E-commerce continued its rapid growth in France in 2018

2018 has just come to an end: it was a strong year for e-commerce in France, with a new record estimated at €90 billion according to FEVAD.

Many events contributed to the rapid growth of this sector: the sales periods, Black Friday, Cyber Monday and the numerous Yellow Vest blockades during the end-of-year holiday period.

Key figures for the sector: new records

After three highly promising first quarters, representing approximately €66.6 billion, and an estimated €19 billion for the Black Friday, Cyber Monday and Christmas events, the e-commerce sector continued its momentum with a new record.

This can be explained by several factors, including:

• the number of online shoppers, which has now reached 37.5 million French consumers, thereby increasing potential demand;
• an increase in supply and a continuously growing number of merchant websites, with 194,000 active e-commerce websites, 14% more than in 2017;
• mobile, which represents 20% of buyers and continues to play an increasingly important role both in the purchasing process and in completing purchases;
• the normalization of online shopping, with an average purchase frequency of 11.8 transactions per quarter, representing 20% more than the previous year, despite a -7.3% decrease in the average basket value, which now stands at €60;
• transactions are becoming increasingly common on marketplaces, which now account for 31% of the volume of sales made online.

All these factors contributed to this new performance in 2018 and are already beginning to reveal the trends for 2019.

Performance driven by major events

Beyond the factors and trends that have been emerging for several years, there are certain events that most consumers eagerly await because they are known for offering good deals.

There are many essential e-commerce events that contribute to the sector’s performance. Here is a list of the main ones:

• sales periods: with two major periods during the year (summer and winter), lasting an average of 6 weeks. These events take place both online and in stores and generate revenue. Sales periods will be reduced to 4 weeks in 2020 following the Pacte law passed in September 2018 (+ decrease in performance compared with previous years).
• Black Friday: imported from the United States, Black Friday marks the beginning of end-of-year shopping with major promotions that benefit consumers. Black Friday 2018 was a real success according to the Webloyalty Panel, with orders recorded on November 23 increasing by 34% compared with 2017. This can be explained by the advertising pressure from retailers, which widely promoted their messages, the significant discounts offered to consumers, and the Yellow Vest movement, which caused an average 35% decline in store activity according to the Fédération du Commerce et de la Distribution;
• Cyber Monday: also imported from the United States, Cyber Monday immediately follows Black Friday and gives consumers a second opportunity to find good deals online;
  
• Christmas: the end-of-year holiday period represents a significant share of revenue in the e-commerce sector, with online purchases becoming increasingly common and increasing by 12.5% compared with 2017;
• the Yellow Vest movement: regular blockades of major shopping centers resulted in a significant increase in online purchases, benefiting the e-commerce sector;
• the normalization of online shopping: despite a decrease in the average basket value and an increase in the number of online shoppers.

This list of events provides an annual calendar for all e-commerce businesses wishing to accelerate their sales and grow their revenue.

The positive momentum of e-commerce continues across Europe

According to an international study conducted by the Centre for Retail Research, France is part of the broader European trend, with a budget of approximately €335 billion across the 7 countries studied, 1.7% more than in 2017. This increase is in line with the ECB forecast, which predicted 2% growth in the eurozone in 2018.

Growth in the share of e-commerce for Christmas purchases in France remains well behind Spain and Italy, with respective increases of 380% and 272% over 5 years, but still ahead of the United Kingdom, which recorded a 68% increase. This can be explained by the greater maturity of the British market, with a Christmas budget of €28 billion compared with €13.86 billion in France.

This study clearly highlights France’s strong potential, which, like other European countries, still has significant room for growth in the e-commerce sector in the years ahead.

2018, which has just come to an end, was a good year for e-commerce, with new records in the number of mobile users and online shoppers as well as in revenue.
The trends to follow in 2019 are already emerging, such as the development of the mobile user experience and the significant increase in transactions on marketplaces, reflecting strong consumer demand for easier online shopping.

Sources:

The website of the Fédération E-commerce et de la Vente A Distance (FEVAD) – “Key Figures – 2018” report – https://www.fevad.com/wp-content/uploads/2018/06/Chiffres-Cles-2018.pdf

FEVAD press release – Continued growth in the third quarter should enable e-commerce to reach €90 billion in 2018 – Paris, November 15, 2018 – https://www.fevad.com/le-maintien-de-la-croissance-au-troisieme-trimestre-devrait-permettre-au-e-commerce-datteindre-les-90-milliards-deuros-en-2018/

FEVAD press release – 4 out of 5 online shoppers plan to buy their Christmas gifts online – Paris, November 15, 2018 – https://www.fevad.com/4-cyberacheteurs-sur-5-comptent-acheter-leurs-cadeaux-de-noe%CC%88l-en-ligne/

Ecommercemag.fr website – [Study] Christmas purchases on the Web rise sharply in Europe – https://www.ecommercemag.fr/Thematique/data-room-1223/Breves/etude-achats-noel-Web-forte-augmentation-Europe-335497.htm

La Rose des Ventes website – Review of Black Friday 2018 – https://rosedesventes.com/index.php/2018/12/09/bilan-black-friday-2018/

My Digital Week website – E-Commerce & Sales: analysis of 2018 trends versus 2017 – https://mydigitalweek.com/e-commerce-soldes-analyse-tendances-2018-versus-2017/