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Consumer Attitudes and Online Retail Dynamics in France, 2013

New C&M report: France online retail market


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2014-03-17 14:55:02 - Consumer Attitudes and Online Retail Dynamics in France, 2013 - a new market research report on companiesandmarkets.com

Online retailing was the fastest-growing channel group in France, with retail revenues rising from EUR12, 142.0 million in 2007 to EUR19, 790.5 million in 2012, growing at a CAGR of 10.26%. In 2012, the channel contributed 5.1% towards total French retail sales, and is expected to continue growing at a brisk pace of 9.02% during the forecast period. In 2017, the channel is forecast to register retail sales of EUR30, 480.5 million and increase its contribution to 7.1%.

According to the World Bank estimates, fixed broadband internet subscriber in France increased from 16.3 million in 2007 to 24.8 million in 2012 and registered a growth of 8.7% in the same period. Broadband penetration in the country has increased by 12.3% in

 

 

the last five years. In 2012, fixed line broadband penetration in France was 37.8% compared to 25.5% in 2007. France´s broadband penetration is considerably greater than the average of 25% in developed nations.

In France, the government is taking initiatives to further strengthen the country´s broadband infrastructure. France has already declared an investment of EUR20 bn in high speed broadband for the entire country. The government plans to provide high speed broadband facility to every single household in the country by the next 10 years. With increasing number of broadband users, online shopping experience will also improve as it enables online retailers to include interactive services and high quality graphics on their websites.

M-commerce is growing in France; however its penetration in the country is still lagging behind other European countries. According to a study by Ipsos Public Affairs, only 2% of respondent did shopping through their mobile devices in 2012 compared to 4% in Italy, 6% in Germany and 10% in Great Britain.

According to a report published by La Fédération de l´e-commerce et de la vente à distance (Fevad), a French e-commerce association, M-commerce grew by 150%, to reach EUR 1.0 billion in 2012 from EUR 0.4 billion in 2011. M-commerce market is expected to rise in the future. According to Forrester research, M-commerce is forecasted to reach EUR 3.1 billion in 2017; secure mobile transaction will drive the adoption of m-commerce in France.

"Click & Collect", popularly known as "Drive" services, has been on the rise in France. According to data published by Editions Dauvers, the number of Drive centers in the country rose to 2,278 as of June 1st 2013, an increase of 920 over the previous year. This rise can be attributed to the lower tax that these establishments attract when compared to traditional retail stores. In addition, as these Drive centers are warehouses, they do not require a license, unlike traditional retail stores. These regulatory differences have incentivized retailers to expand their Drive centers in France.

In 2000, Groupe Auchan was the first retailer in France to introduce the Drive concept. The company currently operates 143 (81 Auchan Drives and 62 chronodrives) Drive establishments and plans to open an additional 22 by the end of the year. Casino has been operating Drive as an extension to its hypermarkets and supermarkets, and opened its first standalone Drive warehouse in 2012. Casino currently operates approximately 146 store based Drive services and six stand alone Drive establishments. Intermarche operated 276 Drive services and two standalone Drive establishments.

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