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The Switzerland E-Commerce market is one of the five European countries with the highest percentage of online purchases, according to International Trade Administration. In 2020, the online share of Swiss retail sales was 11.8%, increasing from 8.3% mainly due to the COVID 19 pandemic. The Switzerland E-Commerce market is expected to grow at a CAGR of 14.6% during the forecast period (2022-2027).
- According to the International Trade Association, Switzerland invested CHF 11 billion in domestic online shops and CHF 2.1 billion in overseas online shops in 2020. Further, according to industry observers, e-commerce sales are predicted to grow in 2021. Further, according to the Swiss Mail Order Association, which brings together more than 320 online retailers that generate about 50% of Swiss B2C online sales, manufacturers and brands are investing significantly in their online format to increase sales and improve the customer experience.
- The dependency on card payments increased for online purchases during the COVID-19 pandemic. According to the autumn 2020 survey undertaken by Swiss National Bank published in June 2021, the share of debit card payments for non-recurring transactions amounted to 33% in 2020. Cards are often the best solution for e-commerce purchases, as they do not have the adjustment issues of bank transfers. However, bank transfer continues to be the most popular mode of payment, followed by card payments for e-commerce in the country.
- Technology advances by many major regional players are driving the e-commerce market. For instance, Swiss Post is advancing delivery technologies that will support the growth of e-commerce over the next few years. Swiss Post conducted delivery tests using self-driving robots. Delivery specialists such as Matternet and Swiss Post made drone deliveries between Swiss hospitals.
- However, the travel restrictions created by COVID-19 helped domestic online retailers continue their business in 2020 despite the shutdown of offline retail shops. Switzerland has a strong tradition of retailing in physical stores, but the COVID-19 pandemic has compelled them to enter the e-commerce market.
Scope of the Report
Conducting an e-commerce business means fostering relationships and selling information, services, and goods over computer communication networks. E-commerce usually refers to trading goods and services over the internet, which means broader economic activity. E-commerce consists of B2B and B2C and internal organizational transactions that support these activities.
The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period in Switzerland. The study further analyzes the overall impact of Covid-19 on the ecosystem. The report's scope encompasses market sizing and forecast for B2B and B2C segmentation, in which the B2C channel is further segmented by application.
|By B2C ecommerce|
|Market size (GMV) for the period of 2017-2027|
|By B2B ecommerce|
|Market size for the period of 2017-2027|
Key Market Trends
Food and personal care holds high demand in the country
- Switzerland is developing into a rising star in the personal care industry. Healthcare providers focus on providing a healthy medical experience that combines the traditions of medical care with luxurious natural retreats, mountain resorts, and spas.
- Personal care is expected to grow fastest during the forecast period. According to the Swiss Online Survey 2021 by ZHAW School of Management and Law, online cosmetics sales increased significantly for 51% of the respondents, while 23% indicated moderate growth. The survey further outlined that only 4% of the respondents identified declining cosmetics sales. Such strong growth in the cosmetic sector has strongly driven the growth of the studied market.
- As consumers become more aware of the harmful effects of certain compounds, the demand for natural and organic products is increasing in this country. Many Swiss consumers choose one brand over another because of its natural formula. This has led to a surge in demand for safe and organic cosmetological products. In addition, the increasing trend of organic concept stores of organic cosmetics among consumers is expected to boost the growth of domestic natural and organic cosmetology products.
- The country has witnessed an overall shift in food purchases with interest growing in online supermarkets, online food retailers, and online sales by food producers or farmers away from buying at supermarkets, markets, and convenience stores. According to the Swiss Online Survey 2021, online food orders have significantly increased, with 56% of the respondents witnessing strong growth and around 24% witnessing moderate growth. However, a certain section in the B2B segment has witnessed a decline in food sales, which marginally offset the strong demand.
- The coronavirus pandemic has changed the buying behavior of the Swiss population. In particular, online grocery shopping has become more acceptable. The shift in consumer behavior is attributed to the Swiss government's restriction on home orders during the COVID-19 pandemic, the growing disinterest in going out for shopping, and changing working and leisure habits amongst the country's population and have positively influenced the growth of the E-Commerce market in the country.
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E-Commerce growth during the COVID-19 pandemic
- Swiss e-commerce has grown significantly during the COVID-19 crisis. The results of the Swiss Online Retailer Survey 2021 by the ZHAW School of Management and Law, based on a representative survey of 365 Swiss online shops, indicate that online retail experienced a boom in the country, with 9 out of 10 online shops witnessing sales growth in 2020, and a third witnessing very strong growth of over 30%. This trend has benefited from small and large online shops in the B2C and B2B sectors.
