9 June 2014 - If you’re an online merchant looking to expand and grow your business, BRIC countries offer a great opportunity to increase your online sales. IDC predicts that the buying power and connectivity of Brazil, Russia, India and China will overtake developed markets before the end of this year and will continue to grow through 2020. This rapid growth translates into increased sales for merchants investing in these markets.
The outlook is even better if you look at discretionary spending. Euromonitor International expects that by 2020 consumer expenditures for BRIC countries will total $10 billion, 61% of which will be discretionary. Rising incomes and a growing middle class add to the very rosy outlook in these markets, particularly in categories like sportswear, electronics, health/beauty and travel.
China in particular presents a strong opportunity. It will experience the highest growth in consumer expenditure - approximately 65% over the next six years as the country shifts from an export-dependent economy to more consumption-driven.
BRIC economies represent a critical path for international online merchants. Each country can serve as a regional gateway, providing merchants with access to neighboring countries. For example, Brazil is a key member of Mercosul, Brazil, Argentina, Uruguay, Paraguay and Venezuela providing a market of 185 million consumers.
While these countries offer great growth opportunities for online merchants, it's important to remember that there are challenges. Each country is unique. Merchants must avoid homogenous strategies and approaches and need to carefully select partners and vendors with deep knowledge of each market.
To help online merchants expand and grow in BRIC markets, GlobalCollect has several resources available, including a webcast entitled Winning ePayment Strategies for BRIC Countries. Click below to learn more.