12 markets for international expansionWhere will your business grow in 2017?

Brazil

Russia

India

China

South Korea

Canada

USA

The Netherlands

Sweden

Japan

Germany

Poland

Business is global. Whether you’re a national retailer or growing multinational, it’s never been easier to take your products into new markets. Thanks to the connectedness brought about by mobile technology and a strong consumer trend toward e-commerce, the door for UK businesses to expand into new territories is wide open, and many are choosing to seize the initiative and step through it.

...and why shouldn’t they?

In Sweden, over 30% of all online purchases are from overseas countries like the UK. China’s B2C e-commerce is set to exceed $1 trillion USD by 2018, and over 70% of Japan’s population shops online. The markets are there, and they’re growing fast. In interviews with Retail Week for its 2017 survey, UK CEOs recently cited the Global Customer and Reverse Internationalisation as key opportunities and challenges for 2017.

While the technology and infrastructure to accommodate growth might be ready, the strategies we use to take our products to new markets must be specifically designed for the different cultures and consumer expectations of individual countries.

That’s why we put together this guide on 12 countries for international expansion.

Inside you’ll find analysis of 12 different countries with invaluable insights from our team of local in-market experts (LIMEs). For this guide, we chose 12 countries which may already be on your radar, or perhaps should be due to their growing cross-border consumer demand. Did you know that Brazil is the third biggest internet user in the world? Or that ‘cash on delivery’ is a popular payment option in Poland? If you’re looking to crack the Japanese market, forget Twitter and Facebook; you need to get active on Line, Japan’s largest social media and messaging platform.

Read on to learn more about the challenges and opportunities of breaking into new markets across the world, and what your business can do to master them.

Greig Holbrook Founder, Oban International

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E-commerce growth set to double by 2019Can your business take advantage?

With over 209 million citizens Brazil is the most populated country in Latin America, and it’s growing fast. Annual online shopping turnover in Brazil is increasing year on year at an astounding rate, from £4.4 billion in 2011 to a projected £10.4 billion in 2016. This rate of growth is set to double by 2019, providing some excellent opportunities for UK businesses to start shipping their goods down to the South Atlantic. One of the key questions they’ll need to ask, however, is how Brazil interacts with the online world as a nation.

Brazil’s overall internet penetration currently stands at 56.8%. Compared to the UK’s 92% penetration, this may seem low but that figure represents 117 million Brazilian consumers. All things considered, Brazil is now the third biggest internet user in the world. By 2019, it is forecast that Brazil’s internet penetration will be at around 60.2% and climbing. This is good news for businesses looking to explore the marketplace.

A TNS Infratest survey commissioned by Google in early 2016 asked 550 respondents aged 18 and older how they preferred to access the internet. Of those respondents, 59% said they would rather use a smartphone or tablet, with only 12% preferring to use a desktop PC or laptop. This means businesses aspiring to enter the market will need to ensure that websites are mobile-friendly, and that all marketing collateral is fully responsive.

E-commerce grows despite consumers’ online security concernsThe risk of fraud and lack of security in online shopping is a big concern for most Brazilian consumers. It’s therefore crucially important to consider online security measures when marketing any products or online services, allaying any fears consumers may have. Despite this very genuine concern, e-commerce sales still account for 3% of all retail sales, and this figure is expected to rise by 0.2% year on year until 2019.

It’s clear that many Brazilians are still apprehensive about shopping online, more so than here in the UK. Brands should consider a strategy that actively seeks to establish trust, perhaps even getting an accredited security standard such as Blindado, which includes a logo showing when the site was most recently tested, and displaying these on site.

Inside Brazil

The risk of fraud and lack of security in online shopping is a big concern for most Brazilian consumers, the security measures applied by the e-commerce companies is of great importance to ensure online buying potential.

Gabriella, Oban Local In-Market Expert (LIME), Brazil

Ability to pay in instalments is almost ubiquitousIn Brazil, anything can be bought with credit cards and paid off in instalments, from clothes and luxury toiletries to furniture and white goods. These purchases are often interest free and instalments for something like a £100 pair of jeans can be spread out over a period of months. While new businesses will need to think carefully about how they position their price points, this does potentially offer an effective niche to be capitalised on.

Just over 60% of all household appliances in Brazil are bought online, making it the dominant e-commerce category in 2016. Clothes, consumer electronics and luxury beauty products follow closely behind. This makes Brazil’s market fertile ground for businesses operating in these sectors, particularly with e-commerce set to double in the next 3 years.

The range of products consumers expect to see in Brazil is also very different to our expectations in the UK. For example, UK shoppers expect a huge variety of options from Amazon, but in Brazil, Amazon is used for games, books and apps only. This is a prime example of an existing brand that has had to market itself in a different way to make things work in Brazil.

Brands that have adapted to the Brazilian marketplaceAccording to UK Trade & Investment (UKTI), 400 of the world’s 500 largest companies operate in Brazil, including many UK businesses such as Rolls Royce and Experian, but what about online retail?

Amazon is currently the 6th most popular brand on Twitter in Brazil, with 2.47 million followers, despite only offering games, books and apps. This is largely due to some large budget video campaigns which play right into the hands of consumers. Brazil has the second largest number of YouTube users in the world, with 69.5 million registered users as of May 2016. With language barriers an obvious challenge, this provides a mainstream route into market for British and US brands. Nissan, Burger King, Visa and Whirlpool all penetrated the Brazilian market with large video campaigns. More recently, Nissan has introduced a campaign on TV and online featuring Huck, a high-profile Brazilian talk-show host.

Hellmann’s, Colgate and Coca-Cola are examples of non-native brands that have also experienced huge success in Brazil with a strong focus on television ads (still accounting for two thirds of Brazil’s overall ad spend).

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• Video is huge: Brazil has 69.5 million YouTube users, second only to the USA. Use Google’s display network to reach audiences.

