International Retail Index - The definitive guide to international retail in 2018 - World Retail Congress
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International Retail Index
The definitive guide to international retail in 2018
in partnership withThe definitive guide to international retail
in 2018 is brought to you by Loqate, in
partnership with Planet Retail RNG and
Retail Week Connect. Take a deep dive into
the top 30 retailers trailblazing in global
commerce, plus learn the strategies and
technology needed to succeed beyond your
local market.
Loqate offers the single most reliable way
to reach your customers in 240 countries
and territories. We are the world’s most
trusted location intelligence data specialist
for businesses of all sizes and sectors.
Helping every business in the world,
reach every customer in the world.
Page 2Contents
5 Index
12 Introduction
15 A note from our partners
18 Retail Internationalisation
24 Multichannel strategies
28 Online capabilities
34 The power of mCommerce
40 Localising your offer
44 Conclusion
48 Methodology
Page 3Loqate International Retail Index is the
definitive guide to the best in class when
it comes to international retail in 2018.
The top 30 brands analysed are from the UK, US and Europe
and are leading the way in international retail. They are
ranked by revenue, projected growth, physical presence,
online capabilities such as address verification, delivery
and payment options.
Page 4Retailer by rank
Rank Retailer 14 Hello Fresh
15 Marks & Spencer
1
16 Deichmann
17 Schwarz Group (Kaufland/Lidl)
2
18 Aldi
19 Kingfisher/B&Q
3
20 The Gap
4 Sports Direct 21 Walgreens Boots Alliance
5 Apple 22 Rewe Group
6 TopShop (Arcadia Group) 23 Ahold Delhaize
7 Zooplus 24 Tesco
8 Sephora 25 Ceconomy
9 Walmart 26 Best Buy
10 Zalando 27 TJX
11 John Lewis 28 dm
12 Next 29 Home Depot
13 Costco 30 Dixons Carphone
Page 5Retailer by region: United States of America
Rank Retailer
1
2
3
4 Costco
5 The Gap
6 Walgreens Boots Alliance
7 Best Buy
8 TJX
9 Home Depot
Page 6Retailer by region: United Kingdom
Rank Retailer
1
2
3
4 TopShop (Arcadia Group)
5 John Lewis
6 Next
7 Marks & Spencer
8 Kingfisher/B&Q
9 Tesco
10 Dixons Carphone
Page 7Retailer by region: Europe
Rank Retailer
1
2
3
4 Hello Fresh
5 Deichmann
6 Schwarz Group (Kaufland/Lidl)
7 Aldi
8 Rewe Group
9 Ahold Delhaize
10 Ceconomy
11 dm
Page 8Retailers offering next day delivery
Rank Retailer 10 Next
11 Costco
1
12 Marks & Spencer
13 Deichmann
2
14 Kingfisher/B&Q
15 The Gap
3
16 Walgreens Boots Alliance
4 Sports Direct 17 Ahold Delhaize
5 Apple 18 Tesco
6 TopShop (Arcadia Group) 19 Ceconomy
7 Sephora 20 Best Buy
8 Zalando 21 Home Depot
9 John Lewis 22 Dixons Carphone
Page 9Retailers offering international address verification
Rank Retailer
1
2
3
4 Sports Direct
5 TopShop (Arcadia Group)
6 Next
7 Costco
Page 10Retailers offering domestic address verification only
Rank Retailer 10 Schwarz Group (Kaufland/Lidl)
11 Kingfisher/B&Q
1
12 Aldi
13 The Gap
2
14 Walgreens Boots Alliance
15 Rewe Group
3
16 Ahold Delhaize
4 Walmart 17 Tesco
5 Zalando 18 Ceconomy
6 John Lewis 19 Best Buy
7 Hello Fresh 20 TJX
8 Marks & Spencer 21 dm
9 Deichmann 22 Home Depot
23 Dixons Carphone
Page 11Introduction
Page 12David Green
Managing Director - Location Intelligence Services, GBG plc
Whether it is pure-play retailers Any retailer worth their salt should be
focused on making convenience a priority
integrating smart technology
at every stage, and using the very best
to power a world-class technology to enable this. They should
checkout, or multi-channel put their customers first, while providing
retailers ensuring that the seamless and delightful experiences. All
things, which are relatively easy to deliver
customer journey is seamless,
in a territory you know, the challenge comes
the reoccurring themes when you begin to operate outside of your
throughout the findings of this comfort zone.
internationalisation index is
‘convenience and innovation’.
However, this is an obvious point.
