKOM, "Trends im Online-Shopping," May 8, 2014 179652 www.eMarketer.com In PostNord’s “E-Commerce in Europe 2014” report, digital buyers in Germany had slightly different preferences in the use of online payment services to pay for digital purchases. In its survey of digital buyers conducted in 2013, 38% of respondents preferred to use PayPal or a similar service to pay for goods and services purchased online. The next most popular method was invoice (36%), then debit or credit card (14%), direct bank transfers (9%) and cash on delivery (1%). Monthly household income <€1K 34.5% 51.1% 45.5% 33.3% 14.5% 12.2% €1K-€1.5K 45.8% 54.8% 33.9% 33.3% 16.9% 10.7% €1.5K-€2K 49.1% 50.5% 34.5% 39.6% 12.7% 8.9% €2K-€2.5K 49.4% 44.1% 36.7% 37.6% 12.7% 15.1% €2.5K-€3.8K 44.1% 47.6% 44.1% 37.4% 9.9% 12.9% €3.8K+ 39.1% 51.1% 55.1% 40.9% 5.8% 6.8% Household size 1 person 38.5% 45.5% 50.5% 35.6% 7.7% 16.8% 2-3 people 46.2% 48.6% 39.1% 39.3% 11.9% 10.1% 4+ people 43.8% 56.8% 41.6% 31.4% 14.6% 10.2% Children in household Preferred Payment Method for Digital Purchases According to Digital Buyers in the EU-5, 2013 % of total Children 44.2% 56.3% 41.3% 31.7% 13.0% 9.6% No children 44.1% 46.3% 42.4% 40.0% 10.8 12.0% Total 44.1% 49.7% 42.0% 37.2% 11.5% 11.2% France Germany Italy Spain UK Debit or credit card 55% 14% 25% 34% 58% PayPal or similar 36% 38% 55% 49% 38% Against invoice 3% 36% 1% 1% 2% Note: *such as sofortüberweisung.de or PayPal; **invoice or credit card payment Source: Creditreform Boniversum and Bundesverband E-Commerce und Versandhandel (bevh), "Frühjahr-Umfrage 2014: Mobiler Einkauf und Bezahlung mit Smartphone und Tablet," conducted by Innofact, May 22, 2014 Direct payment through bank 2% 9% 5% 1% 1% 163534 COD 2% 1% 13% 13% 1% Unsure/don't know 2% 2% 0% 2% 1% Note: ages 15-79; excludes services such as digital downloads, hotels, tickets and travel; numbers may not add up to 100% due to rounding Source: PostNord, "E-commerce in Europe 2014," Feb 12, 2014 171423 www.eMarketer.com www.eMarketer.com Cross-Border Commerce A 2013 study of digital buyers in Germany conducted by PostNord found that 58% of respondents had made a cross-border digital purchase. That result placed Germany toward the bottom of the list of countries in Europe examined. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED22 Digital Buyers in Select Countries/Regions in Europe Who Have Made a Cross-Border Digital Purchase, 2013 % of respondents Italy 72% Spain 71% UK 67% Nordics* 67% France 59% Germany 58% Benelux Poland 48% 38% Note: ages 15-79; excludes services such as digital downloads, hotels, tickets and travel; *Denmark, Finland, Norway and Sweden Source: PostNord, "E-commerce in Europe 2014," Feb 12, 2014 171419 Top 10 Retail Sites Among Internet Users in Italy, Ranked by Unique Visitors, April 2014 www.eMarketer.com ITALY Top Ecommerce Sites The most popular destinations for Italy’s digital shoppers are a mix of domestic platforms and foreign-owned sites. In fact, two foreign entities sit atop the pile of ecommerce platforms in terms of visitors. According to comScore data from April 2014, eBay drew the largest audience in the country, attracting 12.1 million unique visitors for 36.4% reach, followed by Amazon sites (8.9 million, 26.8% reach). Trailing with 4.0 million visitors or fewer were the network of sites operated by book-focused platform IBS, marketplace TrovaPrezzi, China-headquartered international retailer LightInTheBox, Apple sites, Germany-based clothing and apparel retailer Zalando, sites operated by pan-European company LeGuide, appliance and consumer electronics seller Euronics and Swedish furniture giant IKEA. Total unique visitors (millions) % reach Average minutes per visitor 12.1 36.4% 31.7 2. Amazon sites 8.9 26.8% 20.6 3. IBS Network 4.0 12.1% 6.1 4. TrovaPrezzi 3.6 10.9% 2.7 5. LightInTheBox 3.2 9.6% 4.1 6. Apple worldwide sites 2.8 8.6% 6.1 7. Zalando 2.3 6.8% 21.3 8. LeGuide.com sites 2.1 6.3% 2.4 9. EURONICS 1.9 5.9% 2.6 10. IKEA 1.9 5.8% 10.4 1. eBay Note: ages 6+ accessing the internet from home or work PC Source: comScore Media Metrix, June 12, 2104 174992 www.eMarketer.com Product Categories According to Osservatorio ICT & School of Management del Politecnico di Milano and Netcomm – Italy data for 2014, travel accounted for the largest percentage of Italy’s ecommerce sales share by far, making up 40%. Next was clothing, accounting for 14%, then tech and consumer electronics (12%), insurance (9%), books/music/movies/TV (3%) and groceries (1%). B2C Ecommerce Sales Share in Italy, by Product Category, 2014 % of total Travel 40% Clothing 14% 12% Insurance 3% 1% Tech and consumer electronics 9% Books, music and movies/TV Grocery Other* 21% Note: *includes C2C, event tickets, online auctions, etc. Source: Osservatorio ICT & School of Management del Politecnico di Milano and Netcomm - Italy as cited by IAB Italy, Oct 21, 2014 182525 www.eMarketer.com comScore Media Metrix data for April 2014 found that comparison shopping sites garnered the highest number of unique visitors among retail sites, cataloging 7.5 million unique visitors from Italy for the month. The next most popular site category was consumer electronics with 7.3 million visitors, then apparel (6.6 million), computer hardware (4.9 million), books (4.8 million), home furnishings (4.4 million), computer software (4.2 million) and sports/outdoor goods (3.0 million). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED23 Leading Online Retail Categories Among Internet Users in Italy, Ranked by Unique Visitors, April 2014 Total unique visitors (millions) % reach Comparison shopping 7.5 22.6% Consumer electronics 7.3 22.1% 7.4 Apparel 6.6 20.0% 21.2 Computer hardware 4.9 14.7% 5.4 Books 4.8 14.5% 6.5 Home furnishings 4.4 13.4% 10.2 Computer software 4.2 12.6% 6.4 Sports/outdoor 3.0 9.2% 6.0 Mall 2.5 7.6% 3.1 Fragrances/cosmetics 1.8 5.5% 7.2 Tickets 1.4 4.2% 4.2 Jewelry/luxury goods/accessories 1.0 3.0% 4.1 Retail—movies 0.8 2.4% 1.8 Auctions 0.6 1.8% 20.7 Consumer goods 0.6 1.8% 1.8 Average minutes per visitor 4.2 A study by PostNord found a similar preference for PayPal among Italy’s digital buyers. Fifty-five percent of buyers it polled preferred PayPal or similar services, while 25% expressed a preference for using a credit or debit card. Interestingly, 13% of those polled said they preferred cash on delivery, while 5% favored a direct payment made through a bank. Preferred Payment Method for Digital Purchases According to Digital Buyers in the EU-5, 2013 % of total France Germany Italy Spain UK Debit or credit card 55% 14% 25% 34% 58% PayPal or similar 36% 38% 55% 49% 38% Against invoice 3% 36% 1% 1% 2% Direct payment through bank 2% 9% 5% 1% 1% COD 2% 1% 13% 13% 1% Unsure/don't know 2% 2% 0% 2% 1% Note: ages 6+ accessing the internet from home or work PC Source: comScore Media Metrix, June 12, 2104 Note: ages 15-79; excludes services such as digital downloads, hotels, tickets and travel; numbers may not add up to 100% due to rounding Source: PostNord, "E-commerce in Europe 2014," Feb 12, 2014 174991 171423 www.eMarketer.com www.eMarketer.com Payment Methods Cross-Border Commerce Payment methods used for digital commerce transactions in Italy largely relied on cards and PayPal, according to Netcomm data for Q1 2014. The company found that 39.2% of B2C ecommerce transaction payments were made using PayPal and 21.1% relied on a prepaid card. Another 18.5% used credit cards and 6.5% paid by cash or check on delivery. Overall, the share of transactions made via PayPal had increased from a year earlier, while payments made by almost all other methods decreased over the same period. Cross-border digital purchasing is quite common in Italy. PostNord’s survey found that 72% of the country’s digital buyers it polled had made a digital purchase of that sort in 2013, the highest rate among the European countries studied. Digital Buyers in Select Countries/Regions in Europe Who Have Made a Cross-Border Digital Purchase, 2013 % of respondents Italy 72% Spain Payment Method Share of B2C Ecommerce Transactions in Italy, Q1 2013 & Q1 2014 % of total Q1 2013 Q1 2014 PayPal 34.0% 39.2% Prepaid card on the website 22.1% 21.1% Credit card on the website 71% UK 67% Nordics* 67% France 59% Germany 58% Benelux 48% 19.4% 18.5% Cash/check on delivery 8.9% 6.5% Credit card on delivery 3.5% 3.3% Prepaid card on delivery 3.5% 3.3% Bank transfer 4.1% 3.2% Note: ages 15-79; excludes services such as digital downloads, hotels, tickets and travel; *Denmark, Finland, Norway and Sweden Source: PostNord, "E-commerce in Europe 2014," Feb 12, 2014 Discount/purchase voucher 2.3% 2.7% 171419 Other 1.0% 1.1% Don't remember 0.7% 0.7% Poland 38% www.eMarketer.com