The five most important findings from the E-Commerce Report Switzerland 2018

1. Growth mainly with foreign suppliers

2017 was a successful year for e-commerce in Switzerland. A ten percent increase in sales was achieved. However, it is worrying that more than a third of this growth is attributable to companies from abroad. This reinforces a trend that has been going on for several years. More than 90 percent of those surveyed assume that foreign providers will continue to expand their market share in the future. This development can threaten Swiss e-commerce, especially in the long term.

2. The transformation of trade is progressing incessantly

Technology-driven companies improve their service portfolio much faster than traditional retail companies and focus primarily on individual value chains. As a result, it is not surprising that digital platforms are becoming increasingly important. The shift in demand leads to a loss of control for many providers - for example in the generation of customer contacts. Amazon (market dominance), Zalando (customer orientation) and Chinese providers (price level) are seen as the greatest threats to the Swiss retail trade.

3. Swiss retail is rather pessimistic about the future

Although the economic situation looks relatively good, many respondents rate the prospects for brick-and-mortar retail as rather negative. While continued stagnation is expected in the supermarket segment, further sales losses are expected in the non-food trade. In most cases, the previous measures taken by traditional trading companies have not achieved any significant success in e-commerce. In this context, it was often neglected to connect the offers available in the branches with online search processes. However, there is a potential competitive advantage in terms of logistics. Foreign providers often need (another) day longer for delivery due to cross-border shipping.

4. Make the best possible use of the potential of digital platforms

Digital platforms are increasingly positioned between providers and consumers. On the one hand, these restrict access to customers, but on the other hand, they can ensure an enormous reach. Due to this important advantage, the use of online platforms is generally advisable. However, additional precautions should be taken to avoid excessive dependency. Alternatively, the only option is to cooperate with another digital platform.

5. Innovative technologies in the B2C sector

Further profound changes in retail are to be expected in the future. A good example of this is the so-called seamless payment, which is already being used in the Amazon Go shops. A process for identification is defined with the provider – in this case Amazon. A smartphone and an app are usually used for this purpose. This enables consumers to claim services or purchase products without having to stand in line. Payment is made on a fixed date, for example at the end of the month.

Source: E-Commerce Report Switzerland 2018