Building a Case for LOCALIZATION

W H Y Y O U S H O U L D C A T E R T O C U S T O M E R S − W H E R E V E R T H E Y A R E −

EXPANDINGTONEWINTERNATIONALMARKETS?Local ize your s i te to accommodate g lobal v is i tors .

M o s t o n l i n e s h o p p e r s p r e f e r t o m a k e p u r c h a s e s o n w e b s i t e s w r i t t e n i n

t h e i r n a t i v e l a n g u a g e a n d u s i n g l o c a l c u r r e n c y . I n f a c t , 3 3 % o f c o n s u m e r s a r e l i k e l y t o a b a n d o n a p u r c h a s e i f p r i c i n g i s o n l y i n U S d o l l a r s .

( C o m m o n S e n s e A d v i s o r y )

C u s t o m e r - c e n t r i c c o m p a n i e s t h a t m a k e t h e e f f o r t t o a d a p t o r p e r s o n a l i z e

t h e i r w e b s i t e t o t h e l o c a t i o n s a n d c u l t u r a l n o r m s o f t h e i r n e w m a r k e t s r e a p R O I b e n e f i t s t h a t a r e e v i d e n t i n t h e i r b o t t o m l i n e .

REVIEWTHE5 REASONSWHYYOUSHOULD

LOCALIZE YOURWEBSITE FORGLOBALGUESTS

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BUILDINGACASEFORLOCALIZATIONWhy Your Business Should Cater to Customers Wherever They Are

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Many Opportunities Outside the U.S.

Increase in Global eCommerce Sales

Decrease of U.S. Share in Global eCommerce Sales

Domestic Shopping Trends & Changes

Reduced Barriers to Entry for eCommerce

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1OPPORTUNITIESOUTSIDETHEU.S.

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Deciding whether to expand your business outside United States boundaries? It’s not an easy decision but certainly one worth giving your attention. While there are many things to research before deciding to go global, the most lucrative consideration is to adapt your business to the language, currency and cultural norms of the target audience to whom you are selling your products and services and make customers feel comfortable on your site.

Recent statistics highlight that 95% of the world’s consumers live outside the United States. Imagine the potential growth opportunity if you’re already successful only reaching 5% of your potential target audience? Also, according to the U.S. Chamber of Commerce, Global GDP will expand by $22 trillion over the next five years, so there is even more room for success coming down the line. Many businesses are planning and strategizing how they can reap the benefits of ecommerce growth.

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MANYOPPORTUNITIESOUTSIDETHEU.S.1

MARKETS OUTSIDE U.S. BORDERS REPRESENT:

80% of the World’s Purchasing Power 95% of the World’s Consumers 92% of the World’s Economic Growth U.S. Chamber of Commerce

More people around the world are drawn to participate in eCommerce through gaining access to more affordable mobile devices and Internet. Out of 7.5 billion people in the world, 4 billion people use the Internet daily. Out of that large population, only 325 million people live inside the United States. Creating eCommerce instances in new markets around the world and localizing them for each new launched market means your organization may be able to effectively reach a large number of people and untapped markets in the global eCommerce landscape.

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2INCREASEINGLOBALECOMMERCESALES

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Global retail eCommerce sales are expected to grow over 20% each year, reaching $4.8 billion by 2021 with no signs of slowing down. A key factor of this growth is that more people around the world are gaining access to mobile phones and Internet accessibility, and more are completing purchases using their mobile devices. According to Business Insider Intelligence, emerging markets are going to be essential for eCommerce growth, as retailers in developed markets may soon reach saturation in terms of consumer growth.

Website localization is a key component in gaining a share of international eCommerce growth by reaching consumers in new and growing areas around the world. Ensuring a mobile-friendly experience is especially important as consumers more frequently shop using mobile devices.

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INCREASEINGLOBALECOMMERCESALES2 Global Retail eCommerce Sales (2014 – 2021)

Statista 2018

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3U.S.SHAREINGLOBALECOMMERCE

U.S.$340BILLION

CHINA$672BILLION

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The United States at one time was the champion of eCommerce. However, the U.S. share in global eCommerce sales is steadily decreasing as other countries increase competition. By 2020 it is projected to reach 16.9%, down from 35% in 2005.

According to market research company eMarketer, only 1% of the over 30 million U.S. companies sell their products or services internationally.

According to the chart (right) by McKinsey Global Institute, China increased their share of eCommerce sales from a 0.6% share in total retail eCommerce transaction value to over 42% in just over ten years! They accomplished this growth through more Chinese companies reaching more people, enhancing their ability to process mobile payments and by offering payment options that are comfortable to their consumers.