Source: Netcomm, "Net Retail" conducted by Human Highway, May 9, 2014 175500 www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED24 NETHERLANDS Top 10 Travel Sites in the Netherlands, Ranked by B2C Ecommerce Sales, 2013 millions of € Top Ecommerce Sites 1. KLM Domestic retailer Ahold remains the market leader among retail ecommerce sites in the Netherlands. According to B2C ecommerce sales data for 2013 from Twinkle, Ahold led its competitors with annual sales of €686.4 million ($915.2 million). In second was RFS Holland Holding, which operates a number of ecommerce companies; then shoes and clothing retailer Zalando; appliance and consumer electronics seller Coolblue; takeout food ordering website Thuisbezorgd.nl; BAS Group, which runs MyCom, Dixons and iCentre, telecommunications company KPN; clothing retailer H&M; Ticketmaster Nederland; and the website of discount store HEMA. Top 10 Retail Sites in the Netherlands, Ranked by B2C Ecommerce Sales, 2013 millions of € 1. Ahold €686.4 2. RFS Holland Holding €552.0 3. Zalando €304.0 4. Coolblue 6. BAS Group €150.8 8. H&M €147.5 €136.0 10. HEMA 9. Ticketmaster Nederland €125.0 Note: excludes VAT and returns Source: Twinkle, "Twinkle100" as cited in press release, Sep 22, 2014 180696 €353.0 4. Transavia.com €275.0 5. Thomas Cook Nederland €251.6 6. Travix International €217.3 7. Landal GreenParks €154.0 8. Roompot Vakanties €129.0 9. Emesa Nederland €120.0 10. Corendon Dutch Airlines €99.2 Note: excludes VAT and returns Source: Twinkle, "Twinkle100" as cited in press release, Sep 22, 2014 www.eMarketer.com Product Categories 5. Thuisbezorgd.nl €164.1 7. KPN €390.1 3. Sundio Group 180697 €213.5 €170.0 €515.0 2. TUI Nederland www.eMarketer.com Travel also factors prominently into ecommerce in the Netherlands. Twinkle found airline KLM had the highest B2C ecommerce sales in 2013, at €515.0 million ($686.6 million). Next was TUI Nederland, which owns a number of travel brands in the country; then travel brand owner Sundio Group; low-cost airline Transavia.com; travel and tourism service Thomas Cook Nederland; online travel provider brand owner Travix International; holiday bungalow network Landal GreenParks; park and campsite booking service Roompot Vakanties; booking service Emesa Nederland; and Corendon Dutch Airlines. According to Statistics Netherlands, travel tops the list of products and services bought by the country’s digital buyers. The government agency found that 63% of people surveyed in 2013 who had made a digital purchase in the preceding three months had bought something related to travel, vacation or accommodations. The next most popular categories were clothing and sporting goods (62%), event tickets (52%), books and magazines (46%), software (33%), electronic equipment (31%), household goods and furniture (31%) and movies and music (28%). Other product and service types were purchased digitally by less than 20% respondents. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED25 NORWAY Products/Services Purchased Digitally by Digital Buyers in the Netherlands, 2011-2013 % of respondents 2011 2012 2013 Travel, vacation, accommodation 60% 60% 63% Clothes, sporting goods 52% 55% 62% Event tickets 47% 46% 52% Literature (books, magazines) 43% 40% 46% Software 22% 26% 33% Electronic equipment 27% 24% 31% Household goods* 27% 30% 31% Movies, music 27% 26% 28% Shares, financial services, insurance 19% 17% 19% Food, cosmetics or cleaning products 13% 13% 16% Hardware 12% 12% 15% 8% 8% 11% 10% 12% 15% Lottery or gambling Other Note: ages 12-74 who made a digital purchase in the past 3 months; *such as furniture, toys and washing machines Source: Statistics Netherlands, "ICT kennis en economie 2014," June 30, 2014 176890 www.eMarketer.com Cross-Border Ecommerce Cross-border ecommerce is popular among digital buyers in the Netherlands, according to data from discount code aggregator site Kortingscode.nl. The site found that 72.4% of male and 52.6% of female digital buyers in the Netherlands had made a purchase from a foreign ecommerce site at some point. Kortingscode.nl also found that sellers in Germany received the largest share of the Netherlands’ cross-border purchases (25.0%). The US was the next most popular location at 22.4%, followed by the UK (20.2%), China (18.5%), Belgium (4.9%) and France (1.8%). Top Ecommerce Sites A poll of digital buyers in Norway conducted by Nets in March 2013, the most recent data that was available, found that computer and consumer electronics retailer Komplett.no was the favorite domestic ecommerce site, chosen by 8.8% of respondents. Next was department store CDON (3.6%), travel site Norwegian.no (2.0%), music and movie seller Platekompaniet.no (1.7%), book retailer Haugenbok.no (1.5%), department store Netthandelen.no (1.5%), apparel retailer H&M (1.4%), bookseller Bokklubben.no (1.3%), marketplace Finn.no (1.3%) and department store Ellos (1.2%). The favorite foreign ecommerce site was Amazon, followed closely by eBay. Favorite Retail Sites Among Digital Buyers in Norway, by Domestic vs. Foreign Sites, March 2013 % of respondents Domestic Komplett.no 8.8% Amazon 9.0% CDON.com* 3.6% eBay 8.4% Norwegian.no 2.0% Play.com 2.1% Platekompaniet.no 1.7% Dealextreme.com 1.4% Haugenbok.no 1.5% Cdon.com* 0.6% Netthandelen.no 1.5% Zara.com 0.4% HM.com* 1.4% Hotels.com 0.4% Bokklubben.no 1.3% Strawberry.net 0.4% Finn.no 1.3% Applestore.com 0.3% Ellos.no 1.2% HM.com* 0.3% Note: n=972 ages 18+; *some sites can be perceived as either domestic or foreign by respondents and appear in both lists Source: Nets, "Nordic e-commerce 2013" conducted by TNS Gallup, Nov 7, 2013 176416 Geographic Location of Seller from Which Cross-Border Digital Buyers in the Netherlands Made Digital Purchases, July 2014 % of respondents Germany 25.0% US 22.4% UK 20.2% China Belgium 1.8% Other 18.5% Foreign www.eMarketer.com When Enterprise Federation of Norway tracked the top sites ranked by sales for the period lasting between July 2013 and June 2014, it listed many of the same names. It found Komplett was the most popular Norwegian site by sales for the period, followed by eBay, Apple, CDON, Zalando, Amazon, consumer electronics store Elkjøp, Netthandelen, H&M and Ellos. [Note: Specific sales figures for each were not announced.] 4.9% France 7.2% Note: ages 18+ Source: Kortingscode.nl, "Kortingscode.nl rapport 2" as cited in press release, Sep 26, 2014 181732 www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED26 Product Categories TNS Gallup Norway, researching for Enterprise Federation of Norway, found that computers, consumer electronics and appliances accounted for 30% of Norway’s ecommerce sales in Q1 2014, making it the most popular category by that measure. Apparel (22%) was second, followed by home and garden (12%); sports, recreation and hobbies (10%); newspapers, magazines and books (5%); mobile phones and accessories (5%); and several additional categories with shares of less than 5%. Share of Retail Ecommerce Sales and Purchases in Norway, by Product Category, Q1 2014 % of total Sales Purchases Computers, consumer electronics, appliances 30% 15% Clothes, shoes, accessories 22% 23% Home & garden 12% 9% Sports, recreation, hobbies 10% 9% 5% 14% Newspapers, magazines, books, etc. Mobile phones, mobile accessories 5% 3% Personal care, health, etc. 4% 9% Photos & videos 4% 3% Music, films, computer games 3% 8% Food & beverages 2% 3% Children's toys & board games 2% 2% Glasses, contact lenses, etc. 1% 1% Note: retail ecommerce sales in Norway for Q1 2014=6.6 billion Norwegian kroner; read as saying home & garden made up 12% of B2C ecommerce sales but 9% of the number of purchases; numbers may not add up to 100% due to rounding Source: Enterprise Federation of Norway, "Virkes e-Handelsbarometer 1. kvartal 2014" conducted by TNS Gallup Norway, June 6, 2014 174871 www.eMarketer.com TNS Gallup Norway also tracked ecommerce sales and purchases in Q2 2014, finding that holiday and leisure travel accounted for the largest share of both in the quarter. According to its data, travel-related goods and services accounted for 50% of sales and 56% of purchases. Retail goods made up 40% of sales and 21% of purchases. Digital goods (i.e., goods delivered via download) were only 1% of sales, but made up 6% of purchases. Share of B2C Ecommerce Sales and Purchases in Norway, by Category, Q2 2014 % of total Digital goods* 1% Other services 4% Other 5% Digital goods* 6% Other services 10% Holiday/ leisure travel 50% Retail goods 40% Other 7% Retail goods 21% Sales Holiday/ leisure travel 56% Purchases Note: B2C ecommerce sales in Norway for Q2 2014=18.8 billion Norwegian kroner; read as retail goods made up 40% of