HOW TO SELL TO
SWITZERLAND
Why a small market holds so much e-commerce potential
Why Switzerland?
• Market Guide • Trends
• Opportunities • Competition Regulation
• Dos and Don’ts • Consumer Analysis
Asendia is an international partnership between La Poste and Swiss Post.
Table of Contents
Introduction
3
Asendia3
Swiss Post
3
The Swiss Market
4
Economy, Key Statistics
Switzerland and EU
E-commerce in Switzerland
Customer Behaviour Why Enter the Swiss Market?
4
4
5
6
6
Retailing in Switzerland
6
Mail Order Trends
Reputation Matters
7
7
Swiss Consumers
8
Online Habits
8
Sectors and Market Share
9
Delivery and Returns
9
Payment10
Cross-border Sales
10
Advertising Approach
Language Learnings
Food for Thought
11
11
11
Dos and Don’ts12
M-commerce & Social Media
12
Regulations14
VAT14
Data Protection 14
Consumer Protection
14
Advertising14
Domain Names
14
Code of Conduct
14
Asendia - Who we are
15
Sources
16
Switzerland: A great opportunity for European online retailers
Introduction
Switzerland is a small but
important e-commerce market,
offering plenty of opportunities
for European online retailers.
distribute their goods and mail
across Switzerland for years.
We’ve produced this guide so that
others can share the same success.
The Swiss are online in large
numbers and have an appetite
to find cheaper prices and larger
product ranges beyond their
borders. And the country is a
relatively easy market to enter,
despite it not part of the EU.
Customs clearance can take as
little as a day and through the
other side you’ll find a first class
logistics network.
Asendia
As ever, there are many things
that retailers planning to enter
Switzerland should consider in
order to maximise their success.
It’s a unique market in terms of its
language mix and legislation. Its
consumers also have their own take
on wider European e-commerce
trends – and, because of the size
of the market, it is not always easy
to find out up-to-date information
about what that is. Here at Asendia,
we have been helping companies
Asendia is an alliance between
two equal partners, La Poste and
Swiss Post. It was created to realise
the joint benefits of new delivery
solutions and expanding global
logistics services for our customers.
The company has more than 44,000
employees and as the third-biggest
employer in Switzerland it provides
over 20,000 jobs in mountainous
regions and rural areas. Furthermore,
it conveys six million consignments
(letters, promotional mailings and
newspapers) a day and 111 million
parcels a year. Over 2.9 million
customers use a postal account
and the PostFinance card. PostBus
carries 140 million passengers a year.
The partnership ensures growth,
underscores our commitment to
excellence and creates sustainable
value, not only for our valued
customers and shareholders, but
also for our employees.
Swiss Post is a diversified company
operating in four markets:
Swiss Post
· Passenger transport
Swiss Post is a public limited
company under special law owned
by the Swiss Confederation. The
Swiss Post brand is one of the best
known in Switzerland. Both business
customers and the population at
large perceive it as friendly and
trustworthy.
3
· Communications
· Logistics
· Retail financial
The Swiss Market
Economy
Key Statistics
Switzerland and the EU
For a small country of 8.2 million
people, Switzerland has a very
international outlook and an
impressive reputation as a country
to do business with. It’s home to
several multi-national companies,
from Nestlé to Novartis. And for
the past six years it has topped the
World Economic Forum’s Global
Competitiveness Index – most
notably for its stability (political,
economic and legal) and the quality
of its infrastructure. Switzerland
also leads the world in innovation
rankings.
People
The 40th anniversary of a free trade
agreement between Switzerland and
the European Economic Community
was celebrated in 2012.
Separate from, but closely linked
to, the EU, it has also escaped
many of the economic headwinds
that have affected the rest of the
continent. Its currency, the Swiss
franc (CHF), is stable and it has
one of the lowest rates of inflation
(averaging three times lower
than that in Europe over the past
decade). It also has low levels of
unemployment and one of the
highest GDP per capita, leaving
its residents with a relatively high
disposable income.
Those doing business in or with
Switzerland can take advantage
of low rates of VAT. The standard
rate is eight per cent, and this falls
to 2.5 per cent for certain items,
including food, medical products,
books and magazines.
Population: 8.2 million
Urban population: 74%
Unemployment rate: 4.2%
GDP per capita (purchasing power
parity, 2015 estimate): $54,983
Ethnic groups: German (65%),
French (18%), Italian (10%),
Romansh (1%), others (6%)
Country
Area: 41, 277 sq km (similar in size to
the Netherlands and Denmark)
Land borders:
Austria, France, Italy, Liechtenstein,
Germany
Main cities and populations:
Zürich 390,474
Geneva 197,376
Basel 174,793
Bern (capital) 130,015
Import partners: Germany 28%,
Italy 9.7%, France 8.1%, US 6.6%,
China 6.6%, Austria 4.7%
[Sources: latest available figures from IMF;
CIA World Factbook; UNdata; Federal
Statistical Office, Switzerland]
2014 world rankings
Competitiveness: 1/144
Ease of doing business: 20/189
GDP (PPP) per capita: 9/187
ICT (Information & communication
technology) development: 13/166
Today Switzerland is the EU’s third
largest trading partner after the
US and China, with goods worth
around CHF 1bn crossing its
borders every day. The EU accounts
for approximately 60 per cent of
Swiss exports and 80 per cent of
its imports.
