An Overview of E-Commerce Trends in France

Basic Elements to Consider for Small and Medium-Sized Enterprises (SMEs) Doing Business in France via E-Commerce Channels

Quick Facts (2016)

• Population
  • 64.5 million
  • Average household income US$ 46K
• One of Europe's most connected countries
  • 51.9 million internet users
  • 82.2% of households have access to  broadband Internet
  • 90.5% of households have a mobile telephone
• Online Food and Drinks Purchases:
  • US$6.9 billion in 2016
  • Forecasted to be US$9.3 billion in 2021 (6.2% annual growth)
• Consumer spending (2016)
  • Total consumer spending on food and non-alcoholic beverages: US$ 172.8 billion
  • Total consumer spending on Food and non-alcoholic beverages: US$ 2,679 per capita
  • Total online food and drinks spending: US$107.1 per capita
• French Demographics
  • Male 31.3 million
  • Female 33.2 million
  • Median age 41.2
  • Population growth 0.88%

Top Methods of Accessing the Internet for Shopping

• 34 million smartphone users
  • 46% of e-retail transactions are made via smartphone
• 29 million personal computer  users
• 9.9 million tablets users

Getting the goods to your customers

Top 3 delivery methods in France

1. Home delivery
2. Pick up point
3. Collect in store

Top 3 online payment methods in France

1. Credit/Debit Cards
2. Online payments - France has more than 8M PayPal accounts
3. Direct bank transfers

French customer behaviour and trends

France is Europe's second-largest e-commerce market. Online revenues continue to grow by double-digits annually.

Other reasons to enter the French market: high purchasing power, reliable payment methods and low shipping costs.

French Shoppers Want:

• Well prepared, French-language websites.
• Good service quality.
• Companies to respect product availability and delivery promises.
• Choice in their delivery method and date.

Understanding France's online marketplace

• Food retail is very competitive in France, providing consumers with a wide variety of stores. This leads to competitors introducing more innovative products, as well as more aggressive sales and pricing policies to distinguish themselves.
• France has the largest Muslim population in the EU, at roughly six million. Its halal market is estimated to be worth US$6.5 billion per year. It represents a great potential for growth in France's mature packaged food market.
• Canadian companies can have an online store with goods located in France or in another EU member state. You should be prepared to accept the Euro as a currency of payment.
• Due to an improved offering and wider distribution, French consumers continue to move towards high-end products with taste and safety attributes. Organic is one of the main food drivers with organic packaged food being the star of internet food sales.
• France has a tradition of consuming varied and expensive food products. Food represents 18% of household budgets. Food ingredients with a health claim, organic and dietetic products (herbal teas, food supplements, gluten-free products) offer great opportunities.
• Domestic agri-food production is actively promoted, particularly through signs of quality (Appellation d'Origine Contrôlée - AOC, Protected Geographical Indication - PGI, organic and Red Label).

Company spotlight: Carrefour

• Carrefour is a French company which is present in retailing worldwide, with three different formats in store-based retailing: hypermarkets, supermarkets and convenience stores.
• Carrefour SA is a multinational retailer. The company focuses on grocery retailing, but it has other interests such as cash and carry, wholesale, travel, insurance and banking. In France, it has a wide national coverage.

Online

• Carrefour operates the internet brands Carrefour Drive and Ooshop/Carrefour. The Carrefour website, http://www.rueducommerce.fr/, offers grocery and non-grocery items and links to the other two brands so that customers can choose between home delivery or click-and-collect for their orders.

Source for all content: Euromonitor