European Online Retail Forecast,

2007 to 2012

& Green Online Shoppers’ Attitudes

Dorothee Guthrie Vogel

September 2007
 About JupiterResearch
• Analysis, Perspective, Data, Context.
• Business advice on current and
future digital markets.
• Numerous forecasts, covering:
– Western Europe: 17 countries,
including non-EU Norway and Switzerland.
– Central & Eastern Europe: further 11 countries, incl. Baltic.
– US.
• Based on a synthesis of proprietary
consumer survey and supply-side data.
• Provide syndicated subscription research,
and custom research and consulting.

2 © 2007 JupiterResearch, LLC

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3 © 2007 JupiterResearch, LLC
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 About European Commerce
• Provide companies involved in the online retail
and travel business with insight, data and
analysis to effectively market and grow online
sales.
• The research provides detailed product
category analysis addresses key issues such
as changing consumer demand and expertise,
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touch points.
• It also tackles issues unique to the European
marketplace such as cross border selling and
emerging issues such as

4 © 2007 JupiterResearch, LLC

 Agenda- Part 1
• European Online Retail Forecast, 2007
to 2012

• How much will European consumers

spend online between 2007 and 2012?
• How does the pace of growth compare
across the EU and US?
• How will the growth drivers change
over the next five years across these
countries?

5 © 2007 JupiterResearch, LLC

 Agenda- Part 2

• European Green Consumers:

Identifying and Seizing the Opportunity
Online

• What share of European online users cite

environmental considerations during their
purchase decision?
• What will drive green shopping adoption in
Europe?
• How can online stores tap into European's
green shopping behaviors?

6 © 2007 JupiterResearch, LLC

 European Online Retail Spending Will
Total More than €145 Billion in 2012
CAGR, 2007 to 2012: 14%
(in billions)

Percentage of Total Retail Spending

€ 150 15%

Online Retail Spending as

Online Retail Spending

€ 120 12%

€ 90 9%

€ 60 6%

€ 30 3%

€0 0%
2006 2007 2008 2009 2010 2011 2012
Online retail spending
Online retail spending as percentage of total retail spending
Note: Retail does not include auto, travel, or prescription drugs.
7 © 2007 JupiterResearch, LLC Source: JupiterResearch Internet Retail Model, 8/07 (Western Europe)
 UK, Germany and France Will Account for 64
Percent of European Online Retail Spend in 2012
(billions)
€ 40
Online Retail Spending

€ 30

€ 20

€ 10

€0

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2006 2012

8 © 2007 JupiterResearch, LLC Source: JupiterResearch Internet Shopping Model, 08/07 (Europe only)
 Many Countries Closing in on Peak
Buyer Penetration Levels by 2011
100%

80% 75-80% likely peak buyer penetration

Online Buyers as Percent
Of Online Population

60%

40%

20%

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US

UK
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2007 2011
Source: JupiterResearch Internet Shopping Model, 11/06 (US only), Jupiter Research Internet Commerce
9 © 2007 JupiterResearch, LLC Forecasts, 08/07 (Western Europe Only)
 Range of Product Categories
Consistent Across Country and Time
Number of Product Categories

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EU
Note: Excludes travel
Question: Which of the following products have you purchased in the past six months?
10 © 2007 JupiterResearch, LLC Source: JupiterResearch Consumer Survey (9/06), n = 1,655 (online buyers, UK, France, Germany, Italy, Spain, and Sweden only)
JupiterResearch/Ipsos-Insight Retail Consumer Survey (04/06) n=2 555 (US only)
 Agenda- Part 2

• European Green Consumers:

Identifying and Seizing the Opportunity
Online

• What share of European online users cite

environmental considerations during their
purchase decision?
• What will drive green shopping adoption in
Europe?
• How can online stores tap into European's
green shopping behaviors?

