Using Technology to Expand Your Business Across Global Borders
Needless to say, the COVID pandemic affected small to medium-sized enterprises (SMEs) across the globe. In Southeast Asia, as elsewhere, many turned to cross-border e-commerce as a means of finding new customers, reaching new markets, and staying afloat.
Consumers did the same. Globally, more than 50% of consumers are online. In southeast Asia, 76% are online. Eight out of ten are digital consumers, buying, subscribing, and shopping online. Southeast Asia has clearly entered its “Digital Decade”, with 60 million new digital consumers added since the pandemic began.
For businesses, having a digital presence is NOT an option.
Why Cross-Border E-Commerce?
The traditional export process requires four steps between the factory and the consumer, adding to cost and complexity. Typically, the goods travel from the factory to the exporter. From the exporter to the importer, then to the wholesaler, then to the retailer, and, finally, to the consumer.
With Cross-Border E-Commerce, products travel directly from the factory/brand owner to the customer.
Global Technologies as a Resource
The global players (Google and Amazon) and regional resources (Shopee in Southeast Asia, for example) have stepped up with training and resources to expedite global selling. Shopee, based in Thailand, has created the Shopee International Platform to help local sellers export to Singapore, the Philippines, and Malaysia (in its initial phase). The platform streamlines data analytics, logistics, marketing, and payment for sellers at no additional cost.
Amazon and the Global Market
Amazon’s Global Selling opens up the UK, North America and Mexico, and European and Asian countries to sellers. At the Global Summit, Amazon highlighted its global footprint, worldwide customer base, leading logistics infrastructure, and its innovative tools and services as key benefits to SMEs. Its “Systemic Selection Methodology” helps businesses decide whether to enter a category, find areas of opportunity, create new selections and shortlisted product categories for the market, analyze the market competition and evolving consumers’ preferences, and determine a pricing strategy. Their Brand Registry helps protect sellers’ intellectual property and their brand from infringements.
Google and the Global Market
Google, for its part, helps sellers identify new markets through its Market Finder. Google Search Demand Tools help businesses gauge the rate of demand for their products, how to make their products better, and increase the rate of purchase.
As a brand marketer, I would recommend utilizing the tool and resources of both platforms. Good demand, low competition, and a high-frequency purchase rate mark an opportunity.
The US – a Market of Interest
It was very interesting to hear how Southeast Asia sees the US and Canada as markets of opportunity. With our love of internet shopping, high GDP, and large population, American buyers offer opportunities to Asian brands and products entering the US market.
For BBG&G, as experts in branding, marketing, e-commerce, and the US marketplace, the interest in Cross-Border Ecommerce opens up opportunities as well. We are engaged in conversations with some of the brilliant women I met in Thailand about how we can help them position their products and brands for global selling within North America. Their drive, product quality, and business savvy are exemplary and position Thailand for an exciting future!
By Debbe, President & CEO | September 12, 2022
