With 30% growth in 2009, and 171 billion euros anticipated in 2010 in Europe - while retail trades have registered a decrease of 3% - e-commerce has been a real success especially during the time of economic crisis. However, the report can be moderated because the development of this new form of commerce is contrasted with goods and services which are commercialized. Travel, downloading of games and music and technological products are the signs of success of the e-commerce trade, while other products encounter problems that prevent it from maintaining a good position on this distribution channel. For example, food retailers have been facing this problem, where online selling is more discreet and the penetration on this market is lower.
So what are challenges facing food retailers in relation to e-commerce? To respond to this question, we will examine the current scenario of e-commerce and sale of food items online in Europe. In the second part, we will study the advantages and inconveniences of online food sale according to customers and we will conclude with the challenges facing food retailers in relation to e-commerce.
[...] Even if online food sells is a marginal market, there are some opportunities to take on internet for food retailers. So we will see in this part what are challenges to pick up for food retailers in e-commerce. Developing internet distribution's channel: The development of internet distribution's channel is important for food retailers to: Diversify its channels of distribution: Which allow to food retailers to do not depend to one channel of distribution. Touch more potential customers: In fact, to develop internet distribution's channel allows to food retailers to target new potential customers. [...]
[...] Percentage of people who have order on internet goods or services for their own consumption in the last 12 months: In conclusion of this part, we can say that e-commerce is a channel of distribution which follows an important growth since ten years, but which is minor comparatively to the global retailing market. In fact, e-commerce sells in Europe represented of the global retailing market in 2009, and anticipation for 2010 is around In 2010 European turnover of internet sells will be around 172 billion euro according to anticipations. What is the today's situation of online food sells? Is it close to the global e-commerce market? [...]
[...] According to the same study makes by INSEE of internet buyers find in internet an opportunity to have more information and characteristics about the product. Inconveniences: Absence of real contact with the product: The most important reason why internet users do not realize purchases on internet is absence of real contact with the product, customers would like to have a physical contact with the product before to buy it. Security: The security is also an important reason for internet users to do not realize purchases on internet. They fear that personal data do not benefit of good security. Moreover, they fear internet transaction. [...]
[...] What are challenges to pick up for food retailers on e-commerce? Agenda: Introduction Part Today's situation of e-commerce and online food sells in Europe: Today's situation of e-commerce in Europe Today's situation of online food sells Part II: Advantages and inconveniences of online food sell according to customers: Advantages Inconveniences Part III: Challenges to pick up for food retailers on e-commerce: Developing internet distribution's channel Positioning their offer on e-commerce Changing consumer behaviors Conclusion Sources Introduction: With 30% of growth in 2009, and with 171 billion euro anticipate for 2010 in Europe - while retail trades have a decrease of - e-commerce is a real success especially in crisis' time. [...]
[...] Part II: Advantages and inconveniences of online food sell according to customers: As all channel of distribution, internet has its advantages and its inconveniences. We will see in this part what are the advantages and the inconveniences of this channel of distribution according to customers. Advantages: Practical: When you are the customer, it's clear that using internet for his purchases is a real advantage, it's really practical. In fact, the customer does not need to move, and he can do his purchases whenever he wants (24/24). So he realizes time's economy. [...]
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