Vice President

In: Business and Management

Submitted By adhandaya
Words 3684
Pages 15
E-Commerce Is the Next Frontier in Global Expansion
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Online shopping is changing how retailers develop their global expansion strategies. A.T. Kearney's E-Commerce Index reveals which developing markets hold the most potential for online growth.
Retailers are constantly seeking new paths to growth. As revenues plateau in developed markets, expansion into developing markets is a popular means for reaching new growth targets and boosting returns in overall portfolios. But choosing a developing market is more complex than looking through the traditional bricks-and-mortar lens to determine where to locate—it also requires looking through the online lens.
As online sales skyrocket in developing markets, an online presence is a low-risk way to test new markets and complement existing store footprints.
As e-commerce sales skyrocket across the developing world, building an online presence is a low-risk way to test new markets or complement existing store footprints. Gaining maximum advantage from such strategies requires knowing a country's true e-commerce potential and its online market challenges.
A.T. Kearney's 2012 E-Commerce Index, the first in a series, examines the top 30 countries in our 2012 Global Retail Development Index™ (GRDI). Using 18 infrastructure, regulatory, and retail-specific variables, the Index ranks the top 10 countries by their e-commerce potential (see figure 1).1 The findings provide a wealth of information for retailers use in developing successful global e-commerce strategies and identifying emerging market investment opportunities (see sidebar: About the Study).2
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E-Commerce: A Ripe Growth Opportunity
Global e-commerce is thriving as infrastructure, laws, and consumer preferences evolve. Global e-commerce has grown 13 percent annually over the past five years (see figure 2).3 Retail expansion is increasingly occurring through…...

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