Page 13Retailers can confuse ‘going international’ You will not be surprised to see gargantuan
as world domination, a scary task that only companies such as Amazon in the top
a few (with big purses) have achieved. The 30. However, it is important to remember
smartest of our top 30 are looking at what that our index looks beyond the billions of
internationalisation truly means to them, dollars these companies turn over. It also
how they can think global, but act local. looks at the execution of what a successful
Successful international retailers recognise international strategy looks like, which in this
why we, as consumers, buy the products we index, is what counts.
do, and the lifestyle we want to emulate.
The leaders understand the seasonality of It is exciting to observe an acceleration
the market place, the importance of cultural of retailers disrupting the status quo, just
differences, the complexity of taxes and as Amazon did back in 1994. These new
governance. Most importantly, those in our trailblazers are experts in their local
top 10 have ensured they select partners markets and are hot on the heels of the
and technology that understands these local number one spot.
nuances too and can help them deliver this
Whether you are here to discover where
seamless and convenient experience.
you rank against the top 30 in the index,
or perhaps you are just starting out in
international commerce, there is lots to
take away. As the worlds most trusted data
specialist in location intelligence, we are here
to help every business in the world reach
every customer in the world.
Page 14A note from our partners
Page 15Robert Gregory
Global research director
PlanetRetail RNG is delighted to be The rise of eCommerce and digital influence
partnering with Retail Week and has rewritten the rules of what a global
Loqate to present our inaugural retailer now looks like. We have therefore
internationalisation index. designed our international index to reflect
this - identifying and scoring retailers’
Traditional methods of measuring how abilities to serve customers outside of their
‘international’ a retailer was focused home market through a growing range of
on physical metrics such as how many digital capabilities, often complemented
markets they operated in and how and supported by their physical store
many stores they operated outside their networks. As a result, our index includes a
domestic markets. Growing a strong number of fast-growing primarily digital
international presence was typically players, many of whom would not have
capital intensive and took years of organic had a presence on traditional international
store openings or acquisitions, meaning retail rankings even five years ago. What
that such rankings were dominated by a they demonstrate is that digital is a key
‘usual suspects’ list of established global enabler of internationalisation – opening
retail heavyweights. up opportunities for those retailers who are
able to develop the capabilities that make
the online experience as appealing and
frictionless for customers wherever they are
in the world.
Page 16Ian McGorrigle
Chairman, World Retail Congress & Cofounder of Retail Week
UK retail – be it digital or physical In chapter one we set the scene by looking
– is renowned the world over for its at why UK retailers have chosen to launch
competitiveness, with distinctive brands, abroad, and highlight common themes
products and talent. So it’s little surprise that identified within the data are. In chapter two
recent history has shown UK retailers taking we find out why a multichannel approach
their propositions overseas. including stores is still important for
international growth, and in chapter three,
However, retail is very much a global we analyse what a successful eCommerce
business – and our home-grown retail strategy looks like.
businesses need to understand what takes
a business from local dominance to the With increased smartphone adoption the
international stage. They also need to know world over, in chapter four we turn our
who the key international players are, and attention to mCommerce and how retailers
what they can learn from their are reaching out to consumers in this
business strategies. channel, while in chapter five we look at the
importance of localisation. In chapter six, we
For this reason, Retail Week and PlanetRetail share the key take-aways that should inform
RNG have partnered with Loqate, to produce your international strategy.
our first annual index of the world’s top
30 international retailers. Retail Week has Clearly, international retailing is fraught with
analysed exclusive PlanetRetail RNG data to challenges, but if this index shows anything,
identify the secrets to international success. it is that there is a formulae to success.
Page 17Chapter 1
Retail
Internationalisation
Page 18Globalisation and overseas Investment in technology and eCommerce
capabilities enables retailers of varying
expansion in the retail industry
scale to grow faster and develop a more
have become increasingly universal appeal. While the top 30 is a mixed
prominent features in the bag of fast-growing pureplay retailers and
digital age, with businesses traditional high street groups, one trait these
companies share is an effort to enhance
across all sectors adapting their
their presence, payment and delivery options
strategies to take advantage of on a global scale.
international opportunities.
In recent years, this has been enabled and
accelerated by growth in smart-phone
By using scalable technology, adoption, and new technologies such as
artificial intelligence, alongside demographic
retailers can forgo the elevated
changes such as the emergence of more
costs and regulatory issues middle class consumers in relatively
associated with traditional untapped developing markets, such as China
expansion methods and India.
