E-commerce in France is bearing the brunt of the current crisis context (inflation, rising energy costs, ecopolitical instability). On the other hand, the turnover achieved online for household capital goods remains well above the levels recorded pre-pandemic of Covid-19, according to a study published Thursday, November 17 by the Federation of e-commerce and distance selling (Fevad) in partnership with GfK. “At the end of September 2022, the Household Equipment market posted revenue of 26.7 billion euros over 12 months, all channels, down slightly (-0.4% compared to the same period 2020-2021 ). New fact: the online channel posted a greater drop (-14.7% over 12 months) for the first time since its development. Nevertheless, the Internet turnover of the Household Equipment markets reached 6.5 billion euros, excluding marketplaces”explains Fevad, which corresponds to an increase of 31% compared to the amounts recorded at the end of September 2019.
Although e-commerce was down in the first half of the year — it represents €1 out of every four spent on household equipment — we are expecting an upturn at the end of the year, with the major event of Black Friday and the end-of-year celebrations, especially since, as noted by Fevad and GfK, the “French people have significantly changed their habits by switching most of their end-of-year purchases to Black Friday, since 2019”. 70% of online shoppers actually intend to take part in this commercial event on the Internet, which particularly affects people under 50 (80% intend to take part) and city dwellers (75% intend to take part ), according to a Toluna Harris Interactive survey carried out in partnership with Fevad (sample of 1033 people representative of Internet users aged 15 and over).
Disrupted consumption habits
These consumer habits have indeed changed, with the French favoring online purchases for high-end computer products, smartphones and vacuum cleaners. Of course, e-commerce remains associated with “good deals” and it is considered to facilitate access to these promotions, continues the study. The French Days and Black Friday remain the major dates for accessing these offers online.
Another significant point is access to reconditioned products. “The Internet enjoys a very strong position on the second-hand market”, says Christophe Loyer, GfK Consumer Intelligence consultant. The proportion ranges from more than 40% for second-hand television purchases to more than 60% for “friendly kitchen” household appliances or a second-hand smartphone. “The online preference is even stronger for the purchase of refurbished equipment”specifies Christophe Loyer. “In the lead, smartphones, laptops and tablets for which consumers make up to 2/3 of their purchases via specialist, generalist or private sales type sites.” And, for Christmas, one in two Internet users say they are ready to offer one or more second-hand gifts, according to the Toluna Harris Interactive survey. 30% of respondents even say they prefer to receive a second-hand product rather than a new one as a Christmas present.
A global brake
In another study, global this time, also unveiled on November 17, GfK is counting on “a deceleration in the Worldwide Household Equipment market with an estimated drop of between -5 and -6% compared to 2021”.
For GfK, the worlds of televisions and computers both showed sales declines of 6% in volume at the end of August 2022 compared to last year. It will therefore be necessary to expect promotions, especially for the most accessible products. “Demand for high-end computer products has remained stable, and these have therefore been largely excluded from discount offers.” And Black Friday should be no exception. “In the period of end-of-year promotions, products where demand has been particularly weak in recent months should present the largest discounts. This will be especially true for the consumer offer, given the stable demand for premium products”predicts Norbert Herzog, GfK Home Equipment expert.
Survey methodology: Toluna Harris Interactive, in partnership with Fevad, conducted an online survey from October 28 to November 2, 2022 with a sample of 1033 people representative of French people aged 15 and over. The quota method was applied to the following variables: gender, age, socio-professional category, region and size of urban area of the interviewee.