Market Trends of Finland E-commerce Industry
This section covers the major market trends shaping the Finland E-commerce Market according to our research experts:
Growth Potential in Mobile Commerce
- The growing use of smartphones and rising consumer demand for convenient payments have fueled growth in mobile payments. M-payments, including mobile wallets and carrier billing, are growing rapidly among Finnish consumers.
- The growth of e-commerce in Finland is facilitated by the development of information technology, including online and m-payment services. Consumers in Finland mostly use credit transfers to pay for online purchases. And while the shares of payment cards and cash on delivery decreased, digital wallets, mobile wallets, carrier billing, and direct debit increased their shares during the last couple of years, as consumers increasingly began to use phones to make payments for online shopping.
- Mobile commerce represents an innovative way to build customer value and a new, unique distribution channel for digital products and services. Mobility translates to new opportunities, and many players and consumers are rapidly adopting m-commerce to create choice and value consecutively. Mobility offers much more than convenience as it may revolutionize how companies work, buy, sell and collaborate.
- Moreover, the benefits offered by mobile commerce, such as in-app purchasing (such as buying clothing items via an e-commerce app), Mobile banking, Virtual marketplace apps, and Digital wallets, are attracting consumers to the region for mobile commerce.
- Mobile commerce is preferred by the younger generation of Finland's population, and smartphones are the primary device for online shopping among millennials. Furthermore, rising smartphone penetration is also boosting the growth of mobile commerce in the region.
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The Fashion and Apparel Segment Accounted for the Significant Market Share
- One of the leading trends in Finland's e-commerce market is the direct integration of shopping functionality into the content display on social media enabling high-speed, "inspire and sell" customer conversion (such as Instagram and Facebook Checkout). The consumer is shifting from desktop to mobile, and improving the mobile browsing and checkout experience is crucial.
- Growing household consumption and fashion trends fuel fashion segment growth in the region. Many major market players opt for digital advertising via Facebook and Instagram to attract customers. Furthermore, the ongoing industrial transformation will enable new business in Finland. The country's strengths in production are related to the sustainable raw material base, which is increasing the demand for clothing and footwear in the market.
- The Finnish textile industry has recently attracted international attention because of the new textile fibers. Sustainable production is increasingly becoming important in customers' expectations and choices. The changing EU rules and regulations also accelerate the bio-based and recyclable raw materials and textiles market. Finland also has large amounts of expertise in the technologies needed to enable the sustainable production of fibers and fabrics. This is expected to grow the clothing and footwear sales in Finland's e-commerce market.
- Furthermore, the increasing number of e-shoppers in the region is also propelling the growth of the fashion e-commerce market. As per EUROSTAT, the percentage of internet users that bought goods or services online in 2016 was 72% and increased to 79% in 2021. Furthermore, Black Friday sales offered by the top market players in the region also generate demand for the fashion segment in the e-commerce market.