Demand in these markets show no sign of
Using data from PlanetRetail RNG, we have abating either, with 60% of global online
detailed and analysed the top 30 retailers spending set to come from China by 2020,
globally in terms of internationalisation and according to eMarketer.
discuss how their digital capabilities have
supported their cross-border growth.
Page 19Activity in more established overseas The importance of building and
markets is also changing. For instance, consolidating an international foothold is
eMarketer also predicts the number of illustrated by the top three retailers in our
cross-border retail eCommerce shoppers in ranking – all pureplay retailers that have
Germany will rise 13.6% in 2018. cultivated a strong global presence by
launching websites tailored to different
Today, a great way for even small businesses regions and providing a convenient, localised
to test the international waters is by accompanying fulfilment offer.
harnessing the power of eCommerce before
investing in physical stores. This will become
increasingly important over the next few Top three retailers in retail
years, illustrated by Forrester’s estimation
internationalisation index – all
that cross-border eCommerce will outpace
domestic eCommerce growth to rise at
pure-play market place retailers -
a compound annual growth rate of 17% Amazon, Boohoo and Asos.
between 2017 and 2022.
Furthermore, Forrester predicts that 20% of This is not to say they haven’t bolstered their
global eCommerce sales will be made up of international standing by engaging in more
cross-border purchases by 2022. traditional strategies as they have grown.
For instance, our second placed retailer
By using scalable technology retailers can Boohoo acquired US etailer Nasty Gal in
forgo the elevated costs and regulatory early 2017, while the ranking leader, Amazon,
issues associated with traditional expansion has invested in and acquired countless
methods, such as physical store openings, businesses to help accelerate its international
acquisitions or franchising agreements with growth. However, the foundation of their
local or regional partners. global appeal is based on convenient, agile
and multi-faceted platforms.
Page 20Our rankings also reflects an even mix of However, by employing the right tools and
retailers either expanding aggressively; focussing on providing an outstanding
remaining stable; or retreating in terms of customer experience, there are still
international expansion. While the likes of opportunities for these retailers to thrive
Amazon, Costco, Walgreens and Apple are on a global scale. For example, third
focussing on growing their overseas reach, party partnerships and marketplaces are
others such as Best Buy, Dixons Carphone, increasingly popular platforms being used
for overseas growth – Amazon is the prime
TopShop and Ahold Delhaize have taken a example of a globally successful retailer that
step back to focus on their home territory. has used these strategies to break down
This reflects the huge range of challenges borders and appeal to consumers in variety
facing the sector today, such as economic of ways. Walmart and Tesco have also
uncertainty, rapid technological change and benefited from the unique opportunities that
the ongoing disruption caused by Amazon. operating your own marketplace provides.
Thanks to a proliferation of instant online
Hello Fresh operations spanned services, global consumers are more
nine different countries and three informed than ever. Customers desire more
niche products at short notice and will
continents in 2017, facilitated by
immediately look elsewhere if a retailer has
investment in marketing, logistics a limited product offering. By allowing third
and people. parties to sell on their platforms, retailers
have the potential to boost website traffic,
increase conversion rates and broaden their
overseas reach.
Page 21However, despite the scale of investment Meanwhile, Zooplus has become Europe’s
undertaken by each of the three leading online pet products retailer with
aforementioned retailers, only Amazon is a help from its third party partnership with
dominant force in our ranking. Amazon, in addition to placing a strong focus
on fulfilment and customer experience.
Many other businesses can and have
boosted their international appeal by Even the less innovative groups in
innovating, collaborating and adopting our rankings have made strategic
a different mentality. French cosmetics investments outside building on their own
group Sephora, ranked eighth in our list, capabilities. For instance, Gap utilises
has continued to expand its international cross-border eCommerce solutions
sales and presence by investing in a host provided by Borderfree and has previously
of eCommerce capabilities and digital partnered with Zalando to enable greater
marketing activities. internationalisation of its brand.
The rapid ascent of German-based food The lesson here is that focussing on
delivery service Hello Fresh since its launch international distribution and creating a
in 2011, now a direct competitor against strong global presence pays off. However,
Amazon after the latter launched its own retailers must carefully select the expansion
meal kits service in 2017, has been facilitated method most appropriate for their business
by tireless investment in marketing, logistics to achieve strong results.
and people. Significant innovation has
been required to make its novel proposition
attractive to modern consumers. Its
operations spanned nine different countries
and three continents in 2017, while 48% of its
turnover was generated in the US in 2016.
