1. The ecommerce
super league
A benchmarking study of the world’s top 25 ecommerce markets
Produced in association with

2. Anita Balchandani
Partner and head of UK retail,
OC&C Strategy Consultants
Twenty-five years ago the World Wide Web was
introduced across the globe, and in what is a
relatively short space of time, it has already cre-
ated a big transformation in how we shop. Online
represents a material part of retail sales in many
countries around the world and consumers are
displaying a healthy propensity to shop online for
a range of categories – not just for books, media
and technology but also in fashion, beauty and
luxury where there might have originally been
scepticism about the potential for online retail.
UK retailers have not stood still in the face
of these developments and have evolved into the
leading ecommerce economy on many dimen-
sions. To mark this 25th year of the internet,
OC&C Strategy Consultants and Retail Week
have collaborated on this publication to enable us
to calibrate the UK’s progress in e-retailing and
how it fares compared with the other nations in
the world.
The study examines the world’s top 25
ecommerce economies on a number of dimen-
sions, drawing from both public and proprietary
data sources. We consider both demand
andsupplydimensions.Onthedemandside,meas-
uressuchasecommerceshareoftotalretail,spend
perconnectedcustomer,multi-categorypurchase
behaviour online and mobile commerce penetra-
tion are good indicators of customer readiness.
On the supply side, we look at measures such as
peakconnectivityspeed,easeoflast-miledelivery
andthedevelopmentofclick-and-collectpointsto
signify the infrastructure readiness of a country
to support and enable ecommerce growth.
This cross-country benchmarking leads us to
celebrate a number of dimensions where Britain
isintheclearlead,notablyhowadvancedBritain’s
consumers are in terms of their propensity and
appetiteforecommerce.However,thereareother
dimensions where British retailers have more to
do in order to keep pace with the most advanced
consumers in the world, such as improving the
customer experience across all device platforms
(particularly mobile), innovating in fulfilment
and advocating the case for faster connectivity
speeds. Let the debate for Britain to retain its
crown as the leading ecommerce nation in the
world commence!
partner foreword
“UK retailers have not
stood still in the face of
developments and evolved
into the leading ecommerce
economy on many dimensions”
Chris Brook-Carter
editor-in-chief, retail week
It is 20 years since the sale of a Sting CD
became the world’s first recognised ecommerce
transaction, and in doing so fired the starting
gun on a digital revolution that has reshaped
the retail industry.
Technology has since revolutionised shopping
habits,changingforevertherelationshipbetween
retailers and their customers, bringing about the
downfall of a roll call of previously great high
street names, which were unable to adapt, while
giving birth to new giants of the industry.
The disruptive nature of ecommerce may
have been present for 20 years, but the concept
ofdigitalretailinghasconstantlyevolved.Today’s
mobile and digitally connected landscape seems
a lifetime away from the early interactions with
nascent technologies such as the CD-Rom that
sparked these changes.
British retail has been at the forefront of the
global industry’s response to this ever-shifting
environment. But at the heart of its success is
the extraordinary way British consumers have
embraced online shopping.
This report, produced by OC&C in associa-
tion with Retail Week, underscores the extent
to which consumer behaviour has acted as an
engine for this growth. And it highlights how
the UK still leads the world in digital retailing,
with the highest proportion of retail sales online
as well as the highest ecommerce spend per
connected customer.
This global leadership has been nurtured
by the innovative and entrepreneurial nature
of the UK sector and its track record in launch-
ing successful pure-play businesses, from Asos
to Ao.com.
But the research will also warn that in its
response to that customer demand, across
a series of supply metrics, the UK is being out-
paced by some of its international rivals.
The industry’s reaction to the explosion of
mobile retailing is a case in point where coun-
FOREWoRD
“Technology has
revolutionised shopping
habits, changing forever
the relationship between
retailers and their
customers”
32
tries such as China, South Korea and the US
have leapfrogged the UK. As recently as last year,
only 50% of the top 100 UK retailers had mobile-
optimisedwebsites,accordingtodatafrommobile
technologygroupSkava,while3G/4Gpenetration
and peak internet connection speeds are also
showing signs of slowing developments.
