The Oh La La’s and the Non Non Non’s: The State of Omni-channel in France
Tuesday, April 2, 2019

The Oh La La’s and the Non Non Non’s: The State of Omni-channel in France

OrderDynamics’ Omni-2000 research looked at over 2,000 global retailers. It set out to uncover the shopper’s view of retail omni-channel offerings. In the global report, results were presented to give an overall understanding on the state of omni-channel capabilities across the world. Subsequent country reports (United KingdomUnited StatesCanadaAustraliaFrance, and Germany|Austria) are also available.

 

Based on the information gathered, France is neither leading or losing the race for omni-channel global dominance.Omni-2000: France Report

For France, we reviewed over 204 retailers. The research took forty data points for each retailer. That meant collecting over 8,160 data points for retail in France. This only from retail chains and brands with 10 or more brick and mortar locations (physical stores). Based on the information, France is neither leading nor losing the race in omni-channel retailing.

 

The Non Non Non’s: What Are French Retailers Doing Not So Well?

50.5% of all retailers currently offer Click and Collect.Ultimately, 50.5% of French retailers offering Click and Collect, as the key sign of an omnichannel approach. France is second only to the UK for most advanced omnichannel retailing capabilities from the countries studied. Even with the positive progress, France has one area that is interesting to note in any omni-channel retailing discussion.

Free shipping has become the holy grail when competing with Amazon. This as more consumers sign up for the e-commerce giant’s prime service. Almost 75% of global retailers with online sales, offer free delivery. Retailers around the world are now dropping minimum order values for free delivery. This in response to the progress of Amazon. Unlike other countries, French retailers are not necessarily matching Amazon, here. In fact, only 69.8% of French merchants with e-commerce, offer free shipping as part of the customer journey. Rather, French legislators have signed a bill into law that makes free shipping illegal!

E-commerce and free shipping by country (USA, Australia, UK, Canada, France, Germany Austria)
Source: OrderDynamics, Omni-2000: Global research.

The law, specifically relates to free shipping on books. It imposes restrictions on online merchants. Frustrated by Amazon’s book-selling model, French lawmakers created the bill to protect independent booksellers. Unfortunately, Amazon was quick to find a way around the law. They now simply offer delivery for only €0.01. This point emphasizes how to compete with Amazon. You need better ideas, the best technology, and an intense will to win.

An option retailers should consider in digital channels, is to make ‘free click and collect’, the new ‘free delivery’. In France it would leverage what Amazon does not have. That being physical stores.

 

The Oh La La’s: What Are French Retailers Doing Well?

France is saying YES to a greater user experience. Certainly, 77.5% of retailers offer mobile responsive sites and 12.3% m-commerce optimized sites (the highest percentage among the countries reviewed).

Moreover, almost 90% of French merchants have a presence on Instagram. In an article on the French connection between social networking and retail, Harvard Business Review cites the French tradition of valuing the personal interaction between brands and consumers. The Omni-2000 study finds that only about 6% of French retailers let customers purchase on Instagram. But, with 90% of them on the social channel, this number will likely grow.

Social Media and Commerce in France
Source: OrderDynamics, Omni-2000: France research.

As a large consumer market of close to 67 million people, France is best known for being home to some of the world’s most famous fashion and luxury brands. As a result, these retailers are maximizing the use of social channels. They are fostering customer experiences. Social networks offer retailers an opportunity to truly connect with customers. As such, we expect French retailers to make further progress with social selling, this year.

Above all, the French retail industry is an exciting marketplace. France continues to move forward with digital technology and omni-channel capabilities. This is the first year OrderDynamics includes France in the Omni-2000 research. No doubt, it will be interesting to watch next year’s results comparison across the year. With a thriving retail market, we expect France to maintain a leading omni-channel position in Europe.

Download the full French report for Omni-2000 here.

 

Author: 

Charles Dimov, VP of Marketing at OrderDynamics

Charles Dimov is VP of Marketing at OrderDynamics. Charles has 23 years experience in Marketing, Sales and Management across various IT and Technology businesses. Previous roles include Chief of Staff, Director Product Marketing, and Director Sales. Charles has held roles in brand name firms like IBM, Ericsson, HP, ADP, and OrderDynamics.

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