country factsheet i july 2016...
TRANSCRIPT
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DenmarkCOUNTRY FACTSHEET I JULY 2016
01 Introduction 03
02 Who is the Danish customer? 05
03 What and how do Danish e-shoppers buy? 07
04 What are Danes’ delivery preferences? 09
05 How prevalent is the cross-border e-market? 11
Sources 13
Contents
CHAPTER 01 03
As the bridge between Scandinavia and mainland Europe, Denmark enjoys an advantageous geographic and cultural position. The coastal nation has been among the world leaders in terms of e-commerce sales as a percentage of total retail – its residents are increasingly embracing digital channels.
Figures show that cross-border e-commerce is strong in Denmark and that Danes prefer to shop outside of Scandinavia altogether, mainly in the U.K., Germany and the U.S. Without indication of the precise reason for this tendency it could simply be that Danes seek the brands and deals that most appeal to them, regardless of global position.
Introduction
Danish
43,000 km²
5,560,000
180,398 DKK1
= $26,945 or €24,253
Denmark
01
CHAPTER 01 04
Denmark takes the lead
In 2015, e-commerce constituted 9.3% of the overall retail market, good for sixth-highest in the world.2 In addition, the nation ranked No.1 in Europe on the 2016 Digital Economy and Society Index, a rating that takes into account connectivity, human capital, Internet usage, integration of digital technology and digital public services.3
Those factors suggest Denmark is in a strong position to maintain its e-tail strength going forward, although it may find itself outpaced by other countries with more to gain. Indeed, the index showed the gap between the top performers like Denmark and the lowest performed like Romania has been shrinking slightly. However, this does not mean Denmark or other strong European nations for e-commerce are weakening, just that their growth is slower.
The future of Danish e-commerce
During the next three years, Denmark’s e-commerce is expected to grow as a percentage of retail. E-tail is forecast to reach 9.0% in 2016, 10.4% in 2017 and 11.2% in 2018. While some countries will grow at a faster rate, Denmark’s progress will be steady and consistent with the nation’s position within the global e-commerce market at large.
9.3%
1
E-commerce in Denmark is strong.
With 9.3% of the overall retail market the country ranks sixth-highest in the world.
part of e-commerce in overall retail market
in Europe on the 2016 Digital Economy and Society Index
sixth-highest market share for e-commerce worldwide
6th placeworld
CHAPTER 02 05
Who is the Danish customer?
Most Danish consumers perform at least some of their shopping online. Of the roughly 4.2 million Danes aged 18-79, 87% purchased something online during all of 2014. By Q2 2015, already 73% of customers purchased goods through online channels, compared to 70% during Q2 2014.4
In an April 2015 survey, 3% of Danes responded they shop online “several times per week,” while 26% said they buy items on the Internet “several times per month” or “once per month.” Only 2% claimed they never shop online.5
26%
several times per month
3%
several times per week
purchased something online during all of 2014
87%
02
CHAPTER 02 06
Why do Danish e-consumers shop online?
The top reason listed for why Danish shoppers prefer the digital marketplace was that it is more comfortable to shop from home, which 59% mentioned.6 Time-saving earned 53% of e-tail consumers, while another 53% went to lower costs. Furthermore, 43% found it inconvenient to abide by a store’s hours and 41% enjoyed the home delivery option.
On the other hand, only 35% mentioned better selection or a better overview of the goods available, 31% listed an aversion to going to a physical store, and a mere 2% listed customer service. These may be areas in which Danish e-tailers can find room for improvement.
Danish e-customers seek fast delivery and cite
convenience as their No. 1 reason for online
shopping over in-store purchases.
59% 53% 53%
CONVENIENCE
TIME-SAVING
PRICE
CHAPTER 03 07
What and how do Danish e-shoppers buy?
In a February 2016 survey, 19% of Danish respondents listed clothes, shoes and jewelry as the category of items they purchased most recently. Movies, music, books, games and toys garnered 14% along with travel and cultural experiences. Computers and mobile phones came in fourth with 11%, followed by house, home and flowers/plants with 11%.7
Denmark’s top e-tailers
The top five online marketplaces for Denmark are as follows:8
Each of these e-tailers increased their market share from 2013 to 2014. Ebay enjoyed the biggest jump, from 1.40% to 1.83%, while Amazon took over the top spot in 2014, which previously belonged to Saxo.
Denmark’s e-commerce industry is a stable, steady force in the nation’s overall market. E-tailers that take advantage of the trends outlined here and adhere to consumers’ stated preferences will set themselves up for continued success in the coming years.
19%
14%
11%
11%
Fashion clothes, shoes
& jewelry
EntertainmentMovies, music, books,
games and toys
Hardware Computers and
mobile phones
Household house, home and
flowers/plants
Amazon 2.38%
Saxo 2.26%
Zalando 2.13%
Elgiganten 1.92%
Ebay 1.83%
03
CHAPTER 03 08
How do e-shoppers prefer to make payments?
Dankort – the national debit card of Denmark – is far and away the most popular method of paying for items online. Over three-quarters of Danish e-commerce consumers listed the card as their preferred payment type, while Mastercard/Eurocard came in second with 15% and Visa in third with 5%.9
Additionally, 74% of Danes used a laptop or desktop computer to make purchases in 2015, compared to 81% in 2014. Meanwhile, tablet use increased from 14% to 18% while smartphone purchases moved from 5% to 7%.10
Denmark’s e-commerce industry
is a stable, steady force in the nation’s
overall market.
