Belgium lags behind the EU average in online commerce adoption. While e-commerce is growing in Belgium fueled by apparel and entertainment, many Belgian consumers and businesses are still hesitant to engage in online shopping and sales. However, the internet now influences both online and offline purchasing behaviors. To succeed with e-commerce, businesses need to understand consumers' needs and provide them with a good user experience including free shipping, special offers, easy website use, trusted brands, and good customer service. Online presence is also key as most consumers now research products online before purchasing.

1. IAB-session:
Current Trends in Commerce
Opportunities for Belgium
Roel Naessens, Industry Head Google Belgium
30th March 2011

2. Belgium is behind EU average
Individuals last online purchase in 12 months (2010)
United Kingdom
Netherlands
France
EU (27 countries)
Belgium
0 10 20 30 40 50 60 70 80
%
Source : Eurostat, 2011 Google Confidential and Proprietary 3

3. ! And foreign players concur our market
Investment share of top 10 players for Belgian market in Q410
Air travel Books Clothing label
16%
44% 46%
56% 54%
84%
Credit cards Home improvement Video
6%
31%
46%
54%
69%
94%
Source : Google internal data, 2011 Google Confidential and Proprietary 4

4. The main barrier for eCommerce is recognition
Besides the offer, what else?
Google Confidential and Proprietary 5

5. The seniors are the main segment lagging
Individuals age that made an online
purchase in the 12 months
Internet access at home in 2010
UK UK
Males
Females
BE
BE
0 20 40 60 80 100
% 0% 20% 40% 60% 80% 100%
Individuals age that made an online purchase in the 12 months
80 220%
70
170%
60
50 120%
40
%
30 70%
20
20%
10
0 -30%
16 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 to 74 years
old old old old old old
EU (25) Belgium United Kingdom Delta UK vs. BE
Source : Google internal data, 2011 Google Confidential and Proprietary 6

6. The responsibility of the Belgian market
High streets retailers with a localized full webshop
120%
100% 100%
100%
80%
80%
60%
60%
40% 35%
20%
20%
0%
Consumer electronics Home & Garden Shopping Apparel
Source : Insights for Search to determine top high street retailers popularity in Belgium Google Confidential and Proprietary 7

7. BUT! E-commerce is growing in Belgium
Google Confidential and Proprietary 8

8. Fueled by Apparel and Entertainment
2008 2010
"590million "903million
Apparel Travel Apparel
Travel Ents Finance
Ents
+28 %
YoY Growth
Tech Tech
Home and
Finance Home and Garden
Garden
Google Confidential and Proprietary 9
Source: Ogone

9. E-commerce is consumers to buy online?
So what drives
3.6 billion Google
searches per day
Search is the most
popular online activity after
e-mail
1.2 billion people
online
Google Confidential and Proprietary 10

10. The functional benefits are most prominent!
41%
28%
27% 27%
Google Confidential and Proprietary 11

11. !And what's stopping them from buying online?
E-commerce is
3.6 billion Google
searches per day
Search is the most
popular online activity after
e-mail
1.2 billion people
online
Google Confidential and Proprietary 12

12. Again functional, but emotional barriers
are significant too!..
51% 41%
17% 36%
Google Confidential and Proprietary 13

13. !The question is: How do you thrive online?
E-commerce is
3.6 billion Google
searches per day
Search is the most
popular online activity after
e-mail
1.2 billion people
online
Google Confidential and Proprietary 14

14. Give them what they want!
Characteristics of an e-shop
Free shipping costs
Availability of special online offers
Usability / ease of use of the website
Presence of well-known, trustable brands
There is a physical address in Belgium
Wide range of products
Fast delivery
Clear return options if unsatisfied
Clear after-sales services
Existence of a phone number
Google Confidential and Proprietary
15

15. Example... Zappos
Google Confidential and Proprietary 16

16. Another Example...
Google Confidential and Proprietary 17

17. OK, but it’s not a big deal for my business!..
Google Confidential and Proprietary 18

18. Why is online so key?
I have changed my mind about which brand
to buy following research on the web
The internet is usually the first place I go
when researching products to buy
Google Confidential and Proprietary 19

19. Why is online so key?
How do you get to know about new websites / e-shops?
Results from a search engine
Talks with friends or colleagues
Direct mail (e-mail)
Offline media (Radio, TV, Press!)
Internet Banners
Social media (Facebook, Linkedin!)
Direct mail (via post)
Google Confidential and Proprietary
Source: TNS Infratest 20

20. Online is just one part of the puzzle
Google Confidential and Proprietary 21

21. And Online clearly influences Offline
Research
Online In-Store
Online
• 18% of all purchases
15% 3% were made online
Purchase
• 63% researched
In-Store
48% 33% online before
purchasing
Google Confidential and Proprietary
Source:GFK Fashion Study 2010; Research Online, Purchase Offline (ROPO) – Insights into the Fashion Buying Process

22. Sales (units sold)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
06-May-07
06-Jun-07
06-Jul-07
06-Aug-07
06-Sep-07
Radio 1%
Other drivers 1%
Press 3%
06-Oct-07
06-Nov-07
06-Dec-07
Catalogues 15%
06-Jan-08
06-Feb-08
06-Mar-08
06-Apr-08
06-May-08 2%
Price promotion
06-Jun-08
06-Jul-08
11%
06-Aug-08
06-Sep-08
TV Advertising 5%
Pc City web traffic
06-Oct-08
conversions driven by
of offline
06-Nov-08
06-Dec-08
06-Jan-09
06-Feb-09
06-Mar-09
06-Apr-09
06-May-09
06-Jun-09
Knowing how much can be measured
06-Jul-09
Regular price 12%
06-Aug-09
06-Sep-09
Sales
Offline
volumes
06-Oct-09
8%
06-Nov-09
Seasonality
06-Dec-09
Google Confidential and Proprietary
06-Jan-10
Base Sales 42%
23
06-Feb-10

23. Google Confidential and Proprietary 24

24. New phase of Internet growth
Google Confidential and Proprietary

25. 1.The Web is mobile
Google Confidential and Proprietary
Half of all new Internet connections now come from mobile devices

26. 2. The Web is social
<< I ve already added this photo to my Picasa album
!"#$%&'()*+$,'))
%"+-'(),%(.-',)
"/".#0)
I've already tweeted about how weird this guy is >>
Google Confidential and Proprietary

27. 2. The Web is social
Google Confidential and Proprietary

28. 3. The Web is personal
Google Confidential and Proprietary
Source: ray-ban.com

29. 4. The Web is Local
Google Confidential and Proprietary

30. And The future is now!.
Google Confidential and Proprietary 31

31. "A great wind is blowing
and that gives you either imagination
or a headache"
Catherine the Great
Thank you.
roelnaessens@google.com
Google Confidential and Proprietary