It's clear that the strongest growth in the global economy in the coming years will take place in the BRIC countries. While the acronym originally stood for the emerging economies of Brazil, Russia, India and China, it now includes other industrialized countries such as Mexico, Turkey, South Africa, Thailand, Vietnam and others.
For Western companies to be successful in conducting online trade in the BRIC nations, it's essential that they're aware of these countries’ unique cultures and customs. As a result, they'll discover the tried-and-true Western model of dot-com retail may not always work. Each BRIC country is unique; it's those Western businesses that do their homework that will succeed.
Multiple Buying Preferences
While retailers may develop a strategy to increase online sales in BRIC countries, what they really need is a collection of strategies specific to each market. A common mistake is assuming that there's one online model that will work for all BRIC countries. For example, consider how hierarchical each country is. Is it collectivist or individualist? Russia is the most hierarchical, meaning that status markers are very important in its society. Brazil, India and China are less so, but all of these cultures are much more collective than in the U.S., where individualism reigns and class distinctions are temporary.
In China it's especially important for consumers to blend in with their purchases. It's not a coincidence that the business model for Groupon — consumers receive a great bargain only if a certain number of people agree to participate — originated in China.
Among most BRIC countries, buying for the family outweighs shopping for the individual. The online space needs to resemble a trip to a brick-and-mortar store. It's important for consumers to have the ability to chat or post a comment about their purchases, which reinforces the approval of their purchases among a broader group. Purchasing a certain brand — or avoiding one — identifies consumers with a certain group or segment of society. Contrast this with the American society and the typical dot-com model in which individualism and freedom of choice are the rule.
Common Mistakes
Failure to be aware of local ecosystems in the BRIC and other emerging nations prevents marketers from getting a competitive edge that will differentiate their brand from others. For example, First Flight, an Indian logistics/courier service, provides a service called “emotional bond” on its website. Customers using this service can select from a variety of prepackaged Indian cookies and other traditional desserts along with a greeting card to be sent to friends and family for special occasions celebrated in the country. Similary, EMS China provides a “Mooncake Delivery” service for the Chinese New Year.
Extraordinarily high international shipping rates — or a company's insistence on requiring a U.S. shipping address — can obviously hinder online sales in a BRIC country. Shipper Aramex has a creative solution: a “Shop and Ship” service, which provides its customers with a local address in the U.S., U.K. or China. The purchased items are delivered to Aramex's local address, then shipped by Aramex to the customer wherever in the world they reside.
Online marketers can't assume consumers will flock to a website simply because it's there, as they might in the U.S., Japan or Western Europe. In many BRIC countries, the internet is only one part of the equation. Moving consumers to a website often begins offline, in conversations with friends and in offline spaces where consumers can gauge what everyone else is doing. The challenge for online marketers in these more collectively-oriented countries becomes moving the conversation from offline venues into the online space.
Still, some strategies can be the same across multiple countries. Some internet norms are the same from place to place — e.g., the location of menus and the use of carts. Oftentimes the back end of a website can remain basically the same from country to country.
Pay Attention to Shopping Habits
Western businesses can't just assume that the same dot-com model that's worked so well in the U.S. will enjoy similar success in the BRIC marketplace. Just as an American might turn up his nose at escargot served at a French bistro, a Russian consumer might be turned off by an online strategy that works wonders in India or the Philippines.
Learning the shopping habits of consumers in the BRIC countries and applying that knowledge to not only website design but to the overall marketing strategy that drives consumers to place products in shopping carts is essential for Western companies that want to increase their successes in the international marketplace.
Apala Lahiri Chavan is chief oracle and innovator with Human Factors International. She's also author of "Innovative Solutions: What Designers Need to Know For Today's Emerging Markets." Apala can be reached at apala@humanfactors.com.