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Ecommerce
Figure 1: Global Cross-Border B2C Market (sources: EIU, Industry Research Report, World Bank, Accenture Analysis)
Global cross-border B2C e-Commerce transaction value (US$ billion)
Western Europe
Mid-Eastern Europe
North America
918
502 13%
67
2014
19%
176
2020
Latin America
10%
61 6
2014
140 37%
53
2020
674 32%
402 18%
73
2014
51
13
2014
216
2020
25%
60%
43 26
2020
48%
45
2020
93
Asia Pacific
1525
558 12%
71
2014
31%
476
2020
B2C e-Commerce
B2C Cross-border e-Commerce
2014-20
e-Commerce
Contribution
Figure 1 Global Cross-Border
B2Cincremental
Market B2C cross-border
(sources: EIU,
Industry Research
Report, of global total incremental
trade
volume
(billion
dollars)
trade volume (%)
World Bank, Accenture Analysis)
Asia Pacific
Western Europe
North America
Latin America
Mid-eastern Europe
Middle-East and Africa
405
143
109
47
32
21
53.6%
18.9%
14.4%
6.2%
4.2%
2.7%
Target population of 15-65 years old; sources: EIU, ISI, World Bank, Accenture Analysis
Figure 2: Values and Categories (sources: eMarketer, Google & TNS: Consumer Barometer, Jul. 2015, EIU, Accenture analysis)
Cross border B2C e-commerce shopper penetration 2015 (% of population above 15 years old)
89%
88%
83%
70%
88%
86%
66%
85%
77%
89%
73%
71%
57%
50%
48%
31%
UK
USA
19%
France
18%
Germany
12%
Russia
48%
32%
30%
21%
Australia
67%
61%
23%
10%
Japan
10%
China
9%
Brazil
23%
16%
8%
Mexico
7%
23%
9%
1%
Turkey
India
Turkey
India
Australia
UK
USA
Appealing offer
Better price, services, payment tems
France
Germany
Russia
Better availability
Diversity of products
Japan
China
Better quality
Word of mouth
Brazil
Mexico
Australia
UK
USA
France
Germany
Russia
Japan
China
Brazil
Mexico
Turkey
India
Market Entry
Logistics
Localization
37-42%
38-47%
34%
42%
37%
47%
42%
41%
38%
N/A
32%
Call for Action: Merchant Enterprises Call for Action: Service Enterprises
Destination market-entry: Merchants
need to prioritize destination countries
according to market demand (per Figure
2) and readiness (per Figure 3). Defining
marketing mix is a unique exercise of
identifying a small set of winner SKUs
and placing them at the right direct and/
or indirect e-channels (subject to local
consumer preference, and brand
awareness/ promotion strategy), and
finally offering the appropriate level of
discounts. For brand owners and
manufacturers: this poses the golden
opportunity to sell directly to end
consumers, and to reorganize sales
structure along customer demand (vs.
the tradition geographical structure in
brick and mortar distribution). For
retailers/ franchisers: many see crossborder e-Commerce as a channel for
introducing new products into an
existing market (lower barrier in
registration/ inspection/ quarantine/
taxation for certain supply chain
models). For new markets, they need to
refine distribution/ franchise agreement
to cater for geographic expansion.
Ultimate goal is to have alignment
between brand owners, manufacturers,
retailers, and franchisers, as such to
removing geo-blocking and geo-filtering.
Global operating model: With crossborder e-Commerce, all the sudden
merchants are challenged with a
complex array of issues in demand and
supply chain optimization, globally.
Fortunately, the consideration of sales
channels and logistics model could be
and should be decoupled. Decision on
e-channels should naturally follows
consumer preference and behavior
(e-marketplaces or direct webstore);
however, veteran merchants should also
anticipate Digital disruptions on
consumer front, and start adopting key
enablers accordingly (Sidebox 1).
Logistics model should be considered
with volume effectiveness (e.g., direct
shipment vs. bonded warehouse),
scalability (e.g., hub and spokes for
regional expansion), supply-chain
efficiency (e.g., nearshore to
destinations) and sourcing (e.g.,
outsourcing, as-a-service).
Sidebox 1
Digital Accelerators:
Advancements in Digital technology
and Digital business models are
having significant positive effect in
accelerating the growth of B2C
cross-border e-Commerce.
Digital Communications
Infrastructure, such as messaging,
VoIP, and trade platforms, are the
key drivers of cross-border internet
traffic, connecting buyers and
sellers globally, and enabling the
tracking of goods and pre-/ postsales customer services. Crossborder social media connections
also play a part in cultivating online
sales e.g., China and other
developing countries in particular
rely strongly on word of mouth
before committing cross-border
transactions.
Digital Customer
Omni-channel technology enables
cross-border merchants with
domestic offline store to integrate
and compliment a seamless
customer experience (e.g., e-travelshopping). VR technology enables
those without any offline stores to
embed and mimic offline experience
digitally, as such to re-create
overseas travel shopping experience
virtually based on real-time
inventory information.
Connected Commerce
IoT technology not only generates
data for cross-border shipment
tracking (e.g., RFID), as such to
provide transparency and reduce
inventories, but also creates Big
Data, when built onto a platform,
would be leveraged for new business
opportunities with ecosystem
partners.
Author
About Accenture
Ivan Chan
Managing Director and Lead of Digital Transformation
Accenture Digital, Greater China
ivan.s.chan@accenture.com
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