The context and evolution of ecommerce in Switzerland marked by COVID-19.
The year 2021, marked by the second year of the coronavirus pandemic, was the third consecutive year of records for the retail trade in Switzerland. This sector recorded an increase of 3.2%, crossing the threshold of 100 billion Swiss francs for the first time. In 2020, the growth of ecommerce reached an exceptional rate of 27%, a performance considered unique. In 2021, e-commerce continued to grow, recording an increase of 9.9% to reach 14.4 billion Swiss francs, which remains high even compared to the growth rates of the three years before the pandemic. Swiss e-commerce and logistics have been put to the test, but with very positive results.
Impact of the pandemic and adaptation
The start of 2022 showed a slight decline, but in the context of a new normal. Compared to the first quarter of 2019, the overall market is up about 5%, but ecommerce is up 47%. This represents a major e-logistics challenge for all sectors of Swiss ecommerce. In addition, logistics and transport, which were quite disrupted during periods of confinement, did not help in return. This figure reflects this new normal well, despite a particularly high long-term trend. A majority expects further growth. In the long term, the pandemic has marked a turning point in the consumer goods industry. The view of traditional commerce versus online commerce has been radically changed. E-commerce has found itself in an unprecedented situation, where much of retail has moved online.
Sector responses and adaptations
The majority of trips having been canceled and replaced by online purchases during confinements, the major players now expect a return to normal, but with an increase which should stabilize. Consumers, meanwhile, have had to deal with waits, delays and sometimes empty shelves due to the fragility of the supply chain. Today, the break with traditional modes leads to overdistribution, particularly in retail. Many players must reorient themselves. Direct selling of brands has become a norm, requiring better collaboration with ecommerce. Digital platforms are increasingly asserting themselves in the distribution of consumer goods.
Consequences of digitalization and behavioral changes
Following the pandemic, consumers have developed greater digital competence. They are significantly more open to procurement-related services, have higher requirements for sustainibility and are gradually moving towards a more value-oriented market. Logistical challenges encountered during the pandemic have pushed suppliers to adapt and invest more. However, the waves of confinement have forced a large part of entrepreneurs and employees to adapt to new situations, in particular teleworking and online shopping. Despite a return to normal, these habits have persisted among some consumers. The long-term effects, however, remain to be discovered.
Challenges and perspectives
Despite the good results of Swiss ecommerce, it has faced numerous obstacles: foreign competition, overdistribution in retail, climate change, shortages, supply chain disruption, inflation, economic instability world, fragility of the world order, war in Ukraine, etc. However, the diversity of supply will likely continue to increase. Digitalization makes it possible to explore new market segments, thanks to well-organized e-logistics and efficient warehouse management systems (WMS). Purchases should be fewer but more value-driven.
Future projections and adaptations
Overdistribution, driven in part by digitalization, allows online suppliers to compete with regional physical stores. However, an online supplier always competes with other online suppliers, while a stationary dealer may be the only one in its area. Many players anticipate a diversified offer by 2030, with many small suppliers finding their place in the market. E-commerce is evolving towards value- and service-oriented distribution, posing new logistical challenges for merchants.
Encouraging the adoption of e-commerce solutions
To meet these challenges, retailers must adopt comprehensive e-commerce solutions, including WMS logistics for order management, inventory, customer communication, and team management. A ecommerce site allows better adaptation to consumer expectations and smooth integration between the different sales channels.
Conclusion: lasting impact of the pandemic
Swiss e-commerce still has a bright future ahead of it, the pandemic having accelerated digitalization and its adoption. However, it has enabled unprecedented use of digital technology, changing social and professional relationships and making processes more flexible. The forms of purchasing have also evolved, allowing the consumer to navigate between different purchasing channels.e-logistics, with efficient digital interfaces, facilitates this transition, offering a fluid and integrated user experience. The recovery in travel and fine dining is contributing to a decline in retail, but more value and service-oriented consumption is expected. The emergence of many small players will diversify the offer, requiring constant assessment of foreign competition in the market.
Download the 2022 Swiss ecommerce report (available in English and German).
2022 report on Swiss e-commerce