7/3/2023 0 Comments Finetunes vs kontor new mediaInternet penetration: Percentage of the population accessing the internet At 64% Western Europe has the highest share of European e-commerce turnover followed by southern, central, northern, and eastern Europe in 2020 (Exhibit 2).Īlong with growth, high percentage of e-shoppers, internet penetration (Exhibit 3) and purchase frequency (Exhibit 4) make these two markets very attractive for e-commerce. Barring the country’s macroeconomic factors, e-commerce growth is heavily influenced by internet penetration, logistics network performance, delivery reliability, ease of doing business, digital payment penetration & ecosystem and shopping behavior. Within Europe, e-commerce market size and growth vary from country to country. Total B2C e-commerce in Europe excluding travel, music, and e-books is estimated to be €618 billion in 2021. The first step to expand beyond Nordics is to go to the neighboring EU markets before venturing to far flung markets. Source: Statista Western Europe, Germany, and the UK in particular are large and growing markets Nordic design is associated with being simple yet innovative in consumers’ minds hence can attract new customers in new markets in a quick time. They are seen as symbols of good design, functionality, and superior quality*. Nordic brands have good brand equity and favorable perception in all of these markets. All these markets are big in size (Exhibit 1) and at the same time are extremely competitive and complex from a new setup and operations perspective. Possibly, a Nordic brand can expand into other European countries, The US, and the Asian markets. One of the alternatives to grow the e-commerce business is to get into bigger and new markets. So, how does one sustain e-commerce growth and what are the options for the Nordic brands? Expansion to new markets is a good alternative, especially to markets that are closer to home. On top of the tough market conditions, another trend stalling e-commerce growth is that customers are returning to physical retail. Rising inflation- the war in Ukraine, and high energy cost are some of the factors that are denting consumer sentiments or are driving up the input cost. Markets across the US and Europe are experiencing a slowdown. Some of the e-commerce companies are even reporting de-growth as compared to the previous year. A s life has returned to normalcy, e-commerce growth is plowing back to the pre-covid levels.
0 Comments
Leave a Reply. |