Even though the e-commerce market has grown fast in Europe over the years, there are still big differences in online spending within the European countries. Expert Market looked at these differences using data from Statistisa’s Digital Market Outlook: http://crmsystems.expertmarket.co.uk/online-shopping-around-the-world
Being from two of the Nordic countries, Norway and Sweden, we find it particularly interesting that all the Nordic countries are in the top 6 of average revenue per user in Europe 2015, and among the top 9 in the world. This means that the Nordics are one of the most profitable markets for e-commerce in the world. We believe that the reason for this is mainly two things; internet penetration and purchasing power. The internet penetration is very high in the Nordics, especially in Norway with 96, 81 and Iceland with 98,2 internet users per 100 people (The World Bank). This indicates a mature market for online purchases and a tech-savvy population. The Gini Coefficient, relative income poverty and the top 10% vs. bottom 10% disposable income is very low in the Nordics, also compared to other OECD countries (OECD).
So what does this mean for digital marketers who are interested in this market? First of all, this shows that the Nordics are a very profitable market, and therefore interesting for online retailers. This goes for both domestic and foreign stores; 40 % of the Nordic population has purchased goods online from abroad at any time during the past three months and in Norway this purchasing rate it as high as 50 %. The reason for the high rate in Norway could be the lack of good online stores, compared to for example Sweden, where there are a lot of good online stores to choose from. The United Kingdom, Germany, the United Stated and China seem to be the most popular foreign countries to buy from (PostNord).
We recommend that you consider the price range of the products you advertise in the Nordics. The income equality is very high. Therefore there are not as many “super rich” as you can find in other countries where the income equality is lower. Middle range products are likely to do well in these countries because most people can afford them. Another issue to consider is language. The Nordics are among the top 5 countries with the best English skills in the world, according to EF EPI 2015. A report on European online language present found that 66 % of Swedish customers would accept to use an English version of a website if it was not available in their own language, compared to 22 % in France and 53 % on EU average (Choice Translations). But they still prefer their own language, so it is a question of how much resources you are willing to use. It could also be wise to keep in mind that even though the Nordic countries are similar in many ways, there are also differences that could impact your digital marketing, like the difference in when the salaries are paid and the different holidays in the different countries.
Good luck!
Amanda Holst and Ingvild Larsen
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