• Think mobile first: Only 12% of Brazilians prefer to shop on a desktop or laptop.

• Take security seriously: Consumers need to be reassured about shopping online.

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like Brazil.

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Inside Brazil

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B2C commerce to increase by 13% in 2017A market worth exploring?

Projections for the e-commerce market in BriC (Brazil, russia, india and China) are extremely optimistic for 2017 and beyond. All four countries are expected to experience a small surge in e-commerce activity until 2021, with russia expected to see a 13% increase within the next year alone. By 2021, it is estimated that russia could see as much as £19.5 billion in online B2C sales.

Internet penetration in Russia is currently at is expected to rise steadily to 66.3% by mid-2017 according to eMarketer. Compared to the UK’s 92% this may seem poor, but it’s important to remember that Russia’s population is more than twice the size of that of the UK at 143.5 million.

How Russians access the internet is perhaps surprising. In a survey carried out in 2015, respondents were asked how they regularly shopped online. Only 8% said they exclusively used a smartphone or tablet. At the other end of the spectrum, 90% of respondents said they used computers and laptops almost exclusively to buy online.

Where a mobile first approach is essential for some markets, the focus for Russia is still firmly on the desktop and ensuring that websites are designed specifically to meet the demands of the Russian user.

VK is the dominant social media platform in Russia. Hailed by locals as the ‘Russian Facebook’, it allows users to stream and share media files and is extremely popular with young users. Advertising isn’t prominent on VK, but users still choose to frequently connect with brands they like. Paid campaigns are easy to set up with targeting options offering audience segmentation by categories and keywords as well as demographics. Although Facebook has less market share, it should not be ruled out as it is can be appropriate for some audiences and is less expensive than VK.

Inside Russia

I think nowadays the most preferable method in Russia is using credit cards. But there are also three major e-payment systems: Yandex.Money, WebMoney, and QIWI. The latter one allows you to pay with cash by accessing a very large network of telling machines (they are everywhere).

Anton, Oban Local In-Market Expert (LIME), Russia

UK Brands are in fashion and are perceived wellYandex is the dominant search engine with 60% of the Russian market, while Google currently has a 30% share. The latest Yandex data shows that Next is among popular UK clothing brands being sought out with 409,000 average monthly searches by Russian consumers. ASOS also features prominently as does shoe brand Clarks. It’s worth noting that these brands have mastered online selling in order to overcome Russia’s comparatively poor physical infrastructure. Traditional advertising is also still popular in Russia; they have the 5th largest TV advertising market in the world (something which UK retailer, Next took advantage of to great effect).

non-native brands that have adapted to the russian market There’s no question among experts that Russia is a controversial market at the moment, and that any brands looking to move into the market should be cautious. However, brands like New Look and Adidas have seen a great deal of success as Russian interest in fashion continues to grow. Next, River Island and ASOS together ship 15,000 parcels to Russia per month, proving that appetite for foreign goods is stronger than ever.

However, UK businesses should be aware of recent changes to customs regulations for B2C imports – the duty threshold has shifted from €1,000 (£780) across all parcels per month to €150 (£117) per parcel, which means UK businesses should think carefully about how they organise their product and delivery logistics.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• imports are on the rise: Local competition in Russia is struggling to keep up.

• Think desktop shopping: Only 8 % of consumers use a smartphone or tablet exclusively.

• russian import duty thresholds: Customs regulations and duty will affect product choices, profitability and delivery logistics.

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Inside Russia

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like Russia.

B2C e-commerce to more than double by 2021A market to consider for 2017?

With a population of 1.25 billion, india is one of the most densely populated countries on the planet. in 2015, internet penetration was at 26% but has been climbing at a dizzying rate year on year. The same trend can be seen throughout the Asia Pacific region, as digital sales are expected to surpass the one billion mark for the first time in 2018. There’s little doubt that india is fertile ground for aspiring UK businesses looking to expand, but what can non-native businesses expect?

Around 240 million internet users in India are expected to buy goods and services online by 2019, the majority of them male. As many as 49% of consumers said they primarily made digital purchases with their smartphone in 2016. Any businesses looking to expand their operations to India should take the rather unique makeup of the consumer market into account.

As recently as June 2016 India’s government eased foreign direct investment restrictions in several sectors in order to attract more business from overseas (corporation tax is currently at 42% for international businesses). It’s something which Apple Inc and many other brands have been waiting for, and could be the perfect time to make inroads into the market.

google and facebook rule a divided marketGoogle is the number one search engine in India. In fact, Google gets a higher share of search traffic in India than anywhere else in the world at 96.4%. Most Indians spend 2.3 hours per day on social media, primarily on Facebook. The social giant has 142 million registered users in India, with 69 million accessing the platform every day from mobile devices.

It’s also worth noting that India is still a very divided economy, and in some parts of the country it’s common to only earn the equivalent of $1 for a day’s work. It’s therefore advisable for businesses not to think of the Indian market as a single entity, but rather a combination of very different markets.

Diwali is a key celebration, with consumers spending approx $4 billion USD online on home refurbishment, new clothes and gifts. Leading e-commerce sites target the holiday with their annual sales which are the biggest of their kind.Fatema, Oban Local In-Market Expert (LIME), India

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Inside India

mobile wallet preferred method of digital paymentOver 71% of consumers in India say they prefer to shop online with a digital wallet. This means that businesses will have to consider accepting payments from popular digital wallets such as Airtel Money, Citi MasterPass and Citrus Pay. Digital wallets are so popular in India, that the transaction limit on them has recently been lifted to 20,000 rupees (or around £230). The sudden government withdrawal of 500 and 1,000 rupee notes from circulation (November 2016) has encouraged a further increase in online transactions. Many experts think that India will become a cashless country within the next decade – excellent news for e-commerce retailers.

