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Belgium & Netherlands Passport 2016 - imrg.org€¦ · The Belgium & Netherlands Cross-Border...
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A report researched & compiled by eCommerce Worldwide Sponsored by Cross-Border Trading Report Your guide to international e-trading Belgium & Netherlands Passport 2016
Transcript of Belgium & Netherlands Passport 2016 - imrg.org€¦ · The Belgium & Netherlands Cross-Border...
A report researched & compiled by eCommerce WorldwideSponsored by
Cross-Border Trading ReportYour guide to international e-trading
Belgium & Netherlands Passport 2016
The Belgium & Netherlands Cross-Border Trading Passport 2016 is the latest publication in a series of international trading guides produced and maintained by eCommerce Worldwide, our sister associations and supporters for a variety of key territories around the globe. The UK passport is compiled in partnership with IMRG, the UK e-retail association.
These Passports are designed to operate as comprehensive guides for cross-border e-trading, exclusively focusing on the B2C markets in their subject territories.
The complete set of published Passports are available for download on the eCommerce Worldwide website at ecommerceworldwide.com/countries and on the websites of our approved publisher network
For more information please visit
www.ecommerceworldwide.com or you can email
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CONTENTS
Foreword 06
Executive summary 08
Territory overview 12
Political & socio-economic environment 18
Online & mobile statistics overview 20
Marketing & branding 33
Cross-border sales 40
Optimising customer experience 41
Marketplaces 43
Loyalty, vouchers & affi liates 43
Legal framework & regulation 44
Finance & payments 51
Logistics & delivery 56
References 65
About Spring 66
About PostNL 68
About eCommerce Worldwide 70
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FOREWORD
It comes as no surprise that the UK is one of the leading ecommerce markets in the world. In 2015, cross-border turnover of ecommerce goods and services in the UK were estimated at £26bn. Key to successful cross-border sales is to think global, but act local.Spring Global Delivery Solutions is a cross-border delivery company which provides international mail, parcel and return solutions to companies globally. With 13 offi ces worldwide, it connects 3 continents and covers 190 countries. By partnering with local postal and parcels providers we help customers to deliver goods anywhere in the world.
You can fi nd more information about Spring Global Delivery Solutions atwww.spring-gds.com
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Spring are part of the PostNL Group, the national mail and parcel services provider of the Netherlands and operating the largest distribution network in the Benelux. As the exclusive sales agent for PostNL outside the Benelux we can off er you direct and unparalleled access to the Dutch and Belgium market.
Although, the Netherlands and Belgium are neighbouring countries and they speak –for the majority- the same language, these are two signifi cantly diff erent countries. In the Netherlands 93% of the population shops online. In Belgium this is 74%. Although both countries still see a double digit growth in online sales, Belgium is one of the fastest growing markets with a growth of 34.2% in 2015 where growth in the Netherlands is slightly declining (16.1% in 2015). This is also refl ected in the percentage of cross-border online sales made from these countries; 21% growth in the Netherlands and 35% growth in Belgium. Shopping abroad is mostly done in neighbouring countries such as the UK, France and Germany. Although in the Netherlands we also see a growth in shopping abroad in China and the US.
You can easily set up shop in these countries as English is widely accepted, but if you want to be truly successful it is recommended to localise your online shop. By means of language, Dutch for both countries, and in addition French and German for Belgium, but also by off ering local delivery and return options.
The Dutch are quite spoiled when it comes to delivery. With a dense network and wide variety of delivery options, they know what they want, how they want it, where they want it, and prefer their deliveries to be free of charge. Home delivery is the most favoured delivery option and neighbour delivery is widely accepted.
In Belgium home delivery is also the most favoured delivery option, but is followed by pick-up at a local delivery point such as one of the 720 Kariboo pick up points throughout the country. Although 34% of online shoppers favour free delivery, another 28% is prepared to pay between €4.00 and €7.50 for their delivery.
For online retailers it can be complex to select the right delivery partner. Sometimes it might be best to work with the national postal provider. Other times it might be bett er to partner up with a local carrier. It all depends on the size and value of the package, and the service level you want to provide to your customers. This report gives you the local insights to make your business a success in the Netherlands and Belgium and gives you a detailed overview of all the local delivery and return options.
This report is all about helping you as an online retailer to provide a seamless customer experience for your customers.
We wish you happy reading!
93%74%of the population
shops online in the Netherlands of the population
shops online in Belgium
34.2% growth in
2015
16.1.% growth in 2015
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EXECUTIVE SUMMARY
With a combined population of 28 million people, 11.5 million households and combined GDP of €1.08 trillion and English spoken widely, the Netherlands and Belgium off er an att ractive market to international merchants looking to expand into new territories.
Both countries have good underlying infrastructure with globally renowned ports and airports and excellent road and rail connections with the rest of Europe. Placed on the edge of continental Europe but with a history of international trade, both markets are used to trading with their neighbours and international partners.
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POLITICAL & SOCIO-ECONOMIC
ONLINE & MOBILE STATISTICS OVERVIEWThe European Commission operate a Digital Scoreboard which measures EU member states for development of digital infrastructure, government, infrastructure and engagement. Both the Netherlands and Belgium rank above the UK. 96% of the Dutch population have access to the internet whilst the Belgians are slightly behind at 83%.
Overall retail in both countries has been growing slightly below the EU average although this is complicated by the fact that consumers from both countries are used to buying from German and French retailers.
The number of consumers taking part in ecommerce is growing strongly in both countries with the European Commission quoting 42% for Belgium and 59% for the Netherlands in 2015. Growth in the online shopping population is expected to grow in both countries, although the rate of growth in the Netherlands may be slowing with internet penetration at 96%. However, there is still room for growth as evidenced by the fact that in the Netherlands, online sales increased by 20.9% in May 2016 on the previous year.
Future growth is estimated to be just over 9% by 2020. The Belgian market is expected to increase from €4.2bn in 2016 to over €6bn by 2020.
Online markets in both territories are dominated by international brands such as Zalando, Amazon and Ikea. Aliexpress, eBay and Ahold have strong presences in both territories; Ahold being a Dutch business.
Mobile technology is used widely in both countries with mobile phone penetration in both well over 100%. Smartphones are also gaining traction at 69% in the Netherlands and 60% in Belgium. Tablet usage is increasing in both countries meaning mobile strategy will be an important element for any merchant trading into the region. Around 18% of Dutch e-retail and 12% of Belgian e-retail is carried out via a mobile device. However, desktop remains the most popular route to the internet in Belgium so this shouldn’t be ignored either.
Whilst the Netherlands is one country with one offi cial language, the picture in Belgium is a litt le more complicated. Belgium consists of two main regions, French speaking Wallonia and Dutch speaking Flanders; German is also an offi cial language. In addition, Brussels needs to be treated as a separate region. As the home to the European Commission, English is a main language and international trade is at its core; providing opportunities for international merchants.
Individually, both countries have a good basis for ecommerce, with Belgium ranked 9th and the Netherlands ranked 13th in the AT Kearney global rankings of ecommerce readiness.
The Dutch online market is already well developed with high levels of online engagement, connectivity and propensity to shop online. The Belgian online market is slightly less well developed but showing encouraging signs of growth and development.Both countries are active members of the European Union and as such, ideal entry points for merchants looking to establish a presence in the EU.
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MARKETINGWith nearly €2bn combined being spent on digital marketing in both countries, the digital channel is a growing medium for customer acquisition and retention. Video and content are gaining prominence although relevance is key, oft en driven by device usage.
Search marketing still makes up a major share of advertising expenditure with the market dominated by Google. In the Netherlands alone, over €733m is expected to be spent on search advertising in 2016.
Social media is also gaining traction in both countries with around 79% of internet users having a Facebook account. Levels of engagement are increasing as both consumers and brands use the channels to communicate with each other.
Email is still in common usage and data sourced by Post NL shows that Dutch consumers receive, on average, 95 emails per week. It is also clear that consumption patt erns are changing and open rates on mobile devices is increasing.
Direct Mail is still an important part of the marketing mix in both the Netherlands and Belgium, commanding an open and read rate of 87%. It is also an important cross-channel communications medium, driving 67% of online searches according to some estimates.
CROSS-BORDER SHOPPING34% of Belgian online shoppers have made a cross-border purchase in the previous 12 months whilst their Dutch neighbours increased their cross-border shopping habits by 30% in the same time frame. 23% of the Dutch population made a cross-border purchase in 2014. In 2015, a combined population of 11.6 million online shoppers had transacted with a foreign website. There is clear potential in both markets and an appetite for the products sold online by international merchants.
OPTIMISING CUSTOMER EXPERIENCEIn the Netherlands English and German are widely spoken alongside Dutch whilst in Belgium, French language sites will fare bett er in Wallonia whilst Flanders favours Dutch. Therefore, careful language localisation is required to get the best results.
Shoppers from both territories rate price and simple returns processes as key drivers or inhibitors to shopping online. Trust will come from clarity of off ering, clear pricing and local delivery options.
Local trust marks are popular, particularly in the Netherlands, and these can provide international merchants with low brand awareness an opportunity to increase confi dence in their online store.
Another mechanism for developing trust is to use a marketplace to establish a local presence. The key operators in this market are Amazon, eBay, Aliexpress and Zalando.
Digital vouchers are used in both territories and a range of local and international brands are present.
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LEGAL FRAMEWORK & REGULATIONBelgium and the Netherlands, as members of the European Union, derives much of its consumer legislation from this source. Of particular note are the Consumer Rights Directive and data protection legislation. Like many countries, certain elements of law are based on very old principles that, whilst being updated in certain contexts, still hold true today.
FINANCE & PAYMENTSOnline payments in Belgium are predominantly card based whilst Bank-to-bank payments (iDeal) are responsible for the majority in the Netherlands. Alternatives such as direct debit and eWallets are also on the increase. 3D Secure is in operation in both countries and any merchant handling payment card data must conform to PCIDSS rules.
Sales tax is applied at a standard rate of 21% in both countries with a threshold of €150 before consumers are expected to pay duties.
LOGISTICSIn the Dutch and Belgian markets there are 22 million people in the 15-79 age group living in an area of 72,000 sq km. This population density creates a compact online community with excellent road, rail and air transport links, making both countries easy to access from EU and international states. Internationally available carriers, including domestic brands, can provide a full range of services ranging from next day services to economy. As would be expected, many of these can handle tax and duties payments as part of their service. As in any market, consumers expect quality service and international merchants need to match local standards, such as Dutch consumers expecting deliveries in less than 5 days.
The ability to process returns is important to all consumers and consumers in both countries have the legal right to do so within 14 days aft er the date of delivery.
CONCLUSIONAlthough at the edge of the European continent, Belgium and the Netherlands really are at the crossroads for consumers of the European Union. Whilst this report looks at these two countries specifi cally, this geographical and political location does point to the willingness in both countries for consumers to shop internationally. Both markets are developing a strong online shopping population, many of whom are looking for the choice and value that can be had from international merchants. The digital, communications and logistics infrastructure can support continued growth, while the increase in use of technology make longer-term investment decisions more predictable. This report provides an overview of the opportunity provided by these markets with key consumer trends, market requirements and suggestions to turn this into actionable insight.
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TERRITORY OVERVIEW
Belgium & the Netherlands
Population: Combined 28 million living in 11.5 million households
Offi cial language: See individual country profi les but English spoken widely
Gross domestic product: €1.08 trn
Country DomainsBelgium .bethe Netherlands .nl
Table 1: Top level domains
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With a combined population of around 28 million, good infrastructure, global connections and a population used to trading cross-border, this region in the North West of continental Europe has a strong heritage of international trade. The Netherlands boast a strong GDP per capita of €44,184 whilst Belgium’s’, at €39,905, also indicates a good potential market for international merchants.
Figure 1: 2015 Global ecommerce Index. Source: AT Kearney 2015
A T Kearney’s 2015 analysis of ecommerce market att ractiveness for both countries is also very promising. Belgium’s market shows a lot of potential for growth, with the foundations built to facilitate this whilst the Netherlands market is more developed. The Dutch consumer is already very engaged in digital channels, so will be open to new opportunities that foreign merchants can off er.
