The world of eCommerce...Fastest delivery time 12% 6%> 10 working days 13%5 working days maximum...

The world of eCommerce

• Who is using it ?

• How much is purchased ?

• What are customers buying on the internet ?

• Why buying using internet ?

• How are financials & logistics handled ?

How does eCommerce support your business ?






2

Who is using it ?

• Young people are early adopters

• ‘older’ (> 44) online buyers have the strongest increase in internet use

higher income !

last ones to be convinced


Who bought online, facts and figures

Global 75 %

Belgium 60 %

57 % (< 12 months)

3













4

How much is purchased ?

Monthly sales

increase of 8 %

How does eCommerce support your business ? 5

How much is purchased ?

• Average / month

• € 2.040 / year

• 89 % frequent users,

loyal customers !














7

What are customers buying ?

• DVD / CD loses marketshare due to illegal downloads

• Personal care products increased

• Food is the most recurring sales

• Hotel and travel

Once or twice a year


What are customers buying ?

• TRENDS big e-tailers investing in eCommerce and a web shop

customers are influenced with promotions

• Examples

Zalando shoes / clothing

Torfs shoes

ZEB clothing

Bel & Bo


Marketing Spot

TV Spot Zalando


Zalando_TV.mp4

Zalando_TV.mp4













11

Why buying using internet ?

• Where ?

50 % prefers Belgian websites they trust

70 % wants delivery tracking

• Why ?

Price most important reason (42 %)

Customer wants to pay for correct / quick delivery

Easy & available 24/7

It saves time

Delivered at my preferred pick-up point


Legal Profile of companies

26% 26% 32%

38%

51%

67% 66% 6% 4%

2%

5%

2%

0% 5% 68% 70% 66%

57% 47%

33% 29%

2007 2008 2009 2010 2011 2012 2013

An independent Belgian company A branch / subsidiary of a Belgian mother company

A branch / subsidiary of a foreign mother company

Belgian Company vs. Foreign company


Legal Profile of companies


50% 44%

62% 57%

47% 56%

76%

6% 13%

6%

2%

44% 43%

32%

43% 51%

44%

24%

2007 2008 2009 2010 2011 2012 2013

Only consumers (B2C & C2C) Only businesses (B2B) Both consumers and business

B2C vs. B2B

14













15

How are financials & logistics handled ?

• Payments

40 % using credit card (- 10 % in 2013)

22 % using pc banking (+ 8 % in 2013)

• Delivery

70 % uses home delivery (+ 10 %)

26 % wants free delivery 50 % wants to pay (max. € 7,5)

Return possibility is frequently used


Different types / methods of payment

0%

59%

56%

58%

67%

80%

88%

5%

57%

43%

43%

57%

71%

86%

40%

34%

40%

40%

57%

79%

96%

Bank-Branded Pay Buttons

American Express

PayPal

IDEAL

Maestro

Bancontact/Mister Cash

Visa, Master card

2011 2012 2013

The share of each payment method is

increasing. Bank branded pay button is

not popular anymore for pure players.


Average amount order

6% 5% 2% 8%

4% 11%

6%

3% 6% 6% 5%

5%

11%

7%

6% 6%

19%

10% 18%

19%

4%

17%

28%

35%

16%

8%

36%

22%

23%

16% 20%

23%

27% 19%

22%

35%

25% 25%

27%

19%

19%

22%

12%

9% 5% 11% 12%

2007 2008 2009 2010 2011 2012 2013

n.a. < 15€ 15€ - 30€ 31€ - 50€ 51€ - 100€ 101€ - 200€ 201€ - 500€ > 500€


Share of turnover vs total turnover

13% 15% 16% 24%

19%

33% 29% 3%

5% 9%

7%

11%

7% 2%

5%

6%

6%

16% 19%

5%

12%

13%

5%

9%

5% 2%

17%

11% 22%

35%

20% 11%

15%

17%

18% 22% 13%

14% 4%

9%

20%

13% 14%

11%

13% 20%

13% 16% 21%

6%

18%

2007 2008 2009 2010 2011 2012 2013

I prefer not to answer < 50.000€ 50.000€ - 125.000€ 125.000€ - 500.000€ 500.000€ - 1.000.000€

1.000.000€ - 5.000.000€ 5.000.000€ - 10.000.000€ 10.000.000€ - 25.000.000€ > 25.000.000€


Logistics service providers

18%

14%

12%

12%

24%

12%

39%

59%

16%

10%

10%

21%

21%

21%

37%

58%

21%

13%

15%

9%

19%

21%

26%

64%

Other

Mondial Relay

DHL

UPS

DPD

TNT PostPakketService

Kiala

Bpost

2011 2012 2013

Bpost is still most used logistics carrier


Delivery to the end user

65%

55%

35%

20%

0%

10%

73%

46%

30%

23%

0%

9%

65%

38% 38%

19%

3%

16%

60%

45%

32% 34%

11% 9%

63%

37%

42%

16% 16%

10%

71%

41% 41%

18%

12% 12%

Via postal services Courier (e.g. UPS, TNT,

DHL, …)

Through pick-up points

(e.g. Kiala, Mondial Relay,

…)

Through a private

transport service

Other None of those

2008 2009 2010 2011 2012 2013

Pick-up points are gaining more attention in

the last two years


Time slot delivery

6%

12%

22%

60%

0%

16%

21%

63%

2%

13%

17%

75%

Via locker network

Via Pick-up points

Via Delivery at Home

No Time slot delivery

2011 2012 2013

The locker network is coming up next to

Pick-up points.


