The e commerce market in Italy

digital allee
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The e-commerce market in Italy
August 2013
© digitalallee-ubequitysrl all rights reserved

Disclaimer
 All data and information of this presentation have been collected
from public available sources
 As it includes several forward looking statements it should be clear
that there may be a significant margin of error in the projections
 Any investment or decision should be made after a detailed due
diligence and digital allee is no way responsible for any decision
taken after looking at this presentation
 We furthermore may change or include any information without any
further notice
 E-commerce market includes travel, digital downloads and event
tickets, gaming and gambling is excluded

Asia Pacific region will be largest B2C e-commerce
market by 2016 in terms of global market share
3
34%
32%
24%
4%
4% 2%
North America Asia Pacific W Europe C. E. Europe Latin America Middle East Africa
31%
38%
21%
4%
4% 2%
2013 2016
Source: digital allee calculations on e-marketer data July 2013
http://www.emarketer.com/Article/B2C-Ecommerce-Climbs-Worldwide-Emerging-Markets-Drive-Sales-Higher/1010004
$1,2 tr
$1,9 tr
+52%
Market share by geographic area

Italy as a market is expected to grow strongly, China
and India are hot growth areas in emerging markets
4
142%
86%
58%
41% 40% 38% 38% 36% 34% 34%
30% 28% 28% 27% 25%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Total growth rate from 2013 to 2016 in absolute terms
for selected geographies

Despite the gloomy macroeconomic forecasts, e-
commerce is expected to grow at 16% per year till ´16
5
34%
23%
16%
12% 12% 11% 11% 11% 10% 10%
9% 9% 9% 8% 8%
0%
5%
10%
15%
20%
25%
30%
35%
40% Compounded average growth rate (CAGR) for selected
geographies from 2013-2016

Italy is expected to catch up mature markets as it still
has a low penetration rate of online buyers
6
49%
55%
44%
74%
68%
73%
36%
24%
40%
76%
81%
87%
75%
81%
78%
67%
62%
51%
80%
75% 77%
40%
27%
43%
79%
83%
89%
76%
82%
79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Digital buyers penetration rate on total retail buyers for
selected countries

17,7%
7,5%
6,9% 6,6% 6,5%
4,0% 4,0%
3,5%
2,8% 2,4% 2,2%
1,7% 1,4% 1,3% 1,1%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
Italy is third after China and Spain as 7% more buyers
will turn to e-commerce in the next 3 years
Total increase of digital buyers penetration from 2013
to 2016 for selected countries
7

-10.000
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
0% 5% 10% 15% 20% 25% 30% 35% 40%
USA
China
Italy
India
Russia
Brazil
Spain
Norway
Germany
Netherlands Sweden
UK
France
ball size equals the
market size of e-
commerce market
Italy is considered an emerging market and it is
expected to grow more than mature markets
Source: digital allee calculations on e-marketer data July 2013, OECD, World Bank
GDP per capita in
2016 in USD
Componded average
yearly growth rate of
e-commerce sales
2013-2016
Prioritization matrix for slected e-commerce markets
8© digitalallee-ubequitysrl all rights reserved

-60
-50
-40
-30
-20
-10
0
10
20
Jan-2010
Feb-2010
Mar-2010
Apr-2010
May-2010
Jun-2010
Jul-2010
Aug-2010
Sep-2010
Oct-2010
Nov-2010
Dec-2010
Jan-2011
Feb-2011
Mar-2011
Apr-2011
May-2011
Jun-2011
Jul-2011
Aug-2011
Sep-2011
Oct-2011
Nov-2011
Dec-2011
Jan-2012
Feb-2012
Mar-2012
Apr-2012
May-2012
Jun-2012
Jul-2012
Aug-2012
Sep-2012
Oct-2012
Nov-2012
Dec-2012
Jan-2013
Feb-2013
Mar-2013
Apr-2013
May-2013
Jun-2013
Jul-2013
until 29 years 30-49 years 50-64 years 65 years and over total
Consumer confidence in Italy is picking up, particularly
among younger age groups
Consumer confidence index by age group in Italy
Consumer confidence = Financial
situation over next 12 months
9
Source: ISTAT, national statistics bureau

94%
4%
2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Only PC
Smartphone
Tablet
Italians are still using PCs to shop online, mobile
commerce is still a green field to explore
Devices used to purchase a product
10
Source: Survey on 75k individuals representing the Italian population
http://www.contactlab.com/ecommercereport

16%
20%
42%
22%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Only a little
No change
More
Significantly more
Those using mobile devices to shop say that the
presence of an app would increase their purchases
11
How much would a mobile app increase your purchases?
(out of those responding they are purchasing with smartphone/tablet in
previous question

0% 0% 1% 1%
4%
10%
19%
35%
16%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5 6 7 8 9 10
A survey shows that many buyers are happy with their
experience, but there is further room to improve
12
How would you rate your purchase experience in the last 12 months
(1 = very poor, 10 = excellent)

70%
41%
29%
31%
25%
27%
21%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Free pick up of the broken product and replacement
Lean and fast procedures with no extra cost to cancel the
purchase
Call center should be always available
Option to replace the product at a physical retail store
Coupon issue for future purchases
Partial reimbursement also after the product is in use
Special discounts to be used in following months
In case of bad experiences return policies and
customer care are key services
13
In case of a negative experience, what do you expect an e-commerce
firm seller to do?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Paying with a monthly rate during 1 or more years
The presence of a quality seal
More certainties regarding sensible data and security
More easy and convenient to send back items that are not
wanted
More convenient prices
Payment could be authorized after the goods arrival
Payment through smartphone
Direct billing on banking acocunt
Presence of direct contact point with seller (phone/e-
mail/chat)
Payment, security, easy logistics and a customer care
are key issues influencing the purchase behavior
14
Source: Survey on 75k individuals representing the italian population
How much would the following things influence your purchase behavior
A lot Not much

The e commerce market in Italy

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