http://www.emota.eu The European Multi-channel and Online Trade Association

2. EMOTA represents 3,500 multi-channel/online retailers in 15 countries
• 15 European countries
• 16 member associations
• 3,500 companies
• € 250 billion turnover
• 83% of European
e-commerce

3. E-Commerce Statistics

4. E-Commerce contributes significantly to growth and job creation
0% 10% 20% 30% 40%
Italy
USA
France
UK
Germany
Sweden
12%
15%
18%
23%
24%
33%
Contribution to GDP growth
• 2.6 jobs created for each lost
• internet-intensive companies create
2x jobs
Average: 21%
Source: McKinsey, 2011
Note: Internet % contribution to GDP growth 2004-2009 – mature countries
-1-

5. In addition, E-Commerce enables consumers to save money and time
0% 20% 40% 60% 80%
more product information
home delivery
wide selection
open anytime
price comparison
save time
lower prices
10%
11%
22%
33%
33%
50%
66%
Reasons for shopping online
Consumer gains from e-commerce
(wider choice + lower prices):
currently € 12 Bn.
potentially € 200 Bn.
Source: Civic Consulting/TNS, 2011
Note: consumer survey – 3 most important reasons for shopping online (sample of 13,872 online shoppers)
-2-

6. 154
170
210
250
300
171
185
215
237
270
66
84
122
158
215
13 19 26 33
48
-
50
100
150
200
250
300
2008 2009 2010 2011 2012
€ Billion Europe
N. America
Asia Pacific
ROW
+20%
+14%
+36%
+44%
E-commerce turnover by region
Source: EMOTA/IMRG, 2012
-3-
E-Commerce in Europe reached a €300 Bn. turnover, with 20% growth
Growth

7. UK, France and Germany account for 60% of European E-Commerce
European E-commerce turnover by country 2012 (€ billion)
Source: EMOTA, 2012
Note: B2C E-commerce turnover includes online travel, digital downloads and event tickets; excludes online gaming and financial services
-4-
UK
France
Germany
Scandinavia
Austria/
Switzerland
Benelux
Spain
Russia
Italy
Eastern Europe
Other
90
46
45
29
17
15
11
10
10
15
12

8. E-Commerce is growing very fast throughout Europe
+0%
+5%
+10%
+15%
+20%
+25%
+30%
+14%
+19%
+27%
+14%
+18%
+12%
+20%
+19%
+27%
E-commerce growth by country in 2012
Source: EMOTA, 2012
-5-
average
European
growth

9. Online share of retail high in UK/Scandinavia, low in South/East Europe
European
average
0%
5%
10%
15%
20%
25%
Source: EMOTA, 2012
Note: % of e-commerce turnover on total retail trade
-6-
Online share of retail by country 2012

10. There are significant differences in E-Commerce penetration and spend
0%
10%
20%
30%
40%
50%
60%
70%
80%
- 500 1.000 1.500 2.000 2.500 3.000 3.500
Average annual expenditure (€)
E-Commerce
penetration
UK
Scandinavia
Austria/Switzerl.
France
Germany
Italy
Benelux
Eastern
Europe
EU average
2011
Source: EMOTA, Eurostat, 2011
Note: E-commerce penetration: % of population aged 14-74 years buying online
-7-
Digital Agenda
target 2015
Spain
43%

11. Very few consumers shop online across borders
EU average
2011
0%
5%
10%
15%
20%
25%
Digital Agenda
target 2015
GAP
Proportion of consumers buying online from another country
Source: Eurostat, 2011
-8-

12. In fact, consumers are more worried about international delivery
0% 5% 10% 15% 20% 25% 30% 35%
Uncertainty on rights
Data privacy
Payment security
No delivery
Guarantee
Returns
Long delivery times
Concerns about cross-border vs. domestic online purchases
Source: Civic Consulting/TNS, 2011
Note: % of consumers reporting concerns about buying products online in their own country vs. in another EU country (sample: 29.010 individuals)
-9-
% domestic % increase cross-border

13. In addition, only 27% of retailers sell across borders
0%
10%
20%
30%
40%
50%
Proportion of retailers selling in at least one other EU country
EU
average
Source: TNS, Flash Eurobarometer 331, 2012
-10-
27%

14. Many retailers are deterred by legal/tax and payment issues
Barriers to cross-border sales for retailers
0% 5% 10% 15% 20% 25% 30% 35%
Language differences
Customer service
Own restrictions
Complaints resolution
Delivery costs
Different tax regulations
Risk of fraud/non-payments
Different consumer laws
Source: TNS, Flash Eurobarometer 331, 2012
Note: % of retailers reporting obstacles to cross-border sales to other EU countries
-11-

15. Trends & Best Practices

16. Several e-retailers are expanding globally, offering worldwide shipping
ASOS.com worldwide delivery
7 country-specific websites
15 currency options
Free worldwide shipping
Shipping to 190+ countries
5M customers 160 countries
62% international sales
-12-

17. Excellent service is ensured trough local logistics/customer care centers
5 logistics centers
7 local offices
8 customer care centers
Yoox.com global presence
Europe
(excl. Italy)
Italy
16%
N.America
22%
Japan
Revenues by geography Brands
Other
-13-

