Amazon Follows Typical US Online Retailer Expansion Path With A New Site For Italy

Amazon today launched a localized site for Italy, its first new international offering since acquiring Joyo back in 2004 (Amazon’s UK and Germany sites were launched in 1998, France and Japan in 2000 -- the Canada site came in 2002. Full timeline available here). According to today's press release, the new offering has more categories than any new Amazon Web site has ever launched with -- not surprising given the six years that have elapsed since the last international launch.  

As part of its new offering, Amazon is pushing its selection of “hard-to-find Italian language items” to cater to local consumer needs -- indeed, Amazon has tended to excel in its localized offerings, ranging from its varied payment methods by country to its semi-localized categories (note the “Auto and Motorcycle” category on the German Web site or the “DIY” link on the UK one).  

Amazon’s choice of European markets mirrors many US online retailers’ expansion into Europe. Of the top 50 online retailers in the US, some 19 operate dedicated transactional Web sites for the UK, 14 operate sites for Germany, 12 for France and 14 in Italy. Less than 10 operate eCommerce sites localized for Spain. See the graphic from our recently published Establishing A Global Online Retail Footprint below.

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Forrester’s First-Ever Online Retail Forecast For Asia Pacific Now Live

After years of looking at how the online markets of Asia Pacific are emerging from an online shopping perspective, we are thrilled to announce our first online retail forecast for China, Japan, South Korea, India and Australia.* Some findings from the forecast:

  • Japan still takes the top spot in the region. Japan retains its dominance in the region with some $45 billion in online retail sales this year. Indeed, while China’s combined B2C and C2C spending surpasses B2C spending in Japan, Japan is still the leader in traditional online retail sales. And despite the fact that online consumers in Japan are purchasing across a wide variety of categories, some category purchases like beauty have shifted online in Japan in a way they have not in the US or Europe.
  • China’s growth rates will propel it ahead of Japan in the very near future. China’s combined  B2C and C2C sales — the two are nearly impossible to separate** — are poised to reach $49 billion in 2010. China’s CAGR will be double that of the US, Western Europe and Japan, and it’s clear that China will be the eCommerce market most likely to rival that of the US.
  • Australia’s robust growth will be driven by an increasingly vibrant online retail sector.  The online marketplace in Australia is marked today by a large number of cross-border transactions, but there is growing momentum among local players. Though less than half the size of the online retail markets in Japan and China, Australia’s growth rates are slightly higher than those of Japan and its US and Western European counterparts.
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Thinking outside the American and European box

One trend over the past year has been a growing interest in markets outside of North America and Europe. We're getting an increasing number of inquiries about markets in Asia-Pacific, Latin America and the Middle East - companies are anxious to map out their strategies for major eCommerce markets like Japan and China, as well as others such as Brazil and Russia. Retailers with an offline presence in affluent markets like the Gulf States are considering supplementing their traditional retail channels with an online one.

If you're looking to expand into any of these areas of the world, I wrote up some observations which were just published in Internet Retailer yesterday. Have a look if you're interested in emerging trends among online buyers in China, Japan, South Korea, Australia, Brazil and the UAE. 

The Continuing Globalization Of Online Retail

The past couple of months have seen a number of new initiatives and shifts on the global online retail front: Zara went live with a series of eCommerce sites (in five languages in Spain alone) while Gap started selling to an international online audience. At the same time, eBay conceded the market in China and looked to partner with market leader Alibaba. More companies have started coming to us asking about eCommerce in less traditional markets, with markets like Russia and Saudi Arabia being brought up with increasing frequency in our calls with clients.

We’ve recently published some research that helps companies sort through different international online markets: our Global Online Population Forecast looks at how the online population is shifting around the globe while A Snapshot Of Emerging Mobile Commerce In China puts the growth of mCommerce in China in perspective with its regional neighbors. Establishing A Global Online Retail Footprint looks at where US online retailers have expanded internationally and what factors they should consider as they decide which new markets to target. A few takeaways from recent research:

  • The BRIC countries (Brazil, Russia, India and China) will add more than 300 million new Internet users over the next five years; one-third of all Internet users will live in these countries by 2014.
  • North America’s share of the global online population will decline from 16% to just 13% by 2014. By contrast, Asia’s will increase to 44% of the total.
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Where US online retailers are operating in Asia

Over the past few months, we’ve fielded multiple requests related to the online shopping market in Asia. Retailers and vendors alike are looking to position themselves for long-term success given the rapid online growth rates in the region:  By 2013, for example, close to half of the global online population will live in Asia, with some 17% of the global total coming from China alone. To see how US online retailers are taking advantage of this shift, we took a look at the top 50 online retailers on the Internet Retailer Top 500 list and mapped their transactional sites in Asia. A few observations follow.

Japan tops the list, especially for companies with only one web site in Asia. What was interesting as we worked through the list was that relatively few of leading online retailers in the US operate transactional sites in Asia, and far fewer operate in multiple countries. Several top online apparel retailers, for example, operate a web site for Japan only: Lands’ End, L.L. Bean and Cabela’s have all taken this approach.

Consumer technology companies have the broadest regional reach. By contrast, online retailers in the consumer technology arena tend to have a broader regional presence. Dell, Apple and SonyStyle operate in multiple Asian markets, with Dell and Apple having the most transactional web sites in the region despite Sony's Asian roots. Office Depot also has a strong commitment to the region with eCommerce sites in Japan and China, as well as in South Korea.

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Online shoppers in the US do not just spend dollars at home

Last year we wrote a couple of reports that highlighted cross-border online shoppers in Europe, where some 29% of online shoppers had purchased from another country.

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The Global eCommerce Adoption Cycle

One of the great things we can do with our Consumer Technographics data is compare user behavior and technology adoption in different international markets. Our recently published report The Global eCommerce Adoption Cycle uses data from four continents to provide a snapshot of eCommerce around the globe.

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The globalization of eCommerce in 2010

The global recession brought with it many predictions of slowing – if not reversing – globalization. Media outlets reported on a decrease in cross-border initiatives and decline in global trade.

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A final snapshot of our Marketing Forum EMEA

By Zia Daniell Wigder

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Forgive the
long post, but I wanted to make sure I captured the final sessions of our
Marketing Forum EMEA for those of you who were unable to join us in London over the past
couple of days.

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On to day 2 of Forrester’s Marketing Forum EMEA

By Zia Daniell Wigder

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Our events are well underway in London: We spent Monday with Forrester Leadership Board’s eBusiness Council, then on Tuesday the official Marketing Forum EMEA kicked off. You can follow some of the conversation live on our other blogs - I’ve also
summarized a few of the keynotes below.

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