More than 1.6 million EU citizens also
live within Switzerland’s borders –
an audience already familiar with
many local retailers. And with three
languages in common with its
neighbours (German, French and
Italian), many European companies
already have the ability to talk to
the majority of the Swiss population
– a good first step to securing
international sales.
This is already reflected when
it comes to the share of Swiss
imports achieved by Germany
(28 per cent), Italy (10 per cent)
and France (eight per cent), but
these figures include manufacturing
materials rather than solely
finished consumer goods.
Switzerland: A great opportunity for European online retailers
E-commerce in Switzerland:
a Global Context
AT Kearney highlighted Switzerland
as a “small gem” in the 2013 Global
Retail E-commerce Index, which
ranks markets according to their
e-commerce potential, because
of the number of active online
consumers in the country and its
supportive infrastructure. By 2015,
Switzerland had moved six places
up the index rankings from 29 to 23.
In fact, Switzerland has one of the
highest percentages of internet users
in Europe, at more than 88 per cent
of its population, so it should be no
surprise that e-commerce sales
continue to grow rapidly. Between
2008 and 2014, the Swiss B2C
e-commerce market doubled to
reach over CHF 11bn, ranking it fifth
among mature e-commerce markets
in Europe.
Nearly six million people shop
online in Switzerland and their high
purchasing power is reflected in the
figures: at €2,155, the country had
the fifth highest spend per capita
among e-shoppers in 2014, behind
the UK, Norway, Austria and Denmark
The European average was €1,281.
Switzerland’s e-commerce market
grew 16.1 per cent over the course
of 2014 – and although this is still
robust, it is slower than some of its
neighbours. Germany, for example,
posted growth of 21.6 per cent.
Ecommerce Europe has suggested
that this was because of the market’s
maturity, rather than any reluctance
to shop online, but the perception
of barriers because the country is
outside of the EU and its different
currency may have had an impact.
Nevertheless, cross-border
e-commerce is attractive to the
Swiss population, as they hunt out
Top 10 country share of the European
B2C e-commerce market
Source: European B2C E-commerce Report 2015
UK
30%
Germany
16.8%
France
13.4%
Russia
Spain
Netherlands
Italy
Switzerland
4%
3.3%
3.1%
3%
2.8%
Norway
2.4%
5%
Switzerland also has one of the
highest densities of mobile devices
in the world and good infrastructure
for high-speed internet access.
According to Google, smartphone
penetration had already reached
43 per cent by early 2012. By 2013,
the figure had risen to 54 per cent.
As of March 2014, according to a
study by Y&R Group, the connected
device usage rate in Switzerland
was up to 84 per cent.
At the same time, this rapid rise in
connectivity does not automatically
translate into big e-commerce
numbers: according to PwC’s Total
Retail Switzerland 2015 study, 45 per
cent of Swiss mobile shoppers use
mobile devices mainly to research
shopping, 40 per cent use mobiles
to make price comparisons and
27 per cent use their phones to find
a local retail outlet.
While Switzerland may be primed
to take advantage of developments
in m-commerce and to grow crossborder e-commerce opportunities,
there is still a fair bit of work to be
done by retailers.
4.4%
Austria
lower prices and products that
might not be available in their
small home market. According to
a study by Netcomm Suisse – “the
first and only Swiss Association of
e-commerce” – published in 2014, 23
per cent of Swiss online expenditure
is cross border, with 66 per cent of
shoppers drawn by better prices.
The study also found the key drivers
for shopping online in the first place
included saving time (42 per cent),
shopping at any time (40 per cent)
and being able to compare prices
(35 per cent).
10%
15%
20%
25%
30%
5
Consumer Behaviour
Retailers interested in marketing
their wares to Swiss consumers will
be attracted by the fact that their
buying behaviour is similar to that
in neighbouring countries.
If anything, there is the added
bonus that they have been less
affected by the economic downturn
experienced by the rest of Europe.
That’s not to say that consumers
have escaped worry-free though,
and some caution has crept into
their shopping habits.
Consumers in Switzerland have
a high purchasing power: average
wages for residents are the highest
in the world, helped by the fact that
there are not many tax deductions
(although it’s also worth bearing in
mind that Zurich and Geneva are the
most expensive cities in the world).
last available figures. This has been
increasing for several years, up
CHF 1,030 compared with 2006.