Page 22Amazon on top
Amazon is, perhaps unsurprisingly, the force to be reckoned with in
today’s international retail market. Amazon’s sales totalled nearly
$180bn (£140bn) in 2017, of which 40% was generated outside its
home country, the US.
Despite having a limited physical presence at home in the US and internationally, Amazon
scores highest in terms of our international index. Crucially, it has the strongest fulfilment
capabilities, offering sub-90 minute delivery in many markets through Prime Now, as well as
same or next day deliveries through Prime.
Amazon is also building an international presence with launches in new markets and
expanding its range of products and systems through its Prime ecosystem – for example,
December 2017 saw the Prime service launch in Australia.
Beyond those markets where it has dedicated operations, Amazon is best in class in terms of
enabling international orders. It offers delivery to over 200 markets and territories worldwide
with address verification for international orders. Amazon’s Global Store enables non-
domestic customers to conveniently purchase products to be imported from the US, providing
a seamless end-to-end shopping experience.
Page 23Chapter 2
A multichannel
strategy pays off
Page 24ECommerce may have Though most have attempted to achieve
an increasing share of sales through online
become critical to international
channels, the likes of Aldi, Walmart and Lidl
expansion, but the importance (a subsidiary of Schwarz Group) remain
of physical shops should not exceptions to the rule. Over 60% of both
be overlooked. Stores remain Aldi and Lidl’s turnover is derived outside
their native Germany, despite the lack of a
central to cross-border growth
transactional international web presence.
for many retailers.
Similarly, Walmart is present in 27
Ensuring customers have a positive overall international markets but does not provide
experience is fundamental to brand loyalty international delivery options (aside from a
and a physical experience that includes handful of US overseas territories).
interaction with staff can be the best way to
achieve this. These supermarkets are unmatched in terms
of their global store estate. Schwarz Group
In the five years through to 2017, the top 30 is the leader in terms of non-domestic store
retailers grew their combined international numbers with over 11,000. Walmart’s similarly
presence by 20 markets and 13,000 stores – vast global network helped it generate the
equivalent to a 14% increase. most international sales ($116.1bn) in 2017.
Ahold Delhaize has the highest proportion
of international stores in terms of its overall
In the five years through to 2017,
store network with the vast majority of its
the top 30 retailers grew their 6,600 strong estate based outside
combined international presence the Netherlands.
by 20 markets and 13,000 stores –
equivalent to a 14% increase.
Page 25The deeply ingrained consumer preference 21 retailers offer in-store click-and-
for discounts stretches across borders and
collect. Five retailers offer click-
has supported store growth. For instance,
Walmart offers a pickup discount for and-collect exclusively through
items ordered online and then collected either third party or locker services.
in-store, while its app provides additional
functionality within the physical store,
New York in 2017, hosting beauty workshops
including the ability to skip queues and
through iPad stations, introducing interactive
access store maps specific to each location.
technology allowing shoppers to virtually
Meanwhile, Aldi broke its store-only model try on products, and a fragrance studio
to launch online in China in 2017, selling a embedded with sensory technology. It has
limited selection of non-chilled groceries continued to gain market share with its
and wine. The venture would seem to have digitally savvy offering, which extended to
been a success as it announced plans to 2,300 locations in 33 countries in 2017.
establish a physical store network in China in
Pureplay retailers are also increasingly
early 2018. Also in 2017, Aldi began trialling
recognising the need to supplement
an online delivery service in partnership
eCommerce with a physical touch. For
with Instacart. After performing well in Los
example, Amazon recently increased its
Angeles, Dallas and Atlanta, the trial is to
network of lockers in key markets globally,
continue extending across US cities in 2018.
widening the reach of its collection service,
In terms of merging physical and digital while HelloFresh extended its proposition by
capabilities, Sephora is one bricks-and- partnering with Sainsbury’s in 2017.
mortar group that is excelling in this
challenging arena. The French group
opened its largest North American store in
Page 26One of the biggest challenges retailers By drawing customers into stores, click-
face when expanding globally is to deliver and-collect has the potential to boost brand
a uniform proposition that caters to the loyalty through great service in store as well
demands of customers in overseas markets as driving add-on purchases. Therefore,
as well as those in its domestic market. investing in an experiential-driven store
As such, the goal behind many of these environment is key.
investments has been to create unified
eCommerce solutions that offer a more Apple has mastered this through its network
seamless customer experience across of 500 global stores which aim to create a
physical and digital channels. communal feel with interactive technology,
entertainment, learning events and
The ability to collect and return orders to dedicated customer service.
stores or lockers provides an additional level
of convenience and flexibility for shoppers, The provision of a more seamless
as does the provision of online ordering multichannel experience is crucial to ensure
capabilities within the store environment – a success at home and abroad. The challenge
service provided by the likes of John Lewis, lies in balancing investment in physical
Marks and Spencer, Next and Ceconomy. In touch points that can build relationships
our ranking, 21 retailers offer in-store click- and customer loyalty along with the right
and-collect. Five retailers offer click-and- technological capabilities to support online
collect exclusively through either third party orders and fulfilment services.
or locker services. Only four retailers do not
provide in-store, locker or third party
pickup options.