Rank Change in rank
Country Online market size (40%)
Consumer behaviour(20%)
Growth potential(20%)
Infrastructure (20%)
Online market att ractiveness score
1 +2 United states 100.0 83.2 22.0 91.5 79.3
2 -1 China 100.0 59.4 86.1 43.6 77.8
3 +1 United Kingdom 87.9 98.6 11.3 86.4 74.4
4 -2 Japan 77.6 87.8 10.1 97.7 70.1
5 +1 Germany 63.9 92.6 29.5 83.1 66.6
6 +1 France 51.9 89.5 21.0 82.1 59.3
7 -2 South Korea 44.9 98.4 11.3 95.0 58.9
8 +5 Russia 29.6 66.4 51.8 66.2 48.7
9 +15 Belgium 8.3 82.0 48.3 81.1 45.6
10 -1 Australia 11.9 80.8 28.6 84.8 43.6
11 -1 Canada 10.6 81.4 23.6 88.9 43.1
12 +2 Hong Kong 2.3 93.6 13.0 100.0 42.2
13 +6 Netherlands 8.9 98.8 8.1 84.6 41.8
14 -3 Singapore 1.3 89.4 15.7 100.0 41.5
15 +13 Denmark 8.1 100.0 15.1 75.5 41.4
16 0 Sweden 8.8 97.2 11.8 77.7 40.9
17 not ranked Mexico 10.0 53.3 58.6 68.0 40.0
18 not ranked Spain 13.2 73.1 20.2 80.1 39.9
19 +1 Chile 2.7 71.8 49.3 73.2 39.9
20 +6 Norway 8.2 99.4 5.6 76.3 39.5
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INDIVIDUAL COUNTRY PROFILESBELGIUM
Rank City Names All People
1 Brussels 1,019,022
2 Antwerp 459,805
3 Ghent 231,493
4 Charleroi 200,132
5 Liège 182,597
6 Bruges 116,709
7 Namur 106,284
8 Leuven 92,892
9 Mons 91,277
10 Aalst 77,534
* AT Kearney 2015 Global Retail ecommerce Index
World ecommerce rank: 9th*Belgium’s top trading partners are:Export: Germany, France and the NetherlandsImport: Netherlands, Germany and France
Capital: Brussels
Geographical size: 30,528 sq km
Population: 11,258,434 (2015)
Population as % of total EU population: 2.2% (2015)
GDP: €409bn (2015)
Offi cial EU language(s): Dutch, French and German
Political system: Federal Parliamentary Constitutional Monarchy
EU member country since: 1 January 1958
Seats in the European Parliament: 21
Currency: Euro. Member of the Eurozone since 1 January 1999
Schengen Area member since: Since March 1995
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Source: OECD Factbook statistics. For explanatory notes, see OECD Factbook 2014 (DOI: 10.1787/factbook-2014-en)
Country statistical profi les: Key tables from OECD - ISSN 2075-2288 - © OECD 2016COUNTRY STATISTICAL PROFILE: BELGIUM 2016 Unit 2012 2013 2014 2015PRODUCTION AND INCOMEGDP per capita USD current PPPs 42 209 43 362 43 724 44 745Gross national income (GNI) per capita USD current PPPs 43 178 43 983 44 383 ..Household disposable income Annual growth % 0.4 -0.7 0.3 ..ECONOMIC GROWTHReal GDP growth Annual growth % 0.2 0.0 1.3 1.4
ECONOMIC STRUCTURE: SHARE OF REAL VALUE ADDEDAgriculture, forestry, fi shing % 0.9 0.8 0.7 0.7Industry % 16.8 16.7 16.5 16.3Trade, transport, accomm., restaurants, communication
% 24.0 23.9 23.8 ..
Finance, insurance, real estate, business % 27.8 28.0 28.0 ..Other services (ISIC Rev.4 O - U) % 24.4 24.9 25.0 ..TAXESTaxes on the average worker % of labour cost 56.0 55.7 55.6 55.3TRADEImports of goods and services % of GDP 81.7 80.9 83.1 81.6Exports of goods and services % of GDP 82.3 82.2 84.0 83.2PRICES AND INTEREST RATESInfl ation rate: all items Annual growth % 2.8 1.1 0.3 0.6Infl ation rate: all items non food non energy Annual growth % 2.3 1.3 1.6 1.1Long-term interest rates % 3.00 2.41 1.71 0.84PURCHASING POWER AND EXCHANGE RATESPurchasing power parities EUR per USD 0.83 0.82 0.82 0.82Exchange rates EUR per USD 0.78 0.75 0.75 0.90POPULATIONTotal population ‘000 persons 11 128 | 11 196 11 284 11 369Population growth rates % 0.7 | .. .. ..Youth population aged less than 15 % of population 17.0 | 17.1 | 17.1 17.2Elderly population aged 65 and over % of population 17.5 | 17.8 | 18.0 18.2Last updated: 27 April 2016; disclaimer: htt p://oe.cd/disclaimer
.. Not available | Break in series e Estimated value
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INDIVIDUAL COUNTRY PROFILESTHE NETHERLANDS
Rank City Names All People
1 Amsterdam 741,636
2 Rott erdam 598,199
3 The Hague 474,292
4 Utrecht 290,529
5 Eindhoven 209,620
6 Tilburg 199,613
7 Groningen 181,194
8 Almere Stad 176,432
9 Breda 167,673
10 Nijmegen 158,732
* AT Kearney 2015 Global Retail ecommerce Index
World ecommerce rank: 13th*The Netherlands’ top trading partners are:Export: Germany, Belgium and the UKImport: Germany, China and Belgium
Capital: Amsterdam
Geographical size: 41,542 sq km
Population: 16,900,726 (2015)
Population as % of total EU population: 3.3% (2015)
GDP: €679bn (2015)
Offi cial EU language(s): Dutch
Political system: Parliamentary Constitutional Monarchy
EU member country since: 1 January 1958
Seats in the European Parliament: 26
Currency: Euro
Schengen Area member since: Since March 1995
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Source: OECD Factbook statistics. For explanatory notes, see OECD Factbook 2015-2016 (DOI: 10.1787/factbook-2015-en)
Country statistical profi les: Key tables from OECD - ISSN 2075-2288 - © OECD 2016COUNTRY STATISTICAL PROFILE: NETHERLANDS 2016 Unit 2012 2013 2014 2015PRODUCTION AND INCOMEGDP per capita USD current PPPs 46 457 47 967 48 259 49 544Gross national income (GNI) per capita USD current PPPs 47 414 48 914 48 867 ..Household disposable income Annual growth % -1.2 -0.9 1.3 ..ECONOMIC GROWTHReal GDP growth Annual growth % -1.1 -0.5 1.0 2.0ECONOMIC STRUCTURE: SHARE OF REAL VALUE ADDEDAgriculture, forestry, fi shing % 1.8 1.9 1.8 1.7Industry % 17.4 17.4 16.7 16.1Trade, transport, accomm., restaurants, communication
% 24.2 24.0 24.4 ..
Finance, insurance, real estate, business % 26.9 26.8 27.1 ..Other services (ISIC Rev.4 O - U) % 24.9 25.1 25.0 ..TAXESTaxes on the average worker % of labour cost 38.8 37.0 36.8 36.2TRADEImports of goods and services % of GDP 72.3 71.6 71.5 71.5Exports of goods and services % of GDP 81.9 82.6 82.9 82.8PRICES AND INTEREST RATESInfl ation rate: all items Annual growth % 2.5 | 2.5 1.0 0.6Infl ation rate: all items non food non energy Annual growth % 1.8 2.8 1.5 1.5PURCHASING POWER AND EXCHANGE RATESPurchasing power parities EUR per USD 0.83 0.81 0.81 0.81Exchange rates EUR per USD 0.78 0.75 0.75 0.90POPULATIONTotal population ‘000 persons 16 755 16 804 | 16 918 16 981Population growth rates % 0.4 0.3 | .. ..Youth population aged less than 15 % of population 17.2 17.0 | 17.0 16.8Elderly population aged 65 and over % of population 16.5 17.1 | 17.5 17.9Last updated: 27 April 2016; disclaimer: htt p://oe.cd/disclaimer .. Not available | Break in series e Estimated value
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POLITICAL & SOCIO-ECONOMIC ENVIRONMENT
Belgium and the Netherlands (together with Luxembourg) are oft en collectively viewed as Benelux but although combined as a trading region for the purposes of this report, Belgium and the Netherlands are two very diff erent countries.
Belgium
Belgium on its own could actually be described as three diff erent countries; although technically one country it is made of three distinct regions, with Flanders in the north and Wallonia in the south. From a federal perspective, Brussels is treated as a separate region, with both French and Dutch being offi cial languages. International businesses should be aware that French is spoken in Wallonia and Dutch spoken in Flanders and therefore websites may need to be available in more than one language if they are to appeal to shoppers in these areas.
Being a founder member of the European Union and host to the epicentre of the EU’s bureaucracy in Brussels, Belgium plays an important role as an international crossroads. Domestically however, its form of government can make it slow to react to economic changes and other social challenges. For example, following the 2010 general election no party could form a coalition government. The stalemate lasted for 535 days. Most countries would grind to a halt going for so long without a government. However, due to the regional and federal nature of the country, where local areas and regions have high degrees of autonomy, the country continued to function.
Belgium’s form of government is a federal, representative democratic, constitutional monarchy. The Monarch is the Head of State and the Prime Minister leads the Government. The Senate and Chamber of representatives form the two Parliaments whilst the regions and communities make-up the federation.
There is also a two level economy in Belgium, with the formally industrialised Wallonia struggling with reinventing itself whilst the more prosperous Flanders in the north prospers from a strong commercially focused economy.
Aft er Brussels, Antwerp is the largest city in Belgium. With a commercial lineage, including diamond trading, and Europe’s second largest port aft er Rott erdam, the city is a gateway to central Europe with excellent road, rail and canal networks.
Belgium’s economy is driven by public administration, defence, education, human health and social work activities (22.7 %), wholesale and retail trade, transport, accommodation and food services (19.8 %) and industry (16.8 %).
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The Netherlands
The Netherlands has a long proud history of being global traders, being a maritime nation and former colonial power. This international perspective is retained today with the country being home to the largest European port, Rott erdam and with 32%1 of GDP coming from exports. The metropolitan area of Amsterdam and Rott erdam is the 3rd most att ractive urban region for FDI (foreign direct investments), according to IBM’s Global Location Trends report (2016), making the country pivotal to many businesses looking to trade into the European continent.
International infl uences are also felt through the common usage of English as a language, strong fi nancial services sector and consumer consumption of major international brands.
The Netherlands is governed by a Parliamentary democracy which consists of two chambers. Elections held every 4 years appoint representatives to the lower house on a national basis. Provincial parliaments are also elected at the same time. These local parliaments then elect offi cials who take part in the Senate, which is the second and less important chamber.
There is also a constitutional monarch. The monarch serves as Head of State and is symbolic of unity across the political spectrum.
Both the Netherlands and Belgium are at the heart of the European Union. Each have their own social and political challenges but they share a generally outward looking population who are used to trading physically and electronically with their neighbours, and those further afi eld.
1. The Economist, January 2016
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ONLINE & MOBILE STATISTICS
A key factor for the development of ecommerce in any market is the access to digital infrastructure and the propensity for this to be used by online consumers.
Belgium and the Netherlands score well on the European Commissions’ Digital Scoreboard. These measures, which take into account a number of factors including availability of digital infrastructure, citizen’s engagement with digital services and connectivity, rank both countries above the UK.
In terms of internet connectivity, Belgium ranks slightly below the EU 27 average in 2015 at 83% whilst the Dutch are nearly the highest at 96%, second only to Luxembourg. By way of comparison, the UK has penetration levels of around 90% and Germany, the next most developed ecommerce market in the EU aft er the UK, is at 89%.
Level of internet access – households%GEO\TIME 2004 2005 2013 2014 2014EU (27 countries) 41 48 79 81 81Belgium : 50 80 83 83Germany 60 62 88 89 89France 34 : 82 83 83Luxembourg 59 65 94 96 96Netherlands 65 78 95 96 96United Kingdom 56 60 88 90 90:=NOT AVAILABLE B=BREAK IN TIME SERIES Source of Data: EurostatLast update: 26.07.2016Date of extraction: 27 Jul 2016 11:59:39 CEST
Table 2: Percentage of households with internet access in Belgium and the Netherlands, compared to other key EU markets. Source: Eurostat.eu July 2016
Denmark
Sweden
Norway
Netherl
ands
Finland
Belgium
United K
ingdom
Luxembourg
Lithuania
Ireland
Germany
Malta
Estonia
Austria
France
Portugal
European U
nion...Spain
Latvia
Czech
Republic
Slovenia
Slovakia
Hungary
Poland
Cyprus
CroatiaItaly
Greece
Bulgaria
Romania0
2.5
5.0
7.5
10
12.5
15
wei
ghte
d sc
ore
1. Connectivity2. Human Capital3. Use of Internet4. Integration of Digital Technology5. Digital Public Services
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According to tesymy.net, the present average download speed in Belgium is 38.4 Mbps whilst in the Netherlands it is 50.4 Mbps, indicating that consumers in both countries, on average, have good access to quality internet connections. This measure allows merchants a degree of confi dence that users in these countries will be able to make good use of rich media services such as video content.
Table 3: Average internet connection speeds in Belgium. Source: testmy.net July 2016
Table 4: Average internet connection speeds in the Netherlands. Source: testmy.net July 2016
0
50
100
150
200
Spee
d in
Mbp
s
Belguim Average Download Speed: 38.4 Mbps (4.8 MB/s)
Current Download Speed Index: 16.6 Mbps (2.1 MB/s)
Current Upload Speed Index: 4.6 Mbps (576 kB/s)
Belguim Average Upload Speed: 9.4 Mbps (1.2 MB/s)
Download Speed Test Average
Upload Speed Test Average
Belgium Average Connection Speed
0
50
100
150
200
Spee
d in
Mbp
s
The Netherlands Average Download Speed: 38.4 Mbps (4.8 MB/s)
Current Download Speed Index: 16.6 Mbps (2.1 MB/s)
Current Upload Speed Index: 4.6 Mbps (576 kB/s)
The Netherlands Average Upload Speed: 9.4 Mbps (1.2 MB/s)
Download Speed Test Average
Upload Speed Test Average
The Netherlands Average Connection Speed
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OVERALL RETAIL SALES
Data from the European Commission suggests that in recent years, both the Belgian and Dutch retail markets have been growing slower than the EU 28 average, based on 2010 as the indexed year. Belgian retail appears to have grown modestly whilst the Netherlands has contracted over the same period. The challenge for offl ine retailers in the Netherlands is that Dutch consumers are increasingly turning to international brands for retail purchases, which may not be captured in offi cial data sources. In Belgium, the overall retail market has been relatively fl at although generally outperforming the EU 28 average over the last 4 years.