The Swiss are sensitive to price, but
also place a high value on product
quality, good customer service
and, increasingly, sustainability.
And seasonal trends also play an
important role in their buying habits.
For example, according to Deloitte,
the Swiss are among Europe’s
biggest spenders when it comes
to Christmas shopping, averaging
an estimated €609 per household
in 2014.
Playing to national stereotypes about
efficiency and organisation, they were
also more likely to start shopping
early (in or before November) than
their European peers.
The average disposable income
of households in Switzerland was
CHF 7,130 per month in 2013 – the
Why Enter the
Swiss Market?
• First-class infrastructure
• Currency and price stability
• Social peace and political stability
• High purchasing power
• Similar consumer needs
• Good payment culture
•S
hared European languages
(German, French and Italian)
•M
ulticultural, making it a useful
European test market
• Central European location
• Low VAT (eight per cent)
• Favourable legal framework
•G
ood postal infrastructure,
fair prices
Retailing In Switzerland
Before distance sellers casually
arrive at the Swiss border, it makes
sense to understand a little bit
more about the Swiss retail market.
And make no mistake about it –
the Swiss retail industry is both
sophisticated and competitive.
When it comes to bricks-andmortar stores, it is dominated by
local players.
The strongest of these in recent
years have been Migros and Coop
– supermarket chains that have
expanded into convenience stores,
as well as selling electronics and
appliances. They also have strong
multi-channel strategies.
Many Swiss retailers were late to the
multi-channel game but, according
to EHI Retail, over half of online
retailers in Switzerland also have
a bricks-and-mortar store.
A third of online stores also offer
a smartphone-optimised website
or app.
convenience of online shopping needs
to be more compelling if numbers are
to grow in future.
Bricks-and-mortar retailers
themselves have restrictive
opening hours to contend with.
Although trading restrictions in
border areas are now being eased,
Sunday opening is not common
in Switzerland, other than in train
stations, and it is not easy to find
shops open late on weekdays either.
While the opportunities may be ripe,
there is work to be done to capture
the Swiss customer – as the PwC
report points out, “24/7 shopping
is clearly possible, but it has yet to
catch on fully” in Switzerland.
Retailers just across the border have
taken advantage of this situation –
in southern Germany, for example,
the likes of Aldi and Lidl have
opened more stores than the local
population warrants, as they target
their Swiss neighbours.
Swiss consumers may be open to
shopping across borders, but the
Switzerland: A great opportunity for European online retailers
Mail Order Trends
According to the Swiss mail order
association VSV, its 200-plus
members generate more than
20 million orders and send 30 million
outbound packages a year. They
are also responsible for five million
return parcels and more than 200
million emails.
Taking the mail order sector as
a whole, online orders accounted
for 75 per cent of purchases in 2014,
up from 29 per cent in 2006.
Online retail in Switzerland
continues to see strong growth
– Datatrans’ Swiss E-commerce
Report 2015, surveying key players
in the e-commerce market, notes
that online trade in goods grew by
around 10 per cent year-on-year.
Nevertheless, relatively few new online
brands have emerged within Swiss
borders because of high structural
costs (especially high wages) and
the need for huge investment to find
economies of scale quickly enough
to succeed in a small market.
The scarcity of big-name, homegrown brands also helps explain
why e-commerce development in
Switzerland has been somewhat
weaker than elsewhere in Europe.
Things like delivery fees are also
having an impact: according to
PwC’s Total Retail Switzerland 2015
study, 36 per cent of respondents
“browse for products online but
purchase them in-store to avoid
paying shipping costs”.
The same report goes on to
highlight the rise in parcel storage
businesses located along the Swiss
border, typically in Germany or
France. These companies “store
parcels for Swiss shoppers and thus
reduce shipping and customs costs
for the shopper” and represented
nearly CHF 200m in annual revenues
in 2014.
Foreign retailers are well positioned
to play this situation to their
advantage – they can offer their
goods at cheaper prices than local
competitors as they don’t have to
contend with the same cost base.
In fact, prices can be 20 per cent
lower in Germany, particularly for
household goods and clothing.
And even where the price difference
is less pronounced, such as for
consumer electronics, PwC’s study
points out that “e-commerce
revenues are fast-growing for
more expensive categories such as
electronics”. They attribute this to
the fact that Swiss consumers are
growing smarter and spending
more money per order to reduce
shipping costs.
With this in mind, international
price comparison capabilities
and concerns about delivery fees
make it unwise for distance sellers
to mark up goods when selling
to Swiss consumers – or to offer
different pricing levels for onand offline purchases.
Reputation Matters
Trust plays an important role for
Swiss consumers and they prefer
to shop with brands they have
known, and shopped with, for a long
time. As a result, they will favour
local brands that have proved their
reputation over a foreign unknown
or a brand of a similar quality.