The UK has been a pioneer in digital retailing
since those early days, but the gap between con-
sumer demand and the infrastructure in place to
serve it is a reminder of how fast ecommerce is
developing,andhowhardthesectorneedstowork
just to keep pace with the customers it serves.
| September 2014 September 2014 |

3. 5
in partnership with:
On the 20th anniversary of the world’s first
ecommerce transaction, Retail Week and OC&C
Strategy Consultants have collaborated to take
stock of British digital retailing.
In the two decades since, technology has
revolutionised shopping habits across the globe,
changing forever the relationship between
retailers and customers. British retail has been
at the forefront of the global industry’s response
to this ever-shifting environment.
This research seeks to benchmark the UK
retail sector against the top 25 ecommerce
markets around the world to uncover the reality
of its performance across a number of demand
and supply metrics.
A British consumer love affair with digital
retail has been nurtured by the innovative and
entrepreneurial nature of the UK industry and
its track record of launching successful pure-play
businesses such as Asos and Ao.com.
But this research also warns that in its
response to that customer demand, across
a series of supply metrics, from capability to
infrastructure,theUKisbeingoutpacedbysome
of its international rivals.
With regards to demand-side measures, the
UK tops the list of the world’s most advanced
and high-performing ecommerce markets. It not
only enjoys thehighestproportion ofonline retail
sales,butitalsohasthehighestecommercespend
per connected consumer.
UK shoppers outpace those elsewhere too by
displaying the most developed multi-category
purchasing behaviour – there are 12 product
categories in which online sales as a percent of
total retail are more than 15%.
The UK also has the highest proportion of
businessestakingordersonlineandagoodlevelof
businessinnovationwhichsupportsthisdemand.
And yet, notwithstanding its clear global
leadership position, there are already warning
signs that UK retailers need to take heed of, most
Executive
summary
notably in its response to the explosion in mobile
commerce, an area in which countries such as
China and South Korea have leapfrogged the UK
in some respects.
Furthermore, on the supply side, the UK’s
current record is less impressive. It only ranks
at number eight, behind markets such as Japan,
Scandinavia, Germany and the Netherlands.
While internet connectivity and online
payments do not pose much of an issue, the UK
lags behind when it comes to last-mile fulfilment
options, particularly in the development of click-
and-collect infrastructure. Peak connectivity
speeds and 4G coverage also fall behind those
of other developed nations and are likely to
constrain ecommerce growth.
The UK has been a pioneer in digital retailing
since the early days, but the gap between
consumer demand and the infrastructure in
place to serve it is a reminder of how quickly
ecommerce is developing and how hard retailers
needtoworkjusttokeeppacewiththecustomers
they serve.
And while British retailers have reaped the
rewardsofpursuingonline-ledgrowthstrategies,
this research highlights the challenges the
industry faces if it is to unblock infrastructure
bottlenecks, notably last-mile fulfilment and
high-speed connectivity, so that the UK can keep
its crown as the most digitally advanced nation
in the world.
chapter summary
Chapter 1
UK consumers most advanced
in the world
l The UK has the highest penetration of online
retail sales
l The UK has highly diversified online spending
across product categories
Chapter 2
UK retailers embrace online, but are
losing out in m-commerce
l The UK has the highest proportion of
businesses that take orders over the internet
l The UK is losing out to other countries with
more advanced m-commerce technology
Chapter 3
the Last-mile battleground
l Same-daydeliveryintheUKisnotasdeveloped
as in other countries
l The UK has a smaller ratio of ‘pick-up and
drop-off’ points than many Western countries
Chapter 4
UK infrastructure at risk of slowing
down ecommerce
l The UK is falling behind other countries in
terms of internet connection speeds
l Slow internet speeds have a negative impact
on customer experience
Chapter 5
the ecommerce demand versus supply gap
l Retailers must invest in the efficacy of their
online channels
l Speed and convenience are crucial if UK
retailers are to remain competitive
“A British consumer
love affair with digital
retail has been nurtured
by the innovative and
entrepreneurial nature
of the UK industry and its
track record of launching
successful pure-play
businesses”
5
UK consumers
most advanced
in the world
CHAPTER 1
4 | September 2014

4. 7
The UK is the leading ecommerce economy across
a number of metrics:
Share of retail that is online
£1 in every £7 spent on retail in the UK is spent
online,comparedwith£1in£11intheUS.Thatgives
the UK the highest penetration of online retail
sales. Ecommerce sales represent 14% of total
retail sales in the UK, five percentage points
ahead of the US, Finland and South Korea, where
ecommerce sales represent about 9% of total
retail sales (see chart 1.1).
l The UK has the highest penetration of online retail sales
l Connected UK consumers spent an average of £662 per person on ecommerce in 2013
l The UK has highly diversified online spending across product categories
Big spenders online
Lookingatpercapitaecommercespending,theUK’s
connected consumers (those with internet access)
spentonaverage£662perpersononecommercein
2013.Thatisabout£50moreperpersonthaninthe
US, which ranks second in the world (see chart 1.2).