B2C ecommerce sales but 56% of the number of purchases; *goods that can be delivered digitally such as downloaded music, ebooks and games Source: Enterprise Federation of Norway, "Virkes e-Handelsbarometer 2. kvartal 2014" conducted by TNS Gallup Norway, Oct 21, 2014 181115 www.eMarketer.com Payment Methods In Norway, debit and credit cards are a popular method of making payments for digital purchases. According to a survey of the country’s digital buyers conducted by PostNord, 67% of respondents preferred using debit or credit cards for their online purchases, excluding services such as digital downloads, hotel and travel. The next most preferred methods were invoice (14%) and PayPal, Payson or some similar service (14%), then direct bank payment (3%). Preferred Payment Method According to Digital Buyers in Select Nordic Countries, Jan 2014 % of respondents Denmark Finland Norway Sweden 8% 27% 14% 36% 80% 41% 67% 32% Direct payment via bank 3% 17% 3% 20% PayPal, Payson or similar 6% 5% 14% 8% Other/unsure/don't know 3% 10% 2% 4% Against invoice Debit or credit card Note: ages 18-79; excludes services such as digital downloads, hotels, tickets and travel Source: PostNord, "E-commerce in the Nordics 2014" conducted by TNS Sifo, May 20, 2014 175626 GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES www.eMarketer.com ©2014 EMARKETER INC. ALL RIGHTS RESERVED27 Cross-Border Ecommerce As in other Nordic countries, cross-border buying is a significant part of Norway’s ecommerce activity. According to a poll of digital buyers conducted by PostNord in October 2014, more than half (63%) of respondents were cross-border digital buyers. Cross-border buying habits were also higher among younger demographics, reaching 73% among those ages 18 to 29. Data from Norway Post and Norwegian Distance Sellers Association reported that domestic retail ecommerce sites pulled in NOK18.4 billion ($3.1 billion) in domestic sales and NOK5.1 billion ($867 million) in foreign sales in 2013. Retail Ecommerce Sales in Norway, Foreign vs. Domestic Sites, 2013 billions of Norwegian kroner Foreign 5.1 Digital Buyers in Norway Who Have Made a Cross-Border Digital Purchase, by Age, Oct 2014 % of respondents in each group 18-29 73% 30-49 50-64 52% 65-79 39% Total 63% Note: in the past three months; excludes services such as concert tickets, digital downloads, hotels or travel Source: PostNord, "E-barometer Q3 2014: Status netthandel i Norge," Nov 1 , 2014 182196 www.eMarketer.com A poll conducted by YouGov on behalf of Oslo Handelsstands Forening (OHF) found that 58% of respondents used domestic sites for digital purchases, while 31% used foreign sites. However, the survey did not account for the possibility that respondents might use both. Internet Users in Norway Who Use Domestic vs. Foreign Ecommerce Sites for Digital Purchases, June 2014 % of respondents Don't buy on the internet 6% Don't know 6% Foreign 31% Domestic 58% Note: n=1,008 ages 18+; numbers may not add up to 100% due to rounding Source: Oslo Handelsstands Forening (OHF) survey conducted by YouGov, July 1, 2014 179125 Domestic* 18.4 68% www.eMarketer.com Note: physical goods only; includes value-added tax; *includes sales from companies in Sweden with revenues in Norway Source: Norway Post and Norwegian Distance Sellers Association, "Netthandelsstatistik Norge 2013" conducted by Kvarud Analyse, Sep 1, 2014 180396 www.eMarketer.com RUSSIA Top Ecommerce Sites Russia’s ecommerce sector is deeply fractured, but has thus far staved off advances from foreign-owned companies. Classifieds sites and marketplaces draw heavy traffic, while B2C platforms have yet to make substantial headway due to problems with logistics. According to data from Gemius for April 2014, classifieds platform Avito.ru drew the largest number of unique visitors for the month at 23.4 million. Next was search engine and mail service Yandex.ru, which also has a marketplace, with 12.8 million visitors; then classifieds site Irr.ru (9.4 million); marketplace Tiu.ru (9.1 million); retailer Ozon.ru (8.8 million); Alibaba Group’s factory-direct B2C platform Aliexpress.com (8.4 million); apparel and shoe retailer Wildberries.ru (7.9 million); daily deal site Biglion.ru (6.4 million); fashion store Lamoda.ru (6.0 million); eBay.com (6.0 million); online-offline hybrid retailer Enter.ru (5.4 million); the website of mobile device seller Svyaznoy (5.2 million); B2B platform Pulscen.ru (4.9 million); consumer electronics and household appliances retailer Eldorado.ru (4.3 million); and clothing retailer Bonprix.ru (4.1 million). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED28 Top 15 Retail Sites in Russia, Ranked by Unique Visitors, April 2014 millions and % reach Top 20 Retail Sites in Russia*, Ranked by Net Sales, 2013 Site category Unique visitors % reach 1. Avito.ru 23.4 34.2% 2. Yandex.ru 12.8 18.6% 3. Irr.ru 9.4 13.7% 4. Tiu.ru 9.1 13.3% Net sales (millions) Average monthly visitors (billions) 1. Ulmart.ru Home appliances & electronics $684 7.0 2. Svyaznoy.ru Home appliances & electronics $507 8.0 5. Ozon.ru 8.8 12.9% 3. Wildberries.ru Apparel & footwear $487 13.0 6. Aliexpress.com 8.4 12.3% 4. Citilink.ru $383 2.9 7. Wildberries.ru 7.9 11.5% Home appliances & electronics 8. Biglion.ru 6.4 9.3% 5. Exist.ru Auto parts $364 2.7 9. Lamoda.ru 6.0 8.8% 6. Ozon.ru Diversified assortment $289 8.1 10. eBay.com 6.0 8.7% 7. Quelle.ru Apparel & footwear $229 1.9 11. Enter.ru 5.4 7.9% 8. Lamoda.ru Apparel & footwear $191 5.8 12. Svyaznoy.ru 5.2 7.6% 9. Mvideo.ru Home appliances & electronics $186 8.8 13. Pulscen.ru 4.9 7.1% 10. Bonprix.ru Apparel & footwear $185 2.9 14. Eldorado.ru 4.3 6.3% 11. Komus.ru Diversified assortment $181 0.9 15. Bonprix.ru 4.1 6.2% 12. KupiVIP.ru Apparel & footwear $170 2.6 13. Enter.ru Diversified assortment $169 4.2 14. Eldorado.ru Home appliances & electronics $151 5.2 15. Wikimart.ru Diversified assortment $150 4.1 16. E96.ru Diversified assortment $144 2.1 17. Sotmarket.ru Diversified assortment $132 5.9 18. VseInstrumenti.ru Do-it-yourself $115 1.4 19. Dns-shop.ru Home appliances & electronics $104 4.9 20. Holodilnik.ru Home appliances & electronics $101 1.3 Note: ages 18+ Source: Gemius SA, Oct 1, 2014 181770 www.eMarketer.com In June 2014, Yandex.ru announced plans to expand its marketplace into a B2C platform mirroring Amazon.com’s online services in the US. With strong brand name recognition among internet users who rely on its search and mail services, Yandex could emerge as a serious competitor to other large players like Ozon.ru and Lamoda. East-West Digital News, Data Insight and Enter Vision reported the top 20 online retailers in Russia by net sales for 2013. B2C retailer Ulmart.ru topped the list with $684 million, followed by Svyaznoy.ru ($507 million), Wildberries.ru ($487 million), Citilink.ru ($383 million), Exist.ru ($364 million), Ozon.ru ($289 million), Quelle.ru ($229 million), Lamoda.ru ($191 million), Mvideo.ru ($186 million) and Bonprix.ru ($185 million). Note: physical goods only; includes VAT; excludes B2B services; *includes the Commonwealth of Independent States (Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan) Source: East-West Digital News, Data Insight and Enter Vision, "E-Commerce in Russia," Oct 1, 2014 181290 www.eMarketer.com Product Categories According to a survey of internet users conducted by A.T. Kearney in July 2014, electronics were a heavy draw for digital buyers in Russia. Its poll found 71% of respondents had purchased electronics online in the preceding three months. The next most popular categories with response rates above 50% were fashion and apparel (64%), followed by services (63%), home appliances (62%), beauty products (53%), books (52%), sports and outdoor items (51%) and tickets (51%). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED29 Payment Methods Internet Users in Russia Who Have Made a Digital Purchase, by Product Category, July 2014 % of respondents Electronics 71% Fashion and apparel 64% Services 63% Home appliances 62% Beauty products 53% Books 52% Sports and outdoor 51% Tickets 51% Toys, kids and babies 44% Home furnishings 43% Music and games 43% Household items Groceries Russia remains a relatively underbanked market, a circumstance that is reflected in the methods of payment used for ecommerce. According to iKS-Consulting, bank cards accounted for the largest share of ecommerce sales in 2013, used in RUB260 billion ($8.16 billion) worth of transactions. Cash payments were a close second, used in RUB248 billion ($7.79 billion) worth of sales. Electronic money was more rarely used, making up RUB94 billion ($2.95 billion) in transactions, while mobile payments were used even more rarely. However, iKS-Consulting expects mobile payment methods to see a compound annual growth rate of 33% between 2013 and 2017. B2C Ecommerce Sales in Russia, by Payment Method, 2013 & 2017 billions of Russian rubles and CAGR 36% 31% 2013 2017 CAGR Note: ages 16+ who access the internet at least once per week; in the past 3 months Source: A.T. Kearney, "Connected Consumers Are Not Created Equal: A Global Perspective," Nov 12, 2014 Bank cards 260 903 37% Cash payments 248 364 10% Electronic money 94 111 4% 182094 Mobile payments www.eMarketer.com iKS-Consulting reported that the majority of B2C commerce sales in Russia in 2013 were for goods, accounting for RUB349 billion ($10.96 billion) that year. In comparison, services (a category that includes travel and reservations) accounted for RUS236 billion ($7.41 billion) in sales, with digital distribution bringing in RUB37 billion ($1.16 billion). 