For example, Migros’ Leshop.ch
is one of Europe’s largest online
grocery stores, and has posted
uninterrupted growth since it
launched in the 1990s. It closed
the first half of 2015 with sales
of CHF 89.5m, a record high
for the brand and its strongest
growth in five years. The brand
attributes its success to “strong
performance of the multi-channel
strategy, comprising home delivery
and collection centres”, while
demonstrating a clear
understanding of the Swiss consumer
– 39 per cent of the orders it received
in 2015 were placed via mobile
devices (smartphones and tablets).
Other successful local brands include
Swiss electronics sites Digitec and
Interdiscount – and the website for
Nespresso performs well in almost
every available survey. Auction
site Ricardo.ch rivals Amazon
for purchases made and pulls in
significantly more revenue than eBay
does in Switzerland. Founded in 1999,
Ricardo has continually expanded into
new areas, including dedicated online
shops for Swiss companies and free
listings. It has more than two million
subscribers and sells 20,000 products
per day and 10,000 cars each month.
Other notable successes are special
offer website DeinDeal, which grew
from a CHF 30,000 investment to
7
a CHF 30m valuation in 18 months,
and “private shopping club” Eboutic,
which grew its members to
1.4 million – 70 per cent of Germanspeaking Switzerland – in six years.
Foreign brands definitely have the
edge if they offer niche or specialist
products that the Swiss cannot get
at home; if they are positioned as
experts or the best in their field; or if
they operate in sectors where Swiss
players are weak, such as clothing.
German retailer Zalando, for example,
has taken the market by storm since
October 2011. Backed by a hefty
marketing budget, it has also thrown
down the gauntlet to local retailers
by offering free returns. Participants
in the Swiss E-commerce Report
called Zalando a “game changer”,
which could pave the way for greater
success for other foreign companies.
Swiss Consumer
Attitudes
Top 10 information Channels Used
for Online Shopping in Switzerland
Source: NetComm Suisse Observatory, 2014
Online Habits
Product/brand site
Eighty-eight per cent of the Swiss
population is online – and the figure
remains high (82 per cent) even for
those over the age of 65. This bodes
well for the growth of e-commerce,
but some barriers remain.
For example, according to a
study from the Institute of Mass
Communication and Media Research
at the University of Zurich, 80 per
cent of internet users in Switzerland
are very concerned about protecting
their privacy online. Around 40
per cent remain “very or extremely
concerned” about using their credit
cards or bank cards online.
These figures are backed up by
PwC’s Total Retail Survey 2015:
53 per cent of consumers are
“negatively inclined towards loading
their phones with credit for future
payment” and 63 per cent “do not
want to save payment or shipping
data in an app on their mobile”.
The same study also found that while
71 per cent of Swiss consumers prefer
to search for possible purchases
online and 47 per cent choose to
research those products online, only
27 per cent have carried through and
made their purchase online.
Convenience, product variety and
availability and price appear to be
the main drivers for online buying
decisions in Switzerland.
Over 65 per cent of respondents in
the PwC survey said they wanted to
actually see the merchandise before
buying, which prompted them to
buy in-store.
More than half wanted to avoid
delivery charges and preferred
not to wait. Retailers will need to
re-evaluate their approach to Swiss
consumers if they want to grow
their e-commerce returns.
50%
Word of mouth
36%
Newsletters
32%
Comparison sites
29%
Commercial
28%
Specialist web reviews
26%
E-commerce site
24%
Specialist magazines
24%
In-store
20%
Online forum/blog
20%
Top Drivers to Buying Online in Switzerland
%
Saving time
42
Shopping at any time
40
Being able to compare prices
35
The wide choice of products
34
Being able to easily find products I want
34
Payment methods
32
Cost-effectiveness
31
Clearly stated options for returning goods
26
Guarantees of data privacy
24
Authorising payment after receipt of product
20
Choosing date/time of delivery
11
Seeing a warranty seal
8
Top Barriers to Buying Online in Switzerland
%
I prefer to check product quality in person
42
Shipping costs are too high
29
I prefer to pay in cash
22
I have little trust in online payment methods
20
I’m afraid of having problems or not receiving the goods
18
Cancellation procedures are unclear and complicated
13
I can’t find products/services I want
7
I can’t find affordable deals
7
I find online buying processes complicated
7
Source: NetComm Suisse Observatory, 2014
Switzerland: A great opportunity for European online retailers
Sectors
Market Share by Sector (Value, %)
The Swiss e-commerce industry
has followed similar patterns in
its development to that of other
European markets. The most popular
online purchases have been travel
and hotels, books and magazines, but
consumer electronics and clothing
have quickly gained popularity.