One way the U.S. can increase their share in global eCommerce sales is by having more businesses embrace international eCommerce. By localizing the language, currency and payment options for global communities and by making products more available to international consumers, they could increase search engine optimization of translated keywords and increase organic search visibility and traffic.

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U.S.SHAREINGLOBALECOMMERCESALES3

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U.S.SHAREINGLOBALECOMMERCESALES3THE 10 LARGEST ECOMMERCE MARKETS (BY BILLIONS USD)

US $340

CANADA $30

CHINA

$672 RUSSIA $20

FRANCE $43

BRAZIL $19

GERMANY $73

UK $99

JAPAN $79

S. KOREA $37

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4DOMESTICSHOPPINGTRENDS&CHANGES

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Shoppers are becoming more comfortable seeking products outside their domestic borders as long as they can understand the content and product information on the eCommerce site and they are offered a payment option in their comfort zone. According to Neilsen’s Connected Commerce Report, 57% of online shoppers made an online purchase from an overseas retailer in the past six months.

Companies that are savvy enough to capitalize on these trends will reap the benefits. Gary McDonald, President of multi-currency settlement solution E4X says, “If eCommerce merchants show this respect with a simple offering of localized currency, they will enjoy increased sales and a more positive brand image as a truly global market player.” Common Sense Advisory Chief Strategy Office Don DePalma adds, “There should be no question about localizing your website and product information if you want to sell more goods or services to global customers.”

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DOMESTICSHOPPINGTRENDS&CHANGES4

DOMESTIC SHOPPING TRENDS & CHANGES:

75% of consumers want to buy products in their native language. 59% of consumers rarely or never buy from English-only sites. 67% of consumers prefer navigation and content in their native language. 92.2% of consumers prefer to shop and make purchases on sites that price in their local currency. 33% of consumers are likely to abandon a purchase if pricing is in U.S. dollars only.

Common Sense Advisory

Common Sense Advisory

Common Sense Advisory

E4X

E4X

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U.S. – Credit Card or Digital Payment System

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DOMESTICSHOPPINGTRENDS&CHANGES4

PREFERRED PAYMENT METHODS BY REGION

CANADA – Bankcard or Digital Payment System

LATIN AMERICA – Credit Card or Digital Payment System

AFRICA – Cash on Delivery or Debit Card

EUROPE – Digital Payment System or Credit Card

MIDDLE EAST – Cash on Delivery or Credit Card

CHINA– Digital Payment System or Credit Cards

AUSTRALIA– Credit Card or eWallet (PayPal)

RUSSIA– Cash on Delivery and eWallet

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5REDUCEDBARRIERSTOENTRYFORECOMMERCE

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HOW TO OVERCOME THESE BARRIERS:

Language Differences and Cultural Sensitivities: Using cloud-based native support for translation services means you work with local market experts to make sure your key sales and marketing messages are translating accurately.

Payment Preferences: Global consumers prefer to pay in their own currency and method of choice. Support local payment and currency options, taxation systems and logistics systems through cloud-based electronic payment systems that allow you to safely accept payment in many currencies and transfer it to your currency of choice.

Internet Security Concerns: Make sure you use a global cloud infrastructure that enables you to secure transactions using the industry standard security measures such as being entrusted with PCI Level 1 and SOC-2 certifications and maintaining GDPR compliance.

REDUCEDBARRIERSTOENTRYFORECOMMERCE5

Localizing your website helps your business gain a competitive advantage, gain new customers and leads, increase brand awareness and overcome cultural barriers. It is becoming easier to localize your website for each new international market to communicate effectively with new global visitors with the emergence and enhancement of sophisticated eCommerce platforms.

To maximize your velocity to market and simplify the process of localizing eCommerce instances, you can use a platform like Bridgeline Unbound. Spinning up localized websites for new markets is much easier when you are provided with cloud-based translation services utilizing native support, automated content workflows, secure payment gateways, adherence to tax and governance issues, and more. You are able to streamline your global expansion even more by managing the whole process through one central console and organized dashboard.

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Expanding your business globally requires much more than a one-size-fits-all strategy. Companies that tailor the onsite experience for a variety of visitors based on local market characteristics show them that they care and want to make them feel at home on their website. In this way, visitors are more likely to convert into customers because they trust the information on the site from the text to the currency used to purchase, the manner in which they decide to pay and more. When you do make the decision to go global, the next decision you should make is, “how will we localize our web presence in the new markets?”

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WHYSHOULDYOULOCALIZEYOURGLOBALECOMMERCEINSTANCES?

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