Turnover and volume of sales in wholesale and retail trade - annual dataGEO/TIME 2010 2011 2012 2013 2014 2015European Union (28 countries) 100.00 99.54 98.60 98.62 100.66 104.04Belgium 100.23 101.20 102.35 101.86 102.99 102.71Netherlands 99.97 98.46 95.47 91.78 92.70 94.80Last update 27.07.16Source of data EurostatINDIC_BT Index of defl ated turnoverNACE_R2 Retail trade, except of motor vehicles and motorcyclesS_ADJ Calendar adjusted data, not seasonally adjusted dataUNIT Index, 2010=100
Table 5: EU, Belgian and Dutch wholesale and retail sales. Source: htt p://ec.europa.eu/eurostat July 2016
The fi gures do however include wholesale activity and the international nature of retail in both markets could skew this reporting.
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Retail trade; turnover change, index 2010 = 100Sector/branches (SIC 2008) Non-food shops Non-food shopsSubjects Turnover indices Turnover year-on-year changeSubjects Value Price Volume Value Price VolumePeriods 2010 = 100 2010 = 100 2010 = 100 % % %2015 June 96.1 102.6 93.7 6.5 -0.2 6.72015 2nd quarter 95.1 103.4 91.9 1.8 -1 2.82015 July 95.2 99.1 96 4.2 0.3 3.92015 August 85.2 98.7 86.3 -4.2 -0.6 -3.62015 September 90.9 102.3 88.8 6.8 -0.3 7.12015 3rd quarter 90.4 100.1 90.4 2.2 -0.2 2.42015 October 98 102.9 95.2 2 0.4 1.62015 November 89.6 102.5 87.5 -4.5 0.4 -4.92015 December 112.8 100.4 112.4 2.8 0.3 2.52015 4th quarter 100.2 102 98.2 0.3 0.4 -0.12015 92 101.3 90.8 1.1 -0.7 1.82016 January* 83 98.4 84.4 -2.1 1.4 -3.52016 February* 76.4 99.7 76.6 1.1 1.6 -0.52016 March* 88 104.8 84 1.9 0.9 0.92016 1st quarter* 82.5 100.9 81.7 0.3 1.3 -12016 April* 92.8 104.8 88.6 -0.5 0.8 -1.32016 May* 94.8 104.7 90.6 -1 0.9 -1.9
Source: www.cbs.nl/en-gb Statistics Netherlands (CBS) Note * = provisional fi gure
Focusing on the Dutch market, the domestic statistics service CBS provides a diff erent and more nuanced view. Overall values and volumes have shown variations on a generally downward trend whilst price has increased, particularly in the fi rst half of 2016. This could suggest some infl ationary pressure although a focus on reducing discounting will also have an impact.
The main retailers in the Netherlands are dominated by grocers and the same is true for Belgium. For example, Ahold is dominant in both markets and has strong representation globally and online,across multiple categories.
Turnover in the Netherlands for 2015 in Million €Rank Retailer Turnover Nr of stores1 Ahold 12,700 2,1342 Jumbo 5,320 5803 Lidl 3,080e 4004 Sligro 2,670 1795 Plus 2,230 2556 Aldi 2,200e 4967 Blokker 2,050 1,8468 Detailresult >2,000 1899 Intergamma 1,650e 30210 Mediamarkt 1,554 49
Table 6: Top 10 retailers in the Netherlands by turnover. Source: www.retail-index.com July 2016
The cross-border fl avour reinforces the context that consumers in these countries are not only used to trading cross-border, their providers are structured in this manner as well.
24
ECOMMERCE SALES
Online retail grew quickly in the Netherlands, with good connectivity and consumer appetite for foreign brands and retailers driving demand. The Belgian market was slower to start but now forms a growing share of total retail spend in the country. 3% is quoted by Gondola in September 2015 but it is worth bearing in mind that most online retailers in the Belgian market are foreign owned, which will dilute this overall market share.
In Belgium, the propensity of consumers to shop online has grown signifi cantly over the past 10 years, from 11% in 2005 to 42% in 2015. Whilst the overall share of total retail is still modest, there is a lot of potential for increasing the number of online shoppers, the frequency of purchase and the amount being spent in the digital channel.
geo\time 2004 (%) 2005 (%) 2013 (%) 2014 (%) 2015 (%)EU (27 countries) 15 18 38 41 43Belgium : 11 36 41 42Germany 29 32 60 61 64France : : 44 49 49Luxembourg 32 31 59 62 63Netherlands 24 31 55 59 59United Kingdom 28 36 71 72 75:=not available b=break in time series n=not signifi cant u=low reliability Last update: 26.07.2016Date of extraction: 27 Jul 2016 12:00:25 CESTHyperlink to the table:
htt p://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tin00067
Table 7: Percentage of Belgium and Dutch consumers who have shopped online at least once in the last 3 months compared to other key EU markets. Source: Eurostat, July 2016
This measure also indicates that the regularity of online shopping in the Netherlands is remaining fairly static at around 59% of the population. With 96% of the population having internet access there would seem to be scope to improve market penetration and it may be that the increased choice and value that can be provided by non-domestic retailers can drive this.
25
eCommerce in the Netherlands
Data from CBS, the Dutch national statistics offi ce, indicates that average growth of online shopping in the fi rst quarter of 2016 was around 20%. With the number of Dutch consumers regularly shopping online remaining fairly static, this dataset from CBS would indicate that the overall value of the shopping basket is increasing, and doing so strongly. So, whilst the market in the Netherlands appears to be more developed than others in the EU, there is growth in the number of online shoppers, frequency of online purchasing and in the value of their spend.
Retail trade; turnover change, index 2010 = 100Sector/branches (SIC 2008) 4791 Retail sale via internet 4791 Retail sale via internetSubjects Turnover indices Turnover year-on-year changeSubjects Value ValuePeriods 2010 = 100 %2015 June 156.1 19.42015 2nd quarter 148.7 13.12015 July 156.1 15.72015 August 147.3 13.72015 September 162 19.22015 3rd quarter 155.1 16.22015 October 161.9 14.62015 November 178.3 222015 December 204.9 19.62015 4th quarter 181.7 18.82015 156.2 15.22016 January* 168.6 17.62016 February* 157.3 21.92016 March* 176 20.82016 1st quarter* 167.3 202016 April* 170.1 16.52016 May* 174 20.9
Table 8: Online retail sales growth in the Netherlands. Source: Statistics Netherlands (CBS) July 2016 Note * = provisional fi gure
Looking forward, research by Statista.com is estimating that the Dutch market will be worth €9.42bn in 2016, increasing to over €13bn by 2020 based on a compound annual growth rate (CAGR) of 9.22%
Figure 2: Estimated online retail growth in the Netherlands, split by category. Source: Statista.com 2015
0
10,000
5,000
7,734
8,489
9,421 10,324
11,30912,331
13,405
2014 2015 2016 2017 2018 2019 2020
15,000
in m
illio
n Eu
ro (€
) 1. Fashion2. Electronics & Media3. Food & Personal Care4. Furniture &Appliances5. Toys, Hobby & DIY
26
This growth could appear to be conservative when compared to offi cial statistics but what they do allow for is the market maturing over the next 4 years; maintaining double digit growth gets harder as the overall market size increases. This is a particular challenge where it would appear that the level of new internet shoppers entering the market is slowing, as appears to be the case in the Netherlands. Therefore, near-term market growth will come from existing users spending more per annum. This growth trend will be boosted as younger ‘digital native’ generations enter the market; where digital channels are fi rst choice for transacting with brands.
According to Similarweb.com, the top 20 online retailers in the Netherlands represent a mixture of home-grown businesses, localised sites from international merchants and foreign websites. Bol.com, part of the Ahold group, is by-far the largest multi-category online store with sales forecast to reach €1bn in 2016. Aliexpress is showing its increasing dominance in global retail with a strong position in the Dutch market. Allegro.pl really highlights the international penetration of brands, competing strongly against domestic businesses.
Rank Domain1 bol.com2 aliexpress.com3 wehkamp.nl4 zalando.nl5 amazon.com6 ikea.com7 beslist.nl8 mediamarkt.nl9 amazon.de10 hm.com11 ebay.com12 unibet.eu13 ebay.nl14 kruidvat.nl15 allegro.pl16 hema.nl17 amazon.co.uk18 debijenkorf.nl19 ibood.com20 debijenkorf.nl
Table 9: Top 20 online retailers by site traffi c. Source: Similarweb.com July 2016
From a category perspective, fashion has really been driving demand and is expected to be the biggest growth area in the coming years.
Categories 2016 2020Fashion 2956 4459
Electronics & Media 2027 2632
Food & Personal Care 761 1199
Furniture & Appliances 1370 2173
Toys, Hobby & DIY 2305 2939
Values: m Euro (€)
Table 10: Online category growth trends in the Netherlands. Source: Statista 2015
27
Rank Domain1 wehkamp.nl 2 zalando.nl 3 hm.com 4 bonprix.nl 5 asos.com 6 zara.com 7 zalando-lounge.nl 8 c-and-a.com 9 adidas.nl 10 vanharen.nl
Rank Domain1 mediamarkt.nl 2 conrad.nl 3 coolblue.nl 4 ibood.com 5 alternate.nl 6 bax-shop.nl 7 pdashop.nl 8 azerty.nl 9 dx.com 10 miniinthebox.com
Reviewing the top 10 clothing websites shows a strong presence of international brands. Interestingly though, with the exception of Wehkamp and Zalando, these brands do not feature in the top 20 online retail destinations. This would suggest that Wehkamp and Zalando have signifi cant market share and whilst Wehkamp is multi-category, Zalando focuses on fashion.
Table 11: Top 10 clothing websites in the Netherlands, based on traffi c. Source: similarweb.com, August 2016
The online electricals sector is served by specialist’s mediamarkt, Conrad and Coolblue although multi-category retailers such as Ahold have a strong presence in the sector. Statista analysis suggests that the consumer electronics sector could grow by around 13% by 2020. Unlike other categories and the overall market, this sector is currently dominated by domestic retailers.
Table 12: Top 10 consumer electronics websites in the Netherlands, based on traffi c.
Source: similarweb.com, August 2016
28
eCommerce in Belgium
The Belgian online retail market is at an earlier stage of development and consequently has a lower overall value. However, at an estimated €4.2bn in 2016, it is a market with plenty of potential, particularly for international merchants. Two key factors make this increasingly likely; internet penetration is increasing as is the number of users. GfK reported in 2015 that over 6.5 million Belgians are shopping online every quarter and Insight Consulting expect 28% to spend more this year over 2015.
0
4,000
2,000
3,4133,772
4,2394,704
5,1765,649
6,099
2014 2015 2016 2017 2018 2019 2020
6,000
8,000
in m
illio
n Eu
ro (€
)
1. Fashion2. Electronics & Media3. Food & Personal Care4. Furniture &Appliances5. Toys, Hobby & DIY
As in the Netherlands, the key category is fashion with the majority of growth through to 2020 expected here. The solid growth prospects across the other categories are also interesting, particularly with furniture & appliances expected to challenge electronics for size over the same period.
Categories 2016 2020Fashion 1569 2280Electronics & Media 1151 1539Food & Personal Care 261 375Furniture & Appliances 763 1261Toys, Hobby & DIY 486 635Values Euro (€)
Table 13: Online category growth trends in Belgium. Source: Statista 2015
29
Data compiled by Statista.com highlights that the clothing category is responsible for around 50% of total online sales in Belgium. The online top 20 retailers also show an interesting mix of international brands with very few domestic retailers present. This does highlight the international nature of online in Belgium, also a refl ection of the offl ine spending habits of Belgians where going to a neighbouring country is just as natural as purchasing domestically.
Rank Domain1 amazon.fr2 aliexpress.com3 bol.com4 ebay.be5 zalando.be6 amazon.com7 amazon.de8 ikea.com9 mediamarkt.be10 ebay.com11 vente-exclusive.com12 vandenborre.be13 decathlon.be14 amazon.co.uk15 hm.com16 alibaba.com17 zalando-lounge.be18 cdiscount.com19 ibood.com20 groupon.be
0 10% 20% 30% 40% 50%
Other insurances (e.g. fire, car insurance)
Cars, motorcycles, bicycles
Prepared food (resto/catering)
Film or TV series in digital format (no DVD)
Garden Products
Travel assistance or cancelling insurance
Furniture
DIY
Food (supermarket)
Digital music (Mp3, albums)
Home decoration
Sports products
Fun fair tickets
Pharmaceutical products
Telecom (Internet connection, landline/mobile phone)
Toys
Household appliances
Electronic applicances (e.g. digital camera, iPod)
CD/DVD/Blu-ray/Games
Personal care products
Computer, hardware and software
Shoes
Event tickets (e.g. concerts; no fun fairs)
Boat, plane or train tickets
Books
Hotel/overnight stay
Clothing
Table 14: Belgian online category growth trends.
Source: Statista analysis 2016
Top 20 online retailersSource: similarweb.com July 2016
30
IMPACT OF MOBILE DEVICES
Technological developments have meant that consumer access to online content and services is changing. The increased penetration of smartphones and tablets has meant that brands need to become increasingly available to their customers. This development is an interesting trend for international merchants as it allows them to compete in the offl ine environment, by having a mobile device optimised, digital presence.
Both Belgium and the Netherlands have a developed mobile marketplace and high levels of smartphone adoption. Mobile penetration (covering smartphones as well as non-smart mobile phones) in Belgium is around 112% according to nth-mobile.com and in the Netherlands it is over 120% (mGage 2015)
In the Netherlands, smartphone penetration is expected to be 69% in 2016. There is also an expectation that growth in adoption will slow from the current double digits to around 5% by 2018. These growth patt erns are expected as feature phones go out of circulation and the default choice for new contracts are smartphones; particularly as the price point falls. Overall though, 76% of mobile phones in circulation will be smartphones, probably equating to one for every consumer and emphasising the importance of a mobile enabled digital presence for all retail brands.