97 33% 7 18 27% Total 640 1,493 24% Note: domestic operations only Source: iKS-Consulting as cited in press release, July 1, 2014 181200 www.eMarketer.com SPAIN Top Ecommerce Sites B2C Ecommerce Sales in Russia, by Category, 2013 & 2017 billions of Russian rubles and CAGR 2013 2017 CAGR Goods 349 795 23% Services* 236 603 26% Digital distribution 37 65 15% Other 18 30 14% Total 640 1,493 24% Note: includes mcommerce; domestic operations; *includes travel and reservations Source: iKS-Consulting as cited in press release, July 1, 2014 181193 31 Other www.eMarketer.com According to September 2014 comScore data for online retail properties in Spain, Amazon sites drew the largest amount of traffic for the month at 7.0 million visitors. Next was eBay (5.0 million), then department store El Corte Ingles (3.6 million), Alibaba (3.1 million), French hypermarket chain Carrefour (2.6 million), Apple.com (2.5 million), bookseller Casadellibro.com (2.1 million), furniture chain IKEA (1.9 million), superstore chain MediaMarkt (1.9 million) and sale aggregator site Tiendeo (1.8 million). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED30 Top 10 Retail Sites in Spain, Ranked by Unique Visitors, Sep 2014 millions Top 10 B2C Ecommerce Categories in Spain, Ranked by Transaction Volume, Q4 2013 % of total 1. Amazon sites 1. Travel agencies and tour operators 7.0 2. eBay 13.7% 2. Airlines 5.0 3. El Corte Ingles Group 8.7% 3. Direct marketing 3.6 5.5% 4. Alibaba 4. Clothing 3.1 5.0% 5. Carrefour Group 5. Ground transportation 4.4% 2.6 6. Apple worldwide sites 2.5 6. Other commerce specializing in food 3.7% 7. Casadellibro.com 7. Advertising 2.1 3.1% 8. IKEA 8. Arts, entertainment, sports and recreation 3.1% 1.9 9. Mediamarkt.es 9. Gambling 1.9 2.8% 10. Tiendeo sites 10. Public administration, taxes and social security 2.6% 1.8 Note: desktop only Source: comScore Media Metrix, Nov 24, 2014 182876 www.eMarketer.com Product Categories Travel accounts for a significant portion of B2C ecommerce transactions in Spain. The Comisión Nacional de los Mercados y la Competencia (CNMC) reported that travel agencies and tour operators accounted for the largest transaction volume among B2C ecommerce categories in Q4 2013 at 13.7%, followed by airlines (8.7%), clothing (5.0%), ground transportation (4.4.%) and other commerce related to food (3.7%). Note: excludes ATMs, Electronic Data Interchange (EDI) and online financial transactions Source: Comisión Nacional de los Mercados y la Competencia (CNMC), "Informe Sobre el Comercio Electrónico en España a Través de Entidades de Medios de Pago, Cuarto Trimestre 2013," Sep 23, 2014 181111 www.eMarketer.com Payment Methods Digital buyers in Spain surveyed by PostNord in 2013 revealed that they preferred PayPal (49% of respondents) or some similar third-party payment processor above all other methods. The next most preferred methods were debit or credit cards (34%), cash on delivery (13%), direct bank transfers (1%) and invoices (1%). Preferred Payment Method for Digital Purchases According to Digital Buyers in the EU-5, 2013 % of total France Germany Italy Spain UK Debit or credit card 55% 14% 25% 34% 58% PayPal or similar 36% 38% 55% 49% 38% Against invoice 3% 36% 1% 1% 2% Direct payment through bank 2% 9% 5% 1% 1% COD 2% 1% 13% 13% 1% Unsure/don't know 2% 2% 0% 2% 1% Note: ages 15-79; excludes services such as digital downloads, hotels, tickets and travel; numbers may not add up to 100% due to rounding Source: PostNord, "E-commerce in Europe 2014," Feb 12, 2014 171423 GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES www.eMarketer.com ©2014 EMARKETER INC. ALL RIGHTS RESERVED31 SWEDEN Product Categories Top Ecommerce Sites According to PostNord, many digital shoppers in Sweden head online to purchase apparel. It found that 40% of respondents to a poll conducted in Q1 2014 had purchased clothing digitally in the previous three months. Next were books (31%), consumer electronics (18%), cosmetics, skin and haircare (18%), computers and accessories (17%), sports and recreation (12%), home decor and furniture (12%) and supplements and pharmaceuticals (12%). The top ecommerce sites in Sweden represent a mix of US, domestic and Nordic businesses, according to data from comScore. With 1.46 million unique visitors during the August 2014 measurement period, Amazon drew the largest share by a wide margin. eBay, with 1.02 million visitors, was the nearest runner-up, followed by department store CDON (864,000), furniture store IKEA (720,000), price comparison site Prisjakt.nu (600,000), price comparison site Pricerunner AB (570,000), consumer electronics store Elgiganten.se (506,000), Netflix (484,000), Apple.com (464,000), consumer electronics retailer NetOnNet (453,000), apparel seller Zalando (422,000), clothing retailer H&M (415,000), luxury goods store Kering (408,000), Ticketmaster (391,000) and automotive and hardware store Biltema.no (371,00). Top 15 Retail Sites in Sweden, Ranked by Unique Visitors, Aug 2014 thousands 1. Amazon 1,456 2. eBay 1,021 3. CDON.com 864 4. IKEA 720 5. Prisjakt.nu 600 6. Pricerunner AB 570 7. Elgiganten.se 506 8. Netflix 484 9. Apple.com 464 10. NetOnNet 453 11. Zalando 422 12. HM.com 415 13. Kering 408 40% Books 31% Consumer electronics 18% Cosmetics, skin and haircare 18% Computers and accessories 17% Sports/recreation 12% Home decor/furniture 12% Supplements/pharmaceuticals 12% Shoes 11% DVDs/Blu-ray 10% Computer/video games 10% CDs 8% Newspapers/magazines 7% Children's goods 7% Auto and boating parts 6% Toys 5% Groceries 5% Jewelry/watches 5% Building and garden goods 4% Flowers/plants 4% Wine/alcohol 4% Lenses/eye glasses 3% 173055 371 Note: ages 15+; via PC only Source: comScore Media Metrix, Sep 1, 2014 182170 Clothes Note: ages 18-79; in the past 3 months; excludes services such as concert tickets, digital downloads, hotels and travel Source: PostNord, "E-barometern Q1 2014" in conjunction with Svensk Digital Handel and HUI Research, May 2, 2014 14. Ticketmaster 391 15. Biltema.no Products Purchased Digitally by Digital Buyers in Sweden, Q1 2014 % of respondents www.eMarketer.com www.eMarketer.com A poll conducted by Bring in 2014 also found that clothing was a popular product category among digital buyers in Sweden. According to its data, 42% of respondents had purchased clothing or shoes during the preceding 12 months, and 40% had purchased books. Next were small electronics and household items (25%), beauty, personal care and cosmetic items (22%) and sports items (14%). