Ecommerce retail report for Europe

By Lucy Whitehouse

- Last updated on GMT

Ecommerce retail report for Europe

Related tags Online shopping

L2, a market research firm specialising in digital, released its 2017 report into e-commerce in Europe.

The firm’s report, available here, outlines where e-commerce has taken off and where it is still facing challenges across the region, suggesting where key opportunities still lie.

In terms of beauty-specific insights, it reveals that pharmacy brands are the only category to make strong headway on the Instagram platform thanks to their beauty and skin care related content.

“While ecommerce has taken off in the UK, continental Europe still presents tremendous opportunity for enterprising retailers,​” the report explains.

“In 2016, ecommerce represented 7% of grocery sales in the UK, tied with South Korea for the highest penetration in the world.

“France, with 5% of grocery sales done online, is the next most advanced market in Europe, while Germany lags behind its neighbours with less than 1%.”

Where are the e-commerce opportunities?

Amazon is the competitor to beat in the ecommerce space in Europe, the L2 report asserts, noting that the region is the major online retailer's key growth targets.

“Amazon captured one-third of all retail sales growth in the UK and Germany in 2016, and is estimated to be the largest general retailer in both countries,” ​the report explains.

“France is next - Amazon has been looking to buy a retailer in France, reportedly having approached Groupe Casino about acquiring Monoprix earlier this year, only to be rebuffed.”

In terms of how retailers online can start to push back against the dominance of Amazon, the L2 report suggests investment in tech is the way forward.

“Ocado is attempting to enter the voice assistant space by developing an integration for the Alexa platform, while Carrefour has launched an Amazon Dash copycat called Pickit.

Others are trying to partner with Amazon - Morrisons in the UK and Dia in Spain are supplying AmazonFresh with groceries.”

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