Table 15: Smartphone usage statistics for the Netherlands. Source: emarketer.com 2014
2014 2015 2016 2017 2018
8.8Smartphone (Millions)
As Percent of Population
As Percent of Mobile Phone Users
10.4 11.7 12.4 13.1
52% 61% 69% 73% 76%
Growth 23% 19% 13% 6% 5%
65% 76% 85% 89% 93%
31
Looking more broadly at mobile devices and transactions, Tablets have the biggest share in the Netherlands, accounting for 65% of all retail related mobile transactions in 2014 according to Criteo.
Of these transactions, iPads account for the biggest share of total ecommerce transactions at 12%, Android smartphones then take the next biggest share at 4%.
Whilst Android Tablets have a lower share of the overall market, they do convert quite well, certainly compared to iPads. As with other territories, an overall strategy encompassing both desktop and mobile is worth pursuing in these markets. Additionally, when looking at mobile optimisation and marketing focus, it is important to take both Android and Apple’s mobile operating systems into account. If resource needs to be targeted, the iPad audience should probably get the early focus for development.
Looking more broadly, data from Google’s Consumer barometer shows that there is litt le diff erence in the usage of devices between Dutch and Belgian markets suggesting a common approach to m-commerce across both markets is worthwhile.
Retail Travel
62%
38%
65%
35%Tablets
Smartphones
Smartphone vs. Tablet(% Mobile Transactions)
iPhoneAndroid smartphone
Retail 24%12%3%5% 5%
Android tablet iPad Total Mobile
MobileOverall
AndroidSmartphone
iPhone AndroidTablet
iPad
1.9%2.1%
2.7%3.1%
3.3%
32
Table 16: Devices used by internet users in Belgium and the Netherlands. Source: Google Consumer Barometer, July 2016
There is a high propensity for Dutch consumers to use tablet devices although desktop is still important, not just in terms of transactions but also as an engagement tool. In Belgium, desktop is also the main method of going online whilst smartphone usage is further behind than in the Netherlands. Tablets are available to just over a third of Belgian internet users so represents potential for brand interactions.
Table 17: Mobile spending as proportion of overall eCommerce spend, split by device. Source: Statista 2015
Overall, the use of mobile devices for transactions in the Netherlands, at 18.3% of total online retail sales, is only marginally lower than the European average, which is really driven by massive adoption in the UK and German markets. Belgium isn’t far behind in terms of mobile share of ecommerce, equating to, 12% of total online sales or €969m in 2015.
0 20 40 60 80 100
eReader
Digital device to stream Internet conternt to TV
Wearable digital device
Internet-enabled TV
MP3 player
Computer(Desktop, Laptop & Netbook)
TV
Tablet
Mobile phone(basic & smartphone)
Smartphone
The NetherlandsBelgium
0 5% 10% 15% 20% 25%
Europe
The Netherlands
Total mobileSmartphoneTablet
33
MARKETING & BRANDING
Developing a market presence in any international market is a challenge, particularly where brand awareness is low and the retail off er isn’t that diff erent form local providers. Where a merchant is selling own brand product, creating a place in the market can be a litt le easier than for those brands selling more widely available product. However, digital marketing enables merchants to reach new markets without having a local presence.
Dutch and Belgian internet users are avid consumers of digital media and this is refl ected in the growth of digital advertising spend in both countries.
IAB Belgium have reported that digital advertising in the market topped €400m in 2015, up 14.5% on the previous year. Favoured digital advertising channels include display, accounting for 36.2% of expenditure, search at 28.3%, video at 18.1%, social at 15.7% and email at 1.8%. Email spend is probably low, not because of a lack of popularity but because of the way that the service is provided.
Over the same period (2015), Dutch spending on digital advertising exceeded €1.5bn, up 8.3% on 2014 according to IAB Netherlands2. Budgets spent on affi liate networks also increased 2.9% to €137m. Typically, this budget is spent on performance based activity so would see a direct correlation with increased income. Search is still the most popular element of digital advertising spend, accounting for 44% of overall spend and up 10% on the previous year, whilst display is catching up at 41% of the total (€615m).
2 IAB report on Online Advertising Spend the Netherlands 2015
34
Gaining importance as a mechanism for increasing relevancy and cost eff ectiveness of advertising, programmatic trading, where algorithms running on service provider’s servers and allocate advertising placement in real-time, is accounting for a bigger proportion of digital budget. Up 30% on 2014 expenditure, €187m is now spent via the technology (30% of total display spend).
Mobile related display advertising increased by 51% in 2015, accounting for 35% of total display advertising spend, highlighting the increasing importance of mobile devices in the customer journey.
Performance based marketing spend is declining in the Netherlands, accounting for 65% of display spend, whilst CPM based marketing activity is increasing. Mobile devices are also helping with the increase in use of video, and advertising spend in this channel increased 28% to €98m. This level of engagement is driving new advertising opportunities.
Classifi eds expenditure is still going strong and worthy of consideration in the Dutch market. Up 9.1% on 2014, €225m of the total digital ad-spend is allocated to this channel.
Figure 4: Belgian consumers use of devices to fi nd product information online. Source: Digitaslbi.com 2015
Devices used to find product information
0
20%
40%
60%
80%
The NetherlandsBelgium
Desktop Laptop Smartphone Tablet
% agree & disagree on content marketing
Your social media strategy is only a part of your content marketing strategy.
Content marketing is more about quality than about quantity.
No company can grow without an elaborated content marketing strategy.
It is difficult to measure the impact of your content marketing startegy.
Content marketing is only interesting for B2C, not for B2B.
Being a good storyteller will become the most important marketer’s skill.
Good content marketing implies you need to outsource copywriting and design.
Content marketing will be less important in the next five years.
Disagree
87%
84%
59%
52%
49%
42%38%
87%
88%
28%
33%
23%
9%
9%
Agree
6%
5%
Figure 3: Belgian digital marketers’ views on content marketing. Source: Thehouseofmarketing.be study 2015
Belgian marketers are also on this path of digital engagement and research by digital agency, thehouseofmarketing.be highlighted several interesting themes. 87% of marketers see social media as part of their overall strategy although there is also a recognition that the quality of the content is more important than the quantity.
Work by digitaslbi.com backs up some of these insights but also reinforces the importance of understanding how consumers are going to engage with the content. For example, laptops are still an important tool for product discovery, both in the Dutch and Belgian markets. Smartphones tend to be used less for discovery although tablets are as high as might be expected.
35
The same study also highlighted the role of content in the discovery phase, with around a quarter of consumers in both territories suggesting that it made a contribution to the discovery phase of the purchase cycle. With single fi gures suggesting that it infl uenced the buying decision, merchants would be advised to tailor their content strategy depending on where about in the customer journey the information is being displayed; relevancy is key.
Consumer reviews however, do have signifi cant impact on purchasing decisions but again, the context of where they appear should really be balanced with the customer’s intentions at that particular moment.
Whilst consumer reviews have a bigger impact online for Dutch consumers, Belgians are more likely to view comments in-store, really highlighting the role of mobile in multichannel retail.
Website content, in both markets, is an important element of the transactional process and international merchants should assess how their existing formats will fi t in with these requirements. Data also suggests that consumer reviews should be a major part of the cross-border off ering, enabling local consumers to assess any international merchant, not by what they say, but what their existing customers have to add.0 10% 20% 30%
Makes you discoverthe product
Makes you prefer website offering this content
Makes you visit the website again
Makes you buy The NetherlandsBelgium
CONSUMER REVIEWSOn the internet
In-store
be 49%
nl 57%
be 31%
nl 23%
Figure 5: Belgian and Dutch consumers’ views on the role of website content. Source: Digitaslbi.com 2015
Figure 6: Belgian and Dutch internet user’s engagement with consumer reviews. Source: Digitaslbi.com
Net/Net Online Advertising market (m€)
Paid Search
Display &Classifieds711
544+11,9%
1255
2013 2014 2015 2016F
13961512
1630
+10,8%
+10,5%
+6,6%
+9,0%
+6,8%787
609
839
673
897
733
Search
A cornerstone of any digital marketing campaign and customer acquisition / retention strategy, expenditure on search advertising is growing strongly in both the Dutch and Belgian markets. The main players in this market are Google, Bing and Yahoo!, with some local actors serving more niche requirements.
The Data Driven Marketing Association (DDMA) in the Netherlands reported strong growth in Search advertising spend, from €544m in 2013 to over €733m in 2016.
36
Deloitt e analysis of IAB/DDMA research also highlighted interesting patt erns around device usage and search spend. Finance, retail and travel still saw the majority of the spend going via desktop. However, this was declining across all three verticals with tablet taking a bigger share; representative of the overall shift in device use across the Dutch and Belgian markets.
Figure 7: Share of paid search advertising spend by device in the Netherlands. Source: Deloitt e Netherlands 2016
Rank Search Engine % Market Share1 Google 93.262 Bing 3.033 StartPagina 1.424 Yahoo 1.175 Ask Jeeves 0.386 Vinden 0.197 AVG Search 0.098 DuckDuckGo 0.099 Babylon 0.0710 Snap.do 0.07
Table 13: Search Engine market share; Belgium. Source: 2015
Rank Search Engine %Market Share1 Google 94.812 Bing 3.013 Yahoo 1.014 Ask Jeeves 0.485 Vinden 0.126 AVG Search 0.107 Babylon 0.078 DuckDuckGo 0.069 Conduit 0.0510 Snap.do 0.05
As in most western markets, Google dominates the search landscape of both the Netherlands and Belgium, with only Bing and Yahoo! Exchanging places.
Vinden and StartPagina are worthy of note. Whilst not technically search engines, they are important local players in that they can drive relevant traffi c through paid-for links.
Table 12: Search Engine market share; the Netherlands. Source 2015
2014 2015
Retail
Finance
Travel
Desktop
Tablet
Phone
Desktop
Tablet
Phone
Desktop
Tablet
Phone
73%
18%
9%62%
19%
19%
52%
30%
18%
51%
27%
22%
57%
29%
14%
51%
29%
20%
37
Social media
A core component of any brand’s marketing communications strategy, social media usage is gaining traction in the Dutch and Belgian markets, both from a consumer and brand point of view.
Social media interaction is very strong in both markets, with around 79% of internet users in both countries having a Facebook account. Twitt er and LinkedIn are more important in the Netherlands whilst Google+ has 28% of users internet users having an account in Belgium.
Figure 8: Social media engagement in the Netherlands and Belgium. Source: digitaslbi.com 2015
YouTube has high levels of usage in both countries, really reinforcing the importance of video based advertising spend that was reported by IAB Netherlands.
Looking more closely at Facebook engagement, ecommerce in general has high levels of engagement with a combined 14.9 million followers. General retail also fares well with around 10 million fans, according to socialbakers.com.
The Belgian market has more modest levels of engagement but the overall audience possible is also smaller. FMCG food fare particularly well with nearly 5 million followers and ecommerce just over 4 million.
Belgium
Top 5 Industries on FacebookSum of Fans
Ecommerce 14 893 469
Airlines 12 529 532 Retail 10 177 482 Fashion 5 710 484 Fmcg Food 5 379 719 Socialbakers.com NL
Top 5 Industries on FacebookSum of Fans
Fmcg Food 4 964 592Ecommerce 4 022 423 Retail 3 530 849 Beauty 3 339 847 Alcohol 2 802 229 Socialbakers.com Belgium
Netherlands
SOCIAL MEDIA USAGETWITTER
be 14%
nl 25%
be 79%
nl 78%
LINKEDINbe 15%
nl 32%
PINTERESTbe 11%
nl 15%
INSTAGRAMbe 12%
nl 18%
GOOGLE+be 28%
nl 21%
YOUTUBEbe 48%
nl 56%
38
In terms of social engagement, it does appear to be very one-sided in Belgium. With an average 300,000 follower per brand in the top 20, they each only post 42 times per month on Facebook. The ratio on Twitt er however is much closer, with fans posting over 26,000 times and brands responding 126 times.
Figure 9: Social media engagement metrics for top 20 brands in Belgium. Source: Socialbakers.com 2016
Figure 10: Social media engagement metrics for top 20 brands in the Netherlands. Source: Socialbakers.com 2016
Levels of fan engagement are much higher in the Netherlands although it does still look very one-sided.
It would appear that there is potential for brands trading into these markets to increase the levels of engagement. Although, Insites Consulting has reported that consumers don’t necessarily want a lot of engagement, particularly around commercial activities such as discounts; although this reluctance is easing as consumers get more comfortable with the social channel.
Aside from the marketing opportunity, studies3 have shown that 70% of those social media users contacting customer services expect a response within 15 minutes. 66% of these expect responses through the same channel as well; highlighting the need for close monitoring of the social engagement, especially in Belgium where there is still a lot of suspicion about brands communicating on social media.
3 BT Global Services Avaya - Autonomous Customer 2015: On hold for Intelligent Customer Service
Average Number of Fans / Followers
N0. of Fans / Relative Growth N0. of Fans / Relative Growth
Average Number of Admin Posts
SOCIAL MEDIA STATISTICS FOR THE TOP 20 BRANDS IN BELGIUM
297 994 /
26 514 /
3 579 /
42 /
126 /
10 /
Average Number of Fans / Followers
N0. of Fans / Relative Growth N0. of Fans / Relative Growth
Average Number of Admin Posts
SOCIAL MEDIA STATISTICS FOR THE TOP 20 BRANDS IN NETHERLANDS
478 568 /
191 990 /
15 094 /
77 /
198/
17 /
39
In common with other markets, the use of email as a marketing tool is far from dead. Mobile engagement is reinvigorating this trusted marketing channel. The Dutch and Belgian markets show healthy levels of email engagement with National Email Benchmark reporting Confi rmed Open Rates (COR) of over 35%, Click Through Rates (CTR) of 7% and Click To Open (CTO) rates of 17.4%
Figure 11: Key benchmark statistics for email performance in the Netherlands. Source: nationaleemailbenchmark.nl 2015
Irrespective of workday or weekend, desktop still dominates actions driven through email e.g. ‘clicked on’. However, open rates are evenly split by device over the weekend, whilst desktop accounts for 60% of email opening; perhaps mobile is used on the way to work during the morning commute as a way of prioritising follow-up activity.
