EYES ON THE PRIZE

Where will the next eCommerce boom be – and in which industry? Australia Post has some useful insights on what to look for.

Growth indicators

The country must have a large population and a growing middle class. Typically, the emerging middle class wants to consume high- quality products and much of what is bought online is discretionary (a want rather than a need). Internet access is essential. If you’re buying online, you have to be able to get online. Some countries have low internet penetration now but it’s rapidly expanding. A degree of logistics maturity is required to enable reliable delivery – basic infrastructure has to be in place.

Growth prediction

Indonesia has an extremely large population and a middle class that’s projected to grow a lot faster in the next decade. While internet penetration in Indonesia is currently about 40 per cent, it’s already the third-largest smartphone market after China and India. In Australia, online shopping began with desktops; whereas in Indonesia, it has started and will continue with mobile.

Growth industries

Australia’s big retail brands already have traction in New Zealand and this trend is growing. In China and the rest of Asia, health care, beauty and baby goods continue to be the largest growth categories. Ones to watch are food and wine.

The first step

When you’re targeting a particular overseas market, fifind out if the expat community in Australia is already using your products and how they feel about your brand. If they are, amplifying that brand awareness or product advocacy is a great fifirst step into a new export market.