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SWITZERLAND
Why a small market holds so much e-commerce potential
Why Switzerland?
• Market Guide • Trends
• Opportunities • Competition Regulation
• Dos and Don’ts • Consumer Analysis
Asendia 3
Swiss Post 3
Retailing in Switzerland 6
Swiss Consumers 8
Online Habits 8
Sectors and Market Share 9
Delivery and Returns 9
Payment 10
Cross-border Sales 10
Advertising Approach 11
Language Learnings 11
Food for Thought 11
Regulations 14
VAT 14
Data Protection 14
Consumer Protection 14
Advertising 14
Domain Names 14
Code of Conduct 14
Sources 16
3
The Swiss Market
Economy Key Statistics Switzerland and the EU
For a small country of 8.2 million People The 40th anniversary of a free trade
people, Switzerland has a very Population: 8.2 million agreement between Switzerland and
international outlook and an Urban population: 74% the European Economic Community
impressive reputation as a country Unemployment rate: 4.2% was celebrated in 2012.
to do business with. It’s home to GDP per capita (purchasing power
several multi-national companies, parity, 2015 estimate): $54,983 Today Switzerland is the EU’s third
from Nestlé to Novartis. And for Ethnic groups: German (65%), largest trading partner after the
the past six years it has topped the French (18%), Italian (10%), US and China, with goods worth
World Economic Forum’s Global Romansh (1%), others (6%) around CHF 1bn crossing its
Competitiveness Index – most borders every day. The EU accounts
notably for its stability (political, Country for approximately 60 per cent of
economic and legal) and the quality Area: 41, 277 sq km (similar in size to Swiss exports and 80 per cent of
of its infrastructure. Switzerland the Netherlands and Denmark) its imports.
also leads the world in innovation Land borders:
rankings. Austria, France, Italy, Liechtenstein, More than 1.6 million EU citizens also
Germany live within Switzerland’s borders –
Separate from, but closely linked Main cities and populations: an audience already familiar with
to, the EU, it has also escaped Zürich 390,474 many local retailers. And with three
many of the economic headwinds Geneva 197,376 languages in common with its
that have affected the rest of the Basel 174,793 neighbours (German, French and
continent. Its currency, the Swiss Bern (capital) 130,015 Italian), many European companies
franc (CHF), is stable and it has Import partners: Germany 28%, already have the ability to talk to
one of the lowest rates of inflation Italy 9.7%, France 8.1%, US 6.6%, the majority of the Swiss population
(averaging three times lower China 6.6%, Austria 4.7% – a good first step to securing
than that in Europe over the past [Sources: latest available figures from IMF;
international sales.
decade). It also has low levels of CIA World Factbook; UNdata; Federal
unemployment and one of the Statistical Office, Switzerland] This is already reflected when
highest GDP per capita, leaving it comes to the share of Swiss
its residents with a relatively high 2014 world rankings imports achieved by Germany
disposable income. Competitiveness: 1/144 (28 per cent), Italy (10 per cent)
Ease of doing business: 20/189 and France (eight per cent), but
Those doing business in or with GDP (PPP) per capita: 9/187 these figures include manufacturing
Switzerland can take advantage ICT (Information & communication materials rather than solely
of low rates of VAT. The standard technology) development: 13/166 finished consumer goods.
rate is eight per cent, and this falls
to 2.5 per cent for certain items,
including food, medical products,
books and magazines.
Switzerland 3%
Austria 2.8%
Norway 2.4%
5
Consumer Behaviour Why Enter the
Retailers interested in marketing last available figures. This has been Swiss Market?
their wares to Swiss consumers will increasing for several years, up
be attracted by the fact that their CHF 1,030 compared with 2006. • First-class infrastructure
buying behaviour is similar to that
The Swiss are sensitive to price, but • Currency and price stability
in neighbouring countries.
also place a high value on product
• Social peace and political stability
If anything, there is the added quality, good customer service
bonus that they have been less and, increasingly, sustainability. • High purchasing power
affected by the economic downturn And seasonal trends also play an
• Similar consumer needs
experienced by the rest of Europe. important role in their buying habits.