Diversified spend profile
The UK’s strength in this area is further
underpinned by the fact ecommerce spending is no
longer concentrated in only a handful of categories.
Across the 25 global markets in the study,
the books category has the highest ecommerce
penetration, at 35% of retail sales. DIY is the least
well-developed, at 7% (see chart 1.3).
Mostothercategorieshaveonlinepenetrationin
therangeof10%to20%.Acrossthesecategories,the
UK has the most diversified purchasing behaviour.
There are 12 categories in which online represents
more than 15% of sales, providing further evidence
oftheUKconsumerembracingecommerceaheadof
consumers in other markets (see chart 1.4).
By contrast, in the US, there are only five
categories with more than 15% of sales online.
6
The UK is the leading ecommerce economy
UK
US
Finland
South Korea
China
Ireland
Sweden
Denmark
Norway
Germany
France
Netherlands
Australia
Czech Republic
Austria
Japan
Canada
Spain
Belgium
Poland
Russia
Brazil
Italy
Turkey
India
14%
9%
9%
9%
8%
7%
7%
7%
7%
7%
6%
6%
6%
5%
5%
5%
3%
3%
3%
3%
2%
2%
1%
1%
0%
Ecommerce market maturity1
1.1 Ecommerce share of retail market, 2013
% sales
UK
US
Norway
Finland
Ireland
Australia
Denmark
Sweden
France
Germany
Austria
South Korea
Netherlands
Japan
China
Belgium
Canada
Czech Republic
Spain
Italy
Poland
Russia
Brazil
Turkey
India
662
616
556
525
447
443
432
420
364
339
312
309
299
253
237
188
188
181
151
108
98
82
68
40
9
1
Includes all online sales through retailers – both pure-plays and retailer websites. Categories incorporate: personal appliances, domestic appliances, books, clothing and accessories, CDs/
DVDs, toys, footwear, gifts, flowers, greetings, DIY, tools, garden equipment, home furnishings/furniture, home and household goods, sports equipment
Source: World Bank, Eurostat, OCC analysis
1.2 Ecommerce spend/connected consumer, 2013
£
UK shoppers at ease with ecommerce, no matter what the category
Books
CDs/DVDs
Domestic appliances
Sports equipment
Clothing and accessories
Toys
Personal appliances
Gifts, flowers, greetings
Footwear
Home furnishings/furniture
Home and household goods
DIY, tools, garden equipment
Multi-category purchasing
1.3 Average category purchasing penetration1
Categories with penetration 15%2
UK
South Korea3
Japan
Germany
Czech Republic
France
Denmark
Netherlands
Turkey
Poland
Austria
US
Sweden
Russia
China3
Ireland
Brazil
Norway
Australia
Finland
Canada
Belgium
India3
Italy
Spain
12
11
10
10
9
9
8
8
7
6
5
5
5
4
4
4
4
3
2
2
2
2
1
0
0
1
Average across top 25 global ecommerce markets
2
15% of internet users have made an online purhase in this category
3
OCC estimation based on spend per connected consumer for India and South Korea; China from CNIC
Source: Google Barometer, CNIC, OCC analysis
1.4 Multi-category purchasing
Catergories with penetration 15%2
, Max = 12
35%
33%
18%
17%
16%
16%
14%
12%
11%
11%
10%
7%
Betterpenetratedcategories
7
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£0bn
7
UK retailers embrace
online, but are losing
out in m-commerce
CHAPTER 2
| September 2014

5. The high level of ecommerce demand from
UK consumers is enabled by retailers actively
developing their online propositions.
A total of 36% of all businesses in the UK
take orders over the internet. That is the highest
proportion among the 25 largest ecommerce
markets and significantly ahead of the average for
these markets of about 20% (see chart 2.1).
