"It's not only the price that counts, but also the convenience".

E-COMMERCE E-commerce poses major challenges for Swiss companies. In an interview with MK, e-business expert Ralf Wölfle from the FHNW explains why it is difficult for players to hold their own in the market and what role logistics plays in this. Prof. Ralf Wölfle is head of the e-business competence center at the Hochschule für Wirtschaft, FHNW.MK The [...]

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Prof. Ralf Wölfle is head of the e-business competence center at the Hochschule für Wirtschaft, FHNW.MK The E-Commerce Report Switzerland, which you realized, highlights the development of B2C e-commerce from the perspective of Swiss providers and was conducted for the sixth time in 2014. What are the most important findings this year?RALF WÖLFLE E-commerce remains very challenging. Even the best and most experienced Swiss players have not yet "made it" - made it in the sense that they have achieved a stable and satisfactorily calculable market position for a number of years.Competitive pressure is rising just as fast as the online share of the overall market: Capital-rich foreign competitors, multi- and cross-channel initiatives, direct-selling brand suppliers, and, time and again, innovative start-ups want to participate in the still continuing growth of e-commerce.We have summarized the current situation with the term "expedition to the networked customer". "Expedition" stands for the uncertainties that providers must continue to face, and also for the determination of the players. The goal, the networked customer, is itself on the move: Consumers are becoming increasingly competent in dealing with digital media, and their habits and expectations are in flux.MK How far along is Switzerland in the field of e-commerce compared to other countries?WÖLFLE In my view, Switzerland is a very well-developed e-commerce country - especially considering the high density of stores, which offers consumers a great many convenient shopping alternatives. The companies in the study panel are very customer-oriented and work continuously on improving performance.Not in all, but in many sectors, the benchmark is set by foreign providers, however. The household names are in a different league: a company operating out of Switzerland cannot begin to build up purchasing power comparable to that of a supplier based in the EU - for this reason alone, it is not competitive abroad. However, the Swiss market alone offers too little volume to keep up with the very high investments of multinational players. That's why a Zalando story from Switzerland would not be possible: the fantasies that bring seemingly unlimited investment capital to strongly expansion-oriented online providers do not arise in this country.MK What are currently the biggest challenges for Swiss e-commerce providers?WÖLFLE Competition with international providers supported by a glut of capital is one of the major challenges in the media, fashion and travel industries. The cost of traffic, i.e. access to customers, is a sensitive issue for many providers. Fundamentally, however, all providers are affected by the plethora of new forms of commerce, because they are all competing for a stagnating consumer spending budget. The possibilities of the networked world continue to generate innovations, so that customers are constantly changing their shopping habits. This creates winners, but also losers.MK What role does logistics play for e-commerce providers and what are the trends in this area?WÖLFLE In Switzerland, we have a pronounced performance competition: Here, it is not only the price that counts, but also the convenience, the fit of the offer to the respective purchase situation. Logistics plays an important role here, directly contributing to the customer experience. A veritable arms race in e-commerce logistics can be observed among online providers. Higher availability of goods, shorter delivery times, more choice of transfer options and flexibility are the keywords. Those who can offer next-day delivery also hold a trump card in competition with foreign rivals.MK More and more people are going online with their smartphone or tablet. What does this mean for e-commerce providers?WÖLFLE The shift of traffic to mobile devices has virtually exploded in the last 18 months. The Swiss are very mobile-savvy, with iPhone and iPad users in particular showing a high propensity to buy. For e-commerce providers, this means considerable investment in mobile-compatible web platforms and a confrontation with device-specific shopping habits. Apps no longer have the same significance as they did five years ago.MK What are the most important trends for the future in e-commerce?WÖLFLE The ongoing trends toward an ever greater variety of end devices and cross-channel sales concepts are continuing and will keep us busy for some years to come. Information about the user's current location will become increasingly important, and mobile is seen by many as a bridge from online to offline. One of the major challenges is the cross-channel identification of customers. The hot topic in this context is the digital wallet, whose potential could go far beyond payment functions.

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