2012
2013
2014
Multimedia, Electronics
28.2
28.7
29.6
Clothing
26.9
27.1
27.2
Food
16.6
16.1
15.8
Homewares
8
8.1
8.2
CD/DVD/Books
6.8
6.1
5.2
Other
13.5
13.9
14
Source: The Swiss Online & Mail Order Market 2015, GfK, March 2015
Percentage of Purchases Made Online
Over 12 Months, By Sector
52%
36%
Source: Observatory NetComm Suisse, 2014
Clothing, fashion items
Mobile apps
Transportation
Tech products/electronics
Books
Beauty products/cosmetics
Tickets/reservations
Computer software
Holiday
Food, beverages
CDs, DVDs
Music/multimedia files
32%
29%
28%
26%
24%
24%
20%
20%
19%
17%
ASENDIA TIP:
Reduce your costs and time
Consider simplifying your crossborder deliveries - especially
as there’s a customs barrier to
negotiate. Doing so could reduce
your costs and the time involved.
This can be done by sending bulk
orders, including returns labels in
the original parcel, or outsourcing
your returns management so goods
can be checked inside the country.
For more information, go to
www.asendia.com/goods or
www.asendia.com/returns
Delivery
Returns
Swiss customers are used to
paying at least part of the cost
of post and packaging for the
goods they have purchased –
often between CHF 6 and CHF 8.
If part of their order is not available,
however, they will expect retailers
to offer the second shipment for
free. Many distance sellers do not
charge for delivery once purchases
have gone above a certain threshold,
often over CHF 100. The popularity
of this tactic, employed by some
successful cross-border players,
means that the trend towards free
delivery is likely to continue.
Just as in Germany, returns
rates in Switzerland can be high –
up to 40 per cent for fashion.
There is currently no legal “right
of return”, but it is customary for
distance sellers to allow returns
within at least 14 days as part
of their terms and conditions –
and many offer longer periods.
It is currently more common for
customers to pay for their returns,
although some retailers will offer
prepaid return solutions. Regulations
are also expected to change in this
area before too long.
9
Payment
The University of Zurich study
and the PwC Total Retail survey
both reveal that many Swiss are
concerned about payment security
online. As a result, most online
transactions are paid for by invoice
after receipt of the goods rather
than by using standard credit or
debit cards.
Although payment by invoice
increases the risk for retailers, who
have to bear postage costs upfront,
the Swiss are known to have a good
payment ethic. Many also pay their
invoices at the end of the month,
so retailers tend to offer a payment
period of 30 days to allow for that.
ASENDIA TIP:
Custom clearance
Cash on delivery is not a common
practice in Switzerland, so distance
sellers should use a customs
clearance solution where the retailer
pays customs clearance costs, VAT
and duties.
The popularity of payment by
invoice requires foreign players to
have a Swiss bank account, but
there is another reason why this is
advisable. Although the Swiss will
pay in euros, they have a strong
preference to pay in francs.
If the recipient is left to pay these
costs, they will have to collect their
parcel from the post office so that
payment can be made, rather than
receiving the parcel directly at
home. This is a cumbersome and
expensive procedure that often
results in dissatisfied customers and
no repeat business.
For more information on how
Asendia can help, go to
www.asendia.com/destinations
Cross-border Sales
The volume of cross-border
sales has increased over the past
few years, helped by technological
developments, better returns policies
and higher levels of trust, as well as
currency fluctuations. According to
Netcomm Suisse, 62 per cent of
Swiss online shopping was cross
border in 2014. Unsurprisingly,
54 per cent of that activity was
focused on Germany and 66 per cent
cited more competitive pricing as the
main reason behind the trend.
This is not a new phenomenon:
an Odermatt & Partners survey
published in 2011 found that 47 per
cent of the Swiss population had
purchased something across border
at least once in the preceding
12 months. According to the Swiss
Customs Administration, the import
of consumer goods into Switzerland
increased by three per cent between
2011 and 2012, rising to CHF 78bn. Of
this, VSV suggested that CHF 600m
could be attributed to consumers
shopping online across borders.
Zalando’s success in Switzerland
suggests that the market is becoming
more favourable to outsiders. In fact,
half the major retailers surveyed in
the Swiss Ecommerce Report 2013
expected the foreign share of online
retail in the country to increase over
the few next years.
CHF 1.20 to the euro. Swiss
consumers realised they could
get a lot more for their money in
neighbouring France and Germany,
prompting what was described in
one report as a “shopping frenzy
in German and French towns close
to Swiss borders”.
The increasing popularity of
purchasing consumer electronics
online also highlights an area of
opportunity for distance sellers.
Intense competition inside
Switzerland has eroded some of the
price advantage that distance sellers
have on many consumer electronics
products, but as the PwC study
has found, Swiss customers are
still going online to purchase their
electronics good across borders.
Currency fluctuations may be one
of the least predictable but most
powerful drivers when it comes to
cross-border sales. In January 2015,
the Swiss National Bank scrapped
a policy that had prevented the
Swiss franc from rising beyond
Switzerland: A great opportunity for European online retailers
ASENDIA TIP:
Don’t get put off by customs
This can be accomplished within a
day, as long as you know the rules.