Business innovation also plays an important
role in enabling ecommerce as technology and
business capabilities rapidly evolve in this fast-
moving area of retail.
AfterAustralia,theUKhasthehighestnumber
ofnewbusinessesregisteredpercapita,indicating
a leading level of business innovation in these
markets.
The UK has a strong history of launching
successful online pure-play retail businesses
such as Ao.com, Asos, Farfetch, Net-a-Porter and
Wiggle, which with their strong propositions have
pavedthewayinacceleratingecommercedemand
from consumers.
A look at international ecommerce provides
further evidence of the sophistication of online
retail among UK retailers – in 2013 the UK was
the world’s leading exporter of online goods with
a trade surplus of more than $1bn.
Similarly, that UK’s multichannel players –
ArgosandJohnLewisinparticular–areexcellent
examplesofstore-ledbusinessesthatarereshaping
l The UK has the highest proportion of businesses that take orders over the internet
l In 2013 the UK was the world’s leading exporter of online goods
l The UK is losing ground to other countries in the advancement of m-commerce
themselvesasadvantagedmodelsforadigitalage.
However, it is not just innovative retailers that
are driving more consumers to purchase online.
Creative propositions in other areas have also
been important in building the strong demand
for ecommerce that is seen in the UK.
Examples of businesses making ecommerce
more accessible include Simpleshop.com,
which makes it easy for businesses to
operate online by combing website templates
and EPoS systems; Fits.me, which provides
retailers with the technology to offer an
online fitting room; Shutl, which offers
same- day delivery by aggregating local couriers;
and StreetHub, which aggregates products from
local boutiques for customers to click-and-collect.
These innovative businesses are enabling
retailers to provide a high level of convenience
for customers, making ecommerce increasingly
suitable for today’s lifestyle.
But despite its strong ecommerce credentials
overall, the UK is losing out in mobile commerce
–inparticulartocountriesthathaveleapfroggedit
intermsoftechnology,suchasChina,SouthKorea
and India.
In the UK about 62% of the population own a
smartphone. That places the UK fifth among the
25largestecommercemarkets,aheadofcountries
such as the US, Netherlands and Germany, but
behind South Korea, Norway and Australia
(see chart 2.3).
When it comes to 3G/4G penetration 78% of
the UK population have 3G/4G SIM cards , which
ranks the UK ninth overall among the 25 largest
ecommerce markets.
39%UKsmartphoneowners
tohavemadeapurchase
withtheirphones
“Business innovation plays an
important role in enabling
ecommerce as technology and
business capabilities rapidly
evolve in this fast-moving
area of retail”
UK organisations have led in developing online propositions
Organisational readiness
2.1 Organisational online readiness
% businesses taking orders online
Australia
UK
Norway
Sweden
Russia
Ireland
Netherlands
Denmark
Czech Republic
France
Spain
China
Belgium
US
Finland
South Korea
Italy
Germany
Canada
Japan
Turkey
Poland
Austria
Brazil
India
7,998
7,108
5,088
4,093
3,081
2,997
2,941
2,816
2,050
1,841
1,809
1,681
1,616
1,580
1,505
1,473
1,264
860
732
721
518
405
334
269
80
2.2 Level of business innovation
# new businesses registered/per million people
UK
US
Brazil
Netherlands
Japan
Norway
Denmark
Germany
South Korea
Ireland
Sweden
Belgium
Czech Republic
Austria
Finland
Canada
Russia
France
Spain
Poland
Turkey
Australia
Italy
China
India
36%
35%
34%
33%
32%
31%
28%
28%
28%
25%
24%
23%
22%
20%
20%
18%
18%
15%
13%
10%
9%
9%
3%
3%
1%
Source: UNCTAD, Statista, NAICS, World Bank, Census Data, Press Search, OCC analysis
Finland and Sweden have the highest
penetration of 3G/4G, with 122% and 118%
respectively (some consumers have multiple SIM
cards for their phones and tablets).
Good connectivity is a prerequisite of a great
customer experience across digital channels – a
dimension on which the UK does not make it to
the top of the league table.
Among smartphone owners, less than half,
about 39%, have made a purchase with their
phones. This puts the UK 10th in terms of
m-commerce penetration and leaves considerable
room for improvement.