Page 27Chapter 3
Online capabilities
Page 28Online capabilities
Capability Percentage of retailers in top 30
Offer third-party marketplace functionality 10%
Ability to change currency 20%
Address verification (international) 23%
Address verification (domestic) 87%
Ability to change language 17%
International markets delivered to from website 43%
The main website sells internationally 43%
In-store online ordering capabilities 53%
Page 29Payment methods
Capability Percentage of retailers in top 30
Stored value cards
(gift cards, loyalty cards, pre-payment vouchers)
83%
Third-party payment providers 80%
Payment by instalments
(eg Klarna)
17%
Payment by cash/collection 17%
EMV credit and debit cards 97%
Page 30The retailers sitting highest in The majority of retailers ranked lower
down our table have not invested in
our top 30 have successfully
localised currency and language options or
leveraged their eCommerce international address verification on their
capabilities to expand sites, a trend that is likely to be reversed as
internationally in recent years. retail internationalisation continues to evolve.
Amazon, Boohoo and Asos each deliver to Of the top 30 in our ranking, 13 retailers sell
over 200 markets and territories globally. internationally from their main website, with
Others like TopShop, Sports Direct and Amazon, Asos, Boohoo and Sports Direct
Next have also invested in digital platforms delivering to the highest number of overseas
that facilitate international orders, offering markets from their websites. For businesses
shoppers options to switch their currency and looking to operate on a more limited
language, as well as providing international scale, the provision of click-and-collect
address verification on their websites. services in local regions provides a
considerable advantage.
These features create a more comfortable
and accessible experience for non-domestic
customers, - a crucial element to building Features that facilitate
brand loyalty in new territories. international orders, offer
TopShop (part of the Arcadia group) and shoppers options to switch their
Sports Direct also offer mobile apps with currency and language, as well as
international delivery options, which again providing international address
supports a more seamless experience for
verification on their websites are
overseas shoppers and has propelled these
retailers towards the top of our rankings. where retailers should invest.
Page 31Increasingly, retailers looking to expand Similar benefits are gained through offering
their global reach are investing in overseas free returns or returns to physical stores –
distribution centres to facilitate click- indeed, of the top 30 retailers, 25 provided
and-collect orders and free returns. For a free returns service in 2017. Asos, for
instance, in 2017, Zalando began opening example, has had considerable success
smaller distribution centres across Europe in its partnership with Temando, which
to complement its large automated hubs in provides hassle-free returns at no cost to
Germany. Its ultimate aim is to move closer the consumer. This has supported a strong
to its customers and provide same day relationship with its target demographic that
delivery to as many shoppers as possible. expects to buy fashion in bulk and return as
For those unable to undertake such large- many items as they wish without hassle
scale investments, vendors such as Easyship or consequence.
have enabled easier penetration into
international markets through seamless Similar to Amazon Prime, Asos also offers
fulfilment services. a premium delivery service that provides
unlimited next day delivery for £9.95 a year.
This has been particularly key in countries
Of the top 30 retailers, 25 provided where the etailer is investing heavily to
develop greater brand awareness. While
a free return service in 2017.
obviously a more costly service that has
struggled for profitability, the offer has
These consumer-led services cater to the supported cross-border growth and
widespread expectation of convenience; reflects Asos’ ongoing evolution and deep
a feature of developed and developing understanding of its target market.
markets alike.
Page 32Similarly, German shoe retailer Deichmann, Address auto-complete also
which has grown its reach to 24 markets, expedites the shopping journey
lets shoppers check stock at specific stores
and removes uncertainty, essential
through its mobile and desktop sites, offers
prepaid returns and allows customers to traits when ordering from an
return unwanted items ordered online to the international retailer.
physical store.
For retailers wishing to build a loyal overseas Address verification software reduces
customer base through eCommerce, it is the risk of delivery to the wrong address
incredibly important to ensure that any – a situation which can cause customer
confusion or risk around international frustration and damage brand loyalty.
delivery is completely removed.
