In the second of Croud’s series of articles on export. Alexandra Huber gives you some thoughts on the most exciting markets into which to expand…
The UK is undoubtedly one of the best markets in which to build your digital business, there’s no one better at buying online than the British. But we’re still on a small island and there’s a whole world out there… According to Google and OC&C Strategy Consultants, the cross-border online trade for the six biggest e-commerce markets is expected to grow over the next seven years from 25billion$ to 130 billion$ in 2020.
Peter Fitzgerald, UK country sales director at Google, said: “The rules on international business have changed. The internet has removed boundaries, changing markets forever. This means that everyone from traditional businesses and established internet players to bedroom start-ups can take advantage of online tools and digital market to easily target new territories and engage with new customers. We hope the Google Export Business Map will help UK businesses capitalize on the £45bn opportunity, inspiring them to think beyond their local markets and grow quickly and strategically.”
The Google Export Business Map feature ten of the markets for British exporters: On the list are the following countries: Germany, USA, France, Austria, Spain, Italy, Netherlands, Switzerland, Sweden and Canada. It’s worth considering two markets in particular on that list; Germany is with a population of 81.3 million compared to 64.1 million over here not only bigger in terms of population, and has high potential market for export-opportunities with 64% of shoppers[/text_output][image type=”none” float=”none” info=”none” info_place=”top” info_trigger=”hover” src=”4818″][text_output]Germany’s challenge is obviously language but also their payment behaviours differ from the UK. That said in terms of location, being so close to the UK, it’s easy to get to and we’ve seen significant successes in this market for a number of Croud’s clients. Currently it is already the number one export market for the UK. (Source Startupoverseas) [/text_output][image type=”none” float=”none” info=”none” info_place=”top” info_trigger=”hover” src=”4819″][text_output]Similarly the US, with the same percentage of online shoppers as Germany and a target population of 316.7 million, which is almost half the population of Europe. While expanding to the US is easy in terms of language, the sheer size and diversity of the country can be overwhelming and logistics can be a challenge. It’s possibly worth looking at a specific area to target with a high propensity to engage with your goods and services.
How do I decide where to start?
If you are considering expanding your business into new markets there is loads lots of support to be gained from www.ukti.gov.uk who have teams of dedicated trade advisors to help you take those first steps. They have also just launched https://www.gov.uk/e-exportingspecifically aimed at people trying to take their digital business to new markets, Croud have recently signed up as a preferred supplier. And do consider the different barriers to entry before attempting to break a market, there are businesses to help you on different legs of the journey, many of whom Croud and the UKTI partner with.
- Customer behaviour
- Currency and Payments
- Customer service
- Channels & Device
As for Croud while we’re constantly looking at helping businesses break new markets, and are operating search for scores of businesses in 22 markets and 17 languages. We have recently made moves into the European starting with Germany. And why wouldn’t we/you, by 2016 Germany’s B2C eCommerce sales will grow by 25% and will be one of the top 5 markets globally.
Similarly we’re going to be visiting the US in November to assess the opportunity for ourselves and our clients. Through our in house and network of search specialists on the ground we are in possess of the local market expertise and insight to help you expand your business to Germany, the US and beyond.
Please get in touch with firstname.lastname@example.org if you’d like to discover more.[/text_output][text_output]Sources:
http://www.occstrategy.com/news-and-media/2014/01/global-retail-empire http://www.logicspot.com/ecommerce/expanding-european-markets-ecommerce/ https://www.gov.uk/e-exporting http://think.storage.googleapis.com/intl/ALL_uk/docs/UK_Export_Business_Maps_research-study.pdf http://www.internetretailer.com/europe500/[/text_output][/vc_column][vc_column width=”1/4″][visibility type=”hidden-desktop”][gap size=”20px”][/visibility][vc_widget_sidebar sidebar_id=”ups-sidebar-2″][/vc_column][/vc_row]