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED32 Cross-Border Ecommerce Product Categories Purchased Digitally by Digital Buyers in Select Nordic Countries, 2014 % of respondents Denmark Finland Norway Sweden Clothing/shoes 36% 42% 36% 42% Books 26% 40% 36% 40% Small electronics and household items 23% 29% 38% 25% Beauty/personal care/cosmetics 17% 22% 22% 22% Sports items 15% 14% 18% 14% Brown goods (e.g., small appliances like TVs and stereos) 14% 13% 7% 13% Photography 11% 14% 17% 14% Music (CD/vinyl) 11% 14% 13% 14% Toys 11% 13% 10% 13% 9% 11% 10% 11% Health products Sweden is no exception to Nordic consumers’ penchant for cross-border ecommerce. According to PostNord, 32% of digital buyers in Sweden had made a purchase of a physical good from a foreign ecommerce site in three months prior to polling in July 2014. Digital Buyers in Sweden Who Have Made a Digital Purchase from a Foreign* Ecommerce Site, July 2014 % of respondents Don't know 3% Yes 32% Note: ages 18+; in the past 12 months; physical goods only Source: Bring, "E-handelsrapporten 2014," Sep 18, 2014 180622 www.eMarketer.com No 65% Payment Methods PostNord’s data shows a complicated payment method landscape in Sweden. According to its poll of digital buyers, conducted in January 2014, the largest percentage of respondents (36%) preferred to use invoices to pay for digital purchases. Next were credit and debit cards, preferred by 32%, then direct bank payments (20%), PayPal, Payson or some similar service (8%) and cash on delivery (2%). Preferred Payment Method for Digital Purchases According to Digital Buyers in Sweden, Jan 2014 % of total PayPal, Payson or similar 8% COD 2% Unsure/don't know 2% Credit/debit card 32% Note: ages 18-79; excludes services such as concert tickets, digital downloads, hotels and travel Source: PostNord, "E-barometern årsrapport 2013" in conjunction with Svensk Digital Handel and HUI Research, March 4, 2014 171713 179463 www.eMarketer.com However, data from Bring showed that digital buyers had some concerns regarding making such purchases. Its poll of internet users in Sweden conducted in 2014 found that 44% of respondents did not consider cross-border ecommerce safe enough to warrant a purchase. Another 32% expressed concerns about pricing and taxes, while 30% were wary of complications related to making returns and exchanges. Those concerns, however, were similar among internet users across the region. Reasons that Internet Users in Select Nordic Countries Do Not Make Cross-Border Digital Purchases, 2014 % of respondents Invoice 36% Direct bank payment 20% Note: ages 18-79; in the past 3 months; excludes services such as concert tickets, digital downloads, hotels and travel; *includes sites that buyers believe are located outside of Sweden and goods that ship from abroad Source: PostNord, "E-barometern Q2 2014" in conjunction with Svensk Digital Handel and HUI Research, Sep 11, 2014 www.eMarketer.com Denmark Finland Norway Sweden It doesn't feel safe enough 35% 41% 32% 44% Unsure about returns and exchanges 31% 43% 29% 30% Unsure about total price after tolls, fees, etc. 31% 38% 31% 32% Shipping/delivery are too expensive 17% 10% 12% 14% Poor customer service 6% 9% 6% 3% Delivery times are too long 4% 6% 5% 7% Too expensive 4% 4% 2% 4% Note: ages 18+ Source: Bring, "E-handelsrapporten 2014," Sep 18, 2014 180605 GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES www.eMarketer.com ©2014 EMARKETER INC. ALL RIGHTS RESERVED33 UK Product Categories Top Ecommerce Sites A survey of internet users conducted by A.T. Kearney in July 2014 found that fashion and apparel was the leading product category for digital purchases among internet users, 85% of whom had purchased such goods. The next most popular category was electronics at 84%, then books (82%), services (76%), music and games (75%), tickets (69%), home appliances (65%), home furnishings (65%), groceries (60%) and beauty products (56%). Two US ecommerce platforms—Amazon and eBay— draw the largest number of visitors in the UK, according to Nielsen Netview data collected in May 2014. Grocery chains also had a strong presence on Nielsen’s list, as did the sites of brick-and-mortar stores. After Amazon, with 16.0 million unique visitors that month, and eBay (15.2 million), the next most visited sites were grocery and general merchandise chain Tesco (6.7 million), general goods retailer Argos (5.3 million), grocer Asda (3.9 million), classifieds site Gumtree (3.4 million), clothing and high-end food retailer Marks & Spencer (3.2 million), grocer Sainsbury’s (2.5 million), deal site Groupon (2.4 million) and department store John Lewis (2.3 million). Top 10 Retail Sites Among UK Internet Users, Ranked by Unique Visitors, May 2014 millions 1. Amazon 16.0 2. eBay 15.2 3. Tesco Fashion and apparel 85% Electronics 84% Books 82% Services 76% Music and games 75% Tickets 69% Home appliances 65% Home furnishings 65% Groceries 60% Beauty products 6.7 4. Argos 5.3 3.9 56% Sports and outdoor 53% Toys, kids and babies 53% Household items 5. Asda 48% Note: ages 16+ who access the internet at least once per week; in the past 3 months Source: A.T. Kearney, "Connected Consumers Are Not Created Equal: A Global Perspective," Nov 12, 2014 6. Gumtree 3.4 7. Marks & Spencer 3.2 182091 8. Sainsbury's 2.5 9. Groupon 2.4 10. John Lewis 2.3 Source: Nielsen Netview as cited by MediaTel, July 2, 2014 181018 UK Internet Users Who Have Made a Digital Purchase, by Product Category, July 2014 % of respondents www.eMarketer.com www.eMarketer.com A BloomReach survey of UK digital shoppers conducted by Redshift Research in September 2014 found that nearly one-quarter of respondents most often made purchases at general or department stores. Auction sites were nearly as popular, with 23% of those polled saying such platforms were their most common online shopping destination. Also popular were clothing stores and entertainment retailers. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED34 Most Frequent Retail Site Category from Which UK Digital Shoppers Make Purchases, Sep 2014 % of respondents General/department stores 24% Auction sites 23% Clothing stores 15% Entertainment (music/film) stores 12% Payment Methods According to a survey of UK internet users conducted by online payment company Skrill Holdings Ltd. in August 2014, 57% of respondents used credit and debit cards to make an online payment, making it the most popular payment method. Digital wallets were used by 29%, while only 2% used bank transfers. Only 1% used text-pay services, and 1% also said they used virtual currencies. Food stores Preferred Method of Paying for Goods/Services Digitally According to UK Internet Users, Aug 2014 % of respondents 6% Consumer electronics stores 5% Text-pay services 1% Sporting goods stores 2% Bank transfers 2% DIY stores 2% Other Virtual currencies 1% Other/ don't know 10% 11% Digital wallets 29% Note: n=1,000; based on past 5 purchases Source: BloomReach, "UK Consumer and Marketer Personalization Study" conducted by Redshift Research, Sep 29, 2014 181326 www.eMarketer.com Digital shoppers on mobile phones in the UK appear to have a proclivity for physical media. In March 2014, Global Market Insite (GMI) surveyed UK mobile buyers on behalf of the Mobile Marketing Association (MMA), finding that 25% had bought DVDs or CDs via their device. The next most popular category was clothing and accessories (24%), then entertainment (20%) and fast food (19%). Top 4 Product Categories Purchased via Mobile Phone According to UK Mobile Buyers, March 2014 % of respondents 1. DVD/CDs 4. Fast food Note: ages 18+ Source: Skrill Holdings Ltd. survey conducted by ICM Research as cited in press release, Oct 8, 2014 182767 www.eMarketer.com One aspect of ecommerce in the UK worth taking note of is the growing popularity of “click and collect”— buying online and then picking up that purchase in-store or at another physical location. According to Mintel, click-and-collect sales will account for 15.0% of all UK digital retail sales in the 2014, with that figure growing to 17.0% in 2015. 25% 2. Clothes/accessories 3. Entertainment Credit/debit card 57% 24% 20% 19% Source: Mobile Marketing Association (MMA), "Mobile Retail" conducted by Global Market Insite (GMI) and in association with Imagine Mobile as cited on company website, June 4, 2014 174975 www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED35 UK Click-and-Collect Sales as a Percent of Digital and Total Retail Sales, 2014 & 2015 17.0% 15.0% 2.2% 1.7% 2014 % of digital retail sales 2015 % of total retail sales Source: Mintel, "UK Consumer Trends 2015," Oct 23, 2014 181447 www.eMarketer.com LATIN AMERICA Marketplace MercadoLibre.com (known in Portuguese as MercadoLivre) has carved out a sizeable chunk of the ecommerce market in Latin America by replicating eBay’s model. As a result, the site has a strong presence in both Argentina and Brazil. Meanwhile, Mexico’s proximity to the US is reflected in the prominence of many US companies on the list of popular ecommerce sites in that country. ARGENTINA Top Ecommerce Sites In Argentina, the most popular ecommerce sites are a mix of regional- and US-based companies, with marketplaces factoring heavily into ecommerce behaviors. According to comScore data from August 2014, homegrown marketplace MercadoLibre—an eBay partner in the region—drew the largest number of visitors for the month, at 7.5 million. Next were eBay (2.62 million) and Amazon sites (1.68 million), followed largely by local businesses such as sporting goods retailer Netshoes (975,000), appliances and consumer electronics store Garbarino (896,000), consumer electronics seller Fravega (856,000), appliances and electronics merchant Musimundo (715,000) and hypermarket chain Cencosud (695,000). