E-COMMERCE IN ITALy 2014

#ecommerce2014

#Ecommerce2014

AGENDA

The State of E-commerce

G 1

Strategies & Marketing

2

Internationalization

3

Mobile

4

Social Media

5

Market Trends

6

F 5 6

i

The State of E-commerce

G 1

#Ecommerce2014

#Ecommerce2014

+6%

1.6 2.1 3.3 4.9

6.4

10.0

14.3

18.9 21.1 22.3

€ 0

€ 5

€ 10

€ 15

€ 20

€ 25

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

e-commerce in Italy

+12%

+29% +55%

+58%

+43%

+32%

+48% +31%

Turnover in billions €

Variation %

#Ecommerce2014

Industry sectors

B S

B

á U

Food

Insurance

Home & Furnishings

Shopping Centers

Publishing

Consumer Electronics

Fashion

Health & Beauty

Leisure

Tourism

7

l

Z

#Ecommerce2014

Relative share of turnover

#Ecommerce2014

Strategies & Marketing

2

#Ecommerce2014

Products search engines

Amazon, ebay and

other big players are the first place where

consumers search for products

Physical stores sell

online

Physical retail activities launch

online sale to face the economic crisis

Producers become media

companies

Manufacturing and service companies

communicate and sell directly to final

customers

Mobile is the favorite way

to browse

Mobile traffic has to be exploited in order

to increase conversions

e-commerce Trends

Digitalization of

Retail

Integration between web and offline points of sale

is the competitive strategy of multichannel

players

6

5 s 7

#Ecommerce2014

OnLine brand promotion

#Ecommerce2014

Marketing activities Investment spread

#Ecommerce2014

Short term investments

#Ecommerce2014

from Visitor to Customer

Conversion rate Average 1,9%

20%

21%

25%

41%

48%

No trust in online payment

Shipping time

Offline purchase

Shipping costs

Price Never been analyzed

Reason for failed conversion

25%

i Â

#Ecommerce2014

Conversion strategies

63% Flash sales & discunts

47% Coupons & vouchers

49% Threshold

free shipping

22% Free

shipping

44% Website

graphics

29% Customers

reviews

30% mobile g

5 6

l

i

{

Purchase fulfillment

#Ecommerce2014

trAFFIC sources

Google Is the 1st traffic source for

77% Of e-commerce companies 61%

Google (organic)

16% Google

(paid)

Website visits

Advertising on Google

44% Say it’s their 2° source of traffic

✉ Email & newsletter 1° traffic source

15% Of e-commerce companies

#Ecommerce2014

Traffic sources Sources generating more conversions

7%

1%

1%

2%

5%

6%

7%

11%

20%

34%

37%

53%

Other

YouTube

Other social media

News websites

Blog

Display adv

Company's websites

Facebook

Price comparison sites

E-mail

Google (paid)

Google (organic)

0% Of e-commerce companies

twitter & pinterest Don’t generate conversions

#Ecommerce2014

Internationalization

3

#Ecommerce2014

Presence in foreign markets

#Ecommerce2014

43%

22% 14%

17%

4%

International strategies

Multilanguage website

Italian-only website

Multinationals

Agencies abroad

Italy-only sales

Ë

#Ecommerce2014

International turnover

International turnover Average

29% €€€€€€€€€€

Multilingual website 41% €€€€€€€€€€

Italian-only website 8% €€€€€€€€€€

% of turnover coming from foreign countries

#Ecommerce2014

Mobile

4

5 6

#Ecommerce2014

Mobile: turnover & budget

5 6 Mobile

turnover 2013 Average 8%

Marketing budget 2013 Average

5% in 2012 3.5% in 2012

$ 8.5%

+30% Individuals who access internet from smartphone 2014 vs 2013

+156% Individuals who access internet from tablet 2014 vs 2013

5 6

Data: Audiweb, 2014 (Italian population)

% of turnover coming from mobiles

#Ecommerce2014

No investment

Maintain same investment

Reduce investment in 2014

Increase investment in 2014

24% Ë

65%

↑

11%

0% ↓

6

5

Mobile: Investment

#Ecommerce2014

Mobile: Strategy Priority activities for mobile commerce

#Ecommerce2014

Social Media

5

F

#Ecommerce2014

Social Media

#Ecommerce2014

Maintain same investment

No investment

Reduce investment in 2014

Increase investment in 2014

30%

50%

↑

15% Ë

5%

↓

F

Social Media: Investment

#Ecommerce2014

Social Media & ROI

#Ecommerce2014

Market Trends

6

i

#Ecommerce2014

Food

+15%

á Insurance

+10%

Home & furnishings

+15%

Shopping centers

+50%

Publishing

+5%

Consumer electronics

+10%

Fashion

+28%

Health & beauty

+19%

Leisure

+10%

Tourism

+25%

S B U l

B 7 Z

Industry sectors in 2014

#Ecommerce2014

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E-COMMERCE IN ITALy 2014

#ecommerce2014