RetailX: Swiss e-commerce report 2023

The report analyses the Swiss economy from the perspective of e-commerce and multi-channel retail. Switzerland is undeniably synonymous with wealth, abundance and high standards. Like iconic tennis star Roger Federer, who announced his official retirement last year, Switzerland has become so accustomed to being at the top of the sport that stepping down from the championship podium is almost considered unacceptable.

In fact, Switzerland is doing so well that last year, a RetailX report predicted huge economic knock-on effects from the Russia-Ukraine conflict. Switzerland also appears to be well-positioned to ride out any volatility caused by instability in Eastern Europe.

The usual facade of efficiency and progress is somewhat undermined in 2023. As the Swiss Federal Council reported on June 15, “The Business Cycle Expert Group continues to expect the Swiss economy to grow at a significantly below-average rate of 1.1% in 2023 and 1.5% in 2024.”

The Organisation for Economic Co-operation and Development (OECD) also struck a pessimistic note, predicting that the Swiss economy will underperform this year and next, mainly due to inflation and geopolitical issues.

Events in Israel have exacerbated the situation since October 2023. Although Switzerland has sided with Ukraine and imposed sanctions on Russia, it has returned to its traditional neutrality on the conflict between Israel and Hamas, stating that it is "committed to a just and lasting peace based on a negotiated two-State solution between Israel and Palestine."

Switzerland's famous "direct democracy" system was put to use again with the federal election on October 22. The results showed that the right-wing Swiss People's Party (SVP) won a considerable victory, while the two Green parties lost. The SVP also won the most votes, with 29.4% of the total. The Centre Party, the Liberals and the Social Democrats all won more seats than the SVP.

Switzerland remains an attractive country for outside observers. In the Economist Intelligence Unit's 2023 ranking of the world's most liveable cities, two Swiss cities were ranked in the top ten, with Zurich in sixth place and Geneva just one place behind in seventh.

As one of the European countries known for valuing its long traditions, Switzerland continues to balance its preference for physical retail with its huge but relatively new interest in online e-commerce.

Internet penetration in Switzerland will be just below 90% in 2020, reaching 92% by 2023 and is expected to continue rising until exceeding 96% in 2028.

“Almost all of the Swiss population has access to the Internet. Most Swiss between the ages of 16 and 74 have made an online purchase at least once in the past three months,” the Federal Office for Statistics reported last year. The total number of e-commerce shoppers in Switzerland is expected to reach 6.4 million by 2027.

The latest data from Statista shows that Switzerland’s e-commerce market is expected to reach €12.84 billion in 2023, with an average spend of €19,800 per user. If the estimated annual growth rate of 12.6% is accurate, this would yield a market size of €20.39 billion by 2027.

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