At present, the economic growth rate of the European and American markets is slowing down, and the persistently high inflation has led to widespread prices, which has further triggered weak consumption. In addition, affected by the rising operating costs of raw materials, labor, land, etc., the profits of foreign trade export enterprises have been further compressed.
In the midst of difficulties, emerging markets have become the key to breaking the situationThe huge demographic dividend and strong consumer demand are a new hot spot for foreign trade merchants to find new increments and explore new opportunities.
Will the next era of growth be focused**? Today we are going to share the emerging markets of foreign trade in 2024.
1. What are the emerging markets?
Southeast Asia, Latin America, Middle East and AfricaFour emerging markets. The average age of the population is inUnder 30 years of age, which is far lower than the average age of the 44-year-old population in traditional mature markets, and has obvious advantages in youthfulness. The demographic dividend continues to be releasedRejuvenation stimulates the vitality of consumption.
In the coming years, this piece hasEmerging markets with a population of more than 3.2 billionwill become more and more vibrant. For merchants, if they want to enter a market segment that they have not set foot in before, they need to:Do a good job of market insight and intensive cultivationto achieve long-term growth.
2. Gain insight into the characteristics of emerging markets and grasp growth opportunities
Southeast Asia
Market characteristics: Highly mobile, high social ** penetration, young consumer dominance;
Shopping attitudeCost-effective products, low requirements for supply;
Hot Selling CategoryMotors, mechanical appliances, plastics, iron and steel, fossil fuels, home furniture, vehicles, organic chemicals, knitting and weaving;
Payment habits: cash payments, digital wallets;
The main challenges: to be more sensitive, to price and quantity is the norm, logistics last mile.
Latin America
Market characteristics: Young consumers are the leading, social media users account for % of client shopping;
Shopping attitude: The selection refers to European and American celebrities, the middle and end of the month are the shopping peak, and the product review research is enthusiastic;
Hot Selling CategoryMotors, mechanical appliances, vehicles and their spare parts, steel, chemicals and other industrial products, parts, etc., home furniture, clothing, toys;
Payment habits: Credit card payment, bank account transfer (A2A);
Key challenges:: The logistics foundation is poor and the customs clearance is difficult.
Middle East
Market characteristics: Female consumers are the main force, there are many wealthy classes, and the purchasing power is strong;
Shopping attitudePay attention to product quality, high customer order and high consumption, and be sensitive to arrival time;
Hot Selling CategoryMotors, mechanical appliances, steel, automobiles and other industrial manufactured products, parts, home furniture, clothing, shoes, umbrellas, ceramics;
Payment habits: Credit card payment, bank account transfer (A2A);
Key challenges:: Poor logistics foundation, low delivery rate, and high return rate.
Africa
Market characteristics: Young consumers dominate, with a large proportion of middle and low income classes;
Shopping attitude: Pursue cost-effective, consider the long cycle, and pay attention to the etiquette atmosphere;
Hot Selling Category: mechanical appliances, vehicles and their spare parts, electronic components, wigs and hairdressing, clothing, home furniture;
Payment habits: Cash payment;
Key challenges:: Poor infrastructure, difficult delivery problems, and online payment habits have not yet been formed.
3. Insight into foreign trade industry trends
Branding
With the iteration of the overseas consumption environment, consumers are no longer satisfied with low-quality, white-label products, and the traditional spread arbitrage model cannot form a virtuous circle in the long run. Due to the limited development of emerging markets themselves, the local product upgrading speed is slow, which is a fertile ground for Chinese businesses to innovate and grow and build brands; Rely on product innovation and R&D, build products and brands with heart, so as to obtain higher product added value and build core barriers.
Digital intelligence
Relying on the rapid development of digital technology, digitalization has fully penetrated all links of the foreign trade industry chain, and has become a major factor and important force to promote industry reform, business model innovation and seek certainty. Since the epidemic, the global digital ** has developed rapidly, and the scale of China's cross-border e-commerce import and export has maintained rapid growth: in the first half of 2023, China's cross-border e-commerce import and export will be 11 trillion yuan, a year-on-year increase of 16%. Obtaining orders is only the first step, under the growth of digital foreign trade orders, digitalization is also accelerating changes in the service chain of marketing, logistics, payment and other services, helping foreign trade merchants to further reduce costs and improve efficiency.
Flexibility
The transformation of the chain to "soft" is the inevitable result of the accelerated penetration and reshaping of the ** chain under the new trend of going overseas, and foreign trade enterprises need to improve their own capabilities through the digitalization of production, operation, performance and external collaboration. On the manufacturing side, focusing on diversified, customized and precise user needs, based on intelligent decision-making, we cooperate with upstream factories to reduce costs and increase efficiency based on sales and production; On the delivery side, convenient, sensitive, deterministic logistics, payment, customs clearance, compliance and other flexible chain services meet the needs of rapid response.
Socialization
According to **, the global social e-commerce market size will grow from $992 billion in 2022 to 2% in 20269 trillion dollars. Overseas merchants need to grasp the independent station + Google promotion, activate new traffic, shape brand image, occupy the minds of users, and promote sales growth.
Localization
Emerging market countries have different economic environments, policies and laws, religions, cultures, and language customs, which put forward higher requirements for localized operations. Overseas merchants need to take root in the local market, strengthen the ability of localized operation in product development, brand building, marketing promotion, logistics and warehousing, ** chain, operation and management and other complete operation systems, reduce the cognitive bias of the target market, and continuously build trust through continuous value output.
Foreign trade