What's new in the world of international marketing? From the impact of COVID-19 on eCommerce to a trade partnership between the UK and India, read more.
International Marketing News: The Impact of the Pandemic on eCommerce
What's new, important and interesting in the world of international marketing? This week we look at the influence of the pandemic on eCommerce sales, insights into consumer behaviour during times of economic turbulence, the importance of local for the luxury retail sector, an overview of the UK-EU export freight volumes and an enhanced trade partnership between the UK and India.
LATEST ECOMMERCE INSIGHTS INTO COVID-19 IMPACTS
Econsultancy roundup the latest stats driven by the impacts of COVID-19:
- Cross-border sales grew by 82% YoY in 2020, as consumers sought lower costs (mainly tax and delivery) and wider product ranges
- US eCommerce penetration saw a rapid growth spurt of 10 years from previous levels during Q1 2020
- Amazon Q3 sales increased by 35% and eBay by 25% YoY
- 61% of fashion retailers plan to reduce the number of SKUs on site due to lower demand generating left over stock
- 36% of consumers worldwide are less inclined to make a purchase without seeing a visual review
LOOKING BACK TO 2008, LESSONS CAN BE LEARNT TO UNDERSTAND THE EVOLUTION OF CONSUMER BEHAVIOUR DURING TUMULTUOUS TIMES
Think with Google reviewed learnings we can take from consumer behaviour during the financial crisis of 2008 to plan 2021’s digital marketing strategy:
- People flocked online to compare prices and find better deals, which is a trait that continued post-recession
- Consumers shifted away from buying premium to lower priced packaged goods
- SMEs looked to export to offset economic challenges in their domestic markets
LUXURY RETAIL’S SWITCH FROM ‘LOCATION, LOCATION, LOCATION’ TO ‘LOCAL, LOCAL, LOCAL’
JingDaily outline the switch luxury retailers have made from worldwide presence on the high street to building relationships with consumers through locally focused campaigns.
- The closure of the high street during lock down led luxury retailers to rethink their promotional strategies, moving away from targeting international customers to pivoting to meet the needs of their local customers as international travel drew to a halt
- Retail HQs have permitted local distributors to have more autonomy to drive locally targeted campaigns in place of a centrally developed strategy aimed at appealing to the requirements of international travellers shopping whilst on holiday
UK GOVERNMENT DENY THAT EU EXPORTS HAVE REDUCED HEAVILY POST-BREXIT
Institute of Export and International Trade investigate the current challenges to exporting to the EU experienced by UK businesses.
- Research carried out by the Road Haulage Association (RHA) indicated that export traffic to the EU had decreased by 68%, but Whitehall officials announced that traffic was back to normal levels.
- The number of customs agents supporting businesses currently stands at 10,000. Last years’ forecasts for support required recommended that 50,000 would be needed
- 65-75% of export lorries are retuning empty due to concerns that taking on import jobs will result in heavy delays at the border
- The Eurotunnel is currently reporting a 37% decline in freight traffic
UK AND INDIA ENHANCED TRADE PARTNERSHIP SECURED
The Institute of Export & International Trade outline the enhanced trade partnership negotiated this week:
- Investment secured from Tata to create 1,500 high skilled British technology sector jobs
- The UK was the largest European market for Indian exports in 2019/20
- Total UK goods export to India amounted to £5.5 billion in 2018 indicating the mutual benefit of forming a free trade agreement
- Due to India being in the top 2 Foreign Direct Investors in the UK, a trade deal could be worth up to £100 billion
If you want to discuss any of the stories included in this week's international marketing roundup, book in a conversation with us today.