Tiptoe to International Markets via Ecommerce

Store-based retailers can use ecommerce to introduce themselves into markets beyond their national borders and to gather market research information to shape their next moves. Nordstrom is one among many retailers choosing to do this. Urban Outfitters unveiled anthropologie.eu in order to assess the European interest in that upscale, teen-focused brand.

      Here are some tips from the perspective of business and shopper psychology:

• Prepare yourself and your business colleagues to handle the psychological stress of high uncertainty. Global retailing has been reeling the past few years from the economic freefall, and things seem to have turned even uglier in recent weeks with the debt crises in Greece and then in Hungary. Research findings from University of Pennsylvania indicate that your best approach for tiptoeing into international markets via ecommerce is to focus on the long-term: Enter with an optimistic approach. Gather data objectively. Analyze the results with a critical eye.
• Keep up with developments in ecommerce channels. The devices available for ecommerce are expanding in form and capabilities. Mobile phones have become smart phones. Amazon’s Kindle appears destined to take grocery orders as well as sell book contents. For some time now, Apple Computer CEO Steve Jobs has been predicting that the personal computer—and even the notebook computer—will fade away as viable ecommerce platforms. At The Wall Street Journal’s “D: All Things Digital” conference last week, Microsoft CEO Steve Ballmer responded by saying the new devices will augment, not replace, the personal computer and notebook computer.
• When marketing internationally, use translations strategically. Researchers at University of Michigan and University of Minnesota explored the choice of language in advertising to consumers in India. The researchers found that the home language—Hindi, in this case—worked best when selling necessities, such as detergent. English worked best when selling luxury items, such as gourmet chocolates. Evidence is also accumulating that consumers prefer to have prices set in the local currency which stays stable even in the face of fluctuating exchange rates. This makes pricing more challenging for you—the retailer. But if it leads to increased profitability, isn’t it worth the bother?

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Have Bilingual Staff for Bilingual Shoppers