New record: Danish e-commerce increases to 146 billion

Danish flag and internet equipment.Photo: Mykhailo Polenok/
Photo: Mykhailo Polenok/
By Reidar Molthe

3 March 2020 12:38

New record: Danish e-commerce increases to 146 billion

Danes spent DKK 146 billion on the Internet during 2019. That makes it another record year for Danish e-commerce. This concludes the Association for Danish Internet Commerce in an analysis for 2019.

The 146 billion DKK is a 13 percent revenue growth from 2018.

The strong growth and accompanying record emphasize that the Danes have embraced e-commerce and see the digital opportunities as a natural and integral part of everyday life, explains Niels Ralund, CEO of the Association of Danish Internet Commerce, to Retail News.

"Whether you are young in Hirtshals or older in Østerbro, there is a widespread desire for it to be easy, convenient and cheap to shop. The requirements are being met online, where consumers also have access to a wider range. That is why online stores are so well-received by the general population, and this is a great growth year after year," says Niels Ralund.


The online shops seem to have a good grasp on all sections of the population, because there is not much difference in how much consumers in the big cities and consumers in the smaller cities and rural areas shop. This is positive, according to the association, because it shows that the net democratizes consumption.

"Thanks to the online stores, you do not have to reside in Østerbro to gain access to the specialized stores, and if you have, for example, challenges in moving around the stores, the network still provides access to a wide range of goods from near and far," says Niels Ralund.

He also says running a successful rural business has become easier because you don't have to be close to customers.

"That, I think, is a positive consequence of the digital opportunities, which unfortunately are often overstated by the discussion of store death."

Smartphones are the driver

Smartphones and subscriptions are driving consumption. According to the director, the great growth in e-commerce can be explained by the fact that consumers can buy almost everything online - and they do.

"Whether you need a car, an Ikea cabinet or groceries, you can buy it online and have it delivered to your door. This is a big help for consumers. However,  we observe a lot of heterogeneity among consumers. There are quite a few things that most consumers will not shop online – at the same time, 28% of consumers wish to buy everything online," says Niels Ralund.

Growth is also linked to the fact that almost all consumers own a smartphone that provides access to the network's capabilities with a single click.

"The store is moving quickly from the computer to the phone, which will soon be the consumer's favorite buying tool. This is good news for those mobile-optimized online stores because smartphone consumers are shopping more often and spending more money per day order," says Niels Ralund.

21 percent of sales go to subscription purchases. It allows customers to buy everything from meal boxes to cosmetics, socks and gin on subscription and have it delivered to the door at fixed times.

"The subscription companies really meet customers' demands that e-commerce should make everyday life easier, which is why I think we have only seen the top of the subscription iceberg," says Niels Ralund.

Zalando is still the favorite

Clothes, shoes and accessories are still the most purchased product category. It also throws off the list of the largest online stores, which German Zalando once again tops quite superbly.

"You just have to take off the hat for Zalando, who is doing so well that 4 out of 10 Danes think the German giant is Danish," says Niels Ralund, pointing out that the 20 largest online stores are catching every fourth trade.

"Allthough the trend is that the large online stores are catching an increasing share of the cake, the Danish e-commerce market is still in contrast to many other European markets, which are totally dominated by big players such as Amazon. I hope and believe that we can maintain that, but as consumers' perception of Zalando shows, so it takes hard work, because competition is fierce and global," concludes Niels Ralund.

Speaking of Corona virus

People across China are now encouraged to stay at home wherever possible to deal with the epidemic caused by the novel corona virus. As a result, the life of the entire nation seems to have shifted completely to the internet these days.

The internet and related applications have seen an additional boom in recent weeks. Home office, online lessons, entertainment, fitness programs - many creative people are currently using the Internet more intensively than usual to be able to work from home, make their lives more efficient - and finally, to overcome their boredom, according to Nikkei Asian Review.  

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