2015 is behind us and 2016 is already in full swing, which means
eCommerce is front and center for U.S. and worldwide retailers.
Global consumers' demands for easy, creative and more personalized
ways to complete online transactions is feeding an ever-growing
market with no slowdown in sight. The key to continuing to
successfully sell globally is understanding overall eCommerce
trends and realizing that one size does not fit all, all markets
are not created equal and country and region-specific differences
need to be considered in order to keep expanding your global
footprint.
A Quick Look at Years Past
If the last two years are a good indicator of things to come we
have reason to be optimistic. The
2015 Global Retail E-Commerce Index™ underscored the reality
that the world's largest economies will continue to dominate the
global eCommerce market due to their size. But, the report also
shows that there are smaller markets, like Mexico, whose upward
trends cannot be ignored. An increase in sales by over 20% to
almost $840 billion is attributed to online retailers and
traditional brick and mortar retailers seeking out new and emerging
markets.
However, according to Remarkety, there seems to be a switch at
the top as the graphic below displays. The graphic took a look at
the top 10 eCommerce Markets in 2015 where China took the number
one spot surpassing the U.S. in eCommerce spending. The U.K. and
Japan still hold on to spots three and four.
Infographic Credit:
Remarkety
Global eCommerce Predictions for 2016
2016 should show solid growth for eCommerce, but it is also
important to note that not all regions will be following the same
trends. A blog by Peyton Wiederspan on GetElastic outlined
five major global eCommerce trends we should be paying close
attention to.
U.S. eCommerce: eCommerce on mobile devices will account for
22% of all eCommerce sales, influencing one trillion online retail
transactions. Mobile devices are used more and more for conducting
initial research, checking availability and seeing if there is a
location near them to complete the purchase.
Mexico's rapid growth rate is quite impressive as the
statistics for 2015 (30%) and 2014 (32%) show. But as impressive as
those numbers may be, eCommerce transactions only account for about
1.5% of all retail in Mexico. A 2013 Comscore study identified two
major drivers of online shopping: free shipping and a variety of
payment options. In the study, 53% of shoppers interviewed said
that they only bought more items in order to qualify for free
shipping and the major reason for shopping cart abandonment was the
lack of their desired payment option.
Canada has a higher eCommerce growth rate (17%) than the U.S.
and the U.K. (both around 14%) and its eCommerce market will hover
around 70% market penetration and is expected to stay close to that
number for the next few years. A general trend Canada shares with
its North American neighbor is the usage of mobile devices for
purchases and research and the expectation of a more flexible
omnichannel repertoire that retailers need to become more sensitive
to in order to retain their customer base and expand upon it.
The eCommerce market and internet penetration in Europe has
enjoyed exceptional growth since the beginning of 2000 with the
number of internet users up by 275% and now making up a quarter of
all internet users, globally. In the U.K., online sales now account
for 20% of all sales and France and Germany are not far behind.
Speaking of European powerhouses, the British and French list their
number one requirement for making an online purchase as product
comparison. The Spanish and Germans on the other hand value fast
checkout more than anything else. Overall Europeans would like the
option to buy online and then return to a physical store, or see a
product in an actual store and then buy online which helps explain
why some companies are going brick-and-mortar especially in the
apparel industry.
In Asia a certain segmentation is necessary to understand
different markets, which can vary widely. Focusing on China, India
and Japan, Peyton's article showed some distinct differences per
country when looking at the "big three".
China: Although the Chinese consumer is not making many
purchases throughout the year more that 35% will make at least one
purchase a year online. That may not sound like a lot but there is
strength in numbers as this translates to over 400 million online
shoppers; twice as many as in the U.S.
India: Despite the ongoing challenge of internet penetration
among Indian households, currently 9% of the population is
purchasing online and not surprisingly 40% of all online
transactions are done on smart phones. That rate is very similar to
China's at 50%.
Japan: Japanese consumers still rely heavily on the PC as their
preferred method of conducting their online purchases and although
more than 69% of the population will own a smart phone in 2016 only
about 23% of online shoppers say they will use it for online
shopping.
There are, however, some bumps in the road for several countries
when it comes to eCommerce growth, such as South Korea, who saw its
eCommerce sales growth slow down compared to other countries. South
Korea still remains a leader in the online engagement and enjoys a
solid infrastructure in terms of its financial and logistical state
of affairs. More troubling are the developments in Latin America
where Brazil and Argentina fell steeply in the index due to ongoing
challenges with infrastructure in Brazil and heavy governmental
regulations in Argentina. This could prove to be hindering factors
to solid and steady eCommerce growth.
Conclusion
A report by ATKearney correctly
stated there are some common themes that can be observed in
eCommerce: the rise of eCommerce IPOs. There is a need for an
omnichannel strategy, adjusting to the "continuously connected
consumer", and not surprisingly, internationalization. With online
payment options becoming more secure, international fulfillment
improving and companies such as Borderfree helping with customs and
currency conversions, even brick-and-mortar retailers realize that
eCommerce is the fastest way to expand their business. But global
retailers must remember the mantra "the key to success when going
global is localizing the online presence while also maintaining a
unified global brand."
Further Resources on Translation Service for eCommerce
Companies
GPI has provided language translation
services to eCommerce and e-retailer clients worldwide. In
addition, GPI has developed a user-friendly Translation Services Portal
that makes it extremely easy for non-technical users in the
eCommerce arena to manage website, catalog and other eCommerce
content translations projects.
To learn more, feel free to check out the below resources:
eCommerce
Localization Services
Branding
Usability and Localization
Localization
Strategy for Global E-Retailers
Choosing a Translation
Partner Instead of a Vendor
What Should You
Expect From Your Localization Partner?
You may contact GPI at info@globalizationpartners.com
or at 866-272-5874 with your specific questions about translations.
You may also request a complimentary Translation
Services Quote for your project as well.