Emerging countries exhibit some, but not all, of the strengths of those in the Established category of the 2019 Marketplace Expansion Index. If you’re considering expanding your ecommerce or sharing economy platform into these countries, which rank #13-24 on the Index, you can anticipate some of these unique attributes:
Imperfect Consumer Base
Emerging countries lack the same level of consumer sophistication as larger, more established players. Watch for small addressable opportunity size, small digital commerce penetration, and weak ecommerce retail growth. However, mobile technology adoption and internet penetration could mean strong forthcoming growth.
Dominant Local Incumbents
Local and regional marketplace platforms enjoy a strong home-court advantage. Designed to cater specifically to local customs, regulations, and demand, they often have the upper hand and/or government protection. Winning over users isn’t impossible, but it will require a strong approach and exceptional service.
The infrastructure in Emerging countries is quite strong. This includes solid logistics, good payment infrastructure, and a relatively low usage of cash. As such, getting operations up and running in an Emerging country should be relatively straightforward.
Improved Payments Move Countries Forward
When it comes to rising global stars, keep your eyes locked on Japan, one of 2019’s Big Movers. Long known for its tech-forward approach, the Land of the Rising Sun is now leading the way in payment innovation, especially in the realm of digital currencies. Sweden is another country at the forefront of currency innovation, boasting the highest number of cashless payments per capita.
Understanding Marketplace Opposition
Heavy regulatory environments are common throughout Emerging countries. Take Spain, for instance. Global players continue to struggle in the region thanks to an increasingly conservative approach to legislature that’s proven favorable to incumbent marketplaces, especially those servicing the country’s dominant industry: tourism. In France , local governments have brought lawsuits against sharing economy companies, and Hong Kong’s robust regulatory environment continues to cause roadblocks for many companies keen to capitalize on the country’s population of ultra-high-net worth individuals. As such, a keen understanding of local customs and business operations is crucial if your global marketplace is going to successfully enter and gain momentum in any one of these 12 markets.
Marketplace Expansion Index 2019 Rankings
|#16||United Arab Emirates|