Dr. Glenn Gearhart CEO of World Market Vendor Services, Inc. provides News and Commentary

Are You There Yet? Why Not North America?

Part IV - World Market Brings You North America!


In my six part marketing series: “World Market Brings You,” I always reiterate Retail Rule Three: “The world needs your product- get it to them!”

Second, I remind everyone there are seven continents - Africa, Antarctica, Asia, Europe, North America, Oceania and South America. Other than Antarctica, each represents a unique consumer marketplace that, with the help of World Market and payment by PinPay, is awaiting the arrival of your products. Are you there yet? We make it simple, Why NOT?

Are you there yet?
Review these facts, do a little market research, and then try to convince me you should not be selling your products in North America! For the purpose of this analysis all Central America and Caribbean countries are included in the North American continent.

Product Presentation Delivery and Online Sales: Delivery of eCommerce services over broadband internet in the United States and Canada is available to about 80% of the population. Greenland, Mexico, Central America and the Caribbean have lower population access rates but each year coverage increases.

Economic Status: The US is in a recession, and many foresee a long and slow recovery. The growth in retail sales is not expected to significantly increase for the next four years. However, eCommerce (retail and wholesale online sales) has and is expected to continue to show year after year sales growth. This growth will be obtained from the theft, or at the expense, of in-store sales.2

According to new sales estimates from eMarketer, Canadian eCommerce sales growth will outpace that of the United States from now through at least 2016. The research firm estimates Canadian eCommerce sales will grow 14.3% this year (2012) versus 13.8% in the United States. Sales growth is expected to slow each year through 2016, but Canada eCommerce sales growth will still run slightly ahead of the United States. Estimates put Canadian growth in 2016 at 11.0% and U.S. growth at 9.4%.1

Online sales of apparel and accessories are now growing faster than any other eCommerce product segment, and will help US retail eCommerce sales grow by 15.4% in 2012. Online sales of US apparel and accessories, a category where shoppers usually desire to touch, feel and try on before buying, will grow 20% in 2012.3,4

In the US and Canada eCommerce markets, computers and consumer electronics remain the largest single category of online spending. The tech-focused product segment will grab nearly a 22% share of eCommerce sales this year, and continue to grow as a percentage of the annual totals through 2016. On the other end of the spectrum, online food and beverage sales will grow 17% in 2012, and remain the smallest growth eCommerce category in 2012.3,4

New figures released by eMarketer show some robust projections for the eCommerce market in Mexico. Compiled in October 2011, the figures show Mexico’s eCommerce sales growing by 32% in 2011 and projected growth of 25.8% in 2012. These forecasts are similar to the projection made by the Asociación Mexicana de Internet (AMIPCI), which forecast eCommerce growth of 28% for Mexico in 2012. Given these developments, eMarketer has forecasted a 20.7% compound annual growth rate for Mexico’s eCommerce market between 2010 and 2015.5

Question: It is clear in the power house market of the US, the general economy will be going no where for years; but eCommerce sales in all of North America is growing, and growing very well. Ask yourself, when a market is growing at rates of from 10% to 25% per year, should you not be participating? Does it make sense to stay out when it is simple and cheep to enter the marketplace? Are you aware with these types of annual growth rates there is plenty of room for a new vendor, and a new product, to enter, get transaction, and grab market share? If you are in the North America markets, you need to expand, if you are not, you need to be!


Continent Core Numbers:

Number of counties: 34, includes Caribbean and Central America6,7

Population (2012 est.): 478.6 million6,7,8

Number of Internet users (6/12 est.): 315.6 million8

Other facts: See by each North American continent country in CIA Handbook and other reference sources.6, 7

Your Objections to North American Expansion are:

Yes, in Mexico, Central America and the Caribbean countries the lower and middle income consumers do not have large amounts of discretionary income. But out of the 315 million in the group about 275 million have some discretionary funds and are very adept at buying products online and using USD. Start with the US and Canada markets and move to the Spanish speaking markets when you are ready. I can assure you most North American consumers love to buy direct from the manufacture and vendor, and will buy unique and quality products from every country in the world. You need your products to be in the North American market.

Yes, these consumers speak English and Spanish; and World Market operates in English, but World Market does offer product presentations in 66 languages, and if a buyer has the money and really wants your product, they will find a way to buy it; and it will be with online CASH! If you are a vendor who has difficultly with English, find an English speaking helper, you need to be in the North American market.
North America

No warehouse located in North America. Not a problem, there are many shippers that will professionally deliver your products any where in the world, including all of the North American countries.

Will the North Americans want and buy your products? In a very consumer oriented, and maybe the wealthiest continent in the world, offer a quality product at a fair price and you will find many buyers.

If you have more objections, click on Support Center and submit a ticket to the sales team and they will be happy to assist in finding an acceptable solution.

The eCommerce segment of the North American market is growing every day and can be a valuable addition to your business growth plans, we are here to help- let’s move on it!


References:

1 http://www.internetretailer.com/2012/09/07/canadian-e-commerce-sales-growth-exceeds-us-growth

2 http://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf

3 http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/#kwfoirQdrL3qdvQb.99

4 http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/

5 http://latinlink.usmediaconsulting.com/2012/04/e-commerce-in-mexico-will-grow-by-25-percent-in-2012/

6 https://www.cia.gov/library/publications/the-world-factbook/wfbExt/region_noa.html
The CIA does not include Central America and the Caribbean into the North American continent, for this brief analysis we do include them and the South America continent excludes these countries.

7 https://www.cia.gov/library/publications/the-world-factbook/wfbExt/region_cam.html

8 http://www.internetworldstats.com/stats2.htm

http://en.wikipedia.org/wiki/Continent

https://www.cia.gov/library/publications/the-world-factbook/

https://www.cia.gov/library/publications/the-world-factbook/rankorder/rankorderguide.html