Away from mass-produced goods: Consumers are increasingly focusing on individual value

Datatrans and the University of Applied Sciences Northwestern Switzerland present the latest trends in online sales in the E-Commerce Report Switzerland 2019. Consumers are showing themselves to be saturated by the mass of industrial goods and are focusing on offers with complementary services and individual value. In the future, it will not be the manufacturers who determine what is bought, but the customers what the distribution should deliver to them.

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Strong consumption on the internet continues: In 2018, the Swiss made online purchases worth almost 10 billion Swiss francs. This represents a 10 percent increase in e-commerce volume. All study participants expect growth in 2019 as well.

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Foreign platforms grow disproportionately

At 16 percent, the value of orders placed with foreign online platforms has increased significantly. In the last five years, foreign providers have developed more than twice as fast as domestic providers. Today, the foreign share in online retailing is 22 percent. Disproportionate growth is also expected in 2019.

From linear distribution chain to customer centricity

Traditionally, the consumer goods industry was organized as a value chain that starts with the manufacturer and ends with the consumer via wholesalers and retailers. Digital platforms such as online marketplaces, social media, and search engines have dissolved the old role pattern and now position themselves with useful services between retailers and consumers. As a result, the customer is now at the center. Digital platforms are his companions - and only then do the providers come up with the actual service.

Retail declines in favor of a new networked world of offerings

Due to the constant availability of offers on the Internet, regional retail is losing importance. A reduction of stores and sales space has already begun in Switzerland. All levels of distribution are under pressure. As a result, a new networked world of offerings is emerging, with diverse opportunities for collaboration.

The customer is online - brands follow suit

In order to reach their customers online at the most important touchpoints, brands must become more involved on the Internet. Self-provided services shape the brand profile and provide valuable information about customers and their purchasing behavior. However, own B2C online stores remain primarily a marketing tool and will account for only a small share of brands' sales in 2025.

Retail stores can distinguish themselves with virtual assortment

Instead of large sales areas, retailers want to distinguish themselves in the future with smaller, intensively managed stores. Virtual assortments are one approach: In addition to the products available in the store, there are also those that can be ordered directly on site in additional colors and sizes.

If you want to profit from growth, you have to invest continuously

E-commerce remains a very dynamic and competitive business and continues to promise great growth. In order to keep up, companies must constantly expand their services and make processes even more efficient. E-commerce requires continuous investment in IT and logistics. They look for the freestyle in measures around personalization and relationship management.

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Smart mobile solutions increase conversion

Purchasing via smartphone is becoming increasingly popular. To increase their conversion in the mobile segment as well, companies are targeting their marketing at smartphone use. Especially for regular purchases, mobile solutions with stored payment data are a simple and customer-engaging measure. The smart public transport tickets from Fairtiq and SBB Easy Ride or the cashierless kiosk "avec box" from Valora show the way.

Growth trend in e-commerce also stable over the coming years

The expectations of the study panel on the growth of e-commerce in the coming years are high: a good two-thirds of the companies surveyed expect e-commerce sales in their industry to have increased by 50 percent or more by 2025. No one expects stagnation or a decline.

To the E-Commerce Report

Since 2009, the E-Commerce Report Switzerland has been investigating the status, changes and trends in sales to end consumers - as the only study series from the perspective of the providers. The survey is realized by Datatrans and the University of Applied Sciences Northwestern Switzerland FHNW. 

Method:

  • Long-term study, repeated annually, since 2009 
  • Empirical, primarily qualitative 
  • Survey: Expert interviews and questionnaire 
  • Survey period: January 9 to April 23, 2019 

Participants:

  • 35 potentially market-shaping online and multichannel providers of consumer goods and services in Switzerland with an e-commerce volume of almost 4 billion Swiss francs
  • Selection criteria: Several years of track record in e-commerce, importance in the industry, degree of novelty of the business model. 

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