This would appear to be refl ected in open rates via mobile, depending on the time of day. Breakfast, lunch and early evening seem to be the time where engagement is highest.
The peaks are much less defi ned over the weekend, perhaps when time constraints are less rigid.
These data points highlight the importance that mobile devices have in the customer journey, particularly during the discovery phase. They also reinforce the role that email has in the marketing mix in the Dutch and Belgian markets whilst suggesting that frequency, timing and content should be tailored depending on the desired outcome. International merchants will notice that these trends are common to many other markets so existing platforms are likely to be able to cope with these local requirements.
Res
pons
e ra
tios
(%)
0
10
20
30
40
50
60
70
35,2
17,4
7,0
Legend: Confirmed Open Rate (COR)
Click Through Rate (CTR)
Click To Open (CTO)
Working Day
Weekend
% OPENED ON % CLICKED ON
40% 60% 100%
50% 50% 100%
33% 67% 100%
48% 52% 100%
50%
Opened on mobile device
TIME OF SENDING A CAMPAIGN ON A WORKING DAY
25%
Nig
ht 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
30%
35%
40%
45%
Clicked on mobile device
€
Opened on mobile device
TIME OF SENDING A CAMPAIGN ON A WEEKEND DAY
40%
Nig
ht 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
45%
50%
55%
60%
Clicked on mobile device
40
Direct mail (DM)
The Dutch and Belgium consumer markets still have strong DM activity. Industry data compiled by Post NL and Spring Global Delivery Solutions suggests that 87% of physical DM is opened and read. With reading rates on the same day at 85%, DM can be an effi cient mechanism for both acquisition and driving website traffi c.
Highlighting the impact that DM has on digital enabled sales in these markets, 67% of online searches are trigged by the mail piece. Online advertising, in conjunction with physical DM, leads to a 25% increase in response rates.
As a brand development vehicle, DM obviously has its place in its ability to present a ‘physical form’ to the consumer which has benefi ts when trying to develop a presence in-country. As an activity to drive sales, DM has the potential to reinforce online messaging or to introduce new ideas. This will have benefi ts in helping to upsell and cross sell, drive brand loyalty and develop cost effi cient traffi c to an online presence. Where possible, unique URLs and off er codes should be used so as to be able to track the benefi t and take the customer directly to the products or off ers mentioned in the DM.
However, as there is evidence that 35% of Dutch shoppers in the 18 – 24 age group use website ad-blocking soft ware, DM combined with digital marketing has a role in consumer communications for some brands. This will be particularly true where DM can support a brand message that arrives amongst the almost 100 marketing emails a week that Dutch online consumers receive.
CROSS-BORDER SALES
Figure 12: Belgians favoured online shopping destinations by country.
Source: Postnord eCommerce in Europe 2015 report.
Table 14: Instore engagement by Dutch and Belgian consumers with retailers’ digital off erings. Source: digitaslb.com July 20164 Postnord Ecommerce in Europe 2015 report
NLNLBE BE
6%
13%
18% 20
%
BR
AN
D W
EBSI
TES
/ A
PPS
RET
AIL
ER W
EBSI
TES
/ A
PPS
According to a study carried out by the European Commissions’ DG Justice, 34% of Belgian consumers buy online from websites based in other EU countries and only 44% of these feel confi dent about doing so. The Belgians’ near neighbours, the Dutch, are the main benefi ciaries of this trend, with over 50% of online cross-border purchases by value being made through Dutch websites, according to information from PostNord4. 29% of Belgian online shoppers favour Dutch retailers with Germany second at 7% and the UK at 6%. The limited domestic choice encourages this cross-border behaviour with price, value and selection being quoted as key motivators for shopping cross-border according to a study by Insight Consulting.
Figures from ecommercefoundation.com suggests that in the Dutch market, cross-border sales increased by 30% in 2015. At least 23% of the Dutch population made a cross-border purchase in 2014, equating to 3.2 million shoppers spending around €513m. Data from PostNord4 suggest that 11.6 million of the Dutch population have shopped online, and in 2015, 46% of these had done so from foreign websites.
Taking a slightly diff erent view, information from digitaslbi suggests that there is a high level of digital engagement by instore consumers, with around a fi ft h of Dutch and Belgium consumers referencing retail websites and apps when instore. While this isn’t suggesting a cross-border context, it does point to an opportunity for international merchants to get in front of offl ine shoppers; even without a physical presence ‘in-country’.
NETHERLANDS
GERMANYUK
25%
7%6%
41
OPTIMISING CUSTOMER EXPERIENCE
The Dutch market is relatively straight forward from a language perspective. Dutch is the offi cial language but English and German is widely spoken. International merchants would gain a degree of traction in this market using either of these although a native Dutch site would provide more potential.
For the Belgian market however, localisation will be harder and have increased levels of expectation. The two regions, Wallonia and Flanders set their own requirements, even for domestic retailers trying to trade nationally. French language websites will fare bett er in Wallonia than Flanders whilst Dutch will work in the latt er region. Interestingly, a report in the Brussels Times cited data from Taalbarometer VUB 20115 which showed that French (89%) was the main language in Brussels, with decreasing numbers of the population speaking Dutch (23%). More people now speak English in the capital (23%). Of course, there are also signifi cant numbers of the Belgian population who are multilingual, with German, French, Dutch and English being spoken, and the cultural challenge should be recognised by merchants looking to trade in to the country.
This cultural diversity across the two countries also presents an opportunity for international merchants, which is widely represented by the lists of most popular web shops in each area.
5 Philippe Van Parijs: Brussels bilingual? Brussels francophone? Both and neither!, Brusslestimes.com 01 March 2016
42
Consumer confi dence
As in any territory, there is always a reluctance to trust online merchants early on in the trading relationship, certainly until a degree of transactional history has been created. Gett ing customers to purchase for the fi rst time is the biggest challenge; keeping them comes down to the strength of the proposition and how closely the brand sticks to the customer promise.
In Belgium, key drivers for online purchasing are price (46%) and simple returns (57%). The Dutch follow a similar theme but price is slightly lower in importance (40%) and the returns process at 51%.
Figure 13: Key drivers for Dutch and Belgian consumers shopping online. Source: Postnord eCommerce in Europe 2015 report
In addition to the retail proposition, there are a number of other expected ‘norms’. Some required by legislation, others by convention. For example, clarity around the cost of the goods on off er, including all additional elements required. It is also expected in both countries that the contact details are listed clearly on the website, not hidden in terms & conditions.
Clarity on this point is important as well. International merchants will be expected to honour local legislative requirements, such as the 14 day cooling off period and openly stating that these standards are met will help reinforce the trading credentials of a cross-border merchant.
The message is clear however; core retailing techniques are required to make a success of trading in to either territory.
Trustmarks
One way for an international merchant to demonstrate compliance with local requirements is for them to register with a trustmark in that territory. Both Belgium and the Netherlands have a number that are respected in the marketplace; a few are represented here. They do have slightly diff erent qualifi cation criteria so merchants should select one appropriate to their needs.
Belgium
Netherlands
NL
BE
LOWEST PRICE SIMPLE RETURNS
46% 40%
57% 51%
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MarketplacesInternational brands such as Amazon, eBay, AliExpress and Zalando have a strong presence in both countries. Amazon doesn’t have a specifi c website for the Belgian market but it does now allow Belgians to sign up for Amazon Premium (local name for Amazon Prime) through its French language website. These platforms off er a way for unknown brands to try the local markets whilst also
giving consumers confi dence that the brand that they do know is involved in the transaction. Zalando focuses on the fashion whilst the other platforms are multi-category. For a single category retailer, Zalando features highly in the website league tables of both countries, reinforcing its position as a source of customers for fashion brands looking to trade in to the region.
VouchersConsumers in both Belgian and the Netherlands seek deals and promotions. As part of the marketing mix, the tactical use of vouchers as part of a discounting or loyalty recognition strategy, translates in to both countries as a valuable tool for international merchants.
Both countries have localised versions of Groupon operating, as well as numerous domestic operators.
1 groupon.nl 2 kortingscode.nl 3 koopjedeal.nl 4 spott a.nl 5 treatwell.nl
6 cashbackkorting.nl 7 dailyoff ers.nl 8 unitedconsumers.com 9 actiepagina.nl 10 mydealz.de
Research from vouchercloud.nl also showed that Dutch customers are particularly keen on using vouchers; more so than some of their European cousins. For example, nearly 17% of womens clothing transactions online involve a voucher or coupon, compared to 15% in the UK and nearly 10% in Germany. The only area where there is any parity is around electronics products which, at about 5.3% is a surprise; it would be expected that higher ticket items would att ract more voucher / discount usage. Perhaps it is as a result of most of the promotions in this vertical actually take place on the retailer’s own website.
Table 15: Top 10 Voucher / Coupon websites in the Netherlands. Source: Similarweb.com August 2016
Table 16: Top 10 Voucher / Coupon websites in Belgium. Source: Similarweb.com August 2016
1 groupon.be 2 dealabs.com 3 socialdeal.be 4 ma-reduc.com 5 mydealz.de 6 igraal.com 7 cashbackdeals.be 8 radins.com 9 qassa-fr.be 10 shedeals.be
44
LEGAL FRAMEWORK & REGULATION
Belgium and the Netherlands share a common approach to legislation in terms of both being based on the French infl uenced Civil Law. Both countries have a central law making powers in the form of National Parliaments. In Belgium, being a federal state, some laws are passed at a regional level; Wallonia, Flanders and the City State, Brussels. In Holland most law is passed at the national level with some detail being added at a local level. Dutch and Belgian law is also infl uenced by EU law with many regulations being directly adopted in to law without further intervention required by the national parliaments. The following section includes the key pieces of legislation in each country that has an impact on distance selling. It is not an exhaustive list and is only provided for guidance. Specialist professional advice should be sought to confi rm how the local legislation might impact a merchant trading into these countries. Care should be taken as the two countries’ interpretation of the same EU legislation or international treaties might be diff erent.
45
Note: BE denotes legislation in Belgium and NL denotes the Dutch equivalent. In detail:
I. Privacy and data protection
Topic Area Relevant Regulations PurposePrivacy and Data Protection BE - The Privacy Act (Act of 8
December 1992) updated Act of 11 December 1998 and Act of 26 Feb-ruary 2003.NL – Personal Data Protection Act – revised 23 November 1999; 1 September 2001; 26 May 2015
Regulation of the processing of personal data by public authorities, businesses and other organisations.BE and NL – Updates to take into account new technology (internet), EU legislation and new security requirements
Eff ectsThe Privacy Act and applies to all organisations that are responsible for processing personal data.Personal data is any information relating to an identifi ed or identifi able natural person (data subject). An identifi able person is one who can be directly or indirectly identifi ed, in particular by reference to a name, an identifi cation number or to one or more factors specifi c to his physical, physiological, mental, economic, cultural or social identity.The following principles must be adhered to.• Legal Prohibition, unless permission is granted/Consent: The collection, processing and use of personal
data are permitt ed only if authorised by a law or if the data subject has consented to it.
• Direct survey of data: Personal data shall be collected directly from those aff ected. Without the involvement by parties aff ected, collection is only permitt ed by exception, provided that no legitimate specifi c interests of the data subject prevent collection.
• Data economy: Personal data should not be kept for longer than is necessary and should be adequate, relevant and not excessive in relation to the purpose for which it is processed. Personal data should be anonymised if possible.
• Purpose limitation/Necessity: Personal data must be obtained only for specifi ed and lawful purposes and should not be processed in any manner incompatible with that purposes. Furthermore, data processing must be necessary regarding its purpose.
• Transparency: Each data subject must be informed of the storage, the type of data, the purpose of the collection, processing or use and the identity of the responsible authority.
There is stronger legal protection for “sensitive personal data”. Sensitive personal data is personal data consisting of information about an individual’s racial or ethnic origin, political opinions, religious or similar beliefs, trade union membership, physical or mental health or condition, sexual life or commission of or proceedings for any off ence committ ed or alleged to have been committ ed by the individual and the outcome of such proceedings.
The Belgian DPA is the Belgian Privacy Commission www.privacycommission.beThe Dutch DPA is Autoriteit Persoonsgegevens htt ps://autoriteitpersoonsgegevens.nl/en
Topic Area Relevant Regulations PurposePrivacy and Data Protection European General Data Protection
Regulation.The European Data Protection Directive (Directive 95/46/EC) is being replaced by a pan-European Data Protection Regulation in 2018.
Eff ectsThe European General Data Protection Regulation will come into force on the 25th May 2018 and will impose more onerous obligations on organisations that process personal data.
The regulation will include major changes to current data protection rules including breach notifi cation, data portability, subject access requests, changes to the defi nition of personal data, tougher punishments for data breaches and a role for Data Protection Offi cers in certain sized businesses.
46
Topic Area Relevant Regulations PurposePrivacy and Data Protection
Privacy and Electronic Communications Directive
2002/58/EC - 12 July 2002
Be – Amending Article 129 ; Electronic Communications Act (the “ Act”),13 June 2005. Updating previous Acts of 21 March 1991 and July 79‘
NL - Telecommunicatiewet [ Dutch Telecommunications Act (DTA)] (Oct. 19, 1998) last amended June 5, 2012.
Broadly covers regulation of telecommunications industry but also includes protection of the individual user from any possible danger that may occur through data processing, unsolicited marketing and technologies such as ‘cookies’.