Tough barrier to entry for someSeveral UK retailers have expressed keen interest in India lately, not least because of its rapid increase in spending and commerce. Companies like Tesco and Marks & Spencer have demonstrated a desire to partner up with businesses in India in order to gain some brand awareness, but they’re struggling to adapt to a different market. In the UK we’re used to the idea of ‘weekly food shops’, whereas Indians tend to visit fresh grocery stalls every day and cook fresh food. The challenge for retailers is to understand the demand for products and services, and how they can use cultural trends and behaviours to make their offer attractive.

UK fashion retailers are finding ways to make e-commerce workHowever, British fashion brands are well perceived in India. Next has seen a great deal of success in Delhi in particular, where lots of consumers shop both in-store and online. In the UK, shopping online at Next means opening an account with a Next store card, but in India the brand has adapted to the market by dropping this requirement.

Amazon retails exclusively online and has seen great success in India by capitalising on events like Diwali. October 2016 saw Amazon’s first ‘Great Indian Festival’ – a period of 4 days where discounts and sales were offered in the build up to Diwali.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• Digital wallets are essential: Accept payments from the likes of Airtel Money and Citrus Pay.

• Think mobile: Almost half of all purchases are made from mobile devices.

• Diwali is huge: A great time to enter the market with deals and sales.

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Inside India

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like India.

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B2C online retail surpasses the USAA burgeoning opportunity for UK businesses

When it comes to online retail, no economy in the world beats China for consumer demand. By 2019, the Chinese e-commerce market is set to exceed $1 trillion, making it bigger than the UK, US, germany and france combined. it’s estimated that over half of the population of China (currently at 1.3 billion) have made a purchase online. This clearly provides a huge opportunity for UK retailers, with around 55% of them already shipping to parts of China.

By 2018, 56.4% of the population will have regular access to internet, with over 90% of users preferring to use a smartphone to shop online. UK businesses will therefore have to ensure a smooth mobile experience on their websites or wherever their products appear.

One of the key things to note about the Chinese market is that it attracts more exporters than anywhere else in the world. However, many businesses fail to embrace Chinese trends and preferences, hampering their success in the region.

To be visible in China UK businesses will need to understand Baidu, the local search engine of choice which has over 80% market share by advertising revenues.

Accepting yuan and payments from e-wallets may give an advantageWhile many UK brands already export goods to China, only 26% of them display prices in Yuan or accept payments in the local currency. This may seem surprising, but it’s extremely common for consumers in China to have to work out the cost of goods for themselves and pay in different currencies.

Thankfully, e-wallets like Alipay and Tenpay (as well as direct bank transfers) make this relatively easy. UK business looking to make a serious impression on the market, should ensure they are meeting payment expectations of Chinese consumers.

Inside China

Here, people live in an internet world which integrates business into life, brand into customer, stranger into friend. If you want to understand the Chinese consumer you need to know how to navigate our online landscape.

Lei, Oban Local In-Market Expert (LIME), China

marketplaces and joint ventures can help break barrier With China having rather heavy regulation on foreign companies and websites it can often be difficult for brands to break through online. Marketplaces like Alibaba’s Tmall (very similar to eBay) can prove to be a useful vehicle for entering the market place for many fashion and luxury retailers. Working with a local Chinese business is another route – Thomas Cook has partnered with Chinese investment company, Fosun, to create ‘Thomas Cook China’ – now offering 90 packages to over 40 destinations. Amazon is also taking on China with the launch of Amazon.co.jp – a Chinese language version of its shopping site offering specialised shipping rates to mainland homes and businesses. Consumers are attracted by authentic quality products.

WeChat leads in the social media spaceIn China, WeChat is the dominant force in social media. Over 12 million official business accounts exist and it has over 800 million active monthly users. What started off as a simple messenger tool like WhatsApp has become a general every day tool for paying bills and purchasing products.

Brands that have adapted well to doing business in ChinaBusiness trends in China can vary from region to region. KFC, L’Oréal, VW and Adidas have all taken extra steps to employee local Chinese citizens wherever possible to learn about their target market and how business is carried out on a local level. It’s important to stand out as an ‘authentic’ brand in China. The Chinese are, often happy to pay a premium for goods and services that have an established heritage and strong customer base. Any brand story along these lines can be used to a business’ advantage when selling through established names like Tmall. Burberry are often marketed by Tmall as their ‘biggest international luxury client’ – an excellent vote of confidence for the UK brand.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• make it easy: optimising your website to suit local search engines and local payment methods will make it easy for Chinese consumers to purchase your products online.

• Experiment with marketplaces: Consider sites such as Tmall as a less regulated route to market.

• Think mobile first: Over 90% of consumers prefer to shop with a smartphone.

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like China.

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Inside China

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e-commerce growth set to double by 2021What are the opportunities for UK businesses?

With a population of only 50 million, it’s perhaps surprising that South Korea has the fourth-largest economy in Asia. Home to the likes of Samsung and Hyundai, it’s seen by many as one of the most innovative countries in the world. South Korea was the very first country to fully transition to high speed internet in 2005; while the average global internet speed dwindles at 6.3mbps, South Koreans enjoy an impressive 27mbps. The perfect environment for e-commerce.

Mobile is certainly the way things are done in South Korea, with 81.6% of all internet access coming from smartphones. By 2021, this figure is estimated to increase to 88%. It’s also worth noting that watching video on the move seems to be a growing trend, with 31% of South Koreans saying they watch video on their smartphones every day.

E-commerce is set to rise steadily in South Korea, doubling by 2021 at £25.5bn. Some of the most popular online shopping sites currently include 11st, Gmarket, Auction and Interpark, but what should online UK retailers know before they consider expanding in South Korea?

Unlike its neighbour, South Korea has opened its doors to the world. It currently has free trade agreements with 75% of the world economy and is the only G20 nation that trades freely with the United States, China and the European Union.