That’s not to say that consumers • Good payment culture
have escaped worry-free though, For example, according to Deloitte,
and some caution has crept into the Swiss are among Europe’s •S
hared European languages
their shopping habits. biggest spenders when it comes (German, French and Italian)
to Christmas shopping, averaging
Consumers in Switzerland have •M
ulticultural, making it a useful
an estimated €609 per household
a high purchasing power: average European test market
in 2014.
wages for residents are the highest • Central European location
in the world, helped by the fact that Playing to national stereotypes about
there are not many tax deductions efficiency and organisation, they were • Low VAT (eight per cent)
(although it’s also worth bearing in also more likely to start shopping
early (in or before November) than • Favourable legal framework
mind that Zurich and Geneva are the
most expensive cities in the world). their European peers. •G
ood postal infrastructure,
fair prices
The average disposable income
of households in Switzerland was
CHF 7,130 per month in 2013 – the
Retailing In Switzerland
Before distance sellers casually A third of online stores also offer convenience of online shopping needs
arrive at the Swiss border, it makes a smartphone-optimised website to be more compelling if numbers are
sense to understand a little bit or app. to grow in future.
more about the Swiss retail market.
Bricks-and-mortar retailers While the opportunities may be ripe,
And make no mistake about it –
themselves have restrictive there is work to be done to capture
the Swiss retail industry is both
opening hours to contend with. the Swiss customer – as the PwC
sophisticated and competitive.
Although trading restrictions in report points out, “24/7 shopping
When it comes to bricks-and-
border areas are now being eased, is clearly possible, but it has yet to
mortar stores, it is dominated by
Sunday opening is not common catch on fully” in Switzerland.
local players.
in Switzerland, other than in train
The strongest of these in recent stations, and it is not easy to find
years have been Migros and Coop shops open late on weekdays either.
– supermarket chains that have
Retailers just across the border have
expanded into convenience stores,
taken advantage of this situation –
as well as selling electronics and
in southern Germany, for example,
appliances. They also have strong
the likes of Aldi and Lidl have
multi-channel strategies.
opened more stores than the local
Many Swiss retailers were late to the population warrants, as they target
multi-channel game but, according their Swiss neighbours.
to EHI Retail, over half of online
Swiss consumers may be open to
retailers in Switzerland also have
shopping across borders, but the
a bricks-and-mortar store.
Reputation Matters
Trust plays an important role for understanding of the Swiss consumer a CHF 30m valuation in 18 months,
Swiss consumers and they prefer – 39 per cent of the orders it received and “private shopping club” Eboutic,
to shop with brands they have in 2015 were placed via mobile which grew its members to
known, and shopped with, for a long devices (smartphones and tablets). 1.4 million – 70 per cent of German-
time. As a result, they will favour speaking Switzerland – in six years.
Other successful local brands include
local brands that have proved their Swiss electronics sites Digitec and Foreign brands definitely have the
reputation over a foreign unknown Interdiscount – and the website for edge if they offer niche or specialist
or a brand of a similar quality. Nespresso performs well in almost products that the Swiss cannot get
For example, Migros’ Leshop.ch every available survey. Auction at home; if they are positioned as
is one of Europe’s largest online site Ricardo.ch rivals Amazon experts or the best in their field; or if
grocery stores, and has posted for purchases made and pulls in they operate in sectors where Swiss
uninterrupted growth since it significantly more revenue than eBay players are weak, such as clothing.
launched in the 1990s. It closed does in Switzerland. Founded in 1999,
German retailer Zalando, for example,
the first half of 2015 with sales Ricardo has continually expanded into
has taken the market by storm since
of CHF 89.5m, a record high new areas, including dedicated online
October 2011. Backed by a hefty
for the brand and its strongest shops for Swiss companies and free
marketing budget, it has also thrown
growth in five years. The brand listings. It has more than two million
down the gauntlet to local retailers
attributes its success to “strong subscribers and sells 20,000 products
by offering free returns. Participants
performance of the multi-channel per day and 10,000 cars each month.
in the Swiss E-commerce Report
strategy, comprising home delivery Other notable successes are special called Zalando a “game changer”,
and collection centres”, while offer website DeinDeal, which grew which could pave the way for greater
demonstrating a clear from a CHF 30,000 investment to success for other foreign companies.
7
Swiss Consumer Top 10 information Channels Used
Attitudes for Online Shopping in Switzerland
Source: NetComm Suisse Observatory, 2014
Source: The Swiss Online & Mail Order Market 2015, GfK, March 2015
20%
20%
19%
17%
Delivery Returns
Swiss customers are used to Just as in Germany, returns
ASENDIA TIP: paying at least part of the cost rates in Switzerland can be high –
Reduce your costs and time of post and packaging for the up to 40 per cent for fashion.
