News Round Up: Germany second strongest eCommerce market, and Zara pledges sustainable measures
Germany named Europe’s second-largest eCommerce market with €98 billion in eCommerce sales
In a recent report published by Postnord, Germany has been recognised as the second biggest eCommerce market in Europe, second only to the UK.
This is said to be due to its large population, excellent infrastructure and generally high standard of living.
The report also mentioned other positives for Germany. The number of eCommerce customers is high, as is the average spend per customer. The number of online shoppers in the over 60 market dramatically grew in Germany during 2018, rising by 11%.
However, the German population skews towards this older category, so despite the rise, it may take them a long time to catch Britain and become the number one largest eCommerce market.
Clothing and footwear expected to make up 39% of online retail sales this year
New reports published by IBISWorld suggests that revenues from Irish online retail will hit €2.2 billion this year, doubling that of 2010, and continue to grow at a compound annual rate of 11.2% for at least the next five years. Revenues are expected to reach €3.8 billion by 2024.
“As payment methods become more convenient and secure, and eCommerce retailers invest in infrastructure to make their websites more appealing and user-friendly, industry revenue is forecast to rise in turn,” said the authors of the report.
Clothing and footwear make up the largest portion of sales at 39%, with electronics following closely with 33%. In terms of retailers, Amazon leads the pack with 5.6% of sales credited to them, while second place eBay makes up a much smaller portion, with 3.6%.
Sustainability: Zara pledge to exclusively use sustainable materials in collections by 2025
Inditex, Zara’s parent company, have said they plan that by 2025, their collections will be made from completely sustainable materials as part of their “sustainability transformation”. The news was announced at the Inditex Annual General Meeting, in Artexio Spain.
The firm announced a number of new pledges and goals, saying they will remove all single-use plastics from customers’ sales by 2023. To add to that, they will be aiming to have 80% of the energy used at stores, offices, and factories come from renewable sources.
The firm has set targets for all its stores, which include Zara, Massimo Dutti, Bershka and others, to be eco-efficient by 2020. This means the stores will use 20% less electricity and 40% less water. Their are currently plans in place to have stores fitted with containers for used clothing, which will then either be recycled or sent to charities. Chairman Pablo Isla said, “Sustainability is a never-ending task in which everyone here at Inditex is involved and in which we are successfully engaging all of our suppliers; we aspire to play a transformational role in the industry.”
At the AGM, Isla also announced the group’s plans for its online platforms – most notably that all of Inditex’s fashion propositions will be available to purchase globally by 2020.
eCommerce in Denmark to be worth €19.5 billion in 2019
Reports have indicated Denmark’s eCommerce industry will experience growth this year of 12.7%, bringing it to an estimated €19.5 billion in value.
This follows very healthy growth for the eCommerce industry over the past few years in Denmark. Last year, eCommerce made up 5.6% of the nation’s GDP, and reports have indicated that 86% of its population will partake in online purchasing this year.
The data is showing that Debit cards and Credit cards are the preferred payment method in the Danish market, but e-wallets and e-invoices will grow in popularity. People differ on preferred delivery methods, with 44% of Danish customers choosing to receive packages at home, while 39% are picking up their packages at a shop nearby.
Cross-border eCommerce appears to be getting much more popular in Denmark. The industry was responsible for €6.29 billion worth of turnover, but that figure is expected to rise to €7.36 billion at the end of the year, and €8.7 billion in 2020.