Credit cards and bank transfers common, with e-wallets on the riseCredit card use is commonplace in South Korea, with each household owning 4 cards on average. Visa and Mastercard are prevalent, but South Korean card brands such as KB Kookmin and Shinhan are also popular. Money transfers and electronic fund transfers are also extremely common among consumers.

While credit cards are well established, the authentication process which most banks use (using Active X in browsers) has recently been abolished. This means payment methods like PayPal and Alipay have started to gain serious traction. Users can attach their credit cards to these e-wallet accounts and carry on using them without the need for third party authentication.

Inside South Korea

In Korea, mobile shoppers have exceeded desktop shoppers for several years. Some big e-commerce companies also run delivery companies to make the delivery faster. It usually takes a day, but some items can even be delivered within a day.Heewon, Oban Local In-Market Expert (LIME), South Korea

Social media and online search popularMuch of South Korea’s success overseas is due to social media, with users of Kakaotalk, Facebook and Kakaostory expected to increase by 700,000 annually for the next few years. Naver is the dominant search engine with a 77% share of all searches in 2015. Daum lags behind it with just over 19%, and Google only attracts 2% of searches. For brands looking to advertise online in South Korea, these are the search giants to deal with.

Email marketing is also alive and well, with 12% of recipients having opened an email and made a purchase in 2015. It’s also worth noting that 29% of South Koreans like to track their order, which signals that delivery speed and punctuality are important if you’re looking to ship to the country.

How non-native brands are succeeding in South KoreaAccording to the UK Government, over 150 British companies currently do business in South Korea, with well-known brands including Asos, Pandora and Burberry experiencing great success.

Luxury brands such as Gucci, Chanel and Louis Vuitton have used product placements in Korean TV dramas to appeal to young consumers, with Celine dresses and Jimmy Choo shoes seeing spikes in sales after being worn by an actress in a popular soap-opera.

Over half of the Global Fortune 500 firms are established in the country, with luxury goods and status symbols from far and wide becoming must haves in Asia’s increasingly fashion-centric markets.

While there is an established market for UK and other non-native brands, it seems that integrating into South Korean culture is also an important consideration. Starbucks successfully changed the lettering of a store into the Korean alphabet Hangul when they moved into an old area of central Seoul, and redecorated the store in traditional Korean style.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• Be strong on mobile: Over 88% of the country will use mobile to access the web by 2021.

• Delivery is important: Over a quarter of South Koreans track their deliveries – get it right.

• Pop culture is strong: Potential point of entry for fashion and luxury brands.

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Inside South Korea

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like South Korea.

Inside Canada

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60% purchase online domestically and cross-borderLand of opportunity for UK brands and etailers?

With a population of over 35 million, Canada is one of the world’s wealthiest countries. E-commerce in Canada has almost doubled since 2013, and retail sales from e-commerce are expected to hit £22.4 billion by 2021. There is a definite retail channel shift as demonstrated by the fact that 39% of online shoppers spend half or more of their total budget online rather than in-store. in 2015, 95% of Canadians aged 18 to 34 made a purchase online, with 84% of all Canadians making an online purchase at least once a year.

Canadians are much more keen than their US neighbours to buy online cross-border with 60% saying that they purchase ‘domestically and cross-border’ compared to just 20% in the US and 33% in the UK. This is reflected in the amount of trust they have in foreign websites which is much greater that Americans. When asked what attracts them to buying online from non-Canadian e-commerce sites responses were split between those purchasing from the US and Europe where the main reason was to buy products not available locally and the Asia Pacific when low prices were key.

How do individuals access the web? As of 2016, the average Canadian will spend 61 minutes a day on their desktops and 83 minutes on their mobile phone. When it comes to shopping online, most Canadians prefer to use desktop devices as opposed to smartphones and tables mirroring the picture in the US,, but that is changing quickly.

Social media usage moderate but increasingCanada doesn’t break any social media records, but it is an area worth watching for marketers. In an average day, a Canadian will likely spend around 106 minutes of their day using social networks (compared to the global average of over 180 minutes). Twitter and Facebook dominate the scene, and WhatsApp is the messenger of choice.

Where countries such as Thailand see 51% of online shoppers having purchased directly via a social media channel only 6% of Canadians have done so, suggesting that this is a channel which has some way to go in establishing itself as a viable route to market.

Despite the extensive geography and low population, Canadians enjoy many of the e-commerce benefits of Americans. However, e-commerce innovations come slowly to Canada, so we must be patient for change. When large American cities get same day online delivery, Canadians must wait several years until it comes to Canada. Similarly, when new payment options become available to Americans, Canadians must wait for retailers to support it. Despite these challenges, Canadians buy a great deal online.Quinn, Oban Local In-Market Expert (LIME), Canada

Online shopping regarded as safe as credit card payments lead The banking sector is well regarded in Canada and people generally feel safe using their credit cards online to make purchases. While 59% of people say they prefer to use a credit card online, digital wallets like PayPal are also increasingly popular (particularly among younger shoppers), with 20% preferring to use the virtual payment platform when shopping online.

However, Canada’s size makes the delivery process slightly different to what we’re used to at home. 80% of Canada’s 36m population live in urban or suburban areas near the southern border with the United States. The remaining 20% live in hard to reach areas, resulting in a trend toward store delivery. In fact, an average of 75% of consumers regularly retrieve their purchases by collecting from the store.

Britain has an automatic advantage in Canadian marketsRelations between Canada and the UK have always been good, and UK brands are generally perceived well. It’s also worth noting that for Canadians, the UK is one of the most popular tourist destinations – so there’s certainly an appetite for ‘Britishness’ there. In fact, some Canadian cities (like Victoria for example) have been modelled on quintessential British streetscapes – some even use a typical British double decker bus for guided tours. When the British Royal Family visit Canada they usually draw a lot of crowds and media coverage.

