GLOBAL E-COMMERCE

TRENDS & CHALLENGES

To Grow With e’Commerce – AICEP, Lisboa
Presented by Herbert Götz 19 pages
Director Marketing, IPC 13-07-2016
© 2016 – ipc.be www.ipc.be
 GLOBAL E-COMMERCE TRENDS
A booming e-Commerce market

27 November 2015 2015

+32%Black Friday UK
e-Commerce sales
+42%
e-Commerce sales
Russia

27 November 2015

+14%
Black Friday US
e-Commerce sales 11 November 2015

2015
+54% Singles Day
e-Commerce sales

+23%
Latin America
e-Commerce sales

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 2

 GLOBAL E-COMMERCE TRENDS
Rapid e-Commerce growth worldwide

1,400
Breakdown by: Region Product

1,200
263 Electronics
1,000 Asia
Pacific
504
158 Media
800
137 Food & drink

600 86 Appliances
Europe 347 77 Apparel

400
616 974 1,239
North
325 519 Other
200 America

0 Other 63
2014 2017 2019
Source: GPIR 2015
Global internet retail sales, € bn

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 3

 OUTLOOK FOR THE FUTURE
By 2025, Asia will drive 40% of e-Commerce flows

~25%
~40% ~20%

Inter-regional cross-border ecommerce

Intra-regional cross-border ecommerce
% Share of revenue in global cross-border ecommerce market
Source: BCG

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 4

 OUTLOOK FOR THE FUTURE
Growth trend driven by Asia

Source: GPIR 2015

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 5

 OUTLOOK FOR THE FUTURE
Asia Pacific consumers are set to drive growth

BY 2020

54% 2020
Asia Pacific
15
Europe
2009 North America
17
10 29 Other

OF GLOBAL MIDDLE CLASS WILL

18
COME FROM ASIA 54

Global middle class:

Population Consumption
36
22 2009 1.8bn €16.0tn
2020 3.2bn €26.4tn

Source: OECD/GPIR 2015

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 6

 THE OPPORTUNITY FOR POSTS
E-Commerce growth potential still untapped

340 E-Commerce
320 sales
300
280
260
240
220
200
180 Parcel
160 volume
140
120 GDP
100
80
60
2008 2009 2010 2011 2012 2013 2014 2015
Source: GPIR 2015
Aggregate parcels volume, GDP and e-Commerce sales indices. 2008=100

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 7

 POSTAL SECTOR TRENDS
Reduced growth rates in 2015

CORPORATE MAIL PARCELS & EXPRESS

6.7
6.3
5.3 5.8
4.8 4.7
4.2
2.8 2.5
1.5
0.9
2014 2015 * 2014 2015* 2014 2015*

Year-on-year EBIT margin * estimates Source: GPIR

revenue growth

© 2016 – ipc.be CEO Report - Shareholders Meeting 2016, Brussels 8

 POSTAL SECTOR TRENDS
Continued parcel volume growth

3 6.3%
5.6% 5.4%
4.7%
2

2012 2013 2014 2015

Total parcel and express volume, % change on prior year Source: GPIR 2015

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 9

 IPC ONLINE SHOPPER SURVEY
What do online shoppers want?

4,075 FREQUENT CROSS-BORDER

ONLINE SHOPPERS SURVEYED IN

17
MARKETS WORLDWIDE

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 10

 IPC ONLINE SHOPPER SURVEY
How often do cross-border customers shop online?

63% OF
CROSS-BORDER ONLINE SHOPPERS
SHOP AT LEAST ONCE A MONTH
WHILE IN CHINA

99%

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 11

 CUSTOMER PREFERENCES
Where do customers want to receive their parcel?

76%
OF CONSUMERS PREFER TO HAVE
THEIR CROSS-BORDER PARCELS
DELIVERED TO THEIR HOME ADDRESS

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 12

 CUSTOMER EXPERIENCE
Main cross-border retailers and export markets

80%
OF FREQUENT CROSS-BORDER
ONLINE SHOPPERS BOUGHT GOODS
FROM CHINA (29%), THE UK (19%),
GERMANY (14%) , THE US (13%) AND
FRANCE (5%)

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 13

 CUSTOMER EXPERIENCE
What do customers buy online cross-border?

25%
OF TOTAL CROSS-BORDER SHOPPING
WAS FOR CLOTHING, FOOTWEAR AND
APPAREL FOLLOWED BY

14%
FOR CONSUMER ELECTRONICS

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 14

 CUSTOMER EXPERIENCE
Value of goods purchased cross-border

59%
OF GOODS BOUGHT BY FREQUENT
CROSS-BORDER ONLINE SHOPPERS
COST BETWEEN €10 AND €100

ONLY 1%
OF GOODS WERE VALUED OVER €500

© 2016 – ipc.be Posteurop plenary assembly – Yerevan, 20 april 2016 15

 CUSTOMER EXPERIENCE
Level of satisfaction – overall vs delivery experience

84%
OF CROSS-BORDER SHOPPERS
WERE EITHER VERY SATISFIED OR
SATISFIED WITH THEIR DELIVERY
EXPERIENCE

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 16

 GLOBAL E-COMMERCE
Challenges and opportunities for the postal sector

Digitalisation E-Commerce dominated by 4 players Tomorrow ?

New competitors

2010 2012 2014 2020

21% 26% 29% 41% ?

© 2016 – ipc.be AICEP - Lisboa, 13 July 2016 17

GLOBAL E-COMMERCE
TRENDS & CHALLENGES
To Grow With e’Commerce – AICEP, Lisboa
Presented by Herbert Götz 19 pages
Director Marketing, IPC 13-07-2016
© 2016 – ipc.be www.ipc.be