Thetopthreemarketsintermsofm-commerce
penetration are all countries that have leapfrogged
thetypicaltechnologycurve,bypassingthedesktop
era – China, South Korea and India. In China, the
majority (70%) of smartphone users have made
purchases with their phones (see chart 2.5).
UK retailers have been relatively slow to adapt
to mobile as a channel – in 2013, only 50% of
the top 100 retailers had mobile-optimised
websites. By 2014, this has increased and today
25% of the top 100 retailers do not offer a mobile-
optimised version of their website according
to findings in the annual UK Retailer Mobile
Optimisation Report .
With smartphone penetration relatively high
and likely to continue to grow, UK retailers will
need to rapidly evolve their mobile website and
app propositions, an area in which retailers in the
more advanced m-commerce markets – China,
South Korea, India and the US – could provide
inspiration.
The race to be ready
Mobile penetration
China
South Korea
India
US
Ireland
Japan
Turkey
Australia
Russia
UK
Sweden
Norway
Germany
Denmark
Austria
Brazil
Italy
Czech Republic
Poland
Canada
France
Finland
Spain
Netherlands
Belgium
70%
56%
54%
46%
44%
44%
43%
41%
39%
39%
33%
33%
32%
31%
30%
30%
30%
30%
29%
27%
26%
26%
25%
18%
16%
2.5 M-commerce penetration2
, 2013
% smartphone users
The race to be ready
Mobile penetration
South Korea
Norway
Australia
Sweden
UK
Denmark
Ireland
US
Canada
Spain
Netherlands
Austria
China
Finland
France
Czech Republic
Italy
Germany
Russia
Poland
Belgium
Turkey
Brazil
Japan
India
73%
68%
65%
63%
62%
59%
57%
56%
56%
55%
52%
48%
46%
45%
42%
41%
41%
40%
36%
35%
33%
29%
26%
25%
17%
2.3 Smartphone penetration, 2013
% population
Source: Google, World Bank, OCC analysis
Finland
Sweden
Japan
Australia
South Korea
Denmark
Norway
Spain
UK
US
Austria
Italy
Netherlands
Russia
France
Ireland
Poland
Brazil
Czech Republic
Germany
Canada
Belgium
China
Turkey
India
122%
118%
107%
105%
103%
97%
82%
79%
78%
68%
63%
62%
58%
57%
57%
57%
55%
48%
46%
46%
41%
36%
31%
30%
4%
2.4 3G/4G penetration1
, 2013
Subscribers/total population
The race to be ready
Mobile penetration
8 9
1
Can be 100% since some consumers have multiple SIM cards
Source: Google, World Bank, OCC analysis
2
Includes all purchases ever made on a smartphone, given the consumer
owns a smartphone
Source: Google, World Bank, OCC analysis
| September 2014 September 2014 |

6. 10
Copy
copy
£0bn
Copy
copy
£0bnthe Last-mile
battleground
CHAPTER 3
The UK is behind other markets on some key
last-mile fulfilment measures.
Ease of last-mile delivery as evidenced by the
ratioofpopulationdensitytopavedroaddensity,is
broadlyinlinewithmostotherWesternEuropean
markets, although not as high as in Belgium and
the Netherlands.
However, home delivery lags behind
countries such as the US and China, where
same-day delivery is more prevalent and
better-developed.
For instance, JD.com, one of China’s leading
ecommerce retailers, is at the forefront of making
same-day the market norm by getting products to
consumersthesamedayiforderedbefore11am,or
the next day if ordered after that time.
For an extra fee, JD.com also offers ‘super-fast’
delivery, which gets products to buyers within
threehours.Italreadyserves80millioncustomers
across six cities with this speedy service and plans
to grow coverage.
IntheUS,Amazonisalreadycapableofserving
23% of the population the same day, versus 17%
in the UK.
l Same-day delivery in the UK is not as developed as in other countries
l The UK has a smaller ratio of pick-up and drop-off points than many Western countries
l The UK’s ‘drive-thru’ network is underdeveloped
Despite ease of last-mile delivery being in line
with other markets, the UK also has a smaller
ratio of pick-up and drop-off (PUDO) points than
most other Western markets for the size of the
ecommerce market.
PUDO points include convenience stores,
railwaystationsandsupermarkets.Theyareplaces
where consumers can collect or drop off parcels
that they have purchased online.
