Traditional brick and mortar stores have been forced to adapt and transition much of their business online due to the pandemic. However, despite this shift, the global e-commerce market sales are projected to decelerate to a 16.5% growth rate in 2020, which is a decrease from 20.2% last year (Cramer-Flood Global E-commerce 2020).
Prior to COVID-19, it was estimated that the global e-commerce market would have an 18.4% growth rate with USD$4.105 trillion in sales. Due to the pandemic, this estimation has decreased by over 2 points, with major impacts in China and India. Despite China being hit first and experiencing unprecedented logistical bottlenecks, the country’s e-commerce market is bouncing back. Countries in the Asia-Pacific region are projected to dominate 62.6% of global digital sales, with North America trailing at 19.1% (Cramer-Flood Global E-commerce 2020).
With limited cash reserves and high reliance on a steady stream of customers, SMEs around the world have been particularly vulnerable to the sudden shift in purchasing patterns. A research study conducted by McKinsey & Co found that “one in five (SME businesses) may not survive past August 2020” (Mladenov et al. How the COVID-19 crisis is affecting UK small and medium-sized enterprises).
Despite this sobering news, brands must view this as an opportunity to remake their strategy by focusing on digital growth and transformation. A recent analysis completed by Digital 360 found that brands that decreased or maintained their marketing spending had a slight dip in sales, if not struggling. However, the brands that aggressively increased their marketing spending are seeing unprecedented growth, some experiencing over 50% growth from the previous year.
BorderX Lab’s Beyond(别样) App strives to help our merchant partners increase their international online presence without the massive upfront costs and cross-border logistical headaches. By utilizing innovative machine learning and marketing tactics, our merchant partners can rely on us to strategically market their online store to find their niche of shoppers in China and internationally. Our user growth has reached hyper-growth with over 14 million loyal shoppers and is especially popular between the ages of 23 to 32.
Our newly released Beyond Global Marketplace (BGM) offers a merchant-friendly platform that grants merchants the autonomy of what products to upload and when. New merchants are granted our “Merchant Activation Package”, which includes complimentary boosted exposure on our BGM platform. Add-ons and options are also available to continue the momentum.
Is your business ready to hit the international market? Contact us today at mc@borderxlab.com to get started!
References:
Cramer-Flood, Ethan. “Global Ecommerce 2020.” EMarketer, 2020, www.emarketer.com/content/global-ecommerce-2020.
Mladenov, Zdravko, et al. “How the COVID-19 Crisis Is Affecting UK Small and Medium-Size Enterprises.” McKinsey & Company, 2020, www.mckinsey.com/industries/public-sector/our-insights/how-the-covid-19-crisis-is-affecting-uk-small-and-medium-size-enterprises.
Stoltz, Nick. “COVID-19 Pandemic Exposes Brands Slow to Embrace E-commerce.” Digital Commerce 360, May 2020, www.digitalcommerce360.com/2020/05/14/the-coronavirus-pandemic-exposes-brands-that-were-slow-to-embrace-ecommerce/.
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