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED36 Top 10 Retail Sites in Argentina, Ranked by Unique Visitors, Aug 2014 thousands B2C and C2C Ecommerce Sales in Argentina, by Product Category, 2009-2013 billions of Argentinean pesos 2009 2010 2011 2012 2013 1. MercadoLibre Travel 1.10 1.70 2.63 3.80 6.60 Electronics 0.60 0.90 1.33 1.60 2.50 Groceries 0.40 0.57 0.94 1.20 1.80 3. Amazon sites 1,678 Ringtones and other in-device purchases 0.35 0.55 0.85 1.10 1.55 Appliances 0.20 0.90 0.42 0.60 1.00 4. Netshoes Group 975 Home goods 0.15 0.22 0.33 0.44 0.84 Apparel 0.15 0.21 0.32 0.44 0.74 5. Garbarino.com 896 Entertainment tickets 0.15 0.20 0.30 0.48 0.69 Office supplies 0.13 0.19 0.27 0.37 0.55 6. AVG.com 885 Vehicle accessories - - - - 0.50 Sporting goods - - - - 0.42 7. Fravega.com 856 Games and toys - - - - 0.35 Baby clothing and accessories - - - - 0.33 8. Musimundo.com 715 Other (B2C) 3.44 5.26 5.13 9. Cencosud S.A. 695 C2C ecommerce 10. Netflix 675 Source: Cámara Argentina de Comercio Electrónico (CACE) and Prince Consulting, "Estudio de Comercio Electrónico en Argentina 2013," Jan 30, 2014 7,755 2. eBay 2,621 Total B2C ecommerce Total B2C + C2C ecommerce Note: ages 15+; home and work locations; excludes traffic from public computers such as internet cafes Source: comScore Media Metrix, "Futuro Digital Argentina 2014," Oct 16, 2014 181572 1.94 2.82 www.eMarketer.com 171306 - - - - 10.97 15.30 23.00 0.62 1.40 1.80 5.24 7.76 11.59 16.70 24.80 www.eMarketer.com BRAZIL Product Categories Top Ecommerce Sites When Cámara Argentina de Comercio Electrónico (CACE) and Prince Consulting tracked ecommerce sales in Argentina by category for both B2C and C2C transactions, they found travel was the most popular ecommerce product category in 2013, with sales of ARS6.60 billion ($1.21 billion). Next was electronics, with ARS2.50 billion ($457.0 million) in sales, followed by groceries, ringtones and other in-device purchases, and appliances, all with sales of between ARS1.00 billion and ARS1.80 billion. According to data from comScore for February 2014, the marketplace MercadoLibre drew the most traffic out of all retail web properties in Brazil for the month, attracting 23.9 million unique visitors. Next was online retailer B2W Digital (19.6 million); comparison shopping service Buscapé (14.9 million); Nova Pontocom, which operates a number of ecommerce brands in Brazil (14.0 million); Wal-Mart (11.0 million); and sporting goods retailer Netshoes (11.0 million). Sites with visitor traffic below 10 million included Alibaba, appliance and electronics seller Magazineluiza.com.br, electronics, appliances and furniture retailer Máquina de Vendas, book and electronics seller Livraria Saraiva, price comparison site Shopping UOL, apparel retailer Dafiti, sporting goods store Centauro.com.br, Apple and Amazon. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED37 Top 10 Retail Sites in Brazil, Ranked by Sales, Jan-Sep 2014 Top 15 Retail Sites in Brazil, Ranked by Unique Visitors, Feb 2014 millions 1. B2W (Americanas.com, Submarino.com and Shoptime) 1. MercadoLibre 2. Cnova (Extra, Casas Bahia and Ponto Frio) 23.9 2. B2W Digital 3. Wal-Mart 4. Maquina Vendas (Ricardo Eletro, Insinuante) 19.6 3. Buscapé Company 5. Magazine Luiza 6. Netshoes 14.9 7. Saraiva 8. Dafiti (Dafiti, Dafiti Sports) 4. Nova Pontocom 14.0 9. Mobly 10. Dell 5. Wal-Mart 11.0 Note: excludes mobile, tablet and public access Source: IBOPE E-commerce, Nov 1, 2014 6. Netshoes 182207 11.0 www.eMarketer.com Product Categories 7. Alibaba 9.4 Digital buyers in Brazil are keeping their eyes on apparel. According to e-bit, fashion and accessories made up 18% of retail ecommerce transactions in H1 2014. The next largest share came from health and beauty aids (16%), then household appliances (11%), books and magazines (8%), telephones and mobile phones (7%), computers (7%), home decorations (6%), consumer electronics (6%), sport and leisure (5%) and toys and games (2%). 8. Magazineluiza.com.br 7.6 9. Máquina de Vendas 7.6 10. Livraria Saraiva 6.9 11. Shopping UOL 6.3 12. Dafiti 5.5 13. Centauro.com.br 5.5 Leading Retail Ecommerce Categories in Brazil, Ranked by Share of Transactions, H1 2014 % of total 14. Apple 5.3 Fashion & accessories 15. Amazon 18% 4.6 Health & beauty aids Note: ages 6+; home and work only, PC only Source: comScore Inc., "2014 Brazil Digital Future in Focus," May 22, 2014 174182 16% Household appliances www.eMarketer.com IBOPE E-commerce reported a list of the top 10 retail ecommerce sites in Brazil for the period lasting January to September 2014. In addition to several sites on comScore’s list, it included CNOVA, which largely sells home appliances, furnishings and consumer electronics via several retail brands; home furnishings retailer Mobly; and computer and technology retailer Dell. 11% Books/magazines and subscriptions 8% Telephone/mobile phones 7% Computers 7% Home decoration 6% Consumer electronics 6% Sport & leisure 5% Toys & games 2% Note: includes mobile; excludes airlines tickets, daily deal sites, marketplaces, show tickets and travel packages; includes tablets Source: e-bit, "WebShoppers 30th edition," July 31, 2014 163326 GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES www.eMarketer.com ©2014 EMARKETER INC. ALL RIGHTS RESERVED38 In July 2014, when A.T. Kearney surveyed internet users in Brazil who had made a purchase during the previous three months, it found 86% had purchased electronics during that period. Fashion and apparel (75%) and books (75%) were tied for the second most popular category, followed by home appliances (70%), services (70%), tickets (65%), music and games (62%), beauty products (59%), sports and outdoor products (49%) and home furnishings (48%). Internet Users in Brazil Who Have Made a Digital Purchase, by Product Category, July 2014 % of respondents Electronics Payment Methods Used by Digital Buyers in Brazil, by Demographic, 2013 % of respondents in each group Credit card Financing Billet banking Don't pay anything/free Online debit/electronic transfer Don't know/no response Payment on delivery Gender Female 77% 36% 7% 4% 1% 0% 0% Male 70% 40% 10% 4% 1% 1% 0% 10-15 66% 47% 13% 10% 8% 2% 0% 16-24 64% 48% 7% 5% 1% 1% 0% 25-34 77% 37% 10% 3% 1% 0% 0% Age 86% Fashion and apparel 75% 35-44 75% 30% 6% 6% 1% 1% 0% Books 75% 45-59 82% 30% 6% 2% 0% 0% 0% 60+ 71% 40% 15% 5% 0% 0% 0% Home appliances 70% Services 70% Tickets 65% Music and games 62% Beauty products 59% Sports and outdoor 49% Home furnishings Toys, kids and babies Groceries A 84% 40% 13% 5% 0% 1% 0% B 76% 37% 9% 4% 1% 0% 0% C 67% 40% 6% 4% 1% 1% 0% DE 58% 49% 2% 1% 1% 0% 1% Total 73% 38% 8% 4% 1% 0% 0% Note: ages 10+ who have used the internet in the past three months and made at least one purchase in the past 12 months Source: Centro de Estudos sobre as Tecnologias da Informação e da Comunicação (CETIC.br), "TIC Domicílios 2014," June 26, 2014 48% 47% Household items Socioeconomic status 175682 www.eMarketer.com 35% 29% Note: ages 16+ who access the internet at least once per week; in the past 3 months Source: A.T. Kearney, "Connected Consumers Are Not Created Equal: A Global Perspective," Nov 12, 2014 182093 www.eMarketer.com Payment Methods According to Centro de Estudos sobre as Tecnologias da Informação e da Comunicação (CETIC.br), credit cards were the most popular payment method among digital buyers in Brazil when polled in 2013—used by 73% of respondents. Next was billet banking, used by 38%, then online debit or electronic transfer (8%), payment on delivery (4%) and financing (1%). MEXICO Top Ecommerce Sites The ranks of the most popular ecommerce sites in Mexico are populated largely by US companies, albeit with some exceptions. C2C platforms are also a significant factor, reflecting some remaining logistics and payment hurdles Mexico faces in developing a more robust B2C ecommerce market. According to comScore data for June 2014, Argentinabased and eBay partner online marketplace MercadoLibre attracted 4.6 million unique visitors in June 2014, making it Mexico’s most popular retail ecommerce site for the month. Next was Wal-Mart (2.1 million), then Amazon (2.0 million), eBay (2.0 million), Apple.com (1.4 million), Netflix (1.3 million), Ticketmaster (900,000) and Amazon-like pure play ecommerce site Linio (700,000). