Will Kingdom of Sweden be Kingdom of E-commerce?
The land of snow, beautiful blonde people and amazing nature; Sweden. The country joined the European Union in 1995, but it has never used the Euro. The Swedish people rejected the introduction of this coin in 2003. Sweden has the eight-highest per capita income in the world and the country always ranks well on several lists about happiness, human development and democracy.
Sweden is also the hometown of one of the biggest fast fashion companies; H&M. Most of us dress by Hennes&Mauritz and design our homes from IKEA. This beautiful country is alsofamous for its successful football players like Zlatan Ibrahimović, influential directors such as Ingrid Bergman, Lukas Moodysson and Lasse Hallström, world-wide known Pippi Longstocking’s author Astrid Lindgren, big bands such asABBA, The Cardigans, Opeth.
Economy of Sweden
Sweden hasa modern distribution system, excellent internal and external communications,and a highly skilled labor force. It has one of the most stable economies inthe World. Sweden’s economy is aided by peace and neutrality for the whole ofthe 20th century. The country is achieved to provide good standards of livingfor citizens under a mixed system of high-tech capitalism and extensive welfarebenefits. According to Forbes, Sweden is the 5th best country for business. Let’s have a look at numbers of Sweden’s economy in 2014.
- GDP Growth: 0.9%
- GDP (nominal): $552.04 billion
- GDP (PPP): $393.77 billion
- GDP/Capita: $40,900
- Unemployment: 8.1%
- Inflation: 0%
E-commerce Market in Sweden
The key to have a successful e-commerce market is to have a high rate of internet penetration. Sweden is the 4th country in the world with 94% of internet penetration. Sweden’s population is 9.7 million and there are 8.6 million of internet users.
In 2013, Sweden showed the biggest growth in online retail sales with €4.17 billion since 2007. In 2014, the e-commerce industry in Sweden increased by 16% and is now worth 42.9 billion Swedish kronor, or 4.53 billion Euros. In addition, online retail sales make 6.4% of total retail sales in Sweden.
- Swedish men mostly bought books, clothes, sports and leisure products, computers and computer accessories while women were ordering books, clothes, cosmetics and home furniture.
- According to PostNord’s study about e-commerce in Sweden, more than 35% of consumers between 18 and 79 years old purchased online at least once per month in 2014. That’s 6% more than it was in 2013.
- Swedes like to shop cross-border too. Total online purchase made in Sweden worth 1.21 million euros. Swedes mostly order clothes and shoes from UK, USA, Germany and China.
- It’s actually very common for Swedes to shop from Swedish e-commerce sites too. Other than IKEA and H&M, other popular sites are Halens, Nelly, Adlibris, Bokia,Cdon and NetOnNet.
- According to PostNord’s study 75% of online consumers consider that delivery method is very important and 29% of online consumers want their purchase to arrive on the next business day.
According to PostNord’s study, among online shoppers in Sweden, the highest proportion still prefers to pay retrospectively against an invoice for products bought online. In the rest of the Nordic region, it is more popular to pay with a debit or credit card. However, we do see among Swedish online shoppers that a higher proportion prefers to pay with a debit or credit card compared with the previous year.
According to PostNord, Swedish consumers are getting more familiar with shopping online. They also become savvier when it comes to e-commerce which forces the industry to adapt. Nowadays, consumers jump effortlessly between different sales channels which makes it even more important for e-commerce companies to keep up.
Pelin Geyik – Marketing Specialist – Prisync.com
We, as Prisync team, will be covering e-commerce markets of different countries from all around the world and will focus on the insights that are specific to each respective market.