There are special requirements
governing the import of wooden
furniture and jewellery, for example.
And although beauty is an
increasingly popular category, the
import of perfumes is not allowed
unless the name of the seller or
importer is on the box.
For advice, get in touch with
Asendia at
www.asendia.com/contact
Advertising Approach
The Swiss E-commerce Report 2013
highlighted that consumers are more
inclined to shop with the retailers
they know and trust – something
that favours local, Swiss, multichannel retailers. And the PwC Total
Retail 2015 report reveals that, unlike
most other consumers in Europe,
the Swiss are ordering fewer things
online and doing so less frequently
than before. At the same time, the
PwC report indicates that 71 per
cent of consumers will go online
when initially searching for possible
purchases and that 47 per cent
prefer to do their research online.
Investment in search engines,
price comparison platforms,
affiliate marketing, online ads, paid
placements in social media, as well
as newsletter and printed catalogues
is needed to attract consumers to
other online players.
Respondents to the Swiss
E-commerce Report also credited
direct mail and catalogues with
being useful customer acquisition
tools, but a high proportion of
Swiss have stickers requesting no
advertising in their mailbox, which
makes it hard to send unaddressed
mailings. This is for a number of
reasons – many are trying to cut
out what they see as unnecessary
waste paper and they already receive
a high number of free newspapers
and direct mail items compared to
other European markets.
ASENDIA TIP:
More cost effective
It doesn’t cost much more to send
weightier items, so it can be more cost
effective for direct sellers to send
catalogues, rather than flyers.
For more information, go to
www.asendia.com/directmail
Language Learnings
There are four official languages
in Switzerland – German is spoken
by more than two-thirds of the
population, followed by French;
smaller numbers speak Italian and
Romansh. The first three make
Switzerland attractive for retailers
in the neighbouring countries,
which share the same languages.
But just because the majority of
the population speaks German
doesn’t mean retailers should
send all of their correspondence
in that language as a default.
Legislation requires that
information accompanying
certain items, such as medicines
and toys, must be available in all
four languages.
The extent of pride around
language in Switzerland means
that it may even be better to
send invoices in English than
sending an invoice in German
to a French speaker, and vice
versa. As many people in
Switzerland speak English and
those from different linguistic
regions may choose to speak
English to each other, Englishonly websites will also attract
sales. But to achieve any
sense of scale, offering local
languages versions – and
preferably a “.ch” website –
is advisable.
It is not necessary to set up local
customer services in Switzerland
but, as the Swiss have high
expectations in this respect,
retailers again would be advised
to have staff that can respond to
queries in German and French.
Food for Thought
Although it would be tough to sell
chocolates to the Swiss, and there
are some restrictions on what can
be imported, the country is one
of the world’s largest per capita
importers of food – total food
imports into Switzerland were
CHF 461m in 2014.
To find success in this area, it is
best to target niches and offer
high quality products to meet the
exacting standards of the Swiss.
There is growing interest for
ethnic food, regional specialities,
convenience food, seafood and
alcoholic beverages.
The introduction of the Cassis
de Dijon Principle across the EU
has also been largely adopted in
Switzerland, which means many
products from the EU no longer
have to be specially produced,
repackaged or newly labelled
for the Swiss market. This is also
11
boosting imports of products
such as cheese.
The Swiss are very conscious of
both health and the environment.
This is reflected in the increasing
demand for organic foods, natural
foods and environmentally
friendly products and packaging.
The per capita consumption of
organic food was the highest in
Europe in 2013 and Switzerland
ranks as one of the largest
consumers of Fair Trade products
in the world – if not the largest.
M-Commerce & Social Media
ASENDIA TIP:
Dos & Don’ts for the Swiss Market
Through its parent company
Swiss Post, Asendia knows
Switzerland like the back
of its hand. Here are a few
of our dos and don’ts:
Dos
•H
ave French, German and
if possible Italian versions
of your website.
•O
ffer niche/specialised
products.
• Offer prices in Swiss francs.
•O
ffer local payment options
(in particular payment by
invoice).
•H
ave a mobile-friendly
version of your website.
•O
ffer reliable delivery
solutions.
Don’ts
•O
ffer products that are
already easily available
online.
•O
ffer high prices just
because it is Switzerland.
•B
e overly confident:
Switzerland is a small but
very demanding market
with many constraints and
specific trends.
•D
ifferentiate your online
and offline pricing policies:
they should at least be
consistent even if all prices
are not the same.
For more information
on our services, go to
www.asendia.com/services
Mobile phone and smartphone
penetration has reached over 80 per
cent in Switzerland and the market
has been testing the m-commerce
waters for several years.