‘Classic’ British brands such as Burberry and Hunter have become fashion staples in Canada, owing much to their British roots. The same can be said of Cadbury’s whose products are highly visible in Canadian supermarkets. These brands have positioned themselves as ‘British’ and play on authenticity, quality and heritage to earn their place in the market.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• Logistics & deliveries: Canada’s population is highly urbanised with in-store retrieval favoured for deliveries, consider collection options.

• Be British and proud: Canada has a fondness for Britain which UK brands should use.

• Desktop dominates: Consider a website first approach whilst not neglecting mobile.

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Inside Canada

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like Canada.

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Excellent e-commerce opportunity for UK brandsHow can your business take advantage?

The e-commerce market in the US has been growing steadily for the past decade, with B2C retail sales online topping $396 billion in 2016. By the year 2020, experts predict this figure will almost double to $684 million. in the US in particular, holiday season often sees an enormous boost in spending, with $2.5 billion being spent online in november and December alone in 2015.

The number of internet users has grown from 121.87 million in 2000 to 286.94 million in 2016. In 2015, Ofcom asked 1,009 users aged 18 and over how they preferred to access the internet at home. 53% said they preferred to use smartphones & tablets, while 56% predominantly used PC or laptop. 1% said they used other medium such as smart TVs.

Due to the sheer size of the US, logistics and delivery times are a key concern for many businesses and consumers. In 2016, only 6% of consumers opted for next day delivery. More than 42% of customers opted for an economy 5-7 day delivery service (now very uncommon in the UK).

Digital wallets on the rise, but credit/debit cards still dominateA study carried out in 2016 asked over 1,000 respondents from different age brackets how they preferred to pay for goods and services online. 12% said that PayPal was their method of choice, while 25% preferred to use a debit card. Credit cards are still the number one method of payment, with 47% using them to buy shop online. It’s also worth noting that other digital wallet services such as Apple Pay and Google Wallet are gaining more traction in the USA than here in the UK, following closely behind PayPal.

Inside USA

We are spoiled by Amazon Prime which gets us most of our purchases from Amazon in 2 days or less. They even deliver on Sundays. Generally, people prefer to use credit or debit cards to make their online purchases because it is quick and easy. Also, more and more people are buying things from their mobile phones. Many of the newer smartphones have large screens so it’s easy to look at pictures and read reviews.Leo, Oban Local In-Market Expert (LIME), USA

Black friday and Cyber monday break records in 2016 Calendar events are alway a good route into market, but few of them center around retail as openly as Black Friday and Cyber Monday. In 2016, Black Friday broke online sales records in the US, with $3.34bn being spent online – that’s a 17.7% increase on sales last year. Business thinktank, Qubit, analysed 50 million visits to US retail websites and found that traffic on Black Friday increased by 220% compared to a normal working day. Clearly an excellent time for brands to capitalise online and gain some exposure with a good deal.

UK brands very well perceived with a strong and ready foundationBy far the most popular non-native brand to make it big in the US is Swedish fashion company H&M. They have 200 stores nationwide and 71% of American consumers are aware of their presence on American soil, however they don’t have much of an impact online in the US fashion market. UK retailer Topshop only has 4 physical stores but still manages to reach 20% awareness among the American public. This is good news for retailers looking to operate exclusively online, and is proof that e-commerce is a viable way into the market.

Many British brands are already highly regarded in the USA. Prominent UK brands such as Missguided, Boohoo and Jack Wills were among the top ‘brands to watch’ according to a survey on US consumer perception. Superdry were also seen as a strong up and coming brand which embodied ‘Britishness’ – something that’s very popular in the US market. Jack Wills even went as far as creating a strapline specifically for the US market that read ‘Fabulously British’.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• Be British: Don’t be afraid to celebrate ‘britishness’ and use your identity as a UK brand.

• Logistics: Know your competition and their delivery/payment options, as US citizens are less likely to purchase cross border.

• Look beyond PayPal: Unlike the UK, Apple Pay and Google Pay are following close behind.

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Inside USA

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like USA.

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A European e-commerce hotspotA consideration for UK businesses?

With a population of just 16.8 million, the netherlands is among the smaller players on the European e-commerce landscape. However, it has a strong economy and per capita spending was still £414 in 2016 and is expected to be £482 in 2017, which will amount to e-commerce sales exceeding £10.2 billion.

The Dutch have an excellent technology infrastructure with more homes than anywhere in Europe having broadband speeds of 50Mps and higher. So, it is not surprising that 98% of the population uses the internet. It also has the highest tablet ownership in the world with 51% of people going online via a tablet. But how do consumers prefer to shop online? As 2016 drew to a close, laptops had a 48% share of online sales, with desktop PC’s following at 34%. Just over 16% of all online sales came from mobile devices – both tablets and smartphones compared to 50% in the UK, however with high mobile device ownership this figure is set to increase.

WhatsApp, which started allowing certain brands to communicate with consumers on its platform in 2016, is the most popular social network in the Netherlands closely followed by Facebook. While opportunities on WhatsApp are still being explored, Facebook’s audience segmentation options offer brands the potential to build brand awareness through paid media.

flexible delivery and digital wallet use on the riseAccording to delivery logistics specialist Metapack, the most popular drop-off method in the Netherlands is home delivery, at 92%. From a pick-up point is next at (32%), then click-and-collect (28%). As consumers in the Netherlands demand shorter delivery timescales, international brands need to develop solutions to meet that demand or differentiate their offer so that timescale is not a deciding factor in the purchase. Returns also now play a big part in influencing purchasing decisions, with 47% of Dutch consumers preferring to drop off their return over posting it. A common concern of consumers across Europe is that returns policies are not always easy to find on retailers’ websites.

One payment method stands out for consumers in the Netherlands – online payment service iDeal has a 56% market share compared to 5% for Paypal. Compatibility with the Dutch equivalent of PayPal is therefore essential, but credit and debit cards are still a popular choice, followed by direct debit.

