A new generation of consumers is changing the way they shop online. They’re hungry for new experiences and unique products that are not necessarily available at home or in their immediate region. Why should they be restricted to a local market? With the rise of e-commerce, traditional borders of commerce have fallen, rewarding consumers with a growing network of opportunities and choices. They are now looking to new frontiers and shopping around the world.
This spells big opportunity for e-commerce businesses. In fact, more and more Southeast Asian businesses who have already succeeded locally are now targeting the global market. You can see the rise of the global consumer in the increase in cross border sales within Asia-Pacific and the opening up new markets overseas:
- Countries like India, Taiwan or Korea show a growth rate of up to 50% in cross-border e-commerce trade.
- Hong Kong is one the fastest growing corridors for cross-border trade in 2013 (85% year-on-year).
- Top export corridors such as the United States, UK or Australia continue to grow at a rate of 20%.
Opportunity in the global market is not just for big, established e-commerce businesses. Even a small business has a chance to capitalize on these changes. We’ve put together some considerations to help you get started:
1. Leverage your strengths
Every country has a product or service they are celebrated for. What’s your region’s specialty? China is the manufacturer for the world, whereas Southeast Asia specializes in travel and freelance talent like graphic design and programming. A consumer looking to plan a vacation in the region will likely choose a Southeast Asian travel business to get the best deal and service possible.
Capitalizing on these perceptions can help a small business get a foothold in the game. By leveraging your region’s assets, you can take proven resources and know-how, and step into the global market with confidence.
2. Be Unique
With the right product, even small businesses can grab shares from the big players. The key is not to sell product categories dominated by bigger merchants. A consumer is not going to seek out a small business for an everyday product they can easily find on Amazon or TaoBao. A small business has to carve out a niche market by selling something unique that the mainstream can’t offer. A well-known brand of handbag is available from a number of online stores. However, a hand-made handbag with a creative design is an altogether different story. By differentiating your product or service, you give consumers a reason to seek you out.
3. Get the Logistics Squared Away
Shopping online should never become a hassle for a customer. That’s why shipping, logistics and the payment process are an integral part of doing business on the global stage. If your customer experiences any problems, they will lose confidence in your business and put your reputation at risk. Before launching your business, make sure both your shipping and payment process are airtight.
For shipping, try to align with your customers’ expectations. Always state the shipping costs clearly on your website and make sure your shipping options are reliable and trustworthy. The third party vendor is a reflection of your business’ service and brand. You will ultimately be held responsible if anything goes wrong.
Make sure your payment options are easy-to-use and secure. Any problems will put your overall reputation at risk. It’s a good idea to partner with a proven payment provider — it’s an easy way win over a consumer’s trust and confidence.
Break into the Global Market
Just because your business might be small, it doesn’t mean you can’t win global customers and compete with bigger businesses. By leveraging your country’s assets, offering a unique product and perfecting your logistics, even a small-scale entrepreneur has a chance to make a big profit in the global market.