The China eCommerce boom
By Craig Smith
Is your eCommerce business multi-national? If it isn’t, you may want to reconsider your options for utilizing new markets to establish an eCommerce revenue stream. Numerous countries are growing at a stronger rate than the U.S. – which is no surprise considering our early adoption patterns.
Brazil is one area to look at. Forrester reports that by 2016, Brazil eCommerce will grow at a rate of 178% – a healthy compound for sure that bodes well for South America commerce. India is growing fast as well, as this fast growing nation was expected to reach 47% growth in 2011 – although a definitive metric has not been released.
The clear cut winner though is China, as growth from 2010 to 2011 was a whopping 66% as reported by International Data Corp.
66% in one year! In the country that is growing GDP at one of the fastest rates on the globe. As eCommerce and marketing executives ponder how to continue improving overall net income – one can not ignore the positive impact that establishing a Chinese eCommerce presence would bring to an innovative brand.
If the current eCommerce platform that you utilize provides the framework for establishing a “mirror” site within an alternative language, getting a roadmap developed for China makes business sense.
Certain challenges will come of course. Translating your content, nailing payment processing, dealing with any government challenges, and establishing a staff and distribution location are some of the potential roadblocks.
Also your business will need to be on Baidu, the “Google of China”. With 83% market share of search within the world’s most populated country, with the majority of the country yet to go online, the ability to out-execute Chinese national companies from a marketing perspective exists. The key: Getting the right talent. Look to re-locate U.S. based eCommerce directors – assuming they speak Mandarin and are familiar with Chinese merchandising patterns.