Inside The Netherlands

We expect our purchases to be delivered in 1-2 days, everything past that gets annoying. The latest innovators are letting consumers decide where they want their parcel delivered, not just when. So, if you are sitting in a restaurant and your parcel is ready, they will deliver it to you there, rather than to your empty home.Marnix, Oban Local In-Market Expert (LIME), The Netherlands

Adjusting to e-commerce in the netherlands The Netherlands is a small country with a limited internal market, making online purchases from international retailers is extremely popular. Cross-border e-commerce is prevalent with 46% of internet users buying a product from a foreign country – most likely Germany, the United States or China – in 2015. Of the products most sought after, clothing and fashion items are the most popular, with home appliances and books and electronics close behind.

The best performing websites include Bol.com, AliExpress, and Amazon – all of which are general retail destinations – and Zalando and H&M, who specialise in fashion.

non-native brands that have adapted to the Dutch marketplaceA fairly recent phenomenon, it’s only since the 1990s that foreign brands have performed well in the Netherlands. Swedish companies, H&M, Bjorn Borg and IKEA can thank local knowledge for their continued success in the lowlands. Spanish clothing giant Zara are a recent addition to the Dutch retail landscape, opening three stores in the last five years.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• iDeal must be a payment option: An extremely popular PayPal alternative in the Netherlands.

• Delivery and returns influence purchasing: Offer clear and easy information on delivery and returns on your website to manage expectations.

• Largest percentage population tablet ownership in the world: Ensure that your customer experience is seamless across all devices.

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Inside The Netherlands

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like the Netherlands.

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1 in 3 online shoppers buy from UK, US and germanyAn opportunity waiting?

With a population of just 9.6 million, Sweden may not be in the crosshairs of many international businesses, but the small Scandinavian country still managed to spend £11.1 billion online in 2016. in 2017, that figure is expected to rise by 9% to £12.1 billion indicating steady growth in online spending.

This is reinforced further by Sweden’s internet penetration. Currently, Sweden has the 4th highest internet usage rate in the world with 94% of the population online. Only Norway, Iceland and the Falkland Islands have more users per head of population. Connection speeds in Sweden also rank as the second fastest in the world with speeds from 128 kbit/s to 10 Gbit/s.

We know that Swedes are world leaders when it comes to online infrastructure, but how do they like to access the web?

Just over 42% of under 26-year-olds will do their purchasing on a smartphone, while 52% prefer to use a computer. Only 8% of over 55’s prefer to use a mobile device like a smartphone or tablet. Therefore, any UK business looking to penetrate the Swedish market online will have to know their target audience and ensure their strategy meets the device behaviour of their consumers.

Credit cards prefered method of payment, but e-wallets on the riseAccording to Mastercard, over half of Swedish consumers prefer to use a credit card when shopping online. However a study from Insight Intelligence in 2016 asked 1,000 people over the age of 16 what they knew about digital wallets. 60% of people said they used Swish (akin to PayPal) regularly, with Klarna and PayPal close behind.

Though it experienced some trouble when it launched in 2010, Klarna’s popularity is growing rapidly and is set to eclipse PayPal by 2019. Some put this down to the fact that Klarna is a Swedish company so garners more trust among consumers there.

Inside Sweden

Swedes are early adopters and are open to try out new products and technology. The online market offers opportunities for cutting edge companies wishing to try out new products. If you’re planning to open up an e-commerce business in Sweden, keep in mind that Swedes value design and quality over low price.Dennis, Oban Local In-Market Expert (LIME), Sweden

faith in delivery services is lacking PostNord is the Swedish Royal Mail equivalent and has a pretty mixed track record when it comes to fulfilling deliveries. For the most part, third party couriers like DHL, UPS and Schenker are perceived as being more reliable. There is an underlying assumption among Swedes that home delivery just doesn’t work, and it’s not uncommon for many of them to have to pick up items from depots themselves. Due to this uncertainty, many are not prepared to pay extra for home delivery.

For UK brands looking to move into the market, addressing these concerns and offering a transparent (or free) delivery service would offer a huge advantage. Assess logistics companies carefully, choosing one that has a good reputation and track record.

British brands making it work in SwedenOver 1,000 British businesses currently operate in Sweden or regularly ship to Swedish customers. Fashion brands like Next and Burberry have seen a great deal of success by positioning themselves as authentic, British brands. Edinburgh-based craft-brewers, Innis & Gunn, took a similar approach and started exporting to Sweden in 2004. Their current Swedish turnover stands at more than £1.6m.

Authenticity and responsible sourcing mattersSwedes enjoy authentic, hand-crafted goods and aren’t afraid to shop around for something with a bit of quality and heritage. Rather than pick the cheapest thing from the shelf or look for sale items (like the UK and US for example), Swedish consumers take their time and ask questions. This is partially due to lifestyle trends changing around consumption and environmental awareness. ‘Up-cycling’ is very popular in Sweden – using natural or high quality materials to modify something and turn it into something new.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• 60% of Swedes said they used Swish for payment: Understand local payment preferences and offer the right options.

• Delivery is a pain point: The market is wary about hidden costs. Consider free delivery.

• 52% of under 26-year-olds make purchases on a desktop: Don’t ignore optimising for desktop as well as mobile devices.

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Inside Sweden

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like Sweden.

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70% of population now shopping onlineHow can UK businesses capitalise?

With a population of 127 million, Japan is one of the most densely populated countries in the world. A leader in technology and innovation, e-commerce has been thriving in Japan for the past decade; online sales hit the £78 billion mark in 2016, and are expected to exceed £105 billion by 2021. To give those figures some perspective, over 70% of Japanese citizens shopped online in 2016. By 2018, emarketer predicts that this figure will rise to 72%.