Features like address auto-complete also
Failure to get delivery right has big expedite the shopping journey and remove
implications. Our own research into the uncertainty, essential traits when ordering
impact of bad data shows the number of from an international retailer. While
orders per year in the US totalled $278,109 in international address verification is primarily
2017, 4.7% of those deliveries failed, costing offered by fashion groups in our ranking,
$16.58 per failed delivery. there is likely to be a rise in the use of such
capabilities across sectors such as grocery
Similar numbers are seen in Europe. In the UK, where speed, freshness and accuracy are
for example, there were 228,524 deliveries, crucial factors in delivery.
of which 5.6% failed, resulting in a total cost
of £183,132, and a cost of £14.33 each time. Continued investment in online capabilities
Meanwhile in Germany, there were 176,345 is going to be essential if retailers are to
orders, with 4.6% failing, leading to a total stay relevant to consumers in the markets
cost of €121,804, and €14.87 per order. they serve.
Page 33Chapter 4
The power of mCommerce
Page 34Delivery options
Capability Percentage of retailers in top 30
90 min or less 3%
Same day 23%
Next day 73%
Time slot deliveries 40%
Click-and-collect: own stores 70%
Click-and-collect: 3rd party stores 33%
Click-and-collect: drive-through 10%
Click-and-collect: lockers 17%
Delivery costs - free delivery 73%
Order tracking on website 67%
Page 35Returns options
Capability Percentage of retailers in top 30
Free returns 83%
Returns accepted at own store 77%
Returns accepted at a third party location 20%
Page 36As unified eCommerce has The importance of mobile shopping to
retail internationalisation is reflected in our
become a priority for retailers
ranking – every retailer in our top 30 offers
tapping into overseas markets, a mobile optimised site. MCommerce is
mobile capabilities have taken set to become a dominant model for many
on paramount importance. retailers across developed markets in the
next few years. In the UK, mCommerce sales
A strong mobile proposition
are expected to account for just over 50% of
enables shoppers to easily all online retail sales by 2020, according to
buy, receive, and return from eMarketer, up from 43.3% in 2017.
wherever they please –
However, many retailers are still lagging
a universal demand of in this regard while challenges persist
modern consumers. over security, payment and local internet
bandwidth in the mobile channel. An
From technologies such as visual search to optimised, streamlined and secure mobile
instant price comparisons, smartphones website is therefore becoming key to
have transformed shopping on a global customer engagement.
scale in recent years. For retailers with large
physical store networks, investing in the Developing apps that offer loyalty incentives
likes of location-based services, barcode and support convenience should be a priority
scanners and push notifications has for retailers seeking international growth.
become essential. With the exception of Deichmann and Dixons
Carphone, every retailer in our ranking
provides a transactional app, although
only 10 retailers offer apps that provide
international delivery, leaving significant
scope for improvement.
Page 37The use of apps in the shopping journey can Two-thirds of the retailers in our ranking
vary significantly from region to region. Often provide a domestic address verification
customers will need the promise of unique feature on their mobile apps. However,
capabilities to make the app feel worthwhile. only Asos, Amazon and Sports Direct offer
For instance, the success of Amazon’s app international address verification on their
has been driven by innovative features such apps, which is a distinct advantage and is
as the ability to search for products using an reflected in the fact that all three come in the
image or scan packages’ barcodes to reveal top five of our ranking.
what’s inside before opening.
Fulfilment is also a crucial tenet of mobile.
A third of retailers have apps that offer
Every retailer in our top 30 offers a international delivery. Unsurprisingly this group
is mostly made up of tech-focused pureplays
mobile optimised site.
like Amazon, Asos, Apple and Boohoo.
However, more traditional players such as
On the other hand, providing a more basic
John Lewis and Marks and Spencer have also
app that is consistent with a retailer’s
invested in this feature, in a move to exploit
website provides familiarity and comfort for
their British credentials and garner a strong
shoppers. Ebay’s app has been effective in
overseas following.
this regard.
While only dedicated customers are likely
to download apps, retailers can boost Two-thirds of the retailers in
this number and the conversion rates of the Loqate retail index provide
those that have downloaded, by investing a domestic address verification
convenience. Features such as loyalty cards,
feature on their mobile apps.
digital receipts and address verification all
make apps more attractive.
Page 38New kids on the block
Fast growing etailers such as Asos, Boohoo, Coming from one of the most advanced
HelloFresh and Zalando are excellent eCommerce markets in the world, British
examples of how to utilise mobile platforms groups Asos and Boohoo come the closest to
for international growth. competing with online behemoth Amazon in
our top 30 rankings.