Eff ectsAft er Directive 2002/58/EC, cookies or similar devices must not be used unless the subscriber or user is provided with clear and comprehensive information about the purposes of the storage of or access to that information and has given his or her consent. Particular care should be taken when looking at mechanisms used for gaining consent as DPA’s may take diff erent views on ‘active’ and ‘prior’ consent.
II. Consumer protection
Topic Area Relevant Regulations PurposeConsumer Protection EU Unfair Commercial Practices Directive
2005/29/EC transposed by
BE - Belgian Law 6 April 2010 on commercial practices, consumer information and consumer protection (‘LPMC’) replaced with Book VI of the Belgian Code of Economic Law - Market Practices and Consumer Protection 21 December 2013
NL – Book 6 Part 6.3.3A Dutch Civil Code
Protect consumers from unfair commercial practices such as advertising, pricing and contract terms
Eff ectsThe aim of the directive is to harmonise the approach to reasonableness of contract terms. Both Belgium and the Netherlands have had their implementations of the directive challenged by the European Commission.
47
Topic Area Relevant Regulations PurposeConsumer Protection EU Consumer Rights Directive (CRD) 2011/83/
EU amending 93/13/EEC and 1999/44/EC
BE – Book VI Belgian code of Economic law - 21 December 2013
NL – Book 6.5.2B of the Civil Code and Book 7.1 - 11 March 2014
Implement CRD in to BE and NL law and increasing harmonisation across EU member states.
Eff ects1) Confi rmation requirements around conclusion of a contract e.g. digital services2) Clarifi cation of rights with digital products / services3) Delivery periods made clear and limited changes with agreement4) Ancillary contracts automatically cancelled e.g. insurance associated with a product which is then returned.5) Cooling off periods extended; 7 business days to 14 calendar days6) Reduced refund period – 30 days to 147) Linking of receipt of returned product and refund period activation8) Banning of pre-ticked boxes9) Improved cost transparency10) Obligation to pay – clear text at point of order confi rmation (‘buy’ butt on)
Topic Area Relevant Regulations PurposeConsumer Protection ecommerce Directive 2000/31/EC of 8 June
2000
BE – Added to Civil Code 11 March 2003
NL – Amended Civil Code, the Code
of Civil Procedure, the Criminal Code and the Economic Off enses Act
Legal aspects of the provision of information society service such as ecommerce
Eff ectsRequires online traders to meet certain requirements:1) Impacts most ecommerce traders with some exceptions, such as gambling operators.2) Provides for the freedom of establishment – allowing traders to conduct business in otherEU member states without permission; areas exempt include consumer contracts and fi nancial services products/services 3) Information Requirements – certain business details must be available on the website, including contact information and how contracts are concluded. Failure to display some of the information requirements can invalidate contracts.4) Commercial communications must be clearly marked as such.
48
Topic Area Relevant Regulations PurposeConsumer Protection Brussels Regulation (44/2001)/
Rome I
(Regulation 593/2008)
EU legislation protecting consumers who contract with companies directing activities into the consumer’s member state.
Eff ectsA company will be considered to be directing its activities if - by any means - it directs commercial or professional activities into a member state; this will include sales into a European member state via websites.
Website operators are likely to be directing activities if they off er products to consumers in a member state via a website draft ed in the local language and accept payment in the local currency.
If a consumer purchases a product from a website directing activities into the consumer’s member state and wishes to make a claim against that company, the Regulations allow the consumer a degree of fl exibility as to where the claim may be brought.
III. Advertising
Topic Area Relevant Regulations PurposeUnfair Competition/ Consumer Protection
BE - Trade Practice Law 14 July 1971 Article 54
NL - Dutch Advertising Code
Protect consumers from misleading commercial communications
Eff ectsBelgium doesn’t have one piece of legislation around advertising practice but a number regulations surrounding specifi c industry verticals might advertise their services exist. For example alcohol.
In the Netherlands, advertisers and their agencies are subject to the Dutch Advertising Code.
IV. Digital signatures & authentication
Topic Area Relevant Regulations PurposeDigital Signatures & Authentication
Regulation 910/2014 on Electronic Identifi cation and Trust Services for Electronic Transactions in the Internal Market has repealed the E-Signature Directive 1999/93/EC.
Regulation (EU) 910/2014 will apply from 1 July 2016.
The Regulation seeks to improve trust in electronic transactions and encourage the use of electronic signatures to help create a fully integrated digital single market.
Eff ectsThe Regulation (Electronic Identifi cation and Trust Services Regulation (910/2014/EC) sets out rules for the use of trust services (electronic identifi cation and signature) and establishes a legal framework for electronic signatures (for natural persons), electronic seals (for legal persons), electronic time stamps, electronic documents, electronic registered delivery services and certifi cate services for website authentication.Under the Regulation, member states can choose to recognise and accept electronic identifi cation schemes that have been notifi ed to the European Commission. The notifi cation of electronic identifi cation schemes is not mandatory, however, states that do notify will be providing a clear indication that they are prepared and ready to trade in the digital market place.
49
v. Intellectual Property
Topic Area Relevant Regulations PurposeIntellectual Property Belgian Copyright Act
Dutch Copyright Act (Auteurswet)
These Acts are a legislative source for both copyright and related rights.
The Act sets out when such works will be protected and allows the owner to prevent other from infringing those rights.
Eff ectsCopyright seeks to grant protection to literary, artistic or scientifi c works to the author in his intellectual and personal relationships to the work and in respect of the use of the work. Only the author’s own intellectual creations constitute works within the meaning of the Acts. Protected works can be those of literature, science and art.
The author has the exclusive right of reproduction, distribution and exhibition.
Furthermore he has the exclusive right to communicate his work to the public in non-material form. For example, copyright is not infringed by the use of a quote from the work where it is used for criticism, review or otherwise, provided that the work meets certain criteria as set out in the Regulations.
In addition to the protection of a work of authorship, the Act seeks to protect copyright related rights such as protection for performers, photographs or broadcasting organisations.
Merchants must respect the intellectual property rights of creators and providers of copyrighted materials, information and other intellectual works in order to avoid infringing such rights and facing legal proceedings.
Topic Area Relevant Regulations PurposeIntellectual Property Benelux Convention on
Intellectual Property
(trademarks and designs)
The convention protects trademarks and other distinctive signs.
Eff ectsThe Benelux Offi ce for Intellectual Property (BOIP) is the offi cial body in the Benelux region responsible for the registration of trademarks and industrial designs. As such, trademarks registered at BOIP are protected in both Belgium and the Netherlands (and Luxembourg)Protected under the Convention are trademarks, business identifi ers and geographical indications. A trade mark is described as a sign, represented graphically which is capable of distinguishing the goods or services of one undertaking from those of other undertakings.The protection of a trademark is formally a result of the application and registration of the trademark. It may also result from the use of a sign in the course of trade or from the fact that a sign is well-known.The convention provides the registration of trade marks as well as enforcement of those trademarks.
50
Topic Area Relevant Regulations PurposeIntellectual Property Belgian Patent Act of January, 10
2011
Dutch Patent Act 1995, 1 April 1995
Broadly, these Acts protect monopoly rights in patents, giving the owner of the patent the right to use and exploit an invention industrially.
Eff ectsThe Acts apply when a monopoly right subsists in a patent and when it may be infringed. It also provides defences for such infringement.Patents shall be granted for any inventions in all fi elds of technology, provided that they are new, as long as they involve an inventive step and are susceptible of industrial application.There is a common platform for Patent registration across the Benelux countries:htt p://bpp.economie.fgov.be/bpp-portal/en/homeIn Belgium, Intellectual property queries can be directed to Belgian Offi ce for Intellectual Property (OPRI)The Dutch equivalent is the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland)
51
FINANCE & PAYMENTS
Payments overview
Belgium and the Netherlands have two very diff erent approaches to online payments and whilst payment cards are widely used in Belgium, bank to bank payments are much more popular in the Dutch market. International merchants should consider payment types accepted and make these choices very clear early on in the purchase process.
Belgium still favours card based payments and, according to Landmark Global, 35% of online payments are made via a credit card. PayPal also has a signifi cant presence with 12% of transactions going through the platform.
FAVOURITE PAYMENT METHODS IN BELGIUM
Bancontact/Mistercash
Credit cards
Other paymentmethods
23%
35%30%
12%PayPal
52
The same report also suggests that 30% of online payments are made through Bancontact/Mistercash. Bancontact is a domestic payment method that is linked to a bank account and can be used instore, online and via a mobile app. Bancontact transactions don’t have the risk associated with chargebacks commonly associated with card payments. According to Worldpay, over 80% of online merchants in Belgium accept Bancontact. The company also suggests that alternatives include bank transfers, which account for 18%; cash on delivery at 10% and Prepay at 4%. Whilst it isn’t advisable to mix datasets from diff erent sources, the data from Landmark and Worldpay do highlight the diff erent types of payment options that are viable in the Belgium market.
The Dutch view on payments is very diff erent. Payment cards (debit and credit) were never made for the distance selling environment and systems have had to be developed to make them work for online (distance selling) transactions. In the Netherlands, this issue was highlighted by the domestic banks very early-on in the development of online. Responding to these challenges, they developed a mechanism which facilitated payments without cards. The system used bank to bank transactions to enable secure transaction to take place online and is called iDeal.
According to the 2016 annual report from the Dutch Payments Association6 iDeal accounted for 56% of online purchases in 2015. The closest alternative is credit card usage at 12% followed by SEPA direct debit at 6%.
Figure 6 Dutch Payments Association Annual Report 2015
For many countries, direct debit is used for regular or perhaps one-off annual payments. For example, utility bills or annual subscriptions. In continental Europe they are also used for one-off payments. Under the Single European Payments Area (SEPA) direct debit payments are increasingly used for cross-border payments. PayPal also has a strong presence in the Dutch market.
20% of online transactions in the Netherlands are conducted via a mobile device according to the Dutch trade association, Thuiswinkle. Of total online transactions, 14% are via tablet and 6% are on a smartphone. Following this trend, iDeal is now available for use via banking apps and 23% of all payments are carried out on mobile.
6 www.betaalvereniging.nl/wp-uploads/2016/07/Annual-Report-Dutch-Payments-Association-2015.pdf
PROPORTION OF PAYMENTS MADE BY VARIOUS METHODSPercentage of online purchases in 2014 and 2015
iDEAL | 56%
Credit card | 12%
Direct debit | 6%
Credit transfer | 5%
PayPal | 5%
Acceptigo | 4%
Debit card | 3%
Gift cards | 3%
AfterPay | 2%
Other | 4%
2015
53
Consumer concerns around online security and payments is key to the success of online. 15% of Dutch consumers are very concerned about online banking fraud according to data compiled by Statista.com in 2014, while 39% are fairly concerned and these fi gures go some way to explain the success of iDeal which is seen as being more secure than card payments.
In Belgium, 91% of Belgian consumers haven’t experienced online banking fraud. However, 1% have done so on a regular basis whilst 8% have been impacted occasionally. This low level of impact and fear goes some-way to explaining why payment cards are still the main method for paying online in Belgium.
The international card schemes, Visa, MasterCard and American Express have all introduced additional
security features for online card payments. The most notable is 3D-Secure. This is a mechanism by which card users have to authenticate themselves during the online transaction by responding to a security challenge, usually providing a full or partial password response. Card issuers in both territories are supporting 3D-Secure functionality and according to the Ogone 3D Secure Barometer in 2014, that latest data available, 60% of Dutch and 89% of Belgian online card transactions are being authenticated by this method.
It is clear form this insight that card payments are key for accessing the Belgian market whilst iDeal is a requirement for the Netherlands. Card acceptance will enable merchants to get traction in both territories but off ering local alternatives, such as iDeal and Bancontact will give consumers increased confi dence in trading with foreign brands. For the brands there may also be transaction cost benefi ts, such as reduced or no chargeback liability.
0 10% 20% 30% 40%
Very concerned
Fairly concerned
Not very concerned
Not at all concerned
Do not know
LEVEL OF CONCERN ABOUT ONLINE BANKING FRAUD
0 25% 50% 80% 100%
Often
Occasionally
Never
Do not know
CUSTOMERS WHO HAVE EXPERIENCED BANK FRAUD
54
Taxes and duties
VAT and duties is a complex area and any businesses should seek expert local guidance before trading into any international market. This section is designed to provide an overview of key fi gures, processes and authorities in the Netherlands and Belgium during 2015/16. Wider political changes, such as the UK leaving the EU in the coming years, may well have an impact on how these regimes impact international merchants, particularly those currently based in the UK.
Member State
Code Super Reduced Rate Reduced Rate (%)
Standard Rate (%)
Parking Rate (%)
Belgium BE - 6 / 12 21 12Netherlands NL - 6 21 -
Table 18: List of VAT rates by member state. Source: European Commission 20167
For both the Dutch and Belgian markets, there is a €150 threshold8 above which consumers are expected to pay duties.
For businesses that aren’t resident in Belgium and sell goods to consumers via the internet, there is a €35,0009 threshold before registration is compulsory.
VAT registered businesses based in another EU state, selling goods online to Dutch consumers, must register in the Netherlands for VAT when those sales exceed €100,000 per annum.
Because the rules around duties are complex, particularly around diff erent product categories, the Dutch customs authorities provide guidance for consumers which is also indicative for businesses.
For example, for consignments up to €22, consumers aren’t liable for either VAT or duties when purchasing online from a non-EU business. Between €22 and €150, VAT becomes due but duties aren’t applied. Over €150 and both VAT and duties become chargeable. Alcohol, perfumes and toilet waters att ract excise duty at any value.
For intra-EU purchases, the customer is expected to pay VAT to the merchant and excise duties on alcohol.