We know that the internet is used extensively for shopping in Japan, but how? In a 2015 survey, Google asked 2,645 respondents over the age of 18 how they made their most recent online purchase. Only 7% of respondents used a smartphone or tablet, with 92% reporting that the last purchase they made was with a desktop PC or laptop.

The rate of product returns are extremely low in Japan. In fact, some retail sites don’t even have a returns policy (not something we advise). What this shows is a highly developed trust between marketers and consumers. Promotions and loyalty reward schemes are also extremely popular in Japan, with almost every online retailer offering special promotions for their best customers.

Line beats Twitter and facebook in JapanLine, owned by South Korean company Naver, is the most popular social media platform in Japan. Similar to Facebook or WeChat in China, it’s an instant messenger app that’s rich with features. As of 2016, Line has 218 million monthly active users across Japan, Taiwan and Thailand. Supersize emoji or ‘stickers’ are a key feature with the app which sees billions exchanged daily. It’s even possible to order goods and services by sending a sticker to a business. Pepsi is one non-Japanese brand which has used LINE’s own popular characters Brown and Cony to create a range of branded stickers for users to share and interact with.

Inside Japan

Big delivery companies like Yamato and Sagawa allow you to pick date and time of delivery during day, but Japanese people work hard and get home late, so they don’t know when they can be at home. Even in small towns there are are usually more than two convenience stores in a 1km radius, and one collection point at a train station, so click and collect is easy.Masaharu, Oban Local In-Market Expert (LIME), Japan

Third party online marketplaces are extremely popularIn order of market share, the 3 biggest online retailers in Japan in 2016 are Rakuten, Amazon Japan and Yahoo Japan Shopping (established by Softbank which purchased use of the Yahoo name in Japan from US based Yahoo). These 3 websites online account for nearly 50% of total Japanese online sales. It’s relatively easy for a vendor to list their products on these sites and create a ‘e-store’, and could prove to be the fastest route to market for many. Each of the online marketplaces have dedicated support staff to help vendors and educate them on the best ways to list their products.

Even if you’re planning on selling directly from your website and competing online in Japan, getting your products listed on these third party marketplaces will net you valuable exposure and be a quick route to market.

Credit cards lead, but cash on delivery is a popular method of paymentOver 44% of all online shoppers use a credit card to pay online, with 15% using direct bank transfers. What’s more surprising however, is that 16% of online shoppers pay for items in cash upon delivery. Unless you’re ordering a takeaway, ‘cash on delivery’ is not an option you expect to see on e-commerce websites in the UK, so this is something that UK brands will need to adapt to – particularly if they want to tap into the teenage market (who may not have easy access to credit cards).

Geographically, Japan is a small country. As such, product deliveries are incredibly fast, with most packages arriving the very same day. Typically, if an order takes more than 2 days to arrive a Japanese shopper will start to enquire and seek an explanation from the vendor.

rugby World Cup and Olympics provide opportunity for non-native brandsThe 2019 Rugby World Cup and the 2020 Olympics are both set to take place in Japan, providing an excellent opportunity for UK brands to enter the marketplace. Japan is often seen as a place of tradition and heritage, hailed by many as the ‘gateway’ to eastern culture. That focus on heritage spills over into the perception of the UK, with some shoppers even willing to spend 7% more for a coveted ‘Made in Britain’ tag.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• made in Britain: British-made products are sought after and highly revered in Japan.

• get active on Line: Japan’s largest social media and messaging platform.

• Cash on delivery: This is a popular option in Japan, as well as convenience store pickups.

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Inside Japan

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like Japan.

23

A global e-commerce powerhouseAn opportunity close to home?

With a population of 81 million, germany’s e-commerce spending is expected to grow by 8% in 2017 to £56 billion, from £52.8 billion in 2016.

Internet penetration in Germany was at 80% in 2016 and is expected to climb steadily to 82% by 2019, but how do Germans prefer to access the web? Research shows desktop to be the most popular way to shop online, accounting for £31.4 billion worth of sales. Smartphone accounted for £12 billion worth of sales, with tablets close behind at £5.2 billion.

In Germany desktop outperforms smartphone for purchases across products including clothing and shoes, consumer electronics and books, as well as event and travel bookings. The one item where smartphones were favoured is discount vouchers.

While desktop is still the main way to shop online in Germany, that picture is changing. From 2014 to 2016, tablet usage rose from 20% to 36% while the use of smartphones saw an even greater increase, from 50% to 68%. While UK businesses moving into the German market should be catering to desktop, it’s important to consider the rapid rate at which mobile internet access is growing. Make sure websites are mobile-optimised and ready to follow consumer behaviour.

When it comes to online searching, Google dominates with a huge 98.33% share in 2016. Great news for digital marketers in the UK who have experience with AdWords.

flexible, prompt deliveries are expectedIf you’re looking to do business in Germany, next delivery is the norm. Germany is a large country but is densely populated and very well connected. Consumers also expect to be able to have parcels delivered to multiple locations with ease (i.e. not being tied to a cardholder’s address), and real time delivery tracking is important. UK brands could get ahead in the German market by focusing on getting this part right.

Inside Germany

German society has a bias towards moderate views and a tone that supports ‘we’, as opposed to ‘I’. Marketing – compared to the United States, for example – is ‘less show-offy’ so campaigns require more modesty. Marketers can afford to be less ‘politically correct’ but anything that could be misconstrued as discriminating against foreigners or minorities is an absolute no-no.Margarete, Oban Local In-Market Expert (LIME), Germany

High standards of living, security and brand loyalty Germany has a very high standard of living and German consumers tend to stick with brands they like. The German-based Allensbach Institute suggests 45% of Germans are “completely set on certain brands of certain products”.

It’s also worth noting that Germans are far more security conscious than their neighbours, with only 32% of citizens trusting the Government to protect their online data. In India and China these figures are 71% and 64% respectively. This often translates as a reluctance to sign up for things or ‘like’ social media pages, so marketers will have to work harder than usual to generate followers and leads.