- Swiss are increasingly turned to online shopping because of a temporary closure or to avoid visiting physical stores. Changes in telecommuting and leisure activities have dramatically increased online demand for groceries, sporting goods, toys, and DIY and gardening tools. Online orders for products from the electronics, computer, and multimedia sectors have skyrocketed.
- Online stores' most commonly used payment methods are invoices and credit cards. Amongst 86% of the respondents of the Online Retailer Survey 2021, payment can be made using credit cards such as Mastercard, Visa, or American Express, and 78% by invoice. TWINT, a Swiss mobile payment solution, has become much more popular during the COVID-19 crisis and is currently available in every two online shops. Mobile payments have garnered significant traction and are expected to witness strong growth over the forecasted period.
- Before the COVID-19 pandemic, some furniture stores and gardening centers introduced or expanded click-and-collect services in the country. This allowed customers to place orders online and drive to outlets to collect their purchases. Such practices are expected to further shape the E-commerce market in the country. Overall, COVID-19 has caused retail digitization, leading to a significant increase in online sales in the short term.
The Switzerland E-Commerce market is highly competitive due to the strong presence of many players in the market. The market demand is also increasing with the growing adoption of online purchases, and companies are also focusing on innovating new solutions.
- May 2021 - Manor, a department store chain from Switzerland, has launched its online marketplace marking its entry into the country's E-Commerce market. The company aims to expand its product range with new and existing brands in categories such as fashion, beauty, home, and household, focusing primarily on its highest-selling products.
- June 2021 - Zalando launched its connected retail program in Switzerland. Swiss retailers can connect their stores to the Zalando platform and sell their products online to millions of Zalando customers. Swiss Post will work with local retailers to help you handle parcel deliveries and returns seamlessly.
- January 2021 - ProfiCircle, a B2b marketplace from Romania that offers commercial equipment like pallet racks and industrial mezzanines, announced its plans to launch its marketplace in Switzerland, alongside Germany. The company is leveraging its expanding network of partners to aid its entry into Switzerland.
- February 2022 - Nespresso and social impact startup OpenSC have announced a technology-based collaboration that brings a new level of transparency to Nespresso Reviving Origins' organic coffee KAHAWA ya CONGO. Through the partnership with Nespresso, OpenSC technology will be used digitally and safely to track all bags of coffee from 1,185 smallholders to consumers.
Table of Contents
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Key market trends and share of e-commerce of total Retail sector
4.4 Impact of COVID-19 on the e-commerce sales
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 High Dependency for booking of Hotels and Flights
5.1.2 Penetration of Internet and Smartphone Usage
5.2 Market Challenges
5.2.1 Evolving taxation landscape and custom regulations has increased the complexity of trade
5.3 Analysis of key demographic trends and patterns related to ecommerce industry in the country (Coverage to include Population, Internet Penetration, ecommerce Penetration, Age & Income etc.)
5.4 Analysis of the key modes of transaction in the ecommerce industry in the country (Coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)
5.5 Analysis of cross-border ecommerce industry in the country (Current market value of cross-border & key trends)
5.6 Current positioning of the country in the ecommerce industry in Europe
6. MARKET SEGMENTATION
6.1 By B2C ecommerce
6.1.1 Market size (GMV) for the period of 2017-2027
6.1.2 Market Segmentation - by Application
126.96.36.199 Beauty & Personal Care
188.8.131.52 Consumer Electronics
184.108.40.206 Fashion & Apparel
220.127.116.11 Food & Beverage
18.104.22.168 Furniture & Home
22.214.171.124 Others (Toys, DIY, Media, etc.)
6.2 By B2B ecommerce
6.2.1 Market size for the period of 2017-2027
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Zalando Group
7.1.2 Digitec Galaxus AG
7.1.3 Amazon.com, Inc.
7.1.4 Nestlé Nespresso SA
7.1.8 Apple Inc.
7.1.9 Coop Group
7.1.10 Zur Rose Group AG
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Switzerland E-Commerce Market market is studied from 2020 - 2027.
What is the growth rate of Switzerland E-Commerce Market?
The Switzerland E-Commerce Market is growing at a CAGR of 14.6% over the next 5 years.
Who are the key players in Switzerland E-Commerce Market?
ZurRose Group, Nespresso, Digitec Galaxus AG, Microspot.ch, Zalando Group are the major companies operating in Switzerland E-Commerce Market.