Asos, Zalando and Boohoo generate around
70% of traffic through mobile eCommerce – This also reflects the importance of adjusting
this activity is supplemented with slick social to changing consumer expectations when
and digital media campaigns to extend their it comes to online retail. For example, while
brand appeal to millennials across the globe. Asos generated group sales under £2bn in
its 2016/17 financial year – significantly less
Technological innovation has characterised than traditional retailers such as Dixons, TK
what sets these businesses apart from the Maxx owner TJX or Tesco – its international
traditional bricks-and-mortar players they appeal is driven by a focus on the flexibility
have surpassed in recent years. and convenience of the customer journey, a
strategy that has supported its rapid ascent
The fact that these four fast growing
in recent years. Like fellow fast growing
retailers appear in the top half of our
fashion rivals, Asos would not have been
rankings highlights how digital evolution has
able to enter a traditional international retail
changed the global retail landscape. These
ranking even five years ago.
companies have leveraged technology and
eCommerce expertise to propel growth
across borders in a way that more traditional
retailers are seeking to emulate.Chapter 5
Localising your offer
Page 40Retailers are realising that a Even the rapidly expanding Asos has
struggled in this regard and exited China
one size fits all approach to
in 2016 – the retailer’s attempts to enter the
overseas expansion does not market were floored by regulatory hurdles
work. The most successful and strong competition from the likes of
retailers strike up relationships JD.com. This again highlights that retailers
are still learning to adapt their propositions
with local partners. For
to local tastes and determining how to serve
instance, Costco and Apple consumers from different cultures.
sell on Alibaba’s Tmall, while
Some aspects of internationalisation are
Walmart and Sephora have
less fraught with misunderstanding – for
both partnered with JD.com to example, payment capabilities are relatively
extend their reach in China. consistent across international borders.
All but six of the top 30 retailers enable
This is not a guarantee of success however, shoppers to use third party payment
as Marks and Spencer’s recent termination providers such as Paypal or WeChat Pay.
of its Tmall stores across the country shows. Similarly, only five retailers do not offer
Citing the complex nature and heavy costs of store-specific value cards like loyalty or
trading in the Chinese market, the retailer’s gift cards. Clearly retailers are eager to
failure illustrates the need for caution and engender customer loyalty in lucrative
a clear understanding of the local shopping markets like China through the adoption of
culture and specific tastes. these capabilities.
Page 41Retailers also need to dive deeper and Location intelligence is becoming
cater to distinct consumers within the new
increasingly valuable as retailers
territories they enter, leveraging customer
data effectively to offer personalised seek to understand the needs of
experiences. Capabilities such as location different shopper demographics in
intelligence are becoming increasingly various geographic locations.
valuable as retailers seek to understand the
needs of different shopper demographics in
various geographic locations. The likes of Sephora have adopted location
intelligence to analyse this information and
design personalised experiences that cater
By gathering streams of data, to consumers’ demands for convenience
a retailer is able to offer across in-store and online channels.
Its assistant feature on the Facebook
localised pricing, meaning it
Messenger app lets customers reserve
can provide a more flexible makeovers in a nearby store within seconds
international offering. and, crucially, without having to contact the
store at all.
Page 42Zalando has also leveraged its capabilities Similarly, Zooplus has prioritised country-
to improve personalisation through specific and localised offerings, with the
features such as online fashion advice retailer operating local language sites in
for customers. By gathering streams of 25 markets and offering a broad range of
data, the retailer is able to offer localised regionally specific pet products.
pricing, meaning it can provide a more
flexible international offering. Zalando has So while a unified approach in regards to
also prioritised delivery in its international service level is important, retailers can steal
strategy, realising the importance of competitive advantage with localised offers
convenience to its success – a strategy that are more relevant to the markets they
demonstrated by recently launched same- wish to serve.
day delivery and return pick-up services in
Amsterdam and Rotterdam. The retailer
plans to extend this service to other major
Retailers can steal competitive
cities, with the target of providing a advantage with localised offers
standard next-day delivery service for 75% that are more relevant to the
of European customers by 2020.
markets they wish to serve.
