landmark

landmark global

COUNTRY FACTSHEET I JULY 2016

Denmark

Contents 01 Introduction

03

02 Who is the Danish customer?

05

03 What and how do Danish e-shoppers buy?

07

04 What are Danes’ delivery preferences?

09

05 How about cross-border?

11



Sources

13

CHAPTER 01

03

Introduction As the bridge between Scandinavia and mainland Europe, Denmark enjoys an advantageous geographic and cultural position. The coastal nation has been among the world leaders in terms of e-commerce sales as a percentage of total retail – its residents are increasingly embracing digital channels. Figures show that cross-border e-commerce is strong in Denmark and that Danes prefer to shop outside of Scandinavia altogether, mainly in the U.K., Germany and the U.S. Without indication of the precise reason for this tendency it could simply be that Danes seek the brands and deals that most appeal to them, regardless of global position.

Denmark Danish 43,000 km² 5,560,000 180,398 DKK1 = 26.945 USD or 24.253 EUR

CHAPTER 01

04

Denmark takes the lead

9.3

%

part of e-commerce in overall retail market

6

th place world

sixth-highest market share for e-commerce worldwide

1

In 2015, e-commerce constituted 9.3% of the overall retail market, good for sixth-highest in the world.2 In addition, the nation ranked No.1 in Europe on the 2016 Digital Economy and Society Index, a rating that takes into account connectivity, human capital, Internet usage, integration of digital technology and digital public services.3 Those factors suggest Denmark is in a strong position to maintain its e-tail strength going forward, although it may find itself outpaced by other countries with more to gain. Indeed, the index showed the gap between the top performers like Denmark and the lowest performed like Romania has been shrinking slightly. However, this does not mean Denmark or other strong European nations for e-commerce are weakening, just that their growth is slower.

The future of Danish e-commerce During the next three years, Denmark’s e-commerce is expected to grow as a percentage of retail. E-tail is forecast to reach 9.0% in 2016, 10.4% in 2017 and 11.2% in 2018. While some countries will grow at a faster rate, Denmark’s progress will be steady and consistent with the nation’s position within the global e-commerce market at large.

in Europe on the 2016 Digital Economy and Society Index

E-commerce in Denmark is strong. With 9.3% of the overall retail market the country ranks sixth-highest in the world.

CHAPTER 02

05

Who is the Danish customer? Most Danish consumers perform at least some of their shopping online. Of the roughly 4.2 million Danes aged 18-79, 87% purchased something online during all of 2014. By Q2 2015, already 73% of customers purchased goods through online channels, compared to 70% during Q2 2014.4 In an April 2015 survey, 3% of Danes responded they shop online “several times per week,” while 26% said they buy items on the Internet “several times per month” or “once per month.” Only 2% claimed they never shop online.5

87

%

purchased something online during all of 2014

3

%

several times per week

26

%

several times per month

CHAPTER 02

06

Why do Danish e-consumers shop online? The top reason listed for why Danish shoppers prefer the digital marketplace was that it is more comfortable to shop from home, which 59% mentioned.6 Time-saving earned 53% of e-tail consumers, while another 53% went to lower costs. Furthermore, 43% found it inconvenient to abide by a store’s hours and 41% enjoyed the home delivery option. On the other hand, only 35% mentioned better selection or a better overview of the goods available, 31% listed an aversion to going to a physical store, and a mere 2% listed customer service. These may be areas in which Danish e-tailers can find room for improvement.

CO N V

PRIC

E

N CE

VING SA

IE EN

TIME -

59

%

53

%

53

Danish e-customers seek fast delivery and cite convenience as their No. 1 reason for online shopping over in-store purchases.

%

CHAPTER 03

07

What and how do Danish e-shoppers buy?

19

%

In a February 2016 survey, 19% of Danish respondents listed clothes, shoes and jewelry as the category of items they purchased most recently. Movies, music, books, games and toys garnered 14% along with travel and cultural experiences. Computers and mobile phones came in fourth with 11%, followed by house, home and flowers/plants with 11%.7

Fashion clothes, shoes & jewelry

Denmark’s top e-tailers The top five online marketplaces for Denmark are as follows:8

14

%

Amazon 2.38%

Entertainment

Saxo 2.26%

Movies, music, books, games and toys

Zalando 2.13% Elgiganten 1.92% Ebay 1.83%

11

%

Hardware Computers and mobile phones

11

%

Household house, home and flowers/plants

Each of these e-tailers increased their market share from 2013 to 2014. Ebay enjoyed the biggest jump, from 1.40% to 1.83%, while Amazon took over the top spot in 2014, which previously belonged to Saxo. Denmark’s e-commerce industry is a stable, steady force in the nation’s overall market. E-tailers that take advantage of the trends outlined here and adhere to consumers’ stated preferences will set themselves up for continued success in the coming years.

CHAPTER 03

08

How do e-shoppers prefer to make payments? Dankort – the national debit card of Denmark – is far and away the most popular method of paying for items online. Over three-quarters of Danish e-commerce consumers listed the card as their preferred payment type, while Mastercard/Eurocard came in second with 15% and Visa in third with 5%.9

5

%

Visa

15

%

Mastercard

80

%

Dankort

Additionally, 74% of Danes used a laptop or desktop computer to make purchases in 2015, compared to 81% in 2014. Meanwhile, tablet use increased from 14% to 18% while smartphone purchases moved from 5% to 7%.10

Denmark’s e-commerce industry is a stable, steady force in the nation’s overall market.

