According to a study released by A.T. Kearney, Russia has one of the highest potential for online sales growth in the world after only China and Brazil. With the largest online European population — 60 million Internet users — the country is expected to reach $16 billion in online retail by 2016.
The study also reveals that issues such as poor financial infrastructure, poor digital consumer protection laws and censorship if not addressed, could slow the growth of online sales across the country.
Emerging market economies such as Chile, Mexico, United Arab Emirates, Malaysia, Uruguay, Turkey and Oman will also experience substantial eCommerce growth.
Not surprisingly foreign retailers are preparing to enter these emerging markets with an online or cross-channel strategy. Important best practices for successful retail entry are offered in the study:
- Retailers must adjust their websites, payment methods, shipping options and business models to the local market.
- In markets where logistical infrastructure is a challenge, retailers must be transparent with consumers about shipping timelines and deliver against them.
- Do not underestimate local players. Domestic players dominate online retail in developing markets.
- Think long-term. It takes time in developing markets to navigate the market, learn about online consumers and build a reputable brand.
