Giggles

Tech

Where is e-commerce at

The economic players in e-commerce

 Current economic weight

 2.5% of GDP (according to AWT), 3% of trade turnover

retail (according to Comeos)

 “But it will change” and “we are late compared to our

neighbors “(according to all in choir)

 According to AWT: 23% of companies that sell online in

Wallonia are “pure” sellers, 77% of mixed

 Strong internationalization

 Economic motivations

 According to AWT: increase turnover (81%), decrease

distribution costs (41%), conquering new markets

(38%), conquer other client profiles (32%)

How to estimate the effects on employment?

Employment in e-commerce activities

 Potential for job creation

 According to AWT (2011): 22% of Walloon companies that make

e-commerce say they intend to recruit, 15% have done so

 According to the French employers’ federation for distance selling

(FEVAD, 2010):

 E-commerce represents 34,000 direct jobs in France and

26,000 indirect jobs (logistics, transportation)

 Direct employment up 9% over 2009-2010 (12% among

“pure”), indirect jobs up 16%

 2011 forecast: growth of 5 to 10% in staff

 Job profile: young people (84% between 25 and 40, 11% under

25 years), better paid than the average for the sector

trade (+ 13%)

17

How to estimate the effects on employment?

Employment in e-commerce activities

 The question of indirect jobs

 E-commerce blurs the boundaries between logistics,

wholesale and retail trade

 The logistics sector has development strategies

different from the trade sector

 B2C e-commerce is a growing market for logistics,

but it still weighs little compared to B2B

 Indirect effects are always difficult to measure… and the

results are often controversial

 On the union level: need to pool experiences

experienced in the logistics sector and in the trade of

detail

How to estimate the effects on employment?

The impact on employment in commerce

“Classic”

 The key question: substitution and / or complementarity

 Complementarity hypothesis: potentially positive effect on

employment

 Substitution hypothesis: potentially negative effect

 Big differences according to market segments

 Example: music market – book market – market

ready-to-wear – food market

19

How to estimate the effects on employment?

The impact on employment in trade

“Classic”

 The use of e-commerce as a scarecrow or

as a threat to justify restructuring

 Quote from D. Michel, patron of Comeos, in La Libre,

1/06/2012: “Online commerce will amplify handicaps

costs of trade in Belgium, be it costs

wages, flexibility of workers and taxes. If the products

are more expensive in Belgium mainly because of these

handicaps, the risk is great to see Belgians buying on

foreign sites and thus endanger employment in Belgium.

Still in its infancy with the emergence of the Internet in the 1990s, e-commerce is now deeply rooted in the habits of French households. With 85% of French people who have access to the internet today, e-commerce has obviously taken off and conquered most individuals and businesses. The principle of electronic commerce, commonly known as e-commerce, is based on the use of electronic media for carrying out a commercial transaction …