CHAPTER 04

09

What are Danes’ delivery preferences? Delivery time Danes also exhibited less patience than other Nordic consumers – over 50% expect their purchase to arrive within three business days after delivery. Contrarily, Swedes and Norwegians will wait four business days, while Finns will wait close to five.

Danes

3

business days

Swedes

4

business days

Finns

5

business days

Additionally, Danes have access to a robust delivery infrastructure, which plays a role in their satisfaction with delivery and their decision to buy online.11 In particular, cross-border delivery offers several options – cooperation between National Post Operators (NPOs), between NPO and a foreign subsidiary, between NPO and a private courier, or any combination. Danes’ decision on which to use depends primarily upon the price and efficiency of the model. Reciprocity – the idea of providing business in exchange for business – also factors into cross-border shipping choices, along with the existence of own delivery networks.

Delivery method Moreover, Denmark is similar to the other Nordic countries in that the plurality of Danes who purchase a product online prefer to pick it up themselves at a service point – 20% according to a Postnord survey.12 However, that mark is far lower than the other Nordic countries: In Sweden, Norway and Finland, 48%, 52% and 48% of survey respondents preferred to pick up their parcel at a service point, respectively.

CHAPTER 04

10

In Denmark, more consumers want their packages to be delivered to their mailbox during the day, even when they are not home, than in the other Nordics – 19% of those surveyed. Another 18% indicated they want their item delivered to a specific address, an option that was not present for Sweden, Finland or Norway. The remainder of Danes’ delivery preferences follows:

PICKUP

20 15 1

%

Pickup from a service point

%

Pickup from a parcel box that is available all day long

%

Pickup from the webshop’s physical store or warehouse

DELIVERY

9 9 4

%

Delivery by the mail carrier to the mailbox

%

Delivery to the workplace

%

Delivery to home during the evening when it is convenient

In contrast to the other Nordic countries, Danish buyers are far less eager to pick up their parcel at a service point.

CHAPTER 05

11

How about cross-border?

50

%

bought products from the UK

Cross-border e-commerce in Denmark is strong, though it is more common for Danes to shop outside of Scandinavia altogether, preferring the U.K., Germany and the U.S. The precise reason for this is unclear, though it could simply be that Danes seek the brands and deals that most appeal to them, regardless of global position. When Danes are not shopping from e-tailers located within their own borders they are showing increasing preference for those of the United Kingdom. In 2014, 50% of online consumers said they bought products from the UK, followed by Germany at 29%, the United States and Sweden at 16% apiece, and China at 15%.13 With that said, cross-border delivery can sometimes pose a problem for foreign e-tailers shipping to the Nordic region due to the bevy of tax and customs regulations unique to the region. In most cases, delivery is more expensive than initially indicated – which is why it is important for e-businesses to be as transparent as possible about the final cost to the customer, without adding on taxes and fees at the end, unexpectedly.

Find out what the most popular e-shop countries are for the Danes

The bevy of tax and unique customs regulations make delivery in Denmark often more expensive than initially indicated.

CHAPTER 05

12

Where do Danish online consumers buy abroad?

16

%

Sweden

16

%

USA

50

%

United Kingdom

29

%

Germany

15

%

China

SOURCES

13

1 http://www.oecdbetterlifeindex.org/countries/denmark/ 2 http://www.invespcro.com/blog/global-online-retail-spending-statistics-and-trends/ 3 http://europa.eu/rapid/press-release_MEMO-16-385_en.htm 4 http://www.postnord.com/en/media/publications/e-commerce/e-commerce-in-the-nordics-q2-2015/ 5 http://www.emarketer.com/Article/How-Often-Do-Digital-Shoppers-Nordics-Press-Buy/1012594 6 http://www.emarketer.com/Article/How-Often-Do-Digital-Shoppers-Nordics-Press-Buy/1012594 7 http://www.fdih.dk/nyheder/2016/februar/vidste-du-at-toj-sko-og-smykker-saelger-bedst 8 Northern B2C E-commerce Report 2015 9 http://www.fdih.dk/nyheder/2016/februar/vidste-du-at-dankortet-bruges-til-6-ud-ad-10-betalinger 10 http://www.emarketer.com/Article/Digital-Buyers-Denmark-Hold-Digital-Purchase-Frequency-Steady/1013613 11 http://ec.europa.eu/internal_market/post/doc/studies/20130715_ce_e-commerce-and-delivery-final-report_en.pdf 12 Postnord – E-commerce in the Nordic Region – Q1 2015 13 E-commerce in the Nordics 2015

landmark

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ENABLING GLOBAL COMMERCE

Denmark

Danish 43,000 km² 5,560,000

E-COMMERCE COUNTRY FACTSHEET I JULY 2016

180,398 DKK = 26.945 USD or 24.253 EUR

Denmark takes the lead

Who is the Danish customer?

9.3

%

87

TIME -

V

PRIC

59

%

11

% Hardware

% Household

%

%

Where do Danish e-consumers buy abroad?

16

% Sweden

15

% China

16

%

USA

11

53

53

14

% Entertainment

E

VING SA

IENCE EN

What do Danish e-consumers buy?

% Fashion

several times

% per month

Why do Danish e-consumers shop online? CO N

19

several times

% per week

purchased something online during all of 2014

1 in Europe on the 2016 Digital Economy and Society Index

3 26

%

part of e-commerce in overall retail market

50

% United Kingdom

29

% Germany

landmark

landmark global

Want to know more? Contact us www.landmarkglobal.com I I [email protected]