These points are typically served by a range
of courier businesses, which in the UK include
companies such as Collect+ and Hermes. They do
not include the respective Post Office networks.
For the size of its ecommerce market, the UK
hasalownumberofPUDOpointscomparedwith
other Western markets.
The UK offers 0.5 PUDO points per £1m of
ecommerce spend versus 1.8 points in Germany
and 0.8 points and 0.7 points in Belgium and
France respectively.
That has in part been driven by European
operators of collection points being slow to enter
the UK and an underdeveloped ‘drive-thru’
network compared with markets such as France.
17%TheamountoftheUK
populationAmazoniscapable
ofservingthesameday
“home delivery lags behind
countries such as the US
and China, where same-day
delivery is more prevalent
and better-developed”
The UK lags Western markets in fulfilment options such as click-and-collect
Last-mile delivery/fulfilment
3.1 Ease of last-mile delivery1
Indexed to max
Germany
Belgium
France
Spain
Poland
US
Netherlands
UK
Australia
Czech Republic
1.8
0.8
0.7
0.6
0.5
0.5
0.5
0.5
0.3
0.2
1
Population density/quality road density indicates ease and cost of delivering to households (values are indexed to Belgium)
2
Pick up and drop off points, does not include post offices or points for collection only
Source: World Bank, Desk Research, World Bank, OCC Modelling, OCC analysis
3.2 PUDO2
points per £1m of total ecommerce spend
Number of points
Belgium
Netherlands
France
Germany
UK
Denmark
Czech Republic
Italy
Ireland
Austria
Spain
Japan
Poland
South Korea
India
US
Turkey
Sweden
China
Norway
Finland
Canada
Russia
Australia
Brazil
100
84
49
46
44
44
42
41
35
35
33
23
23
22
20
11
11
8
7
6
4
1
1
1
1
11September 2014 |

7. Copy
copy
£0bnUK infrastructure
at risk of slowing
down ecommerce
CHAPTER 4
Strong ecommerce relies heavily on national
infrastructure – good connectivity and payment
methods enable online purchasing.
Here the UK falls into the ‘middle of the pack’
among the 25 largest ecommerce markets despite
an overall well-developed starting point in terms of
populationwithinternetaccessandonlinepayment
options such as credit and/or debit cards.
While the UK is reasonably well-positioned
in terms of its internet user base and penetration
of online payments, there are signs that the
l The UK is falling behind other countries in terms of internet connection speeds
l Slow internet speeds have a negative impact on customer experience
l There is room for improvement in the UK’s approach to business regulation
Online purchasing is enabled by good connectivity and payment methods
Infrastructure maturity
4.1 Internet user penetration
% population
4.2 Online payment penetration1
% population
Norway
Sweden
Denmark
Netherlands
Finland
UK
Japan
Canada
South Korea
US
Germany
Australia
Belgium
France
Austria
Ireland
Czech Republic
Spain
Poland
Russia
Italy
Brazil
Turkey
China
India
1
Maximum of credit and debit card penetration
Source: World Bank, OCC analysis
95%
95%
95%
94%
92%
90%
86%
86%
85%
84%
84%
83%
82%
82%
81%
78%
74%
72%
63%
61%
59%
52%
46%
46%
15%
Netherlands
Norway
Sweden
Finland
Denmark
Austria
Canada
UK
Germany
Belgium
Australia
US
Ireland
Japan
Spain
France
Czech Republic
South Korea
Turkey
China
Brazil
Russia
Poland
Italy
India
98%
97%
97%
95%
92%
91%
91%
90%
88%
88%
82%
78%
77%
71%
71%
69%
69%
64%
62%
54%
52%
45%
44%
37%
14%
infrastructure is not keeping pace with the best in
the world.
Peak connection speeds of 990Mbps (which
enables downloading of a HD movie in 50 seconds)
in the UK rank only 12th among the 25 largest
ecommercemarkets–behindtheUSandanumber
of European countries (see chart 4.3).
South Korea leads on this dimension, with
peakconnectionspeedsofupto2,360Mbps(which
enablesdownloadingofaHDmoviein20seconds),
followed by Japan and the Netherlands.