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED39 Top 8 Retail Sites in Mexico, Ranked by Unique Visitors, June 2013 & June 2014 millions and % change Products/Services Purchased Digitally by Digital Buyers in Mexico, by Category, 2014 % of respondents June 2013 June 2014 % change 1. MercadoLibre 6.5 4.6 -29.0% 2. Wal-Mart 1.1 2.1 96.7% 3. Amazon 2.5 2.0 -18.5% 4. eBay 1.6 2.0 27.7% 5. Apple.com 2.5 1.4 -42.1% 6. Netflix 1.9 1.3 -32.8% 7. Ticketmaster 1.3 0.9 -33.6% 8. Linio 0.3 0.7 117.3% Note: ages 6+; home and work locations; excludes traffic from public computers such as internet cafes Source: comScore Media Metrix, "Futuro Digital México 2014," Aug 19, 2014 181571 www.eMarketer.com Product Categories According to data from The Competitive Intelligence Unit, travel factored heavily into the purchase behaviors of digital buyers in Mexico. The company found that 29% of digital buyers polled in 2014 had bought travel tickets digitally, the leading category by 6 percentage points. The next most commonly purchased categories included apparel and accessories (23%), electronics (18%), songs (17%), tickets for events (15%), video games (9%), apps (9%) and reservations (7%). Tickets for travel 29% Apparel/accessories 23% Electronics 18% Songs 17% Tickets for events 15% Video games 9% Apps 9% Reservations 7% Books/magazines 7% Paid a subscription 2% Coupons 1% Movies 1% Groceries 1% Courses/education 1% Other 11% Note: among those who have ever made at least one digital purchase Source: The Competitive Intelligence Unit as cited in company newsletter, May 23, 2014 179472 www.eMarketer.com Interactive Advertising Bureau México (IAB México) and Millward Brown reported slightly different findings when they polled internet users in December 2013. According to their data, apparel was purchased by 29% of respondents over the preceding three months. Next were online banking transactions (26%), then utilities (25%), apps (21%), games or game credit (20%), music (18%), plane tickets (18%), money transfers (18%) and entertainment (17%). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED40 Types of Digital Purchases and Transactions Made by Internet Users in Mexico, Dec 2013 % of respondents Apparel 29% Online banking transactions 26% Utilities 25% Apps 21% Games or game credit 20% Music Payment Methods Used for Digital Purchases According to Digital Buyers in Select Countries in Latin America, July 2013 % of respondents in each group Brazil Colombia Chile Dominican Mexico Peru Republic Bank credit card 46% 43% 41% 34% 28% 22% Bank slip 36% 0% 0% 0% 0% 0% 18% Someone else's credit card 20% 7% 9% 21% 3% 6% Plane tickets 18% Debit card 17% 22% 21% 12% 15% 16% Money transfer 18% 8% 31% 12% 4% 32% 29% Entertainment 17% Cash (COD or direct payment) Bus tickets 13% Bank deposit 6% 4% 5% 0% 2% 0% Hotel reservations 13% PayPal 5% 4% 13% 23% 11% 0% Videos/movies 11% Someone else's debit card 4% 6% 4% 0% 2% 0% Bank transfer 4% 8% 26% 15% 15% 12% Store card 2% 0% 9% 0% 0% 2% Prepaid card 0% 0% 2% 4% 0% 0% Pay taxes 9% Pay dues 9% Buy virtual money/credit in social networks and/or communities 9% Groceries and other home goods 8% Digital magazines and ebooks 8% Ringtones 7% Coupons 7% Note: ages 18-65 Source: Tecnocom, "Tendencias en Medios de Pago 2013" conducted by The Cocktail Analysis, Dec 12, 2013 169442 www.eMarketer.com Note: in the past 3 months Source: Interactive Advertising Bureau México (IAB México) and Millward Brown, "Estudio de consumo de medios entre internautas mexicanos" sponsored by Televisa, Jan 29, 2014 170457 www.eMarketer.com Payment Methods The last available measure of credit card use for ecommerce payments, from AMIPCI (Asociación Mexicana de Internet), found it hovering around six in 10 by the end of 2012—a rate reflective of the country’s relatively low rate of credit card adoption in general. Euromonitor International found that both the number of cards in circulation in Mexico, as well as the number of transactions per card, had increased in 2013, but there is no underlying structural change of the horizon that will soon trigger a rush among residents in Mexico to adopt credit cards. Because making ecommerce payments present a problem for a large swath of residents in Mexico, B2C ecommerce companies have responded by offering a variety of alternate payment methods for digital purchases, including cash on delivery, a cash or card payment made at a brick-and-mortar store, a deposit at a bank branch and money transfers, to name a few. When Tecnocom polled digital buyers in Mexico in July 2013, it found that 32% had used cash on delivery or a direct payment to pay for digital purchases. The next most popular method was a bank credit card (28%), then a debit card (15%), bank transfer (15%) and PayPal (11%). GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED41 NORTH AMERICA Product Categories Amazon remains the most dominant ecommerce player in the US. Unsurprisingly, the popularity of it and other US-based ecommerce platforms carries over to neighboring Canada, with eBay, Wal-Mart and Sears all having a strong presence in the Great White North. In addition, digital shoppers in Canada often head to US sites to secure better prices and access wider product selections. CANADA Top Ecommerce Sites In Canada, Amazon leads the pack of online retailers, according to data from Ipsos Reid. Nearly one-quarter of digital buyers polled in July 2014 said Amazon was their leading website for digital purchases. eBay was next at 10%, followed by online bookstore Indigo Books & Music (4%), discount retailer Wal-Mart (3%), department store chain Sears (3%), airline Air Canada (3%), wholesale club Costco (2%) and rewards program AIR MILES (2%). Leading Retail Sites Used to Make Digital Purchases Among Digital Buyers in Canada, July 2014 % of respondents Amazon 24% eBay 10% According to Forrester Research, books were the most popular product purchased digitally by digital shoppers in Canada in 2013, bought by 31% of poll respondents. In second was apparel (30%), then event tickets (28%), music (including digital downloads) (25%), video games (including digital downloads) (18%), computer software (16%), and videos (including digital downloads) (15%). Products Purchased Digitally by Digital Shoppers in Canada and the US, 2013 % of respondents US Canada Books (including ebooks) 38% 31% Clothing and accessories 38% 30% Music (including digital downloads) 31% 25% Event tickets (e.g., cinema, theater, sport) 25% 28% Footwear 21% 12% Electronics (e.g., digital camera, cellphone) 19% 14% Video games (including digital downloads) 19% 18% Computers and computer peripherals (e.g., laptop, tablet, printer, speakers) 17% 15% Computer software 16% 16% Videos (including digital downloads) 16% 15% Toys 15% 10% Flowers/cards/gifts 15% 11% Office supplies 14% 10% Skincare (e.g., face cream, lotions) 14% 10% Note: ages 18+ who researched products/services online in the past three months; US n=45,450; Canada n=3,531; Source: Forrester Research, "North American Technographics Online Benchmark Survey, 2013" presented at eTail Canada, May 5, 2014 175912 www.eMarketer.com Payment Methods Online shoppers have a strong preference for using credit cards to pay for digital purchases, according to a survey of internet users conducted by TSYS in February 2014. The payment transaction processor found that 51% of respondents preferred using a credit card. PayPal was in second, preferred by 30% of respondents, followed by debit cards (4%), then cash (2%). In addition, 13% preferred using some other method, a category that included prepaid/gift cards, store credit cards and checks. Indigo Books & Music Inc. 4% Wal-mart 3% Sears 3% Air Canada 3% Costco 2% AIR MILES 2% Note: n=672 ages 18+; most recent digital purchase Source: Ipsos Reid, "2014 Ipsos Canadian Inter@ctive Reid Report," Sep 3, 2014 179254 www.eMarketer.com GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED42 Preferred Payment Method According to Internet Users in Canada, by Retail Location, Feb 2014 % of total Reasons that Digital Buyers in Canada Make Cross-Border Purchases, July 2014 % of respondents Credit charge card* Debit card Cash PayPal Other** Online shopping 51% 4% 2% 30% 13% Dine-in restaurant 44% 28% 15% 1% 12% Department store 44% 28% 9% 1% 18% Gas station/ convenience store 42% 29% 16% 1% 12% Supermarket/ grocery store 40% 35% 17% - 8% Discount store 22% 26% 35% 1% 16% Fast food restaurant 22% 29% 35% 1% 13% Ease of shopping 13% Coffee shop 17% 18% 47% 1% 17% Quality Cheaper prices 72% Selection 49% Free/discounted shipping 28% Brand name 17% Note: *branded with Visa, MasterCard or American Express; **prepaid/gift card, store credit card, check Source: TSYS, "2014 Canadian Consumer Payment Choice Study," April 3, 2014 172475 www.eMarketer.com Cross-Border Ecommerce Domestic vs. Cross-Border Digital Purchase Share Among Cross-Border Shoppers* in Canada, July 2014 % of total expenditures US 34% Other 6% Canada’s ecommerce sector is complicated by cross-border traffic with its neighbor to the south, the US. According to data from J.C. Williams Group, 51% of total digital spending in Canada in July 2014 was on products sold from Canada. The US accounted for 34% of digital