11 © 2007 JupiterResearch, LLC

Danes and Dutch are more than twice as
willing to pay more for Green Products
100%
Percentage of online users

75%

50%

25%

0%
Germany UK France Netherlands Denmark Northern
Europe Average
Online research of environmental implications previous to product purchase
Enviornmental Company policy is likely to influence purchase decision
Willing to pay more for enviornmentally aware product
Question:Researched online the environmental implications of a product I was considering purchasing during the last 12 months
The environmental policy of a company is likely to influence whether I buy from it
I would be happy to pay more for an environmentally aware product

12 © 2007 JupiterResearch, LLC Source: JupiterResearch/Ipsos Consumer Survey (4/07), n=4446 (Denmark, France, Germany, Netherlands and UK only)
Marketers must act quickly to enable
green conversion through twin approach

Marketing
Implementation Consumer Differentiation to
Execution take Wallet Share

Broad &
Shallow Narrow & Deep Green
Messaging Messaging Shoppers

Green Product
Positioning

13 © 2007 JupiterResearch, LLC Source: Jupiterresearch July 2007

 Retailers Must Embrace Green
Opportunity Online

Online Buyers

Bought Retail Product

Online

Bought Travel Product

Online

0% 50% Green 100%

Percentage of Segment Shoppers
Non-Green
Question:The environmental policy of a company is likely to influence whether I buy from it Shoppers
I would be happy to pay more for an environmentally aware product have bought other products online during the last 12 months
I have bought travel products online during the last 12 months
I have bought other products online during the last 12 months
Source: JupiterResearch/Ipsos Consumer Survey (4/07), n=1071 online travel buyers, n=1616 online retail product buyers n=4446
14 © 2007 JupiterResearch, LLC (Denmark, France, Germany, Netherlands and UK only)
 Green Attitudes Translate Into Action
Recycled

Made my home more energy efficient

Drove less
Bought more from companies that are
environmentally friendly
Became informed about environmental issues
Shared information about environmental issues
with my friends
Bought energy efficient appliances or
consumer electronics
Suppressed paper statements to save on paper
Voted for a candidate who cared about/
campaigned on environmental issues
Online green adults
Donated money to environmental causes Overall online adults

0% 20% 40% 60% 80% 100%

Percentage of Online User Segment
Question: Which of the following have you done in the past two years to protect the environment? Select all that apply. (Only selected responses are shown.)
Source: JupiterResearch/Ipsos Insight Individual User Survey (6/07), n = 3,580 (overall online users, US), n = 747 (online
15 © 2007 JupiterResearch, LLC green adults, US)
Retailers need to Appeal to Sophisticated
Online Audience
Use Email

Online Buyers

Classifieds

Web Media

Online Games

File Sharing

Social Networks

0% 50% Green 100%

Percentage of Segment Shoppers
Question: Considering the following statements, which describe you? Please select all that apply
Which of the following have you done at least once in the last 12 months? Please select all that apply Non Green
The environmental policy of a company is likely to influence whether I buy from it Shoppers
I would be happy to pay more for an environmentally aware product
Source: JupiterResearch/Ipsos Consumer Survey (4/07), n= Green Shoppers, n= Non Green Shoppers (Denmark, France,
16 © 2007 JupiterResearch, LLC Germany, Netherlands and UK only)
 Key Takeaways- Part 1
• European online buyers will spend more
than €145 billion online in 2012.
• EU collective online sales overtake total
US online sales by 2011 to reach 131 and
126 Euros respectively.
• Growth drivers across most major online
retail markets indicate maturing in the
late stage of the five year forecast (until
2011).

17 © 2007 JupiterResearch, LLC

 Key Takeaways- Part 2
• Over a quarter of European online users are willing to pay
more for green products. However, current supplier efforts
online don’t correlate with consumer attitudes.

• The influence of green shopping adoption drivers and

inhibitors varies throughout countries and will create
diverse green opportunities, with green supply side
communication having the greatest short term impact.

• Marketers should move quickly and communicate their

green efforts to as many consumers as possible, and then
engage green shoppers who follow up with deeper
information and product choices across channels.

18 © 2007 JupiterResearch, LLC

 Some Relevant Recent
JupiterResearch Reports
• European Online Retail Forecast, 2007 to 2012

• European Green Consumers: Identifying and Seizing the

Opportunity Online

• Green Adults: Tapping into an Older, Informed Audience

• Green Teens: Reaching a Trendy, Engaged Audience Online

• Green Online Travel Bookers: Green Policy Messaging in the Travel

Industry Europe & US

19 © 2007 JupiterResearch, LLC

 Thank you

dvogel@jupiterresearch.com
www.jupiterresearch.com
Phone: 02079035031

20 © 2007 JupiterResearch, LLC