Consider simplifying your cross- goods they have purchased – There is currently no legal “right
border deliveries - especially often between CHF 6 and CHF 8. of return”, but it is customary for
as there’s a customs barrier to If part of their order is not available, distance sellers to allow returns
negotiate. Doing so could reduce however, they will expect retailers within at least 14 days as part
your costs and the time involved.
This can be done by sending bulk
to offer the second shipment for of their terms and conditions –
orders, including returns labels in free. Many distance sellers do not and many offer longer periods.
the original parcel, or outsourcing charge for delivery once purchases It is currently more common for
your returns management so goods have gone above a certain threshold, customers to pay for their returns,
can be checked inside the country. often over CHF 100. The popularity although some retailers will offer
For more information, go to of this tactic, employed by some prepaid return solutions. Regulations
www.asendia.com/goods or
successful cross-border players, are also expected to change in this
www.asendia.com/returns
means that the trend towards free area before too long.
delivery is likely to continue.
9
Payment
The University of Zurich study the Swiss are known to have a good
and the PwC Total Retail survey payment ethic. Many also pay their
both reveal that many Swiss are invoices at the end of the month,
concerned about payment security so retailers tend to offer a payment ASENDIA TIP:
Custom clearance
online. As a result, most online period of 30 days to allow for that.
Cash on delivery is not a common
transactions are paid for by invoice
The popularity of payment by practice in Switzerland, so distance
after receipt of the goods rather sellers should use a customs
invoice requires foreign players to
than by using standard credit or clearance solution where the retailer
have a Swiss bank account, but
debit cards. pays customs clearance costs, VAT
there is another reason why this is and duties.
Although payment by invoice advisable. Although the Swiss will If the recipient is left to pay these
increases the risk for retailers, who pay in euros, they have a strong costs, they will have to collect their
have to bear postage costs upfront, preference to pay in francs. parcel from the post office so that
payment can be made, rather than
receiving the parcel directly at
home. This is a cumbersome and
expensive procedure that often
results in dissatisfied customers and
no repeat business.
For more information on how
Asendia can help, go to
www.asendia.com/destinations
Cross-border Sales
The volume of cross-border Zalando’s success in Switzerland CHF 1.20 to the euro. Swiss
sales has increased over the past suggests that the market is becoming consumers realised they could
few years, helped by technological more favourable to outsiders. In fact, get a lot more for their money in
developments, better returns policies half the major retailers surveyed in neighbouring France and Germany,
and higher levels of trust, as well as the Swiss Ecommerce Report 2013 prompting what was described in
currency fluctuations. According to expected the foreign share of online one report as a “shopping frenzy
Netcomm Suisse, 62 per cent of retail in the country to increase over in German and French towns close
Swiss online shopping was cross the few next years. to Swiss borders”.
border in 2014. Unsurprisingly,
The increasing popularity of
54 per cent of that activity was
purchasing consumer electronics
focused on Germany and 66 per cent
online also highlights an area of
cited more competitive pricing as the
opportunity for distance sellers.
main reason behind the trend.
Intense competition inside ASENDIA TIP:
Switzerland has eroded some of the Don’t get put off by customs
This is not a new phenomenon: price advantage that distance sellers This can be accomplished within a
an Odermatt & Partners survey have on many consumer electronics day, as long as you know the rules.
published in 2011 found that 47 per products, but as the PwC study There are special requirements
cent of the Swiss population had has found, Swiss customers are governing the import of wooden
purchased something across border still going online to purchase their
furniture and jewellery, for example.
at least once in the preceding And although beauty is an
electronics good across borders. increasingly popular category, the
12 months. According to the Swiss
import of perfumes is not allowed
Customs Administration, the import Currency fluctuations may be one unless the name of the seller or
of consumer goods into Switzerland of the least predictable but most importer is on the box.
