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How digitization sustained globalization in a restricted world

How digitization sustained globalization in a restricted world
Written by publishing team

Our internationally connected economy and market globalization have radically affected and transformed the e-commerce and marketing industries. This advancement has changed the meaning of ‘growth’ and is now likely to include an international, multicultural and multilingual client base.

For retailers who have already saturated their local markets, globalization gives them access to new customers and new capital in global marketing. We explore how, despite the obvious consequences of the pandemic, globalization continues to evolve and what the future holds for e-commerce and marketing as a whole.

Globalization during a global crisis

For many companies, this has been a challenging two year. After Brexit, we met with Covid-19, which stopped most operations and even human interaction.

However, those who invested in digitization continued to trade and keep the business running almost as usual. Retail as an industry was the largest spender on digital advertising in the UK in 2020, accounting for one in five pounds of digital advertising, with a share of 20% of total UK ad spend.

Growth in omnichannel retail has coincided with the progress of globalization. The Internet and e-commerce have provided small businesses with the ability to promote and distribute products around the world. This has caused retailers to expand into a global chain just to keep up with the pace of new customers and revenue streams.

As online retail continues to grow, it is estimated that 95% of all purchases will be through e-commerce by 2040.

Globalization challenges and opportunities

Previously, shopping was a “hands-on” experience of spending the day in the mall trying on clothes and cosmetics, as well as having face-to-face conversations with customer service assistants. Now customers have high expectations because of online shopping; Seamless customer journey, instant delivery/collection, and a “touch-free” experience.

Dealing with language and cultural differences, finding effective ways of advertising and distribution, and establishing relationships with local suppliers are important components of effective globalization. It may be difficult to replicate the same level of expectations achieved in the domestic market in many countries.

Securing social acceptance for your brand and products is an important step in entering a new market. Products and services are not always presented in the same way, and a successful business model in a country does not always translate effectively.

Similar cultures and similar economic and market opportunities in the European market make it very easy to break into the US market. The US is the UK’s largest source of imports, accounting for 13% of all imports.

There are many retailers who have developed a successful global strategy. We can use the Bosco Index to rank retailers based on their investments in paid and organic media. The average score for retail traders is 575.

IKEA (Bosco Index: 706) is proud of its cost-reducing policy, and to work effectively around the world, it requires the globalization of production. Ikea maintains production sites in the 30 countries in which it operates, reducing logistics and manufacturing costs that would otherwise become unfeasible when operating on a global scale.

Another last challenge is finding global talent, and it has become very difficult to hire new people. Based on the findings of our team in Sydney and Melbourne, it has become almost impossible to find data scientists.

In all sectors, candidates have not been looking to switch roles during the pandemic and are still reluctant to do so following the furlough scheme, uncertain job prospects and pandemic insecurity.

It’s tempting to think that we’re now in a global market for talent, which means there are more opportunities to hire a team in India or Guangzhou, but the reality is that companies still want to talk to employees face to face. Time zones and separation make it difficult for teams to navigate their strategy.

The first bonus is the flexibility of working remotely, and video calling is now more acceptable. It took a year of Zoom-bombing, a stop to silent, awkward background antics, but video meetings are now working in ways that no one would have heard of in 2019.

Attracting talent will tend toward more businesses that are 100% off and spend their office budget on company culture instead.

What will the future look like?

Online businesses have been forced to remain able to fulfill their potential in today’s climate. Access to global markets, despite the rise of protectionism and decisions such as Brexit, has been a new front for some retailers, many of whom have posted record profits during the lockdown. It would be great to see if consumers will stay online permanently, and what are the aspects of a quick return.

Understanding where and when to invest in media has never been more important. Bosco gives brands and agencies the power of predictive analytics, connecting and transforming your marketing data to deliver powerful insights. Book a demo to find out how Bosco can help your business.

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publishing team