E-commerce challenges in 2022

In 2020, sales from e-commerce have crossed the €1 billion mark in Luxembourg, with an annual growth of 20% according to estimates by Statista presented on Tuesday evening by eCom, the Luxembourg Digital Consortium during a conference organized by the Chamber of Commerce.

It’s no secret that health restrictions caused by the Covid-19 pandemic have benefited digital businesses, as confirmed by Jack Lerange of Luxcaddy.lu and Nicholas Gouzorian of Auchan Retail Luxembourg.

Covid has enabled communication between digital and physical sales channels.

Nicolas Guyuzurian, Director of E-Commerce, Auchan Retail Luxembourg

“Covid has enabled the interconnection of the digital and physical sales channels,” explains Auchan Retail Luxembourg’s director of e-commerce, who until then had observed a disconnect between the two customer segments. With Covid, he launched his company shortly in home delivery shopping and then in 2021, selling non-food goods via a dedicated platform: shop.auchan.lu. “It’s clear that Covid was an acceleration in the ability to convert customers who had accounts and didn’t order,” the manager admits.

However, many customers remained unhappy with the overcrowded online platforms, unavailable delivery slots and products becoming scarce in the face of the surge in demand. This is the case of Luxcaddy.lu, an active online shopping pioneer since 2007. Its co-founder, Jack Lorange, admitted that despite doubling its turnover in 2020, it was not the time for his SMEs.

Today, it faces many challenges such as trying to win loyal pre-Covid clients, converting “death accounts” opened by potential clients during the pandemic who – due to lack of slots – could not only pass the system, improve quality and innovation, but also relaunch the marketing that It was suspended for two years.

Physical commerce remains at the fore

Then another disruptive element emerges at the start of 2022: inflation, which pushes consumers to buy less and put off certain purchases, EY’s Brice Lecoste noted. Two years into the crisis, five consumer trends have emerged, focusing on sustainability, value for money, experience, health and community.

Having inventory and letting the customer check out directly with their purchases has real added value today.

Brice Lecoustey, & nbsp partner, & nbsp EY Consulting

The pandemic has also awakened new habits, such as ‘click and collect’ which, however, require setting up a proper customer experience, confirms the consulting firm’s partner. And then, the consumer is above all human: all interlocutors agree that material trade will continue. “Having an inventory and letting the customer walk away with their purchase today has real added value,” Brice Lecoste comments.

E-commerce accounted for 8% of its annual sales in Auchan Luxembourg in 2021, a dynamic that not only needs growth, but faces some challenges: creating much stronger capital for customer trust, improving logistics infrastructures, but also stimulating competition. “I need more merchants digitizing their offer to create customer feedback,” says Nicholas Guyuzurian.

At the moment, only the Cora, Colruyt and, more recently, Match brands are active in the car segment dedicated to buying food. Market leader Cactus has abandoned the delivery service [email protected]

While Delhaize Luxembourg has recently ruled out online presence, preferring physical outlets.

“We’re not heading towards a tidal wave of e-commerce, but rather towards consolidation,” admits Brice Licoste. It is clear that Luxembourg lags far behind with the weight of online commerce at 1% compared to five times more in the European Union. Of the 870 million euros spent online in 2019 in Luxembourg, 20% was spent with merchants based abroad. Nicolas Guyuzurian concludes that “if there is a lot of buying on foreign sites, it is because there may be an inappropriate response from Luxembourg traders”.

Leave a Comment