SELLING TO THE WORLD THE DO’S AND DON’TS TO HELP NEW RETAILERS SURVIVE AND SUCCEED
In Partnership with:
SELLING TO THE WORLD The internet has not only revolutionised all our lives, but for small, independent retail businesses, it offers the opportunity to sell to customers, literally, around the world. Peter Fitzgerald, Country Sales Director for Google sets out some of the key building blocks for retailers to make this happen. The internet has rewritten the rules of international business, making it quicker, simpler and more economical than ever to test new markets. By 2020 the eCommerce export market for the UK’s retail, travel, content and leisure sectors is set to be worth £45bn*. Businesses ranging from bedroom startups to traditional companies to established internet players can capitalise on this burgeoning eCommerce opportunity by tackling the common challenges, using the right online tools and applying smart digital marketing techniques. ADOPT DIGITAL-FIRST MODEL To begin, adapt your business to flourish in an international context. Even if you use a multi-channel retail strategy for your operations in the UK, for example, adopt a digital-first model for new markets. With a light eCommerce presence instead of a more intensive physical one, eCommerce players can internationalise much more quickly. Internally, consider setting up an agile team dedicated to international exports. If it can operate quickly and autonomously as a separate entity, more appropriate decisions can be made for new markets so projects can evolve faster and more fluidly. TAILOR YOUR OFFER TO LOCAL CONSUMERS From here, you’ll need to research your target markets. Analyse available data to prioritise the countries where your products or
2
services will appeal most. Several online tools are available for exploring potential markets. For example, the Google Global Market Finder uses worldwide internet search data to show country keyword searches, estimates for bids and competition for each keyword by market and language. Once you’ve identified markets, drill down to discover your target customers’ expectations and ways to exceed them. Make sure you understand how consumers use the internet in their path to purchase. Research data from free export tools will allow you to better understand different target markets. When it comes to customers abroad, don’t rely on hunches. Instead, employ data analytics tools and analyst research to localise your offer according to market suitability and performance. This will enable you to not only alter to your site, product, marketing and pricing appropriately, but also to keep your finger on the pulse of market changes. Localising your website for different languages and currencies was once seen as a hurdle, but a range of tools now makes this far easier. For example, the UK’s largest independent online beauty retailer Beautybay.com used Google’s free translator tool to translate its website into 80 languages for overseas consumers. USE MARKETPLACES AND MOVE FAST The web empowers brands to sell direct, but many businesses are reaping benefits of using existing marketplaces such as Amazon, eBay or Alibaba. Services such as these provide access to localised marketing, supply chain and payment
options that can significantly improve the uptake of your products. And because they hold information about consumer demand and supply, marketplaces can furnish valuable advice on gaps in the market. As you seek to expand internationally, marketplaces can provide a cost-effective first step into a market, providing the opportunity to test and learn with limited investment. If or when you later develop a website, your marketplace presence will have established valuable exposure among an extensive customer base. In this fluid and lucrative landscape, it’s essential that whatever you do, you act fast. First-mover advantage matters to business success, so don’t be afraid to test your offering in a number of different markets quickly. In eCommerce the cost of entry is marginal compared to traditional bricks-and-mortar businesses.
“IN eCOMMERCE THE COST OF ENTRY IS MARGINAL COMPARED TO TRADITIONAL BRICKS-AND-MORTAR BUSINESSES”
Finally, use different digital marketing channels to target your audience. Don’t assume that if you build it people will come. Digital marketing built across search, display and video – optimised across desktop and mobile – is vital for scaling, testing and expanding globally.
*OC&C Research “International eCommerce The Future is Now”, 2014
Peter Fitzgerald, Country Sales Director for Google
3
purelondon.com