EMOTA represents 3,500 multi-channel/online retailers in 16 countries

• 16 European countries

• 17 member associations

• 3,500 companies

• € 250 billion turnover

• 83% of European

e-commerce

-1-

E-Commerce contributes significantly to growth and job creation

0% 10% 20% 30% 40%

Italy

USA

France

UK

Germany

Sweden

12%

15%

18%

23%

24%

33%

Contribution to GDP growth

• 2.6 jobs created for each lost

• internet-intensive companies create

2x jobs

Average: 21%

Source: McKinsey, 2011

Note: Internet % contribution to GDP growth 2004-2009 – mature countries

-2-

In addition, E-Commerce enables consumers to save money and time

0% 20% 40% 60% 80%

more product information

home delivery

wide selection

open anytime

price comparison

save time

lower prices

10%

11%

22%

33%

33%

50%

66%

Reasons for shopping online

Consumer gains from e-commerce

(wider choice + lower prices):

� currently € 12 Bn.

� potentially € 200 Bn.

Source: Civic Consulting/TNS, 2011

Note: consumer survey – 3 most important reasons for shopping online (sample of 13,872 online shoppers)

-3-

154

170

210

250

300

171 185

215 237

270

66

84

122

158

215

13 19 26 33

48

-

50

100

150

200

250

300

2008 2009 2010 2011 2012

€ BillionEurope

N. America

Asia Pacific

ROW

+20%

+14%

+36%

+44%

E-commerce turnover by region

Source: EMOTA/IMRG, 2012

-4-

E-Commerce in Europe will reach € 300 Bn. in 2012, with 20% growth

Growth

UK, France and Germany account for 60% of European E-Commerce

European E-commerce turnover by country 2012 (€ billion)

Source: EMOTA, 2012

Note: B2C e-commerce turnover estimate

-5-

UK

France

Germany

Scandinavia

Austria/

Switzerland

Benelux

Spain

Russia

Italy

Eastern EuropeOther

90

46

45

29

17

15

11

10

1015

12

E-Commerce is growing very fast throughout Europe

+0%

+5%

+10%

+15%

+20%

+25%

+30%

+14%

+22%

+27%

+14%

+18%

+12%

+20%+19%

+27%

E-commerce growth by country in 2012

Source: EMOTA, 2012

-6-

average

European

growth

Online share of retail high in UK/Scandinavia, low in South/East Europe

European

average

0%

5%

10%

15%

20%

25%

Source: EMOTA, 2012

Note: % of e-commerce turnover on total retail trade

-7-

Online share of retail by country 2012

There are significant differences in E-Commerce penetration and spend

0%

10%

20%

30%

40%

50%

60%

70%

80%

- 500 1.000 1.500 2.000 2.500 3.000 3.500

Average annual expenditure (€)

E-Commerce

penetration

UK

Scandinavia

Austria/Switzerl.

France

Germany

Italy

Benelux

Eastern

Europe

EU average

2011

Source: EMOTA, Eurostat, 2011

Note: E-commerce penetration: % of population aged 14-74 years buying online

-8-

Digital Agenda

target 2015

Spain

43%

In addition, very few consumers shop online across borders

EU average

2011

0%

5%

10%

15%

20%

25%

Digital Agenda

target 2015

GA

P

Proportion of consumers buying online from another country

Source: Eurostat, 2011

-9-

In fact, consumers are more worried about international delivery

0% 5% 10% 15% 20% 25% 30% 35%

Uncertainty on rights

Data privacy

Payment security

No delivery

Guarantee

Returns

Long delivery times

Concerns about cross-border vs. domestic online purchases

Source: Civic Consulting/TNS, 2011

Note: % of consumers reporting concerns about buying products online in their own country vs. in another EU country (sample: 29.010 individuals)

-10-

% domestic % increase cross-border

Online penetration high in media/travel, low in apparel/grocery

Online

share of

retail sales

Source: Booz & Co., 2012

Note: online share of retail sales in western Europe 2011 – CAGR of online share of sales 2006-2011

-11-

-10%

0%

10%

20%

30%

40%

5% 10% 15% 20%

Online share of retail by sector

Annual growth of online shareBubble size proportional to market size

Grocery

Music

Travel

Cosmetics

Books

ElectronicsApparel

Appliances

Furnishing

Top E-Commerce players in Europe are mostly multi-channel

# Company Online sales Growth Country Channels Category

1 12.0 38% Books/Electron.

2 4.5 25% Apparel

3 3.9 11% Grocery

4 2.6 2% Office supplies

5 2.6 21% Apparel

6 2.4 18% Apparel/Home

7 1.5 9% Apparel/Home

8 1.3 28% Electronics

9 1.3 14% Electronics

10 1.2 10% Apparel

catalogues retail internet

-12-

Source: Internet Retailer, 2012

Note: Online sales in Europe in 2011 in € billion; growth % 2011 vs. 2010

However, most companies have still to embrace E-Commerce

-

5

10

15

20

25

30

35

- 5 10 15 20 25 30

% of

SMEs

% of turnoverSource: Eurostat, 2011

Note: companies with 10-249 employees and at least 1% of online sales

-13-

Proportion of companies selling online

European

average 2011

Digital Agenda

target 2015

GA

P

33%

In addition, only 27% of retailers sell across borders

0%

10%

20%

30%

40%

50%

Proportion of retailers selling in at least one other EU country

EU

average

Source: TNS, Flash Eurobarometer 331, 2012

-14-

27%

In fact, many retailers are deterred by legal/tax and payment issues

Barriers to cross-border sales for retailers

0% 5% 10% 15% 20% 25% 30% 35%

Language differences

Customer service

Own restrictions

Complaints resolution

Delivery costs

Different tax regulations

Risk of fraud/non-payments

Different consumer laws

Source: TNS, Flash Eurobarometer 331, 2012

Note: % of retailers reporting obstacles to cross-border sales to other EU countries

-15-

EU institutions launched several initiatives to remove these barriers

E-Commerce

Action Plan

Green Paper

on Payments

Common

European

Sales Law

(CESL)

Directive on

ADR/

Regulation

on ODR

Regulation on

Data Protection

-16-

Online

Trustmarks

Consumer

Rights

Directive

• Harmonize consumer legislation across Europe

• Improve consumer trust through a pan-European trustmark

• Liberalize postal delivery services

• Ensure security and efficiency of online payment platforms

• Accelerate broadband networks development

EMOTA supports all EU initiatives aimed at facilitating E-Commerce

-17-

Balance

consumer/

business

interests

Avoid

unnecessary

extra

costs/burden

for businesses