According to Google’s Our Mobile
Planet report, published in 2012,
96 per cent of smartphone owners
in Switzerland had researched a
product or service on their device
and 29 per cent had made a
purchase on their phone.
A year later, Deloitte found that
33 per cent of Swiss consumers
(61 per cent of smartphone owners)
had used their mobile devices for
purchases in 2013 and 46 per cent
planned to do so in the future.
And it’s not all about smartphones
– tablets are also being used to
purchase goods online (among
those that have them). According
to the NetComm Suisse 2014 survey,
19 per cent of respondents say they
use their tablets to shop online on a
weekly basis.
Among retailers, interest is growing in
m-commerce, though take up remains
somewhat muted.
More than 60 per cent of the retailers
surveyed for Swiss E-commerce
Report 2013 claimed that they had
generated more than five per cent of
their turnover through mobile devices
in 2012.
Ecommerce Europe findings
corroborated their experience:
it suggested that m-commerce
accounted for six per cent of
Switzerland’s e-commerce earnings
for 2013, putting the country on
level pegging with Austria and the
Netherlands, and above France,
Germany and the European average
at the time.
The PwC Total Retail Switzerland
2015 report points out that so-called
“Digital Natives” – those born after
the mid-1980s who were “raised in a
world where connectivity is natural”
– are not taking up online shopping
as much as one would expect: 39
per cent buy online only a couple of
times per year, while 36 per cent do
so monthly. The report suggests that
this is down to the “limited spending
power of this demographic”.
The picture is similarly stagnant for
the “Silver Surfers” – those over 55
who are still catching up with digital
technology: 48 per cent have never
bought anything on a mobile device,
and only one per cent have made
mobile payments.
Although any sizeable link between
social media and purchase is yet
to be established in Europe, PwC’s
research has found that 76 per cent
of Digital Natives regularly use social
media channels when shopping, with
64 per cent interacting with brands
online. And 39 per cent of them said
this interaction made them buy more.
On the Silver Surfer side, 25 per cent
said they research brands on social
media before a purchase – 56 per
cent doing so to find special offers
– and 19 per cent claimed they had
found new brands via social media.
The m-commerce picture for
Switzerland is a mixed bag – on the
one hand, there’s room for customer
engagement as more people live
their lives on their mobile devices.
At the same time, if retailers want to
grow this part of their multi-channel
strategy, there is a need to convince
consumers that the mobile shopping
experience is preferable, convenient
and secure.
But recent figures suggest a more
challenging picture for retailers
hoping to tap into m-commerce.
Switzerland: A great opportunity for European online retailers
Social Media and Online Shopping: Which of the Following Have You Done?
Source: PwC Total Retail Switzerland 2015 study
Discovered brands I did not know or
brands in which I developed a particular interest
Followed some of my favourite brands or retailers
Researched a brand including reading feedback
Viewed videos about the brand/product
Provided positive or negative comments
about my experience with a product or brand
Liked and shared products
Purchased directly via social media
Connected with people like me who like a brand
None of the above
10%
20%
30%
40%
50%
40%
50%
What attracts You to Vsit a Particular Brand’s Social Media Page?
Source: PwC Total Retail Switzerland 2015 study
Attractive deals/promotion/sales
Interested in new product offerings
Friend’s or expert’s recommendation
Promotion via email or text/SMS message
Opportunity to participate in competition
Advertising (e.g. TV, outdoor, newspaper, web)
Because i shop with them
To research products before I buy them
Customer service through social media
Flyer or recommendation in-store
To learn about the brand’s commitment
The opportunity to influence product design
Other
10%
13
20%
30%
Regulations
Switzerland has no legislation
specific to e-commerce – the same
rules apply for online and offline
retail – but distance sellers are
responsible for following all the
regulations that exist.
may be requested at the time of
the export assessment. This is only
possible if the goods are physically
re-exported; no refund will be
made if the goods are returned to a
company located in Switzerland.
Some notable restrictions include:
To find further information go to the
Swiss customs authority website,
www.tares.ch
•E
lectronic items must be approved
in Switzerland and must be marked
with a corresponding seal of
approval.
• Instruction manuals for electronic
devices and leaflets for medication
must be available in the language
of the customer – so for
Switzerland, this means German,
French and Italian.
• Items on the “Dangerous Goods”
list are either forbidden or
quantities are limited. Sending
drugs, some batteries and
explosive substances is prohibited.
•T
here are also legal restrictions
affecting medicines, wine and
spirits, food, precious metal and
protection of species (including
trade of leather, seeds etc.).
VAT
The Federal Customs Administration
(FCA) imposes customs duties
and import taxes on goods being
imported into Switzerland. Customs
duties are generally calculated
according to the gross weight of
the goods, and are often less than
CHF 1 per kilo. Typically, alcohol,
tobacco, food, textiles and jewellery
are subject to higher customs duties
or other special taxes.
