Euromonitor International has issued a new whitepaper aimed at internet retailers who want to expand into emerging markets. The paper highlights the need for retailers to understand how users access the internet in different markets, the logistics environment and consumer payment preferences.
A new whitepaper was issued on Tuesday (Oct. 4) by Euromonitor International that outlines strategies for internet retailers who want to expand into emerging countries.
The whitepaper states that mobile internet subscriptions increased from 299 million in 2010 to 2 billion in 2015 in emerging countries. China is the largest market with 660 million subscribers. Brazil, Indonesia and Russia together accounted for over 397 million in 2015.
Euromonitor International predicts an increase in internet access of 34 percent for emerging and developing country populations in 2015 and an increase of 50 percent in 2025.
The whitepaper emphasizes that the way that users access the internet is key to eCommerce strategies. Also, retailers should understand payment preferences and adapt to the current logistics environment. According to Amanda Bourlier, a senior research analyst: “Understanding how consumers access the internet is crucial for developing an eCommerce strategy. Retailers must address the preferences of consumers in their target market, including optimizing for the devices most used by consumers and offering appropriate payment options.”
Although mobile internet subscriptions have increased, penetration rates for internet use show variation across emerging markets. The country with the highest number of internet users was the United Arab Emirates in 2015 at 92 percent of the population, but internet users remained below 50 percent in Mexico, Peru, the Philippines, Ukraine and Vietnam. Chile, Russia and Argentina saw the most rapid increases in internet use among the populations for the five years from 2010 to 2015 — from an average of 40 percent to 70 percent in 2015.
Senior International Business Development Executive Gustavo Gomez said: “In places where this growth has taken place rapidly, the idea of shopping online is not yet intuitive for consumers and may present different perceived ‘risks.’ Retailers in these markets need to build trust with consumers to make them feel comfortable shopping online.”
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