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Based on the responses of 36 industry leaders, the Swiss E-commerce 2016 Report indicates that online retail is in the midst of a strong growth period in Switzerland, reaching 10% year-on-year. In 2017 online sales accounted for 7% of total retail sales in Switzerland.
There are currently 5.08 million eCommerce users in Switzerland, with this number expected to increase by an additional 470,000 users by 2021. This should come as no surprise, considering that 83% of Swiss consumers indicated they ‘often’ used digital applications for their shopping. The forecasted revenue per user for the sector averaged out over the next four years will be USD 1,958 in online purchases, placing Switzerland firmly in the leading pack.
The total revenue of Swiss e-commerce across all categories is USD 7.59 billion, and is expected to grow to USD 10.88 billion by 2021. The strongest sectors in Swiss e-commerce are fashion, food, electronics and digital media.
The biggest online shopping platforms are in Switzerland are Digitec.ch, Zalando.ch, Nespresso.ch, alongside Brack.ch. As a major distributor, Galaxus Digitec (Migros) is very successful, with revenue of CHF 700 million in 2015, closely followed by other local FMCG giants Coop and Manor.
In early 2018 the American e-commerce powerhouse Amazon will launch their 24-hour delivery service Prime, giving Swiss consumers access to 229 million products at the click of a mouse.
One upcoming trend in e-commerce are direct sales from the manufacturer. According to the Credit Suisse Retail Outlook, 60% of Swiss manufacturers are active in direct sales through e-commerce. The advantages are national and international brand awareness, access to products, and an improved consumer experience thanks to direct dialogue with the client.
A study by Deloitte about the “digital consumer” recommends businesses to jump on the train of online retail. Over the next two- three years, the growth rate of online purchase will increase, meaning retailers will have to accommodate the new needs of the ‘consumer 4.0’. Likewise, companies will be in stronger need for digital marketing advocates who are able to provide an engaging user journey for online retail.
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