spending, while Asia-Pacific made up 10% and Europe 3%. Asia-Pacific 10% 13% Customer service 2% Europe 3% Canada 51% Note: respondents chose their top 2 reasons Source: J.C. Williams Group, "Canadian E-tail Report: Q2 2014," Aug 13, 2014 180977 www.eMarketer.com UNITED STATES Top Ecommerce Sites An authoritative ranking of top US ecommerce sites is difficult to locate. But when Experian Marketing Services tracked traffic among US multiplatform shopping and classified websites coming from PCs, mobile phones and tablets during August 2014, it found Amazon pulled in the highest share of site visits for the month at 10.2%. Next was eBay (6.8%) then craigslist (3.3%), Wal-Mart (2.3%), Google Play (1.7%), coupon site Shop at Home (1.3%), Target (1.2%), Best Buy (0.8%), Groupon (0.7%) and Apple iPod and iTunes (0.7%). Note: in the past three months; read as saying 10% of total digital spending was on products purchased from Asia-Pacific; numbers may not add up to 100% due to rounding; *who made an online purchase from outside of Canada Source: J.C. Williams Group, "Canadian E-tail Report: Q2 2014," Aug 13, 2014 180976 www.eMarketer.com In the same study, J.C. Williams Group found that cheaper prices were the main reason Canada’s digital shoppers made cross-border ecommerce purchases. Increased selection and free or discounted shipping also served as strong incentives for cross-border purchases among respondents. GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED43 Top 10 US Multiplatform Shopping and Classifieds Websites, Aug 2014 % share of visits Top 15 US Retailers, Ranked by Worldwide Digital Sales, 2013 billions 1. Amazon 1. Amazon $67.86 2. Apple $18.30 3. Staples $10.40 4. Wal-Mart $10.03 10.2% 2. eBay 6.8% 5. Sears $4.90 6. QVC $4.80 7. Netflix $4.38 8. Macy's $4.15 5. Google Play 1.7% 9. Office Depot $4.10 10. Dell $3.55 6. Shop at Home 1.3% 11. CDW $3.39 12. OfficeMax $3.20 7. Target 1.2% 13. W.W. Grainger $3.10 14. Costco $3.09 8. Best Buy 0.8% 15. Best Buy $3.04 3. craigslist 3.3% 4. Wal-Mart 2.3% Source: Internet Retailer, "2014 Top 500 Guide" as cited by The Wall Street Journal, May 5, 2014 9. Groupon 0.7% 181004 Product Categories 10. Apple iPod & iTunes 0.7% Note: browser-based (excluding in-app) visits on desktops/laptops, mobile phones and tablets; excludes traffic for all subdomains of certain websites that could be reported separately Source: Experian Marketing Services as cited by MarketingCharts, Sep 2, 2014 181396 www.eMarketer.com www.eMarketer.com Looking farther afield than just purchases by US consumers from US-based sites, Internet Retailer noted that Amazon was the top US retailer by worldwide digital sales in 2013, pulling in $67.86 billion. In a distant second place was Apple ($18.30 billion), then office supply store Staples ($10.40 billion), Wal-Mart ($10.03 billion), Sears ($4.90 billion), TV shopping site QVC ($4.80 billion), Netflix ($4.38 billion), department store chain Macy’s ($4.15 billion) and office supply retailer Office Depot ($4.10 billion). A survey of US internet users conducted by A.T. Kearney in July 2014 found that 87% of respondents had purchased fashion and apparel items in the three months prior to polling, while 83% had purchased electronics and 82% bought books. Next were services (80%), then tickets (74%), music and games (74%), home furnishings (56%) and sports and outdoor items (56%). US Internet Users Who Have Made a Digital Purchase, by Product Category, July 2014 % of respondents Fashion and apparel 87% Electronics 83% Books 82% Services 80% Tickets 74% Music and games 74% Home furnishings 56% Sports and outdoor 56% Beauty products 50% Toys, kids and babies 48% Home appliances 46% Household items Groceries 36% 26% Note: ages 16+ who access the internet at least once per week; in the past 3 months Source: A.T. Kearney, "Connected Consumers Are Not Created Equal: A Global Perspective," Nov 12, 2014 182090 GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES www.eMarketer.com ©2014 EMARKETER INC. ALL RIGHTS RESERVED44 eMarketer projects that computer and consumer electronics will account for the largest share of US retail ecommerce sales in 2014, worth $66.8 billion, trailed by apparel and accessories ($52.2 billion), autos and parts ($31.8 billion), books/music/video ($27.3 billion), furniture and home furnishings ($20.4 billion) and health and personal care products ($17.4 billion). RELATED EMARKETER REPORTS Alternative Payments: Bitcoin and Beyond UK Holiday Shopping Preview: A Merry Season Forecast for Ecommerce Holiday Shopping Preview: Ecommerce Grows as Brick-and-Mortar Stores Embrace Digital China Ecommerce: The State of the Market 2014 US Retail Ecommerce Sales, by Product Category, 2013-2018 billions Worldwide B2C Ecommerce: Q3 2014 Complete Forecast 2013 2014 2015 2016 2017 Computer & consumer electronics $57.6 $66.8 $76.4 $86.6 $97.4 $108.9 Apparel & accessories $44.9 $52.2 $60.0 $68.2 $77.0 $86.4 Auto & parts $27.4 $31.8 $36.4 $41.3 $46.5 $51.9 Books/music/video $23.3 $27.3 $31.6 $36.2 $41.2 $46.4 Furniture & home furnishings $17.7 $20.4 $23.2 $26.1 $29.2 $32.5 Health & personal care $15.1 $17.4 $19.7 $22.2 $24.8 $27.6 Toys & hobby $10.5 $12.1 $13.9 $15.7 $17.6 $19.6 Analysys International Enfodesk $7.3 $8.3 $9.4 $10.4 $11.5 $12.6 Asiakkuusmarkkinointiliitto (ASML) Office equipment & supplies Food & beverage Other Total 2018 Mobile Commerce Deep Dive: The Products, Channels and Tactics Fueling Growth RELATED LINKS A.T. Kearney $6.2 $7.0 $7.9 $8.8 $9.7 $10.9 BITKOM $54.3 $62.3 $70.5 $78.9 $87.7 $97.0 BloomReach $264.3 $305.7 $349.1 $394.4 $442.6 $493.9 Note: includes products or services ordered using the internet, regardless of the method of payment or fulfillment; excludes travel and event tickets Source: eMarketer, Sep 2014 178653 www.eMarketer.com Payment Methods Digital buyers in the US have a strong affinity for completing digital purchases using debit and credit cards, as evidenced by data from Javelin Strategy & Research. The firm reported in March 2014 that major credit cards had accounted for 41% of US online retail sales in 2013, while debit cards had made up 32%. Alternative payments such as PayPal, Amazon Payments or Google Wallet made up 15% of sales, while 6% were prepaid or gift cards, and 5% came from store-branded credit cards. Bring Bundesverband E-Commerce und Versandhandel (bevh) Cámara Argentina de Comercio Electrónico (CACE) Centro de Estudos sobre as Tecnologias da Informação e da Comunicação (CETIC.br) China E-Business Research Center China Internet Network Information Center (CNNIC) Comisión Nacional de los Mercados y la Competencia (CNMC) comScore Media Metrix Creditreform Boniversum CyberSource Data Insight Decision Fuel East-West Digital News e-bit EHI Retail Institute Enterprise Federation of Norway Enter Vision Euromonitor International e-velopment Experian Marketing Services GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. ALL RIGHTS RESERVED45 Fédération du E-commerce et de la Vente à Distance (FEVAD) QQSurvey Finnish Commerce Federation Retail Financial Intelligence (RFi) Foreningen for Dansk Internethandel (FDIH) Skrill Holdings Ltd. Forrester Research Statista Gemius Statistics Denmark Global Market Insite (GMI) Statistics Korea (KOSTAT) Hewlett-Packard (HP) Statistics Netherlands HUI Research Svensk Digital Handel IBOPE E-commerce Tecnocom ICM Research The Cocktail Analysis iKS-Consulting The Competitive Intelligence Unit Interactive Advertising Bureau México (IAB México) TNS Gallup Finland Internet Retailer TNS Gallup Norway Ipsos Reid TSYS J.C. Williams Group Twinkle Jana Worldpay Japan Ministry of Economy, Trade and Industry YouGov Redshift Research japan.internet.com Javelin Strategy & Research JDN (Le Journal du Net) Kortingscode.nl Macquarie Research MasterCard Worldwide Médiamétrie//NetRatings Millward Brown Mintel Mobile Marketing Association (MMA) National Australia Bank NetComm Wireless EDITORIAL AND PRODUCTION CONTRIBUTORS Cliff Annicelli Ben Clague Joanne DiCamillo Noah Elkin Stephanie Meyer Dana Hill Kris Oser Ezra Palmer Heather Price Katharine Ulrich Managing Editor, Reports Chart Data Specialist Senior Production Artist Executive Editor Senior Production Artist Director of Production Deputy Editorial Director Editorial Director Senior Copy Editor Copy Editor Nets Nielsen Australia Nielsen KoreanClick Norway Post NTT Communications On Device Research Oslo Handelsstands Forening (OHF) Osservatorio ICT & School of Management del Politecnico di Milano PostNord Prince Consulting GLOBAL ECOMMERCE PLATFORMS 2014: A COUNTRY-BY-COUNTRY LOOK AT THE TOP RETAIL ECOMMERCE SITES ©2014 EMARKETER INC. 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