The digital revolution is transforming the retail landscape at an unprecedented pace, propelling businesses to expand beyond borders and tap into the lucrative world of global e-commerce. However, the challenge of identifying the most promising markets for global expansion is ever-present for businesses navigating the digital retail landscape. To help guide e-tailers through these opportunities, we have developed the "Markets to Watch" guide. This resource offers a deep dive into emerging trends and consumer behaviors, providing valuable insights that can shape the future of e-commerce strategies across the globe.
Asendia’s guide delves into key trends and consumer behaviors in regions such as Europe, North America, and Australia, providing e-tailers with the insights needed to thrive in a competitive global environment. With e-commerce expected to account for a substantial portion of retail growth worldwide, understanding these markets isn't just advantageous — it's essential for any business seeking long-term success.
France: Sustainability at the Forefront of E-Commerce Growth
France, long recognized as a pioneer in e-commerce innovation, is experiencing a significant shift toward sustainability. In a country known for its discerning consumers, a remarkable 70% of French e-shoppers now express a preference for retailers that offer eco-friendly delivery options. This shift isn't just a trend — it's a powerful movement that is reshaping the market. By 2027, France's e-commerce market is projected to reach a staggering €200 billion, driven in large part by this consumer demand for sustainable practices.
The sustainability trend in France isn't confined to delivery options alone. The resale economy is poised to become a key player in the market's future. With an estimated value of €14 billion by 2030, second-hand goods and circular economy models are gaining traction among French consumers who are increasingly prioritizing environmental responsibility. For retailers, aligning with these values isn't just a way to attract more customers — it's a strategic move to stay ahead in a rapidly evolving market.
In essence, the French market offers a blueprint for how sustainability can drive growth in e-commerce. Retailers that embrace eco-friendly practices, from sustainable packaging to energy-efficient supply chains, stand to gain a competitive edge. The message is clear: in France, sustainability is no longer a nice-to-have — it's a must-have.
United Kingdom: Resilience and Reliability in a Post-Brexit World
The United Kingdom, despite the economic and logistical hurdles posed by Brexit, continues to be Europe's largest e-commerce market. The numbers speak for themselves: 81.5% of consumers in the UK shop online, a testament to the resilience of the market. This resilience is underpinned by several factors, chief among them being the widespread adoption of hybrid work patterns, which have spurred increased online shopping.
The UK's postal network, renowned for its reliability and efficiency, plays a crucial role in supporting this thriving e-commerce ecosystem. A striking 94% of orders are delivered successfully on the first attempt, showcasing the strength of the country's delivery infrastructure. Moreover, 59% of shoppers prefer having their purchases delivered directly to their homes, underscoring the importance of convenience in the UK market.
However, the UK's e-commerce landscape is not without its challenges. The complexities introduced by Brexit, including changes in customs regulations and cross-border trade, have necessitated that retailers adapt swiftly to the new reality. Yet, for those who can navigate these challenges, the rewards are substantial. The UK's e-commerce market remains a powerhouse, driven by tech-savvy consumers and a robust delivery network. For international retailers, entering the UK market offers the potential for significant returns, provided they can meet the high expectations of British consumers.
North America: A Hub of High-Spending, Tech-Savvy Consumers
North America, with its tech-savvy and high-spending consumers, continues to be a beacon of opportunity for e-commerce businesses. The United States, in particular, has seen explosive growth in online sales, surpassing $1 trillion in 2022 — a remarkable 101% increase in e-commerce revenue since 2019. This growth is fueled by a combination of factors, including the rise of mobile commerce, the increasing trust in online delivery services, and the relentless innovation within sectors such as fashion, electronics, and health and beauty.
American consumers are among the most demanding in the world, with a keen eye for convenience and efficiency. Next-day delivery, once a luxury, is now an expectation for many shoppers, particularly in metropolitan areas. Retailers that can meet these high expectations are well positioned to succeed in this dynamic market.
Neighboring Canada also presents substantial opportunities for cross-border trade. With a strong e-commerce infrastructure and proximity to the US market, Canada offers a unique blend of growth potential and logistical ease. Interestingly, 25% of Canadians consider next-day delivery an essential service, reflecting the growing expectations of online shoppers in the country. For retailers, the North American market represents not just a vast consumer base, but a region where innovation and customer experience can truly set a brand apart.
Australia: A Thriving E-Commerce Destination with a Focus on Sustainability
Beyond the familiar landscapes of Europe and North America, Australia is emerging as a thriving e-commerce destination with its own unique characteristics. In 2022, Australia witnessed e-commerce sales reaching AU$55.1 billion, marking a 20% increase from the previous year. This growth is largely driven by the country's tech-savvy population, with 59% of online purchases made via smartphones. For retailers looking to expand into the Australian market, a seamless, mobile-optimized shopping experience is crucial.
But it's not just convenience that drives Australian consumers. Like their French counterparts, Australians are increasingly prioritizing sustainability in their purchasing decisions. A striking 75% of Australian shoppers believe that retailers should be ecologically sustainable, and this consumer preference is shaping the future of the market. Brands that can align their operations with these values — through sustainable packaging, carbon-neutral delivery options, or ethical sourcing — are likely to find a receptive audience in Australia.
The Australian market is a testament to the fact that sustainability is becoming a global phenomenon, not just a regional trend. For international retailers, understanding and responding to these consumer expectations is key to unlocking growth in this promising market.
Navigating the Global E-Commerce Landscape: A Roadmap for Success
In a world where e-commerce is no longer confined by borders, understanding the nuances of each market is essential for success. Whether it's the rising prominence of sustainability in France, the resilience of the UK's e-commerce ecosystem, the high-spending and tech-savvy consumers of North America, or the thriving potential of the Australian market, Asendia's "Markets to Watch" guide offers a roadmap for businesses seeking to expand their global footprint.
But it's not just about market data and trends. The insights from the accomplished individuals profiled in the "Global Retail Voices" initiative provide a deeper understanding of the strategies that drive success in this fast-paced industry. By highlighting the remarkable accomplishments of these industry leaders and offering in-depth analysis of the global e-commerce landscape, Asendia empowers retailers to make informed decisions and position themselves for success in the rapidly changing world of online retail.
Whether it's tapping into the sustainability-minded consumers of France or leveraging the high-spending and tech-savvy shoppers of North America, these insights serve as a guide for navigating the complexities of global expansion and unlocking new avenues for growth. In the end, success in global e-commerce comes down to understanding the market, embracing innovation, and staying agile in a world that never stops evolving.
Doug Longobardi is the Executive Vice President, Sales at Asendia USA, joining the company when it acquired Globegistics. Asendia is one of the world's leaders in international e-commerce and mail, delivering packages, parcels, and documents to more than 200 destinations across the globe. Prior to devoting his expertise to Asendia USA, Doug was the Executive Vice President and Partner of Globegistics, a global e-commerce and mail solutions company he co-founded in 2011 and helped grow from nothing to $75 million in sales. Doug has over 25 years of postal, courier, and global distribution experience.
This article originally appeared in the 2024 Global/Cross-Border Issue of PARCEL.