increased by three per cent between powerful drivers when it comes to For advice, get in touch with
2011 and 2012, rising to CHF 78bn. Of cross-border sales. In January 2015, Asendia at
this, VSV suggested that CHF 600m the Swiss National Bank scrapped www.asendia.com/contact
could be attributed to consumers a policy that had prevented the
shopping online across borders. Swiss franc from rising beyond
11
M-Commerce & Social Media
ASENDIA TIP: Mobile phone and smartphone The PwC Total Retail Switzerland
Dos & Don’ts for the Swiss Market penetration has reached over 80 per 2015 report points out that so-called
Through its parent company cent in Switzerland and the market “Digital Natives” – those born after
Swiss Post, Asendia knows has been testing the m-commerce the mid-1980s who were “raised in a
Switzerland like the back waters for several years. world where connectivity is natural”
of its hand. Here are a few – are not taking up online shopping
According to Google’s Our Mobile
of our dos and don’ts: as much as one would expect: 39
Planet report, published in 2012,
per cent buy online only a couple of
96 per cent of smartphone owners
times per year, while 36 per cent do
in Switzerland had researched a
so monthly. The report suggests that
Dos product or service on their device
this is down to the “limited spending
and 29 per cent had made a
•H
ave French, German and power of this demographic”.
purchase on their phone.
if possible Italian versions
The picture is similarly stagnant for
of your website. A year later, Deloitte found that
the “Silver Surfers” – those over 55
33 per cent of Swiss consumers
•O
ffer niche/specialised who are still catching up with digital
(61 per cent of smartphone owners)
products. technology: 48 per cent have never
had used their mobile devices for
bought anything on a mobile device,
• Offer prices in Swiss francs. purchases in 2013 and 46 per cent
and only one per cent have made
planned to do so in the future.
•O
ffer local payment options mobile payments.
(in particular payment by And it’s not all about smartphones
Although any sizeable link between
invoice). – tablets are also being used to
social media and purchase is yet
purchase goods online (among
•H
ave a mobile-friendly to be established in Europe, PwC’s
those that have them). According
version of your website. research has found that 76 per cent
to the NetComm Suisse 2014 survey,
of Digital Natives regularly use social
•O
ffer reliable delivery 19 per cent of respondents say they
media channels when shopping, with
solutions. use their tablets to shop online on a
64 per cent interacting with brands
weekly basis.
online. And 39 per cent of them said
Don’ts Among retailers, interest is growing in this interaction made them buy more.
•O
ffer products that are m-commerce, though take up remains
On the Silver Surfer side, 25 per cent
already easily available somewhat muted.
said they research brands on social
online.
More than 60 per cent of the retailers media before a purchase – 56 per
•O
ffer high prices just surveyed for Swiss E-commerce cent doing so to find special offers
because it is Switzerland. Report 2013 claimed that they had – and 19 per cent claimed they had
generated more than five per cent of found new brands via social media.
•B
e overly confident:
their turnover through mobile devices
Switzerland is a small but The m-commerce picture for
in 2012.
very demanding market Switzerland is a mixed bag – on the
with many constraints and Ecommerce Europe findings one hand, there’s room for customer
specific trends. corroborated their experience: engagement as more people live
it suggested that m-commerce their lives on their mobile devices.
•D
ifferentiate your online
accounted for six per cent of At the same time, if retailers want to
and offline pricing policies:
Switzerland’s e-commerce earnings grow this part of their multi-channel
they should at least be
for 2013, putting the country on strategy, there is a need to convince
consistent even if all prices
level pegging with Austria and the consumers that the mobile shopping
are not the same.
Netherlands, and above France, experience is preferable, convenient
Germany and the European average and secure.
at the time.
For more information
on our services, go to But recent figures suggest a more
www.asendia.com/services challenging picture for retailers
hoping to tap into m-commerce.
Attractive deals/promotion/sales
Other
13
Regulations
Switzerland has no legislation may be requested at the time of Advertising
specific to e-commerce – the same the export assessment. This is only
rules apply for online and offline Distance sellers should be aware that
possible if the goods are physically
retail – but distance sellers are there are rules around advertising
re-exported; no refund will be
responsible for following all the tobacco and drugs. Comparative
made if the goods are returned to a
regulations that exist. advertising is permitted, but it must
company located in Switzerland.
be accurate and not misleading.
Some notable restrictions include: To find further information go to the Mass advertising via email and
Swiss customs authority website, SMS is not permitted, although
•E
lectronic items must be approved
www.tares.ch promotional emails to previous or
in Switzerland and must be marked
existing customers is allowed when
with a corresponding seal of Data Protection Act highlighting similar goods and
approval.
Under the Data Protection Act, services.
