Strategies for Expanding into Emerging Markets with E-commerce

Global e-commerce opportunity

Global internet retailing sales are set to increase by a 12% CAGR from 2016 to 2021, compared with just 2% for store-based channels. With internet use growing rapidly across much of the world, retailers and manufacturers have an unprecedented opportunity for international expansion through digital channels.

Emerging markets as a target for growth

Driven by young populations, increasing rates of device ownership and growing comfort with technology, emerging markets will increasingly be a target for both domestic companies looking to get ahead of e-commerce growth, as well as international companies seeking to grow their footprints.

Understanding unfamiliar markets and strategies

Companies launching online sales in a market for the first time will need to consider the existing strategic landscape, along with factors such as the present state of e-commerce development and preferred devices for internet retailing.

Varied payment preferences and barriers

With cash the dominant method of payment in most key emerging markets, retailers and manufacturers seeking to sell online will need to develop an effective payment strategy to accept the full range of payment methods which consumers in that market expect.

Logistics environment presents challenges and opportunities

Emerging markets often bring a host of challenges associated with delivery and returns not seen in the same way in markets such as Japan and the UK. Difficulties may include poor infrastructure and significant traffic. Internet retailers must think creatively about a logistics strategy that builds trust in shopping online in a cost-effective way.