The goods come from a: Value of shipment (excl insurance and P&P costs)
Taxes for import
EU country* Unlimited You only pay VAT to the company from which you have bought the goods, not to Dutch Customs.
You pay excise duty for alcoholic products.
non-EU country** Up to € 22
No VAT
No import duties***
non-EU country** More than € 22 up to € 150 No import duties***
You have to pay VATnon-EU country** € 150 or more You have to pay import duties***
You have to pay VAT.*EU-country: countries that are members of the European Union**non EU-country: countries that are not members of the European Union*** The term import duties refers to this list too: other import duties, such
as anti-dumping tax, agricultural levies, and so on.
You must pay excise for alcoholic beverages, perfumes and toilet waters.
Table 19: Consumer guidance from Dutch tax authorities showing thresholds for VAT. Source: htt p://www.belastingdienst.nl August 2016
55
VAT in the Netherlands for most consumer products is at the standard rate of 21%. Duties however are much more varied. For example, footwear varies between 3.5% and 17%, depending on its constituent parts.
Product Import duties varies from / up to VATTelephone extensions 0 21%Computers and computer parts 0 21%Headphones and microphones 0 to 2 % 21%Toys 0 to 4.7% 21%Books 0 21%CDs and DVDs 0 to 4.7% 21%Suitcases and weekend bags 0 to 3.7% 21%Footwear 3.5 and 17% 21%Jewellery 0 to 4% 21%Clothing 0 to 12% 21%Beauty products/ care products 0 21%Car and motorbike parts 3 to 4.5% 21%Watches 4.5% (min € 0.30 and max € 0.80 per watch) 21%
Table 20: Examples of duties applied to consumer products in the Netherlands. Source: htt p://www.belastingdienst.nl
Being members of the EU, both the Netherlands and Belgium operate under the customs and taxation regulations set by the community. However, there are local variations and it is worth understanding these before trading into either of these countries.
Federal Public Service Finance htt p://fi nance.belgium.be/enBelastingdienst www.belastingdienst.nlEuropean Commission – EU Customs portal htt p://ec.europa.eu/taxation_customs/index_en.htm
Table 21: Names and website addresses of relevant customs and taxation authorities.
There are a number of global providers of advice that can help businesses bett er understand their tax and duties obligations but it is important to understand the local variations.
7 ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf
8 en.santandertrade.com9 vatlive.com
56
BELGIUMGERMANY
FRANCE
UNITEDKINGDOM
NETHERLANDS
LOGISTICS & DELIVERY
Belgium and the Netherlands combine to off er a compact online logistics market of:
Belgium Netherlands28.1 million people 11.2 million 16.9 millionof which 22 million are within the 15 – 79 age range
8.7 million 13.3 million
and are living in 11.5 million homes 4.75 million 6.9 millionwithin an area of 72,000 sq kms 30,500 sq kms 41,500 sq kms
Additionally, located at the commercial and political heart of Europe both countries are served with excellent air, freight and logistics networks making this combined market highly accessible to online retailers from around the world.
This is evidenced by the fact that 46% of Dutch online consumers and 52% from Belgium, have shopped with non-domestic retailers10.
10 Ecommerce in Europe – 2015 -Postnord
57
Although Belgium consumers tend to buy from their near neighbours, Dutch shoppers are happy to look further afi eld with the most popular countries as demonstrated by the table below using multiple sources to validate this conclusion:
Belgium10 Netherlands10 Netherlands 11
Netherlands 25%Germany 7% 14% 15%UK 6% 16%USA 11% 12%China 10% 23%
Logistics choices to reach Belgium and Netherlands
For retailers not based in Belgium and the Netherlands but wishing to reach these markets with their e-retail proposition, there are a number of excellent logistics options.
International postal services
Using PostNL in the Netherlands and bpost in Belgium, as the fi nal delivery agents, retailers will be able to access services through their own domestic postal providers. From the UK for example, Royal Mail provides the following service options (example – small parcel weighing 500 grams and valued under £50):
Belgium NetherlandsRoyal Mail International Tracked and Signed – tracked to delivery signature and limited compensation
3 to 5 days’ delivery 3 to 5 days’ delivery
Royal Mail International Tracked – tracked to delivery confi rmation and limited compensation
3 to 5 days’ delivery 3 to 5 days’ delivery
Parcelforce Worldwide globalexpress - tracked and higher level compensation
1 day guaranteed 1 day guaranteed
Parcelforce Worldwide globalpriority - tracked and higher level compensation
3 days’ delivery 3 days’ delivery
Parcelforce Worldwide globalvalue - not tracked but with higher level compensation
3 to 5 days’ delivery 3 to 5 days’ delivery
11 Ecommerce in Europe – Cross-border bestedingen 2015
58
Global carriers
There are a number of global carriers able to provide collection, distribution and delivery into Belgium and the Netherlands (using their own operations or local partners). The main ones are:
Fed Ex / TNTThese two companies have now combined and dependent on the service required and the point of origin, diff erent services may be off ered. As examples transit times are shown from the UK and the US:
Belgium Netherlands
Fed Ex - International Priority 2 business day to main centres – from the US2 business day to main centres – from the US
Fed Ex - International Economy 2 to 5 business days – from the US2 to 5 business days – from the US
TNT Economy Express 2-day delivery - from the UK2-day delivery
TNT Express Next day delivery - from the UK Next day delivery
UPSUPS off ers a range of services and delivery times to Belgium and the Netherlands subject to country of origin and the specifi c destination.
The example service times below are from the UK from where all the services are available except UPS Expedited (which applies only to non-EU destinations). UPS services are designed for business deliveries and the service times shown are for delivery to business areas. Residential / rural areas may take a litt le longer and may incur a surcharge.
• UPS Express Plus – next business day – delivery by 09:00 • UPS Express – next business day – delivery typically by 10:30 noon or by 12:00• UPS Express Saver – delivery by end of next business day• UPS Expedited – 2-5 business days – delivery by end of day – 2 days from the UK • UPS Standard – day defi nite by date scheduled – delivery during the day - 2 days from the UK The Express services come with a money back guarantee should the delivery be att empted aft er the specifi ed time.
DHLDHL off ers four service options to Belgium and the Netherlands with example transit times to main centres shown below – deliveries to remote areas may take slightly longer:
• Export Express 09:00 delivery the next possible working day• Export Express 12:00 delivery the next possible working day• Export Express Worldwide - Guaranteed delivery by the end of the next possible working day• Export Economy Select For ecommerce deliveries it is likely that the most viable option will be Export Economy Select where, by example delivery from the UK is 2 working days.
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DPD DPD off ers four main international services to Belgium and the Netherlands with availability and transit times dependent on the origin of the shipments:
• DPD Direct – a consolidation service with transit times of 3 to 4-days from the UK• DPD Classic – off ers an intra Europe service with delivery typically between 2 and 6 days
» 2 days from the UK
• DPD Air Classic – typically off ering global delivery in between 3 and 10 days » 3 to 4-days days from the UK
• DPD Express - typically off ering global delivery in between 2 and 8 days » 2 days from the UK
Domestic carriers
In addition to the global carriers mentioned (which will also be domestic carriers in some markets), domestic carriers based in the retailer’s own market will oft en accept online retail orders and ship them to Belgium and the Netherlands through third parties.
Domestic carriers will sub-contract the onward shipment, oft en to a global carriers or postal service, but for a retailer holding a contract with a domestic carrier this can be a natural starting point for accessing services in cross-border markets. Finding out what options they provide can be a useful benchmark.
Service times will vary depending on the line haul arrangements in place and the service partner chosen.
Direct access
Direct access describes a solution used to consolidate volumes from diff erent senders to achieve bett er air transport rates. Consolidated orders are shipped to the destination country where they are handed to local partners for the fi nal delivery.
Direct access operators provide a managed service that can include:
• In-transit tracking• Customs clearance – oft en ‘wheels up’ in advance of arrival• Multiple points of entry – reducing ‘in country’ line haul costs and lead times• Calculation and payment of duties in advance of order and dispatch• HTS (Harmonised Tariff Schedule) code classifi cation• Tracked returns – for unwanted and undeliverable itemsWhere a retailer has suffi cient volume to be able to contract with a direct access operator there is the opportunity to get a ‘courier’ level service at less than ‘courier’ rates.
Parcel brokers
Parcel brokers provide retailers a way of accessing bett er pre-contract rates through postal operators, global and domestic carriers and direct access providers.
Parcel brokers do not off er all carrier options, only those that choose to contract with them and some are more suited to consumer and SME retailer dispatches. For example, companies like Parcel2Go and Parcel Monkey provide this channel into Belgium and the Netherlands using the likes of TNT, DPD, Asendia, UPS, Hermes and Parcelforce.
For larger retailers, bulk brokerage is available to Belgium and the Netherlands. A leading broker for these markets is Spring Global Delivery Solutions who consolidate volumes and use their resultant buying power to obtain preferential rates from service partners, creating savings which can be shared with their clients.
Brokers may, in some cases simply sell on the services of their chosen partners or, acting in a similar way to direct access operators, can also create service packages.
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Spring Global Delivery Solutions for example provides its Forward Logistics suite of services with:
• Spring Packet Lite | Reliable and aff ordable service for items up to 500 grams• Spring Packet | Aff ordable service for items up to 2kg• Spring Packet Extra | Signature on delivery for items up to 2kg• Spring Packet Tracked | Tracked service for items up to 2kg• Spring Parcel | Tracked service for items up to 10kg• Spring Express | Courier service• Depending on the service chosen delivery from the UK takes between 1 to 5 business days• Spring Packet Lite and Spring Packet are non-tracked delivery options designed to be highly aff ordable,
and as they are shipped through a priority postal network.• The other Spring Packet and Parcel option have tracking information available, ranging from status
updates to fully tracked delivery options.
IntegratorsRetailers with a reasonable volume of orders going to Belgium and Netherlands may wish to consider the option of parcel management service integrators who can provide immediate integration with a wide range of service providers delivering into the Belgium and Netherlands market. These will include most of the options above (excluding parcel brokers) and many others.
The retailer will need to have or enter into a contract with the delivery service provider but then the integrator will off er the ability to allocate orders to the most appropriate service – using agreed business rules - printing labels and customs documentation, providing tracking and helping to manage returns. For smaller retailers some integrators off er their own parcel broker option that can help obtain bett er rates.
Providers of such services include MetaPack, ITinSell, Consignor and Electio.
In-country fulfi lmentShould a cross-border retailer generate suffi cient orders to fulfi l those orders ‘in country’ then it may choose to hold its inventory more locally.
For example, PostNL - the Dutch postal operator, provides a fully managed solution including warehousing and warehouse management, order picking and packing, IT and customer services support with, of course access to a full range of transportation and distribution services.
Customs and clearanceThe question of taxes and duties is covered earlier in this passport but needs to be referenced under the heading of logistics because any error can clearly delay clearance and delivery to the customer.
The delivery operator selected will be able to provide full details and advice on the necessary documentation and processes and some can go further by pre-clearing orders whilst the goods are in transit or at the start of their journey using a Consumer Duty Paid process. This can be done using the HTS (Harmonised Tariff Schedule) code assigned to each product category and can reduce delivery times and remove a potential barrier of having the goods held when they arrive in Belgium and the Netherlands.
Retailers are therefore advised to specifi cally ask what their chosen delivery partner can do to facilitate customs clearance and duty calculation / collection.
Of course as a member of the European Union dispatches from within the European Union to Belgium and the Netherlands will not be subject to customs clearance.
Packaging E-retailers looking to enter the Belgium and Netherlands markets should be aware of the various packaging requirements needed for products crossing the border, though depending on the specifi c goods being exported, these requirements can vary greatly and depending on the industry, regulations are oft en administered and enforced by diff erent Government bodies.
When contemplating packaging rules and standards, retailers should refer to the packaging regulations for their specifi c industry.
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Delivery in Belgium and the Netherlands
Any retailer wishing to compete for Belgium and Dutch consumer’s needs to appreciate the delivery services provided to them by local retailers because these will provide direct competition.
Some of the delivery services likely to be used by Belgium and Dutch retailers are, at a glance:
Belgium NetherlandsPostNL • Lett erbox packet services
• Standard – tracked / unsigned• Signature option• Insured option• Cash on Delivery option
Bpost / Landmark Next day delivery with trackingInsured with signature optionCash on Delivery option
DPD Classic – Next day delivery with insurance and proof of delivery Optional:• Pre-delivery advice• Cash on Delivery• Enhanced insurance• Saturday deliveryExpress – by 10:00, 12:00 and 18:00 timed delivery options with tracking, pre-delivery advice, insurance and money back guaranteeOptional:• Cash on Delivery
DHL Next day deliverySaturday option in the Netherlands
UPS Express - Next day deliveryStandard 1 to 2-day delivery
Belgium and Netherlands Consumer Delivery Requirements
When a retailer is deciding on the delivery off er to provide it is important to consider the needs and wants of Belgium and Netherlands online shoppers and to recognise that any importing retailer is going to be competing with local retailers already meeting these needs.
The importance of this is confi rmed by a 2015 study12 reporting that for consumers in the Netherlands:
• 47% would be unlikely to shop again with a retailer following a negative delivery experience• 94% would shop more with a retailer following a positive delivery experience
12 MetaPack Delivering Consumer Choice – 2015 State of ecommerce Delivery
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Delivery times
In both markets the speed of delivery available from a retailer is important to consumers when they are making the decision to shop with them. 43% of Dutch consumers and 42% of Belgium consumers consider it important that a maximum 3-day delivery option should be on off er 13.
• Dutch shoppers have a higher than normal expectation for fast delivery with 32% expecting delivery in 1 to 2 days and 57% in 3 to 5 days 14.
