Although France may have been trounced in the world cup not all the news coming from the land of baguettes and liberty is bad. It turns out that in terms of e-commerce revenues Q1 2010 wasn’t only great for our clients, as we discussed in our last post, it was excellent for online retailers in general, and nowhere more so than in France.
As a recent article in eMarketer quotes, according to FEVAD (Fédération du E-commerce et de la Vente à Distance), Q1 2010 saw a 30% increase in ecommerce sales over Q1 2009, valued at €7.2 billion (or $10 billion).
What is powering this growth?
Much of this overall increase is attributed to the addition of some 16,000 online retail sites. But the growth is more than a matter of more stores, it also applies to overall basket value which was up to a healthy to €93 (or $129).
In addition, another factor is the fact that buying online is becoming more common in France. While the average consumer made 11 online purchases in 2009, already in Q1 2010 the average consumer has made four purchases online (at that rate online purchases would average 16 per year throughout 2010, representing an almost 50% increase over the previous year).
In other words, the French market is experiencing a positive overall trend with the combined factors of more online stores, more purchases made online at a higher value.
French growth set to exceed FEVAD expectations
While growth in the French market was anticipated this year (FEVAD predicted in the 24% range), if the current trend continues the numbers could far surpass what was expected.
While the largest online retailers (eBay, PriceMinister and Le Redoute) still garner the lion’s share of the pie, the overall growth trend is positive news for French online retailers across the board.
This positive trend also means there’s lots of room for ecommerce sites to expand and resume investing in the future of their businesses by updating and modernizing their sites to meet the developing demands of consumers.