If you read Part I of our series, 3 Consumer Trends Retailers Can’t Afford to Ignore, you already know that emerging markets are changing the face of the Consumer Goods and Retail industry for good. In this post, we dig into the details of how today’s retailers are addressing this new trend, and how they connect with new prospects—no matter where in the world they are.
Emerging Markets in Asia Pacific Region Take the Stage
Today’s retail operations must expand their sights to the East as well as the West. Deloitte tells us that by 2025, cities in the Asia Pacific regions will account for as many as 448 million people—accounting for almost 10 percent of the world’s population. And those 448 million people contain a growing middle class, which is predicted to have $18 billion in disposable income compared to $12 billion available for North American and European markets.
Generations and shifting global economies in the East play a major role as well. While younger generations in the West grew up during a period of relative economic hardship, those in the East grew up during rapid economic growth in their region. This key difference leads to different views on consumerism and spending, which today’s global retailers must be prepared to face. (Source: Deloitte)
How Retailers Can Access New, Emerging Markets
Regardless of the unique message and branding required to speak to these emerging markets, retailers must first be able to reach them.
In the West, online penetration rates make the Internet a perfect place for retailers to both advertise and distribute their products. New platforms, or what a Deloitte report refers to as “enabling technologies,” have disrupted the traditional retail model in North America and Europe. Online, subscription-based services and e-commerce retail sites make it easy for retailers to reach consumers, and for consumers to purchase online.
But, the online penetration rate in the Asia Pacific region is half of what it is in North American and European regions. According to Internet World Stats, the online penetration rate for 35 countries across Asia is approximately 45% (as of September 2016).
The online penetration rate for Asia is 45% compared to 71% in the Americas (as of June 2016) and 73.5% in Europe (as of November 2015).
While we can expect the online penetration rate in the Asia Pacific region to increase along with the growing middle class, current stats still present a problem for today’s retailers: what is the best way to reach emerging markets that have fewer Internet users?
That’s where cloud communications enter the picture. With virtual toll free and local phone numbers, businesses in the consumer goods and retail industry can establish a local presence—without opening a new office for every target market.
To connect with these emerging markets, retailers must establish a local presence. And the best way to do this without opening new offices in Asia and the Pacific is through cloud communications.
Toll free and local phone numbers provide consumers with a free or low-cost way to reach businesses. And since they are formatted to look like regional numbers, they help businesses act local, and be global. Calls made to toll free and local phone numbers can be forwarded anywhere in the world—so businesses can answer calls made to a China toll free number from their headquarters in the US, UK, or anywhere else in the world.
To learn more about AVOXI’s global communications solutions, talk to an AVOXI sales representative today.