In 2016, based on the responses of 36 industry leaders, the Swiss E-commerce report indicated that online retail in Switzerland is growing at a rapid pace. It recorded that there has been a consistent growth of 10% every year. Also, in 2017 there was a total of 7% share of online sales from total retail sales in Switzerland.
There are almost 5.1 million e-commerce users in Switzerland, and the number is only expected to grow by 2021. A survey also indicated that 83% of Swiss consumers tend to use digital applications for their purchases.
Forward to 2020, an E-commerce report in Switzerland stated:
"Strong internet shopping trend continues: Swiss consumers spent 10 billion Swiss francs online in 2019. E-commerce volume is up by 8%. Almost all study participants anticipated further growth in 2020. COVID-19 has boosted e-commerce further, and this year's results could well be three times as high as in 2019."
These digits will definitely tell you one thing: if you aim to set up an offshore company in Switzerland, doing it for E-commerce might be the best thing.
Reasons for Growth of Online Business in Switzerland
- Social Media Advertisements
Advertising on social media is extremely smart; there has been a massive growth in mobile commerce formats and increasing sales through social media. Platforms are embedding buttons that redirect the consumer to the retail website, and it is quick and efficient.
Merchants are also using social media presence to advertise their catalogs over social media effectively thoroughly.
- There were 7.10 million social media users in Switzerland in January 2021.
- The number of social media users in Switzerland increased by 840 thousand (+13%) between 2020 and 2021.
- The number of social media users in Switzerland was equivalent to 81.8% of the total population in January 2021.
The numbers point to how much influence social media has on online business. Social media is being used by most of the population. It is only natural that that online marketing system will be immensely effective.
- The amalgamation of Offline and Online channels
A business person needs to make a presence online in order to survive in this digital age. The old-fashioned way of having physical stores is coming to an end slowly. People are attracted to the massive discounts and variety of products available online compared to physical stores.
Another upcoming trend in E-commerce is direct sales from the manufacturer. According to a study, 60% of Swiss manufacturers involve themselves in opening an online store directly without the involvement of mediators and retail stores.
A direct dialogue with the client from the manufacturer also develops a sort of trust in the consumer's minds. They are attracted to buying directly from the manufacturer. It is also speculated that over the next 3-4 years growth of online purchases will increase, meaning that more and more physical stores will take their business online.
- Advanced Country
Switzerland is an advanced country, and it has a booming tourism industry along with developed infrastructure and business standards. It is evident that internet penetration in a country like Switzerland is massive.
According to a report in 2021 about digital trends, it was discovered that:
- There were 8.42 million internet users in Switzerland in January 2021.
- The number of internet users in Switzerland increased by 146 thousand (+1.8%) between 2020 and 2021.
- Internet penetration in Switzerland stood at 97.0% in January 2021.
These figures are overwhelming; having internet penetration at that level automatically converts to the fact that people are definitely going to use online platforms to cater to their day-to-day needs.
Modern Business Standards
Switzerland is one of the most developed countries on the planet. The business standards over there take shape fast according to the current trends. It is highly recommended for an investor to get on the train of the top business trends.
This might be the correct time to actually set up a company in Switzerland due to the fast and modern ways of doing business there. Along with that, there are multiple benefits of company formation with a bank account in Switzerland.
How can we help?
After deciphering the above trends and statistics, it becomes crystal clear that Switzerland is a top spot contender for E-commerce business globally. It will keep climbing up in the ranks. So if you are planning to open a business offshore, you should definitely give a chance to the E-commerce industry.
We here at Business Setup Worldwide can help you in achieving your goal of offshore business incorporation. Business consultants can help you start an offshore company in Switzerland with ease.
Contact us today to get started with your incorporation journey.