Connection speeds and ease of doing business lag other markets
South Korea
Japan
Netherlands
Sweden
Czech Republic
Finland
Ireland
Denmark
US
Norway
Belgium
UK
Canada
Austria
Russia
Germany
Poland
Spain
France
Australia
Italy
Turkey
China
Brazil
India
Consumer connectivity
4.3 Peak connection speeds
Mbps
US
Denmark
South Korea
Norway
UK
Australia
Finland
Sweden
Ireland
Canada
Germany
Japan
Netherlands
Austria
Belgium
France
Poland
Spain
Italy
Turkey
Czech Republic
Russia
China
Brazil
India
Source: World Bank, BMI, Euromonitor, Statista, Econsultancy, Ystats, World Bank, OCC Modelling, OCC analysis
4.4 Ease of doing business
Indexed to max
2,360
1,460
1,240
1,160
1,120
1,070
1,070
1,050
1,050
1,010
1,000
990
970
940
860
810
750
720
660
600
520
500
320
260
170
98%
98%
97%
96%
95%
95%
94%
93%
93%
90%
89%
86%
86%
85%
81%
80%
77%
73%
66%
64%
61%
52%
50%
39%
30%
Slower connection speeds dampen the
experience customers have and could hold
back UK ecommerce from growing at a more
rapid pace.
Although ranked fifth, there is also room
for improvement on ‘ease of doing business’, a
metric which looks at the regulatory environment
for businesses across things such as starting a
business, tax and registering property. Here,
too, the UK is behind the US, Denmark,
South Korea and Norway (see chart 4.4).
12 13September 2014 |

8. 14
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14
The ecommerce
demand versus
supply gap
CHAPTER 5
15
Overall, the range of metrics considered in
this study highlight that British consumers
lead the way in ecommerce (coming first
in the top 25 countries) and that the shift to
online and multichannel across a broad range
of categories is the most marked in the UK (see
chart 5.1).
However, the supply-side infrastructure
(in which the UK comes eighth in the rankings)
in the UK is not keeping pace with the consumer
appetite for shopping online (see chart 5.2).
Online could be a faster-growing channel
than it has been if the UK and its retailers invest
inmoreadvancedfulfilmentcapabilityandhigher
internet speeds.
The leading levels of ecommerce demand
in the UK continue to represent a significant
opportunity for retailers. Maximising this
opportunity is likely to require addressing the
supply challenges and continuing to innovate as
consumer behaviour evolves.
In our view, to keep up with advancing
consumers, UK retailers should be taking the
following steps:
1. Invest in the customer experience
across multiple device platforms
Consumers expect that their journey will be
smooth, no matter on what device they access
a site. Retailers need to play catch-up to ensure
theirdigitalchannelsacrossallmobile,tabletand
desktop platforms are working well.
2. Innovate in fulfilment
Investments in speed of fulfilment (same/next
day) and convenience (collection and return
networks) are required in order for retailers to
remain competitive.
3. Influence the connectivity agenda
Retailersshouldbeworkingwithgovernmentand
partnering with telecom companies to champion
theagendaforhigherinternetspeedsthroughout
the country.
l Retailers must invest in the efficacy of their online channels
l Speed and convenience are crucial if UK retailers are to remain competitive
l Retailers should work with telecoms providers and Government to improve connection speeds
“The leading levels of
ecommerce demand in
the UK continue to represent
a significant opportunity
for retailers”
Ecommerce demand versus supply metrics for the
largest 25 ecommerce markets
5.1 Demand ranking
Source: OCC analysis
5.2 Supply ranking
Country Country
1 UK 14 Ireland
2 South Korea 15 Austria
3 US 16 Russia
4 Sweden 17 Canada
5 Japan 18 Spain
6 Australia 19 Czech Republic
7 Norway 20 Italy
8 Denmark 21 Poland
9 Germany 22 Turkey
10 China 23 Belgium
11 France 24 India
12 Finland 25 Brazil
13 Netherlands
Country Country
1 Japan 14 Canada
2 Netherlands 15 Russia
3 South Korea 16 Czech Republic
4 Denmark 17 Spain
5 Germany 18 France
6 Norway 19 Poland
7 Sweden 20 Turkey
8 UK 21 China
9 Belgium 22 Australia
10 US 23 Italy
11 Finland 24 India
12 Ireland 25 Brazil
13 Austria
September 2014 |

9. Produced in association with