Online consumer spending in Switzerland increased by 3.5 percent last year, while brick-and-mortar retail saw a slight decline of 0.2 percent. As in many other countries, the share of online sales within total retail continues to rise.
According to Carpathia, an ecommerce management consultancy, Swiss consumers spent a record 15.9 billion euros (14.9 billion Swiss francs) online in the past year. The real volume growth was 2.4 percent, with inflation at 1.1 percent.
12 percent online revenue share
The online channel now accounts for 12 percent of total retail sales. There is a significant difference between food (a 3 percent share) and non-food (a 19 percent share). Ecommerce in Switzerland has the greatest impact in consumer electronics, where shoppers spend more than half of their budget online. Toys (35 percent) and fashion & sports (30 percent) follow.
Marketplaces in Switzerland
Major marketplaces are the driving force behind ecommerce growth, with local player Digitec Galaxus leading the way: the company recorded a total revenue increase of 18 percent last year, surpassing the mark of 3 billion euros. It currenly is the market leader in the country, followed by Zalando and Amazon.
Temu holds just under 5 percent of the online market
Chinese platform Temu grew even more rapidly than Digitec Galaxus last year: it doubled its revenue from around 370 million to 745 million euros (350 million to 700 million Swiss francs), according to Carpathia’s estimates – capturing 4.7 percent of the market. Temu’s momentum is expected to slow: “The novelty effect is fading, marketing expenditures are decreasing, and growth is stabilizing at a high level.”
Impact of import tariffs
The impact of import tariffs on the sales of Chinese suppliers in Switzerland remains unclear, Carpathia writes: “If the United States maintains the tariff strategy for Chinese products presented in early April, surplus goods flows could increasingly be redirected to Europe and Switzerland. The question is to what extent Switzerland will use trade policy instruments to intervene in a regulatory manner.”
