At this national roundtable discussion, it was observed that the global phenomenon known as e-commerce is bringing about a paradigm shift in distribution models for products and services. In a scenario of constantly increasing online sales, growth in this sector seems unlikely to slow down, thanks also to the spread of new technologies – such as smartphones and tablets – that are making the consumer experience even more effortless. Globally, the number of cell phones far exceeds not only that of televisions, but also mundane everyday items such as toothbrushes. What’s more, with consumers spending 25-50% more when buying over the telephone, mobile online sales forecasts are growing steadily. But although e-commerce is altering the landscape by shifting power from large corporations to consumers, the changes taking place are far from straightforward: lurking behind these onscreen purchases are a number of unresolved technological and logistical issues.
In this regard, the participants felt that a change is needed not so much in the common sense concepts that should guide the practices of any business (namely, the importance of understanding the consumer, generating innovation, and developing partnerships for growth), but rather to the very frame of reference within which many firms are accustomed to developing their business plans. In an online environment, business groups are finding it increasingly difficult to control their brand image, and are faced with sales models that coalesce and blur depending on the channels and the geographic markets in question. In the world of e-sales, everything moves at a faster pace and managers must draw on skills with which they are not always equipped.
It was further noted that e-commerce calls for major changes not just to business practices but also to country economic models. In order to turn this sector into a key driver of growth, the participants pointed to a need for advanced and affordable technological and logistical infrastructure, a forward-looking education system, an open and speedy legislative process, and a conducive and flexible banking and financial system. It was stressed, however, that none of this is achievable without a culture that rewards innovation and merit.
In the e-commerce scenario depicted, Italy was seen as having great potential, despite lagging behind the other major European countries. Indeed, the Italian domestic e-commerce market grew by 20% in 2011, reaching a total turnover of €9 billion. In 2012, despite the ongoing crisis, this trend continued with the same growth rate recorded, while figures for the first part of 2013 were also in keeping with this trend. Nevertheless, a turnover for e-commerce amounting to €10 billion is only a fraction compared to €26 billion in France, €40 billion in Germany, and £53 billion in the United Kingdom. In addition, only 5% of Italian firms are using e-commerce platforms in their businesses, while the European average stands at 15%, with rates as high as 30% in Northern European countries.
Precisely because it is lagging behind, Italy has higher levels of growth, with products registering significant growth rates and gaining on services, which still account for 60% of transactions. All the same, further development of this sector remains a strategic priority given that e-commerce offers enormous prospects for affordable trade and great potential for the growth and internationalization of Italian firms, providing opportunities to engage with the global market even for SMEs.
The participants went on to highlight that there are attractive prospects not just in the more visible business-to-consumer (or B2C) segment of the market, valued at €12.5 billion and with a potential of over €400 billion, but also in the business-to-business (or B2B) segment, which – with a turnover of €200 billion in e-sales and a potential value of €2.9 trillion – is the real challenge that Italian exporters need to take on.
By way of conclusion, it was emphasized that for a country such as Italy, whose exports account for almost one-third of GDP, supporting firms in their efforts to improve the quality of supply is crucial. To that end, it was suggested that the first step towards embarking on a path of more competitive growth would be to facilitate the integration of Italian firms within international trade networks geared chiefly towards B2B and – increasingly – online sales.