• Belgium shoppers are a litt le less demanding with 15% looking for a 1 to 2-day delivery and 62% in 3 to 5 days.
• The Dutch requirement is confi rmed by independent surveys: » A DHL Global study in 2013 showed that the maximum acceptable delivery time for Dutch shoppers
is less than 5 days, one of the shortest delivery window expectations in Europe 15.
» A UPS study showed that, against a European average score of 15%, 18% of Dutch consumers ranked delivery speed as the most important consideration when selecting a retailer to shop with 16
The UPS study also confi rms that the majority of Dutch consumers (76%) expect next day delivery as the norm from local retailers, compared with an average 38% of shoppers in the other European countries surveyed where a 2-day delivery is acceptable (60%).
Premium delivery options
It would appear that this demand for timely delivery also extends to the demand for premium options. When surveyed17 Dutch consumers said they would appreciate the option for:
• Evening delivery – 46%• Sunday delivery – 33%• Same day delivery 14%. This level of demand is confi rmed by independent surveys asking about
same day delivery: » The MetaPack 2015 survey reports that 12% of its respondents have used same-day delivery
» The UPS 2015 survey confi rms that 19% of its respondents would expect to see this option from domestic retailers
Delivery cost
Perhaps in recognition of their desire for delivery speed, Dutch consumers appear less price conscious than their Belgium counterparts with 40% ranking ‘lowest price delivery’ as a key driver for their decision to shop online, compared with 46% in Belgium18. The UPS study supports this view to some extent by reporting that 63% of Dutch shoppers consider free delivery important, compared with a European average of 73%.
That doesn’t mean however that delivery cost is not important to Dutch consumers. A 2013 survey by DHL Global Mail reported that ‘free delivery’ ranked as the second most important criteria for choosing a specifi c retailer (aft er favourable product prices, promotions and special off ers) and that delivery costs perceived to be high would be a barrier to shopping online for 45% of consumers19.
This is particularly the case when shopping abroad with perceived high delivery costs (57%) and extended delivery times (51%) ranking as the two most signifi cant barriers. This ranking is confi rmed by the MetaPack 2015 study, ranking #1 Too expensive (57%) and #2 Delivery would take too long (40%).
13 Ecommerce in Europe – 2015 - Postnord14 Ecommerce in Europe – 2015 - Postnord15 DHL Global Mail – 2013 – Study of 10,300 online consumers across 21 international markets. Global average expectation 6.5 days16 UPS Pulse of the Online Shopper – March 201517 Ecommerce Europe reports and Thuiswinkel Market Monitor reports18 Ecommerce in Europe – 2015 - Postnord19 DHL Global Mail – 2013 – Study of 10,300 online consumers across 21 international markets
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Pre-delivery advice
It is now accepted that information about delivery, before purchase and during transit, is a requirement for all online shoppers.
In the Netherlands three quarters of shoppers confi rm that they would like to see delivery options displayed / signposted from each product page so that they can factor delivery into their purchase decision20.
The UPS study confi rms this by showing that the main reason for cart abandonment amongst Dutch shoppers is either that21:
• Delivery costs made the total purchase price more than expected (61%); or• The shopper was just checking the delivery price in advance (53%)
Knowing when the goods will arrive is also important with the MetaPack survey reporting that 83% of Dutch consumers want to receive a time slot notifi cation for delivery.
It appears that email is by far the most popular media with almost 85% of consumers but with SMS and mobile apps sharing a share of preference for the remainder22.
Click & collect in Belgium and Netherlands As with many other markets, Belgium and the Netherlands have adopted click & collect as a means to provide an alternative delivery channel to shoppers.
For shoppers in the Netherlands, delivery to home is reported as the most popular delivery location followed by delivery to a Post Offi ce for collection23. However, a separate study by DHL declares that the option to deliver to a preferred location ranks highly as a decision driver for online shopping.
This is confi rmed by the more recent MetaPack 2015 survey which examines 6 markets and reports the use of a variety of delivery locations by shoppers. In the Netherlands:
• Home – 92%• In-store click & collect – 28%• Pick Up Point / Post Offi ce – 32%• Delivery to work – 12%• Locker – 3%
Alternative delivery location and click & collect solutions in Belgium and the Netherlands include:
Belgium – number of locations
Netherlands – number of locations
UPS Access Points (Kiala) 1000 900DPD Pick Up 750 750myHermes Parcelshops 1400 2500PostNL 2900 parcel shops across Benelux and lockers at most major railway stations in
the NetherlandsDHL Service Points 1600 1300bpost 1250 pick-up points and post offi ces
plus 150 parcel lockers Kariboo 720
20 MetaPack – Delivering Consumer Choice – 2015 State of ecommerce Delivery21 UPS Pulse of the Online Shopper – March 201522 IPC Online Shopper Survey – January 201623 IPC Online Shopper Survey – January 2016
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Returns in Belgium and Netherlands
European consumers have a statutory right to return goods within 14 days which means that as well as it being good practice to provide a transparent and effi cient returns solution, there is a legal imperative too.
Being provided with a simple returns process is an important factor in Belgium and the Netherlands but no more so than in other European markets. The 2015 Postnord report confi rms that this is considered important by:
• 51% of Dutch shoppers• 57% of Belgium shoppers
However, Dutch consumers are active returners and the same report shows them 2nd only to German consumers with 36% reporting having made a return in the past 12 months25 (Germany 41%). Belgium consumers are less active at 21%.
For Belgium and the Netherlands cross-border retailers can arrange for returns to be sent back to the country of origin (where it can be delivered back to the originating retailer to be processed) through the postal route or a carrier.
Another option; to reduce the lead time between the item being sent and being available for re-sale / disposal and customer credit, is for the return to be processed ‘in country’. PostNL provides such a service including inspection and re-conditioning of returned items and can link this to its suite of returns services:
• International Business Reply Service where the retailer pays the return fee• Return on Demand: a new service whereby PostNL will collect the return within 60 minutes (or other
preferable timeslot)
• Some operators now provide local processing centres where the return can be locally validated, quality controlled and the refund issued. This allows orders to be consolidated for return to stock, disposal or even, when there is suffi cient demand, for the goods to be retained in Belgium and the Netherlands and used to fulfi l another local order.
To help retailers manage the returns process some operators are developing white label / multilingual returns portals matching up the original order with the return.
These portals make it is easier for the customer to make returns, off ering multiple payment options such as customer or retailer paid. The customer can print the label, see when a return has been received and when their refund is due.
For the Belgium and Dutch markets such services are provided by the likes of Spring Global Delivery Solutions whose solution identifi es a range of international and local returns networks with tracking and compensation options and manages the returns with retailer and customer notifi cations in one single IT-platform.
When selecting their delivery partner for Belgium and the Netherlands retailers should fi nd out what arrangements they can make for returns.
25 This is consistent with the DHL Global Mail 2013 study also reporting in excess of 30% for this measure. The same study reports that 25% of Dutch consumers look for free returns when choosing a retailer and 17% want a simple returns process
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REFERENCES
This report uses content from a variety of sources, as set out in the list below. Many of these sources are available to the general public, and can be consultedfor further information surrounding a specifi c topic. The sources consulted include, but are not limited to:
• adcolony.com
• adobe.com
• asendia.co.uk
• atkearney.com
• avalara.com
• bring.com
• buzzador.com
• cia.gov
• copcap.com
• deloitt e.com
• dibspayment.com
• ec.europa.eu
• emarketer.com
• fanceta.fi
• fdim.dk
• go.2checkout.com
• ipsos.com
• mvfglobal.com
• nationalbanken.dk
• nielsen.com
• njordlaw.com
• nordiccommercegroup.com
• oecd.org
• postnord.com
• redeye.com
• salesforce.com
• skat.dk
• skatt everket.se
• statista.com
• statsmonkey.com
• strategyanalytics.com
• tns-gallup.dk
• tns-gallup.no
• tnsglobal.com
• toll.no
• tradedoubler.com
• unctad.org
• vero.fi
• worldpay.com
DISCLAIMER
This document is provided for general information purposes only and does not constitute legal, investment or other professional advice on any individual matt er. Whereas every eff ort has been made to ensure that the information given in this document is accurate, eCommerce Worldwide accepts no liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, fi rm, company or other organisation mentioned. Publication as well as commercial and non-commercial transmission to a third party is prohibited unless prior permission is obtained from eCommerce Worldwide. The views expressed in this publication do not necessarily refl ect the views of eCommerce Worldwide.
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SPRING GLOBAL DELIVERY SOLUTIONS
As an autonomous broker Spring Global Delivery Solutions handle international deliveries across the most reliable networks.With 13 offi ces worldwide, it connects 3 continents and covers 190 countries. Spring have the knowledge and experience in gett ing your mail, packets and parcels to your customers. And back, if necessary.
In 2001, Spring was brought to life by founding fathers PostNL, Singapore Post and Royal Mail. Since 2013, Spring are fully part of the PostNL Group. PostNL is the national mail and parcel services provider of the Netherlands. It operates the largest mail and distribution network in the Benelux (Belgium, Netherlands & Luxembourg) region. In addition, PostNL has built a strong local foothold in Germany (Postcon) and Italy (Nexive). Together we deliver over 1.1 million items to 190 countries. Every day.
Spring are the exclusive sales agent for PostNL outside the Benelux, and can therefore off er you direct and unparalleled access to approximately 7 million households in the Netherlands.
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We off er a broad and reliable portfolio of forward and return distribution services:
Forward Logistics• Spring Packet Lite | Reliable and aff ordable
service for items up to 500 grams• Spring Packet | Aff ordable service for
items up to 2kg• Spring Packet Extra | Signature on
delivery for items up to 2kg• Spring Packet Tracked | Tracked service
for items up to 2kg• Spring Parcel | Tracked service for
items up to 10kg
• Spring Express | Courier service• Depending on the service chosen delivery from
the UK takes between 1 to 5 business days• Spring Packet Lite and Spring Packet are
non-tracked delivery options designed to be highly aff ordable, and as they are shipped through a priority postal network.
• The other Spring Packet and Parcel option have tracking information available, ranging from status updates to fully tracked delivery options.
International ReturnsA hassle-free returns service can be decisive for potential buyers to order from your online shop. The bett er the experience of the return process, the more likely they are to re-order and recommend your online shop to others.
With International Returns Spring off er easy, fl exible and intelligent solutions for all your international returns. We provide an optimal mix of return solutions to fi t your and your customer’s needs. From cost effi cient to premium services, we put you in control of your global returns.
An overview of our international returns services:
Returns Coun
trie
s
Max
imum
si
ze
Max
imum
w
eigh
t
Ave
rage
No.
of
days
to re
turn
Trac
king
Com
pens
atio
n
Send
er P
ays
Labe
l in
the
box
Untracked packet 29 L+W+H=<90cmL=<60cm 2 kg 5-6
Untracked 19 Varies per country 31.5 kg 3-10
Untracked Non Postal 8 Varies per country 10-30 kg 3-10
Tracked Packet 29 L+W+H=<90cmL=<60cm 2 kg 5-7
Tracked 20 Varies per country 31.5 kg 3-10
Tracked Non Postal 8 1Varies per country 10-30 kg 3-10
Tracked Plus 16 58x75x150 cmL+CF <300 cm 30 kg 2-7 ++ ++
Express all Pallet SizeH <180 cm 150 kg 2-11 ++
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PostNL
Spring Global Delivery Solutions are the exclusive sales agent for PostNL outside the Benelux, and can therefore off er you direct and unparalleled access to approximately 7 million households in the Netherlands.
PostNL is the essential link between senders and receivers of mail and parcels. Whether it is online or through its physical networks, PostNL aim to facilitate a seamless connection. Providing customers with reliable, trustworthy services and control over their deliveries; whether they are major e-tailers or consumers. PostNL is always close by: its deliverers reach every address in the Netherlands, through rain, hail and snow.
PostNL is a three segment business, over 49,000 employees, and more than ten networks across thirteen countries, connecting three continents. With its loyal workforce, extensive networks and innovative drive, PostNL’s ambition is to be the leading postal and logistics solutions provider in chosen markets.
PostNL processes on average 10 million lett ers a day. Each lett er follows a carefully planned route, to ensure that its delivered on time and at the right address. Five days a week with 96.4% of all lett ers delivered the next day.
On average PostNL sorts 500,000 parcels a day, and in 18 depots throughout the country 2,600 delivery rounds are being prepared. Already in 2014, PostNL off ered a seven days a week delivery, and quickly added evening delivery, same-day and guaranteed delivery as well. PostNL off ers the highest quality parcel delivery network in the Netherlands, with 97% of all domestic parcels delivered within 24 hours.
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PostNL facts & fi gures• 2,900 post offi ces and parcel points
in the Netherlands
• 2,401 million addressed mail items in the Netherlands
• 130 million parcels in the Netherlands per annum
• 12 million online contacts in the Netherlands
• 97% of domestic parcels are delivered within 24 hours
• 18 parcel depots in the Netherlands covering the entire country
• High density delivery network: on average 1 driver per 10.9 km²
PostNL Parcel Services• Signature on Delivery
• Insured Delivery
• Cash on Delivery
• Extra@Home : delivery of heavy items and/or household appliances, installation and recycling of old appliances
• Sunday Delivery
• Evening Delivery
• Same Day Delivery
• Customers can pick up their parcel at one of the 2,900 post offi ces, parcel points or locker boxes (at major train stations)
• Customer notifi cations in PostNL app or via SMS / email
Returns services from the Netherlands• Business Reply Service
• International Business Reply Service
• Return on Demand: a new service whereby PostNL will collect the return within 60 minutes (or other preferable timeslot)
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Cross-Border Trading ReportBelgium & the Netherlands 2016
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Published May 2016ecommerceworldwide.com
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