80%
5%
15%
Dankort
Visa
Mastercard
CHAPTER 04 09
What are Danes’ delivery preferences?
Delivery time
Danes also exhibited less patience than other Nordic consumers – over 50% expect their purchase to arrive within three business days after purchase. Contrarily, Swedes and Norwegians will wait four business days, while Finns will wait close to five.
Additionally, Danes have access to a robust delivery infrastructure, which plays a role in their satisfaction with delivery and their decision to buy online.11 In particular, cross-border delivery offers several options – cooperation between National Post Operators (NPOs), between NPO and a foreign subsidiary, between NPO and a private courier, or any combination. Danes’ decision on which to use depends primarily upon the price and efficiency of the model. Reciprocity – the idea of providing business in exchange for business – also factors into cross-border shipping choices, along with the existence of own delivery networks.
Delivery method
Moreover, Denmark is similar to the other Nordic countries in that the plurality of Danes who purchase a product online prefer to pick it up themselves at a service point – 20% according to a Postnord survey.12 However, that mark is far lower than the other Nordic countries: In Sweden, Norway and Finland, 48%, 52% and 48% of survey respondents preferred to pick up their parcel at a service point, respectively.
3
4
5
business days
business days
business days
Danes
Swedes
Finns
04
CHAPTER 04 10
In Denmark, more consumers want their packages to be delivered to their mailbox during the day, even when they are not home, than in the other Nordics – 19% of those surveyed. Another 18% indicated they want their item delivered to a specific address, an option that was not present for Sweden, Finland or Norway. The remainder of Danes’ delivery preferences follows:
In contrast to the other Nordic countries,
Danish buyers are far less eager to
pick up their parcel at a service point.
Pickup from a service point
Pickup from a parcel box that is available all day long
Pickup from the webshop’s physical store or warehouse
Delivery by the mail carrier to the mailbox
Delivery to the workplace
Delivery to home during the evening when it is convenient
20% 9%
15% 9%
1% 4%
PICKUP DELIVERY
CHAPTER 05 11
How prevalent is the cross-border e-market?
Cross-border e-commerce in Denmark is strong, though it is more common for Danes to shop outside of Scandinavia altogether, preferring the U.K., Germany and the U.S. The precise reason for this is unclear, though it could simply be that Danes seek the brands and deals that most appeal to them, regardless of global position. When Danes are not shopping from e-tailers located within their own borders they are showing increasing preference for those of the Unit-ed Kingdom. In 2014, 50% of online consumers said they bought products from the UK, followed by Germany at 29%, the United States and Sweden at 16% apiece, and China at 15%.13
With that said, cross-border delivery can sometimes pose a problem for foreign e-tailers shipping to the Nordic region due to the bevy of tax and customs regulations unique to the region. In most cases, delivery is more expensive than initially indicated – which is why it is important for e-businesses to be as transparent as possible about the final cost to the customer, without adding on taxes and fees at the end, unexpectedly.
The bevy of tax and unique customs regulations make delivery in Denmark often
more expensive than initially indicated.
50%bought products
from the UK
Find out what the most popular e-shop countries are for the Danes
05
CHAPTER 05 12
29%
16%
16%
15%
50%
Where do Danish online consumers buy abroad?
Germany
United Kingdom
Sweden
China
USA
SOURCES 13
1 http://www.oecdbetterlifeindex.org/countries/denmark/
2 http://www.invespcro.com/blog/global-online-retail-spending-statistics-and-trends/
3 http://europa.eu/rapid/press-release_MEMO-16-385_en.htm
4 http://www.postnord.com/en/media/publications/e-commerce/e-commerce-in-the-nordics-q2-2015/
5 http://www.emarketer.com/Article/How-Often-Do-Digital-Shoppers-Nordics-Press-Buy/1012594
6 http://www.emarketer.com/Article/How-Often-Do-Digital-Shoppers-Nordics-Press-Buy/1012594
7 http://www.fdih.dk/nyheder/2016/februar/vidste-du-at-toj-sko-og-smykker-saelger-bedst
8 Northern B2C E-commerce Report 2015
9 http://www.fdih.dk/nyheder/2016/februar/vidste-du-at-dankortet-bruges-til-6-ud-ad-10-betalinger
10 http://www.emarketer.com/Article/Digital-Buyers-Denmark-Hold-Digital-Purchase-Frequency-Steady/1013613
11 http://ec.europa.eu/internal_market/post/doc/studies/20130715_ce_e-commerce-and-delivery-final-report_en.pdf
12 Postnord – E-commerce in the Nordic Region – Q1 2015
13 E-commerce in the Nordics 2015
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29%Germany
50%United Kingdom
16%Sweden
15%China
16%USA
9.3%
1
part of e-commerce in overall retail market
in Europe on the 2016 Digital Economy and Society Index
26%several times per month
3%several times per week
purchased something online during all of 2014
87%
59% 53% 53%
CONVENIENCE
TIME-SAVING
PRICE
19%
14%
11%
11%
Fashion
Entertainment
Hardware
Household
Denmark takes the lead
What do Danish e-consumers buy?
Who is the Danish customer?
Why do Danish e-consumers shop online?
Where do Danish e-consumers buy abroad?
DenmarkDanish
43,000 km²
5,560,000
180,398 DKKE-COMMERCE COUNTRY FACTSHEET I JULY 2016
= $26,945 or €24,253
Want to know more? Contact us I www.landmarkglobal.com I [email protected]
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