Posted by Mark Dowdall | Jul 21, 2023 | Europe, Fintech and Payments, Whitepaper
The French e-commerce federation (Fevad) has released its annual report. The report, titled “E-commerce key figures,” provides an in-depth analysis of the sector’s performance, trends, and key developments over the past year, based on several studies carried out by Fevad and its survey institutes partners over 2022 and 2023.
This edition sheds light on:
- The market: revenues, number of e-buyers, market shares by sector, products purchased (with fashion and clothing taking the top spot among cultural products);
- The symbiosis between physical and digital retail;
- New consumer trends: second-hand goods, local and responsible consumption, and Made in France – particularly within the Gen Z segment;
- Payment and delivery methods;
- The market impact of two years of Covid and inflation;
- The environmental impact of e-commerce and the CSR commitments of e-retailers;
- The BtoB online retail market;
- E-commerce in Europe and around the world.
E-commerce: a lever for French economic development
France remains Europe’s second-largest e-commerce market, behind the UK with €150 billion in revenues in 2022 – a 13.8% increase over 2022. As such, e-commerce remains a driver for innovation in the French economy: more than 8 in 10 e-retailers are seeking to prioritise investment in CSR or IT development.
International sales also remain a significant lever for development: 2 out of 3 e-retailers already sell their goods beyond France’s borders, and a vast majority of these expect to see an increase in international sales. Among the top destinations for French e-retailers are Belgium (86%), Spain (68%) and Germany (65%).
Finally, e-commerce keeps supporting local businesses, with almost 15% of e-buyers making purchases from local businesses or independent producers, citing the following motivations for doing so: the desire to support a local business (60%), practicality (57%), and the desire to consume local produce where possible (53%).
E-commerce challenges traditional sociological boundaries
E-commerce is popular among French citizens of all genders, socio-professional categories, and geographical areas. While a slight disparity endures between over-65s and the rest of the population, whose online consumption stands at over 80%, it is clear that e-commerce has become a standard and widespread means of consumption within the population, defying sociological boundaries. The figures reveal that online purchasing is now commonplace: on average, buyers made 54 online purchases with an average basket value of €65. In total, 42 million French consumers purchased items online.
E-commerce also provides an ideal vantage point for new modes of consumption. Within Generation Z (those born between 1997 and 2010), Fevad observed a much greater appetite for the use of digital resources when making purchases: 60% of these individuals check e-commerce websites when making in-store purchases, compared to 46% of the general population. Almost one in two e-buyers from this generation has made an online purchase after having heard about a product or service on Instagram.
E-commerce: a facilitator in everyday life
In the post-Covid era, e-commerce is establishing itself as a new vector for social contact. In fact, 92% of e- buyers see online shopping as a means of saving time, which they can then use to spend more time with family or friends (54%) or engage in cultural activities, sport or leisure (39%). Elsewhere, it can be observed that the main products and services purchased online are those which enable consumers to optimise their shopping time: fashion and clothing (56%), travel (43%), footwear (41%) and transport tickets (39%). In terms of logistics, as in product information and accessibility, e-commerce serves to improve the French customer journey.
In addition, e-commerce is increasingly seen as a means to living up to one’s commitments: 52% of e-buyers ordered second-hand products over the course of the year – a figure that rises to 2/3 for the 15-25 age bracket. More globally, over 80% of French consumers reported they prioritised quality over quantity when making purchases online in 2023, and 70% gave priority to sites with an active environmental commitment or which offered Made in France products.
Speaking on the launch of the report Marc Lolivier, CEO of Fevad said: “E-commerce remained a driving force for the French economy in 2022, generating almost €150 billion in revenues. It also provides an unrivalled vantage point with regard to emerging consumption trends: by centralising all the data published by the Fevad in 2023, we can provide a comprehensive overview of these new modes of consumption. This is an essential document for improving one’s knowledge, understanding and grasp of the role e-commerce now plays in the everyday lives of French consumers.”
France e-commerce annual report may be freely accessed here.