• Instruction manuals for electronic personal data may be processed Advertising that includes games
devices and leaflets for medication only for the purpose specified in or competitions as purchase
must be available in the language its procurement or that is apparent incentives may fall under the
of the customer – so for from the circumstances or that Lottery Act (which forbids games or
Switzerland, this means German, is prescribed. The acquisition of competitions when it is connected to
French and Italian. personal data, and in particular the a purchase of goods or services).
• Items on the “Dangerous Goods” purpose of the processing, must be
list are either forbidden or made clear to the customer. Domain Names
quantities are limited. Sending Website owners are also obliged by Switch is the registry for domain
drugs, some batteries and Swiss law to inform their customers names under the country-specific
explosive substances is prohibited. about the use of cookies, what they top-level domain ‘.ch’. The
•T
here are also legal restrictions are being used for and how they registration of a domain name is
affecting medicines, wine and can disable them if they choose carried out on a ‘first come, first
spirits, food, precious metal and to. However, in contrast to the served’ basis and anyone may apply
protection of species (including EU, Switzerland takes an opt-out for one. There are no restrictions
trade of leather, seeds etc.). approach – so retailers only need with regard to residency of an
make their customers aware that applicant.
VAT they can disable them, rather than
ask for their consent. Voluntary Code of Conduct
The Federal Customs Administration
(FCA) imposes customs duties The VSV (association of Swiss mail
Consumer Protection order companies) also has voluntary
and import taxes on goods being
imported into Switzerland. Customs Unlike its EU neighbours Switzerland codes of conduct that local players
duties are generally calculated does not yet have a law covering adhere to. Those doing so display
according to the gross weight of customers’ right to return goods. a marker bearing the words “Swiss
the goods, and are often less than Although recommendations are Online Garantie” on their websites.
CHF 1 per kilo. Typically, alcohol, already in place and many distance A new consumer ombudsman for
tobacco, food, textiles and jewellery sellers already offer terms of at least e-commerce was also created in
are subject to higher customs duties 14 days for returns, proposals have November 2013.
or other special taxes. been made to make this a legal
obligation.
The regular VAT rate is eight per cent.
For some products such as food and Although the proposals largely
drink (excluding alcohol), medication, follow the EU legislation, certain
books and newspapers, there is a provisions within it are more strict.
reduced rate of 2.5 per cent. For example, it suggests consumers
may use the goods without losing
If goods previously imported into their 14-day right while only paying
Switzerland are returned unaltered “appropriate compensation” for
by the recipient, import duties and doing so. As a result, the proposals
taxes may be reimbursed if certain have been criticised and it is unclear
requirements are met. Refunds how far the legislation will go when
it finally comes into effect.
Distributes to
more than
200 destinations
More than
1,100 employees
Asendia is a leading provider of Whether you are fulfilling retail orders, your online transactions by providing
integrated solutions that help you creating direct marketing campaigns, a localised webshop allowing
become a cross-border commerce sending business correspondence, international payments and displaying
success. or producing magazines, we provide total landed costs.
the services you need to succeed in
Formed in 2012 as a joint venture And, of course, we manage and
your market.
between La Poste and Swiss Post, deliver orders for you, with inventory
we help some of the world’s leading We can help you acquire and management, warehousing, tracking,
brands navigate global commerce manage customers by cleaning data, and customs clearance just part of
with our comprehensive range of processing returns, and offering what we offer.
products designed for every aspect customer service. Together with our
of your business. partner eShopWorld, we can facilitate
15
References
and Sources
This whitepaper is compiled from
a variety of sources that are in the Verband des
public domain including research Schweizerischen
papers, websites, industry and
financial publications and other Versandhandels (VSV)
industry and economic data. These www.vsv-versandhandel.ch
are listed here. It is designed to www.tares.ch
provide an overview of markets
in the regions and countries Economiesuisse
specified and should not be used www.economiesuisse.ch
as a definitive reference point. This
whitepaper is meant for sole use by Ecommerce Europe
the recipient and is not for general www.ecommerce-europe.eu
circulation. We have endeavoured
to use reliable and credible sources Euromonitor International
for the data included, however we
www.euromonitor.com
cannot guarantee its accuracy. It
should not be relied upon as such. NetComm Suisse
Due to variations in definitions, dates netcommsuisse.ch
and time periods data sources should
not be used for comparison purposes. PwC Switzerland
totalretail.pwc.ch
This whitepaper and the opinions
expressed herein are current at the
time of production however may
change in the future.