Fastest delivery time

12%

6%

13%

13%

6%

44%

6%

none needed

> 10 working days

5 working days maximum



The day after the order

Same day delivery

2013

Half of the delivery times happen on either

the same day, or the day after the order has

been placed.


Track & Trace Service

17%

33%

50%

2013

This year Later Never

62%

38%

2013

Yes No

Introduce Track and Trace service


Free Delivery Policy for Physical Products

84%

16%

2013

Yes No

Offer a free delivery service

100%

2013

This year next year Later or never

Introduce free delivery service


Free Return Policy for Physical Products

62%

38%

2013

Yes No

Offer free return policy

40%

20%

40%

2013

This year Later Never

Introduce a free return policy


General Trends

• Growth : 2005 2012 : + 875 %

• Vouchers : 2011 2013 : + 385%

• 2013 : € 1,4 Billion

• 2014 : + € 2 Billion


General Trends

• eCommerce is mature and generally accepted

• Most important decision trigger to buy online PRICE

• 6 out of 10 people in Belgium purchase online

• Web shops Booming

Linear growth

• Age difference internet buyers is decreasing

• eCommerce is, compared to Belgium, more popular in other European countries


eCommerce in Pharma

• B2B

2000 : pioneer in eCommerce

2007 : one portal, multi companies

• B2C

2009 : Legal evolution

pharmacy can sell OTC products using own web shop


Buying medicines using internet

• Pharmacy websites possible since February 9th 2009

• What kind of products can be sold on internet ? OTC, beauty, personal care products

No animal health products

No basic components for preparing products

Approval of Belgian government

• Can only be sold via pharmacy


Internet pharmacies

• Order by website, pick-up in pharmacy • Some of them offer delivery at home

additional cost !

• Examples : www.christophar.be www.zwitserseapotheek.be www.promopharma.be www.apotheektheunissen.be www.farmaline.be www.apotheekboits.be www.patrona.be www.newpharma.be www.farmapolis.eu ....


http://www.christophar.be/

http://www.zwitserseapotheek.be/

http://www.promopharma.be/

http://www.apotheektheunissen.be/

http://www.farmaline.be/

http://www.apotheekboits.be/

http://www.patrona.be/

http://www.newpharma.be/

http://www.farmapolis.eu/

How can eCommerce

support your business ?


Impact on representatives

• Must be included in company e-strategy

Q & A sessions

• It helps a rep to support / service a pharmacist

• Turnover via web shop

Immediately included in sales result

Added value for bonus


Different Success Stories

• Selling In strategy

• Selling Out strategy

• Mixed strategy

• ...


Impact on pharmacists

• Added value for rep not a replacement

• Personal social interaction crucial

• Increase customer satisfaction with support of online channel


Advantages / Benefits

• Younger pharmacist is native user

• Not just another eCommerce tool

Product information

Marketing information

e-Learning

FAQ

Contact

• One 2 one information to pharmacist


Advantages / Benefits

• Kept in the loop

• Online service = Company advantage

• Extraordinary situations bypassed

Direct sales

Communication to customer

• No drop in sales during vacation period


CRM tool

ERP

eCommerce

…

37

Key Notes / Final Remarks


E-commerce in Pharma

• Gap between young and old decreases

• e-Strategy is successful

• Portal has higher success rate than individual initiative

• Not just another eCommerce service

• Potential growth in eCommerce activities


Pharmacies Online Web Turnover

85 % 45 %

39

Business Case : PharmInTouch

• Started in 2007

• Complete integrated service

• B2B website CHC

OTC

RX

• Integrated with back office


PharmInTouch : current members


Services


Voucher / coupon

• Voucher strategy supported

• How does it work ?


Evolution Access Pharmacists

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

20

07

-01

20

07

-04

20

07

-07

20

07

-10

20

08

-01

20

08

-04

20

08

-07

20

08

-10

20

09

-01

20

09

-04

20

09

-07

20

09

-10

20

10

-01

20

10

-04

20

10

-07

20

10

-10

20

11

-01

20

11

-04

20

11

-07

20

11

-10

20

12

-01

20

12

-04

20

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-07

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-10

20

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-01

20

13

-04

20

13

-07

20

13

-10

20

14

-01

20

14

-04

# Subscribers

# Subscribers


Evolution visit frequency

Year Average Visit Frequency # Unique Visitors

2007 74,10 % 1706

2008 63,52 % 1995

2009 51,68 % 2950

2010 58,50 % 3115

2011 58,10 % 3391

2012 54,64 % 3981

2013 42,08 % 3863

2014 21,33 % 3283


Evolution order registrations

0

500

1000

1500

2000

2500

3000

3500


Smart I.T. Systems Dirk De Greef

[email protected]

Thank you for your attention!


The world of eCommerce...Fastest delivery time 12% 6%> 10 working days 13%5 working days maximum...

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