Page 43Chapter 6
Conclusion
Page 44With economic and political However, despite the plethora of
technologies available to support
uncertainty, mature and
international expansion, it is still no easy task.
fiercely competitive markets, This is evidenced by the fact that a third of
and ever increasing consumer the top 30 pulled back their international
expectations, it is no surprise reach in 2017.
that UK, European and US-
based retailers are looking to
Those ranking highest in our
escape slowing growth in their
analysis have primarily embraced
home markets and tap into new
local markets through the
consumers overseas.
provision of localised language
Since the eCommerce markets in the UK, and currency websites, address
Europe and the US are so advanced – online verification of international
purchases already account for 17% and 9%
orders, transactional international
(for both the US and Europe) of all retail
respectively – retailers have focussed on apps and a physical outlet
investing in their digital capabilities.
Outside of these markets, the likes of Nonetheless, previous strategies of
Sephora and Zooplus have also recognised international expansion required scale and
the need for in-store innovation, customer investment and were lengthy processes,
service and technological capabilities that limiting the option of establishing an
allow for a seamless customer experience overseas presence to only the
across channels and borders. largest retailers.
Page 45However, now technological advancements Mobile capabilities are also key, with two
and solutions are enabling even smaller thirds of the top 30 already having mid-to-
retailers to reach millions of new shoppers high mobile digital capabilities. This number
globally if they can identify the right mix of will continue to evolve and requires retailers
capabilities needed. to invest in the ongoing development of their
mobile services.
Two thirds of the top 30 already As retail internationalisation accelerates,
retailers need to adopt a mindset that
have mid-to-high mobile digital
embraces innovation, collaboration and
capabilities. the integration of digital and physical
capabilities to meet customer expectations.
Those that already have are reaping the
Those ranking highest in our analysis have
benefits, while resistance to this change
primarily embraced local markets through
could see retailers slip out of the top 30 in the
the provision of localised language and
years to come.
currency websites, address verification
of international orders, transactional
international apps and an outlet – whether a
store, marketplace, third-party partnership
or locker delivery system – to provide
enhanced collection and return options.
Page 46Loqate, a GBG solution, is the world’s most trusted data specialist
in location intelligence for businesses of all sizes and sectors.
By combining the leading technology with the richest data we give retailers worldwide the
precision and reliability they need to give their customers the best possible experiences.
Using real-time search, as soon as a business name, street, or zip code is typed, suggestions
to auto-complete the address are immediately provided, meaning your customers are
focused on completing their order. Errors are recognised and corrected at the point of entry
eliminating the need for post validation and avoiding costly shipping errors and damage to
your brand reputation.
Our powerhouse data engines can also help with cleansing existing data already in your
system, allowing you to re-engage with long forgotten customers.
Our global API integrates seamlessly into any system, and most customers are able to set up
in just a few minutes.
Our easy-to-use, easy-to-integrate services will ensure you maintain best quality customer
data for over 240 countries, increase online conversion rates, drive business efficiency and
improve your user experience.
We help every business in the world
reach every customer in the world
Page 47Methodology:
We identified a shortlist of 30 retailers based on the
following criteria:
• Had operations in at least one of the following markets of US, UK and Germany.
• Operate in at least one overseas markets.
• Included operators from all retail sectors (grocery, apparel, consumer electronics,
drugstores, toys etc)
• Generally largest operators in priority markets in terms of sales, although includes some
fast-growing players in the markets.
Page 48We analysed each retailer across over 70 criteria, including:
International physical presence (group level):
• Non-domestic sales, 2017
• % of total sales from non-domestic operations, 2017
• Growth in non-domestic sales, 2012-17
• Number of non-domestic retail stores, 2017
• % of total stores that are non-domestic, 2017
• Forecasted growth in non-domestic sales, 2017-2022
• Number of international markets where present, 2017
• International physical strategy (market entry, stable, market exit)
Page 49Online capabilities (market level):
• International delivery capability • Strength of mobile app capabilities
(instore functionality, digital payment
• Number of international markets solution, account for majority of
delivered to online sales)
• Ability to select language • Payment options (including 3rd party
and/or currency digital payment providers such as
PayPal, Apple Pay)
• Address verification (domestic and
international locations) • Speed of delivery (90 minutes or less,
same-day, next day)
• Mobile optimised website
• Ability to track deliveries onsite or in app
• Transactional app
• Collection at store or lockers
• International delivery at checkout on app
• Free delivery
• Address verification (domestic and
international locations) through app • Free returns
Each retailer was scored against each key metric. Each metric was weighted with an
emphasis on internationalisation and relevant digital capabilities.
This allowed us to create a score out of 100 for each retailer, split as follows:
• International physical presence – 50 points.
• Online capabilities – 50 points.
Page 50Trusted by over 13,000 customers worldwide, including:
Page 51If you would like to be considered for next years
International Retail Index, please get in touch.
loqate.com
@loqate
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