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INTERNET RETAILING IN EMERGING MARKETS: LONG-TERM GROWTH OPPORTUNITIES IN BRIC COUNTRIES
May 2012
© Euromonitor International PASSPORT 2 RETAILING: INTERNET RETAILING IN EMERGING MARKETS
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Alcoholic Drinks
Consumer Appliances
Consumer Electronics
Hot Drinks
Soft Drinks
Apparel
Beauty and Personal Care
Consumer Health
Packaged Food
Pet Care
Vo
lum
e-b
ase
d In
dustr
ies
Va
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-based
In
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Internet retailing share of distribution (%)
World: Internet Retailing Penetration by Industry 2010
Industry Average Highest Penetration Category Lowest Penetration Category
Significance of internet retailing
varies from industry to industry
Whilst internet retailing has
become a major force in retail, its
impact is more pronounced within
non-grocery industries.
Internet retailing is most advanced
within consumer electronics, due to
the fact that most products in this
industry are high value. This means
that consumers are more likely to
shop around before purchase.
Conversely, soft drinks have not
been affected much by the internet
retailing channel due to the impulse
nature of the product, as well as the
importance of convenience.
Within industries, there are also
variations. In consumer health, for
instance, sports nutrition sells very
well over the internet, whilst most
consumers cannot wait for delivery
of emergency contraception.
Which industries and categories sell well on the internet?
Please note: Value-based industries and Volume-based industries denote in what terms the relevant
industries are researched in. E.g.. Alcoholic drinks is researched in volume terms, therefore the
industry average for internet retailing is for the channel to account for less than 2% of volume sales.
WHY INTERNET RETAILING? WHY BRICS?
© Euromonitor International PASSPORT 3 RETAILING: INTERNET RETAILING IN EMERGING MARKETS
Other clones
Fa
cebook c
lones
Twitter clones
The importance of social media
In developed markets, social
media has played a major role
in changing the way brands
communicate with consumers.
This is also true of the BRIC
markets, although the lower
number of internet users does
diminish the impact somewhat.
A different kind of Facebook
Many consumers in the BRIC
markets, however, prefer local
versions of popular social media
sites. In China, for instance,
many websites are blocked by a
government-imposed firewall.
This has led to many social
media sites, such as Facebook
and Twitter, being inaccessible.
This has resulted in the rise of
Chinese clone sites, which are
immensely popular in China.
Welcome to a world of social media without Facebook and Twitter
Sina
Tencent
Sohu
Weibo Kaixinwang
Douban (product
review site)
Meilishuo
(Pinterest clone)
Tencent
Qzone
QQ (MSN
messenger clone)
CHALLENGES IN THE BRIC MARKETS AND HOW TO OVERCOME THEM
© Euromonitor International PASSPORT 4 RETAILING: INTERNET RETAILING IN EMERGING MARKETS
80 Markets: Internet Retailing Channels by Language
English
Japanese
German
French
Chinese
Korean
Portuguese
Russian
Spanish
Others
English: The primary language of the
internet
In 2011, 47% of internet retail sales
were generated by markets using
the English language. This is due to
decline to 43% by 2016 as the value
of the Chinese market increases.
Spanish language has mass appeal
Whilst English is used in 14 of the
top 80 markets, Spanish is fast
becoming an important language. Its
dominance in the Latin American
region means that there are 13
markets which use it.
Sales from these Spanish speaking
markets only accounted for 2% of
internet retail sales. However, this is
expected to rise as Mexico and
Argentina undergo rapid growth.
Creating a single platform across all
of Latin America has been a popular
strategy used by the likes of Apple.
Is a language-based approach to expansion the best option?
BEYOND THE BRICS: THE NEXT MARKETS
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