Western European Consumers Spent €26 Billion In Online Cross-Border Trade In 2014

Michael O'Grady

Western Europe is one of the largest online markets for cross-border trade: In 2014, Western consumers spent €26 billion on cross-border trade, representing 17% of eCommerce sales in Western Europe. Our recently published Forrester Research Online Cross-Border Retail Forecast, 2013 To 2018 (Western Europe) shows that cross-border trade depends on sales flowing into a country from domestic cross-border purchases and sales flowing out of a country from nondomestic shoppers. Cross-border trade gives retailers an opportunity to expand outside of their domestic markets with minimum upfront investment. To succeed, retailers must understand the cross-border shopper and how to compete internationally.

Online cross-border shoppers:

  • Are looking for the best price. Price-sensitive online shoppers drive cross-border sales. The price of domestic goods in countries like Luxembourg, Switzerland, and Ireland make the consumer more likely to shop cross-border to find a bargain.
  • Are looking for the best choice. The consumer choice offered by large online retail markets in countries like the UK, France, and Germany make the consumer less likely to shop outside of their domestic market.
  • Spend more online, have higher incomes, and are younger than domestic shoppers. Retailers need to know the types of categories bought online to better target the cross-border shopper.
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Service Differentiation Kicks JD.com’s Business Growth Into Top Gear

Gene Cao

Contributed by Bryan Wang, Di Jin, and Vanessa Zeng

JD.com, the second largest online retailer in China, went public on May 22, listing itself on Nasdaq after merely 11 years of existence. At the time of IPO, JD had a market value of nearly $30 billion. Despite its size however, JD still managed to increase its customer base by 62% in 2013. How did JD manage to continually achieve business growth? I believe this is due to three key factors that differentiate JD:

■  Comprehensive logistics network for online retail in China. JD.com invested heavily in a last-mile strategy to ensure that customers receive products as quickly as possible, establishing 82 local warehouses with 1,620 delivery and 214 pickup stations across nearly 500 cities in China. This has made same-day delivery available in 43 cities — far ahead of the capabilities of Google Shopping Express in San Francisco. To better reach customers in lower-tier cities, JD is also collaborating with local convenience store chains in provinces like Shanxi and Guangdong to further strengthen its last-mile delivery capability.

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