1. The Belgian e-commerce market and the BeCommerce Sector Patrick Marck BDMV-ABMD/BeCommerce patrick@bdma.be patrick@bdma.be

2. BDMA Mission Direct marketing is a marketing strategy aimed to create and maintain a direct relationship with the consumer for mutual benefit. The Belgian Direct Marketing Association (BDMA) provides a platform for direct marketing users and providers to promote, protect and teach the ethical use of best practices in direct marketing to enhance consumer trust. –“Protect”: consumers and authorities –“Promote”: of professional standards and professional expertise –“Teach”: to enhance expertise and professional practice –“Ethical use”: best warrant for a long term relation with the consumer Acquisition Retention + Trust MORE EFFECTIVE DM

3. The BDMA stands for 450 member companies –250 advertisers –200 service providers 3.500 member contacts 6 Sectors All members are bound by Code of Conduct and the decisions taken by the Surveillance Committee (collaboration with JEP) BDMV-ABMD is member of: Interruption marketing Preference permission marketing

4. Main issues Building consumer trust in e-commerce & multichannel distance selling Certified label Confidence in online payments Pro-active & re-active public relations Sector knowledge Powered by the BDMA Largest platform of interactive & direct marketing professionals, service providers and users Defending the sector ’ s interests based on Code of Conduct and Surveillance Committee (complaint handling) Promoting interactive & direct marketing and distance selling Stimulating networking between service providers and users Organizing education towards professionals and schools

5. To increase consumer trust in on & offline distance selling Some facts why a label makes sense “62% attaches greater importance to certification of e- commerce sites” –People aging 25-34 are more open to purchase online and have the most faith in e-commerce –People aging 55-64 have less faith in e-commerce, but a find it very important if a site is certified (73%) Source: BIM Insites, June 2006 Internet figures speak for themselves –High internet penetration (+56%) –Only 20% of internauts buy online Task Force Label; President: Jean-Noël Chamart (Mediadis.com)...? Certified label: why?

6. Difference between Belgium and France France: no need for a certified label because consumer trust in e-commerce exists Belgium FR: less internauts, but buying more online Belgium NL: more internauts, but buying less online Certified label: why?

7. How ? –By creating a Code of Conduct within the BDMA Code (applying by a checklist) –By setting up a certification and a monitoring process (firm procedure) –By using the Surveillance Committee as the complaint handling organisation –By communicating the benefits for consumers & distance sellers Certified label: how?

8. Consumer friendly label –Thumb: OK –Green light: go for it –Guaranteed: it’s safe (based on market research) –BDMA blue: seriousness Developed by Caribou Certified label: what?

9. Certified label: the system 1/5 Comp. selected by draw each year CONTROL AUDIT Also with mystery shopping procedure Member accepts code & reglementat ion Member completes checklist Initial certification carried out by auditor Auditor reports to CS INITIAL AUDIT Auditor’s report agreed by CS

10. Trust in online payments Objectives –Creating an information exchange platform –Listen to Becommerce members’ concerns Realisations Launch of Bancontact/MisterCash Preparation of checklist for BeCommerce website Prepare introduction Verified by Visa & MasterCard SecureCode with banks Discussion on security matters: recommendation towards members Task Force Online Payments; President: Pierre Willaert (Ogone)

11. Pro&Reactive PR Objectives –Increase trust in e-commerce –Increase visibility via Press releases Annual press conference: May 2006 BeCommerce Awards ceremony: February 2006 –Château Sainte-Anne, Bruxelles –99 sites for jury –150 participants on event –Next edition: 13/02/2007 –Consumer Awards by media partners (adds/banners for online voting) BeCommerce consumer website Task Force PR; President: Peter Burin (eBay)

12. BeCommerce website

13. BeCommerce Figures Task Force Figures&Market Research President: Rik Decorte (Quelle)

14. Source: Ogone BeCommerce Figures

15. Main evolutions : Total Sales 05 / 04 06/1Q05 Internet sales by pure Internet players: +108 % +60 % Internet sales by multichannel: +26 % +35 % Traditional sales by multichannel: -13 % -7 % Rapid Growth of Internet Sales 2005 : Difficult Year for Mail Order, transition to Internet Source: BeCommerce / Insites Survey BeCommerce Figures

16. Main evolutions : payment methods (in % of sales) 2005 1Q06 Pure Pl Multi-Ch Pure Pl Multi-Ch Credit Card73 262 3 At Order (debet cards) 19 1 33 1 Cash on delivery 2 10 1 12 Cash after delivery 5 57 4 58 Company Card 1 30 0 26 Pure Players tend to use credit card as payment method Traditional players use Cash after delivery, and private financing cards Source: BeCommerce / Insites Survey BeCommerce Figures

17. Belgian Consumers BIM InSites €1.2 billion Suppliers BeCommerce €340 million Payments Ogone E-commerce expenditures Belgian & International companies E-commerce turnover Belgian companies Tourism & ticketing ?? € Source: BeCommerce / Insites Survey BeCommerce Figures

18. Customers say they bought € 1.200.000.000 on the Internet in 2005 Belgian e-commerce & multichannel companies say they received € 340.000.000 in 2005 Where did the go to ? Source: BeCommerce / Insites Survey BeCommerce Figures

19. Consumer global spending on the Internet: € 1.200.000.000 Tourism and ticketing € 450.000.000 38% Outside Belgium € 410.000.000 34% Turnover by Belgian companies € 340.000.000 28% Belgian turnover by Belgian companies € 260.000.000 multichannel € 60.000.000 pure Internet players € 200.000.000 International turnover by Belgian companies € 80.000.000 Source: BeCommerce / Insites Survey

20. 10,1 28,1 14,2 18,1 6,5 8,7 1,1 2,2 0,55 1,12 Offline Online Source: EMOTA Estimated sales in some countries in 2005 in billion euro European context

21. Join BDMA/BeCommerce now! ● Certified label ● Market figures ● Defending your interests ● Legal advice ● Networking ● Education Thank you for your attention ! patrick@bdma.be