18. Best-practice online retailers provide several delivery options …
Easy returnsClick & collect
Track & traceExpress delivery Subscription service
Parcel lockers
-14-

19. … increase consumer confidence with an excellent customer service …
• “WOW” customer service
• Family culture
• Outstanding service model
– Overnight shipping
– Free shipping both ways
– 365-day return policy
– 24/7 availability with toll-free number
• Real inventory in warehouse
Zappos customer service policy
-15-

20. … and tailor payment methods to specific national preferences
Source: Civic Consulting/TNS, 2011
Online payment methods by country
-16-
0%
20%
40%
60%
80%
100%
Other
Invoice
COD
Online payment
Bank transfer
Debit card
Credit card

21. Most retailers are adopting a multi-channel strategy
Source: McKinsey, 2009
Note: Average annual dollars spent per customer by channel (apparel example)
-17-
Amount spent by channel
Internet / mobile

22. Multi-channel integration requires enterprise-wide changes
-18-
Multi-channel integration
Organization
• Integrate online/offline teams
• Marketing and product management
Systems
• Integrate front-end and back-office
• Inventory levels and pricing
• Customer database
• CRM systems
Operations
• Picking and fulfillment
• Return handling
Source: Accenture, Booz & Company, 2012

23. Mobile commerce is expanding rapidly in Europe
-
4
8
12
16
20
2012 2013 2014 2015 2016 2017
3
5
7
11
17
19
€ Billion
Source: Forrester, 2012
Note: purchases via smartphone - excludes tablets and mobile payments at retail points of sales
European mobile commerce market estimate
-19-

24. Shoppers use their mobiles to research products and find deals
0% 10% 20% 30% 40% 50% 60%
retailer app
retailer website
QR code scan
product review
mobile coupon
price comparison
28%
33%
45%
51%
54%
54%
In-store activities of mobile shoppers
Source: Vibes Media, 2012
-20-

25. Many retailers developed mobile apps to facilitate product research
John Lewis mobile app
• Optimized navigation
• Free Wi-Fi in stores
– Search product information
– Check ratings and reviews
– Compare competitors’ prices
• Sales staff available to help customers
-21-

26. Other retailers are testing virtual stores with smartphones
Tesco virtual stores
• Grocery shopping “on the go”, in subways,
train stations or bus stops
• Scan QR code with smartphone app
• Orders delivered at home on the same day
-22-

27. Social commerce is also expected to boom in the next few years
0
5
10
15
20
25
30
2011 2012 2013 2014 2015
4
6
8
12
16
1
3
5
9
14
$ Billion
Source: Booz & Company, 2011
Social commerce market estimate
5
9
14
20
30
Rest
of the
World
U.S.A.
-23-

28. Source: Sociable Labs, 2012
All online
shoppers
62% read
friends’
comments
on products
75% click
through to
retailer’s site
53%
purchase
product
25% of all
shoppers
Share-to-purchase funnel
Product
discovery
mechanism
Conversion
driver
-24-
Social networks are already a fundamental enabler of E-Commerce

29. Fab.com social shopping features
-25-
Pioneer e-retailers generate substantial sales from social networks
Social feed
Facebook log-in
Credits for sharing

30. EU Lobbying for E-Commerce

31. Upcoming EU legislation will harmonize consumer laws across Europe
E-Commerce
Action Plan
Green Paper on Payments
Common
European
Sales Law
(CESL)
Directive on
ADR/
Regulation
on ODR
Regulation on
Data Protection
-26-
Online
Trustmarks
Consumer
Rights
Directive
Green Paper on
Parcel delivery

32. • Harmonize consumer legislation across Europe
• Improve consumer trust in cross-border shopping
• Ensure competitive international parcel delivery services
• Ensure security and efficiency of online payment platforms
• Accelerate broadband networks development
EMOTA is working to balance business and consumer interests
-27-
Balance
consumer/
business
interests
Avoid
unnecessary
extra
costs/burden
for businesses

33. Distance sales rules will be standardized in all EU countries
-28-
Consumer Rights Directive
Information requirements:
• Order button with “obligation to pay”
• Delivery/payment restrictions indicated before order
Price transparency:
• No pre-ticked boxes for extra services
• No payment / telephone surcharges
Standard withdrawal right:
• Withdrawal period: 14 days
• Reimbursement within further 14 days

34. We are working to limit data protection burdens for businesses
-29-
Data Protection Regulation
Benefits:
• Rules valid throughout Europe
• Elimination of notifications
• Single supervisory authority
for companies
Issues:
• Explicit consent
• Right to data portability
• Constraints in profiling

35. EMOTA is developing a European trustmark for cross-border shopping
-30-
• Harmonize codes of conduct
• Accredit national trustmarks
• Promote European trustmark
European harmonization of national trustmarks

36. EMOTA commits to drive international e-commerce growth in Europe
-31-
EMOTA Borderless Digital Commerce Commitment
Consumers
Providers
Merchants
Governments
• Govern and guide international
e-commerce development
• Inform e-commerce industry
with standard reporting
• Proactively listen and respond to
needs of key stakeholders