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From bricks to clicks

From bricks to clicks

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Generating global growth through eCommerce expansion

SUMMARY

eCommerce should be put at the heart of companies' expansion strategies given today's market trends, this report notes.

Emerging markets are the main players boosting global eCommerce growth since 2009. It is expected that eCommerce activities increase by 14% between 2012 and 2016, driven mainly by emerging markets.

This report offers an overview of how businesses can use eCommerce activities to acess new markets through low cost and low risk online expansion strategies.

The report names several factors behind global eCommerce growth. More customers are turning to online shopping while mobile purchases are on the rise. Demand of international products from customers in emerging markets is significantly growing. Finally, reaching international markets has become cheaper and faster.

Businesses need to start their eCommerce strategy by defining their online selling role, which could be to create brand awareness in markets where the company doesn't have a physical presence, to gain customer insights to serve the physical expansion strategy, or to boost the overall shopping experience.

The report points out six typical methods to access target markets, that differ depending on the risk exposure and the market strategy. Using a third party to ship to new markets and creating an informational website are the first two entry methods mentioned. Another option is to reach a partnership to enter through a wholesale channel. Businesses might lose control over the brand if they opt for this method as well as if they choose a well-known eCommerce player as their entry point. Entering through a local URL can be a good option for retailers interested in having more control over their brand and the customer service experience. An omnichannel experience is the best route for companies focused on high-priority markets.

The report concludes with a description of several operational considerations for retailers based on their entry method. These include logistics factors, payment processes, customer service and customer site experience, legal aspects and marketing and merchandising activities.

OUTLINE

Executive Summary

International eCommerce key trends and outlook

Why expansion through eCommerce?

Defining the role How to enter?

Weighing the options

Operational considerations for retailers

Level of Impact of Entry Method on Operational Areas

Summary

DETAILS

Overview

Researchfinder Rating
4 out of 5 stars
Title
From bricks to clicks
Sub-Title
Generating global growth through eCommerce expansion
Region
Global
Published
Aug. 4, 2014
Publisher
Deloitte
Author(s)
Thomas F. Quinn, Jean-Emmanuel Biondi, Anu Penmetcha
Price
FREE
Language
ENGLISH

Content

Number of Pages
8
Number of Tables
4
Number of Exhibits
0
Topics
e-commerce
Tags
Deloitte, ecommerce, ecommerce logistics, ecommerce market growth, ecommerce platforms, global, mobile commerce, omni channel, online consumer needs, online payment, online shopping behavior
Companies mentioned
Gap
Author(s)
Thomas F. Quinn, Jean-Emmanuel Biondi, Anu Penmetcha
Methodology
Not available
EVALUATION

This eight-page report offers an overview of the growing importance of eCommerce activities for companies to boost sales and access new markets, in particular emerging markets.

Positives:

  • Good starting point to get a general idea of global market trends, different eCommerce entry options and operational issues to bear in mind, however further research is necessary to understand more detailed aspects of eCommerce expansion.
  • Great case study about US fashion brand Gap

Negatives:

  • A few sections of the study result a bit repetitive and not too in depth which could be explained by the briefness of the document

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