The regular VAT rate is eight per cent.
For some products such as food and
drink (excluding alcohol), medication,
books and newspapers, there is a
reduced rate of 2.5 per cent.
If goods previously imported into
Switzerland are returned unaltered
by the recipient, import duties and
taxes may be reimbursed if certain
requirements are met. Refunds
Data Protection Act
Under the Data Protection Act,
personal data may be processed
only for the purpose specified in
its procurement or that is apparent
from the circumstances or that
is prescribed. The acquisition of
personal data, and in particular the
purpose of the processing, must be
made clear to the customer.
Advertising
Distance sellers should be aware that
there are rules around advertising
tobacco and drugs. Comparative
advertising is permitted, but it must
be accurate and not misleading.
Mass advertising via email and
SMS is not permitted, although
promotional emails to previous or
existing customers is allowed when
highlighting similar goods and
services.
Advertising that includes games
or competitions as purchase
incentives may fall under the
Lottery Act (which forbids games or
competitions when it is connected to
a purchase of goods or services).
Domain Names
Website owners are also obliged by
Swiss law to inform their customers
about the use of cookies, what they
are being used for and how they
can disable them if they choose
to. However, in contrast to the
EU, Switzerland takes an opt-out
approach – so retailers only need
make their customers aware that
they can disable them, rather than
ask for their consent.
Switch is the registry for domain
names under the country-specific
top-level domain ‘.ch’. The
registration of a domain name is
carried out on a ‘first come, first
served’ basis and anyone may apply
for one. There are no restrictions
with regard to residency of an
applicant.
Consumer Protection
The VSV (association of Swiss mail
order companies) also has voluntary
codes of conduct that local players
adhere to. Those doing so display
a marker bearing the words “Swiss
Online Garantie” on their websites.
A new consumer ombudsman for
e-commerce was also created in
November 2013.
Unlike its EU neighbours Switzerland
does not yet have a law covering
customers’ right to return goods.
Although recommendations are
already in place and many distance
sellers already offer terms of at least
14 days for returns, proposals have
been made to make this a legal
obligation.
Voluntary Code of Conduct
Although the proposals largely
follow the EU legislation, certain
provisions within it are more strict.
For example, it suggests consumers
may use the goods without losing
their 14-day right while only paying
“appropriate compensation” for
doing so. As a result, the proposals
have been criticised and it is unclear
how far the legislation will go when
it finally comes into effect.
Switzerland: A great opportunity for European online retailers
Asendia: Who We Are
Distributes to
more than
200 destinations
Committed to
sustainability
Global distribution
network
More than
1,100 employees
Asendia is a leading provider of
integrated solutions that help you
become a cross-border commerce
success.
Formed in 2012 as a joint venture
between La Poste and Swiss Post,
we help some of the world’s leading
brands navigate global commerce
with our comprehensive range of
products designed for every aspect
of your business.
Whether you are fulfilling retail orders,
creating direct marketing campaigns,
sending business correspondence,
or producing magazines, we provide
the services you need to succeed in
your market.
We can help you acquire and
manage customers by cleaning data,
processing returns, and offering
customer service. Together with our
partner eShopWorld, we can facilitate
your online transactions by providing
a localised webshop allowing
international payments and displaying
total landed costs.
And, of course, we manage and
deliver orders for you, with inventory
management, warehousing, tracking,
and customs clearance just part of
what we offer.
For advice on any of the above, visit www.asendia.com
or contact your local representative now at www.asendia.com/contact
15
References
and Sources
This whitepaper is compiled from
a variety of sources that are in the
public domain including research
papers, websites, industry and
financial publications and other
industry and economic data. These
are listed here. It is designed to
provide an overview of markets
in the regions and countries
specified and should not be used
as a definitive reference point. This
whitepaper is meant for sole use by
the recipient and is not for general
circulation. We have endeavoured
to use reliable and credible sources
for the data included, however we
cannot guarantee its accuracy. It
should not be relied upon as such.
Due to variations in definitions, dates
and time periods data sources should
not be used for comparison purposes.
This whitepaper and the opinions
expressed herein are current at the
time of production however may
change in the future.
Verband des
Schweizerischen
Versandhandels (VSV)
www.vsv-versandhandel.ch
www.tares.ch
Economiesuisse
www.economiesuisse.ch
Ecommerce Europe
www.ecommerce-europe.eu
Euromonitor International
www.euromonitor.com
NetComm Suisse
netcommsuisse.ch
PwC Switzerland
totalretail.pwc.ch
Switzerland: A great opportunity for European online retailers
Asendia is an international
partnership between
La Poste and Swiss Post.
From 15 different countries
on three continents, our
specialists deliver goods,
publications, letters and
marketing letters to over
200 destinations.
Contact us at
www.asendia.com/contact
Asendia is an international partnership between La Poste and Swiss Post.