Digital wallets are the dominant method of paymentOnline shoppers in Germany are used to paying on invoice after they order – something largely unheard of in the consumer space at home in the UK. In 2015, 29% of shoppers paid on invoice, usually with a credit card. That said, the general use of credit cards to buy goods online is surprisingly low at only 10% – perhaps another signal of how security conscious many Germans are.

Due to this insecurity, digital wallets are used more in Germany than most other countries. PayPal, Sofortüberweisung, ClickandBuy and GiroPay account for a massive 39% of online payments. This allows Germans to shop online without exposing their bank details to retailers.

British brands making it work in germanyWhen buying abroad, German consumers have a tendency to order from the US and UK more than any other country. Popular UK imports such as Burberry and Pepe Jeans have made their mark in the fashion world by working hard on their PR and logistics. For example, Burberry employ a lot of Germans on their shop floors while also blogging and posting on social media in German. Pepe Jeans opened a German version of its online store and has partnered with German companies like Zalando, Otto and Kaufhof.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• Embrace digital wallets: Sofortüberweisun and PayPal are more popular than credit cards.

• Seek to build trust: German’s are wary of shopping online and are fiercely brand loyal.

• mobile is not first – yet: Unlike the UK, by far the majority of purchases are on desktop so a multi-device approach is critical.

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Inside Germany

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like Germany.

25

Largest economy in Central EuropeOpportunity for UK businesses?

With a population of 27.9 million, Poland boasts the largest economy in Central Europe, and the 6th largest in the EU. The e-commerce offering is slightly behind its European neighbours but shows very real signs of catching up. in fact, it is estimated that Poland’s economy will join the g-20 list of the world’s largest by 2022. Based on the fact its gDP has almost doubled over the last two decades, it’s easy to see why.

The growth of e-commerce depends on many things, but internet access is paramount. In 2016, internet penetration in Poland was at a steady 72.5%. By 2021, this figure is set to increase to 76.3% showing real signs of growth – a perfect opportunity for UK businesses to explore this nearby market.

On the whole, 53% of Polish internet users made a purchase online in 2015 – but how?

As of 2016, there are 15m smartphone users but according to a recent survey of weekly activity by Google, only 4% of the smartphone-owning population used their device to make a purchase. A separate study of online shoppers indicated that 49% would prefer to use a computer or tablet to buy online. Online sales as a percentage of the retail trade market are expected to increase by 1.2% in 2017, signalling healthy e-commerce growth.

Poland’s economy is strong. The country has made major economic strides since the fall of communism, especially since joining the EU in May 2004. In 2009, when all major European economies were decreasing because of the recession, Poland was the only European nation to experience economic growth.

flexible delivery on the rise and social media is strongWhen it comes to delivery, 61% of Polish e-commerce consumers prefer a courier, while 21% who are happy for a postal delivery choose drop-off to their home or workplace. Around 11% enjoy the flexibility of an automatic pick-up point thanks to InPost, which is currently on the rise. InPost allows shoppers to pick up their items from local stores and other designated spots and even pay for them in cash.

Facebook is huge in Poland. The social media platform will continue growing in the next few years, jumping from 15.33 million users in 2014, to 21.12 million by 2021. It’s also an extremely popular way for consumers to interact with businesses and review them.

Inside Poland

Over 90% of online purchasing decisions in Poland are influenced by reviews and social media. Facebook dominates as a social media platform of choice. However, the biggest shopping platform in Poland is Allegro, a marketplace similar to eBay or Amazon.

Krystian, Oban Local In-Market Expert (LIME), Poland

Polish businesses seeking relationship with UK brands Allegro is widely recognised by Polish consumers as the first choice for online shopping. The site receives over 57% of the country’s e-commerce traffic, making it the number one place for apparel shopping. Research shows that 60% of all top phrases entered into the Allegro search bar concern fashion brands. To meet consumer demand and increase its product range, Allegro is actively seeking relationships with UK brands.

Challenges faced by non-native brands entering PolandOf the most visited e-commerce sites in Poland, several non-Polish companies such as AliExpress, Bonprix and Zalando feature in the top ten. For UK supermarket chain, Tesco, Poland is their biggest Central European market – and online shopping is on the rise.

Poland has expressed an active interest in UK brands. At the moment only brands such as Marks & Spencer and Next have developed a focus on Poland, but there’s opportunity for more brands. When Polish people who live and work in the UK go home, they wear UK brands, and this has created an interesting buzz around UK fashion retailers – the demand is growing.

For 2016, RetailMeNot estimated an average yearly spend per online Polish consumer of £231, an 11.8% rise in comparison to 2015.

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Inside Poland

Thinking about taking your business cross-border?

Contact us today to see how we can help your business explore new markets like Poland.

KEy TAKEAWAyS BEfOrE gOing TO mArKET:

• Consider marketplaces: Allegro attracts 57% of country’s e-commerce traffic and is seeking UK brand relationships.

• Courier is king: Delivery by courier is a must to meet online shopper preferences.

• Huge rise in social media usage: 21.12 million Facebook users expected by 2022, consider how Facebook can contribute to building your brand awareness through paid media activity.

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We are the international digital marketing agency, delivering localised digital campaigns in every part of the world. Where other agencies have added international to their local offering, we have been an international agency since launch. it’s in our DnA. We have an unparalleled degree of international focus and experience, established over the last fifteen years.

Our core team of international digital experts specialise in paid media, natural search, content placement, online PR, social media, website optimisation, research, data and analysis and works out of our Brighton HQ. They work with our specially recruited LIME network, Local In-Market Experts, who are experienced specialists in their local marketplaces.

Together they are responsible for planning and delivering powerful international digital campaigns for our clients, in single and multiple markets across the world.

Contact us to find out how we can help you grow your business in overseas markets.

info@obaninternational.com +44 (0)1273 613400 www.obaninternational.com

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