From Bricks to Clicks

While many retail expansion efforts have traditionally focused on new brick-and-mortar store openings, eCommerce provides a lower risk, faster avenue to enter, test, and penetrate international markets. An eCommerce expansion strategy is not a one-size-fits-all solution however, as retail globalisation tactics may differ based on market attractiveness, target customer segments, and risk appetite. Although there are several eCommerce entry methods, they each come with varying degrees of brand, financial, and operational risks. But if executed properly, this consumer-focused entry strategy can be highly effective at differentiating brands, building customer loyalty, and positively impacting revenue. 

Key findings

• Global expansion through eCommerce can be an effective way to build brand awareness and generate initial insights into consumer demand.
• Digital is an important channel for retailers to quickly test and expand its footprint into new markets, while enabling retailers to better control inventory, target customers, and drive sales.
• An explosion in eCommerce growth in emerging markets combined with higher rates of digital device adoption and an emergence of all-in-one logistics providers is bolstering global retail competition. These trends are transforming the retail playing field as well as providing consumers unprecedented access to brands worldwide.