Neil Tunbridge: borderless trade is the new black

Over the past decade, borderless trade has become the new black. The internationalization of trade has seen a significant shift in the way businesses sell overseas and nowhere has benefitted to a greater level than the BRICS, MENA and MINT markets. More recently, with the rapid emergence of Cross Border Trade (CBT) in the retail sector - which is increasingly blurring the lines between the traditional offline and online channels (in the form of Omni or Consumer-Commerce) –the upshot has been that retail (above and beyond almost any other sector) has witnessed one of the most marked change in goods that are now travelling along new global (digitally inspired) trade routes.

It is hard not to agree with the fact that the rise of e-commerce, and in particular the 100s of marketplace platforms that now operate the world over, has been the preeminent driver of change for the global retail trade. These borderless ‘digital malls’ have been instrumental in breaking down the barriers that have historically thwarted international retail trade.

Why these markets – they seem very far away? 

Although it might not seem like it, all of these regions are very similar. They nearly all have a dynamically young, digitally connected population of brand-aware consumers. They also share a common thread, in the fact that many of these countries are keen to demonstrate to the world that they have pent-up demand for overseas brands and goods – especially in China where they have a Govt sanctioned move towards a consumerist society, regardless of the recent Stock Market jitters. The Middle East is another classic example of a move towards a consumer-led demand; it’s staggering figures that support this demand are a shot across the bows globally, proving that they not only have the wealth but also the consumer desire to shop.

But why use a marketplace or 3rd-party eCommerce platform?

The main advantages of selling through marketplace platforms is the ability to explore new markets and consumers via low-cost store and/or product listings. Typically retailers and brands don’t have to pay to offer a broad width and depth of product – meaning that brands have the opportunity to offer a full and diverse seasonal product selection. Additionally, with a varied mix of product readily available across category pages, the homepage, as well as promotional banners and department listings, retailers have multiple opportunities to promote their brand(s) within the marketplace ecosystem, in addition to being able to cross-sell and up-sell their merchandise and brands.

Digital-first internationalisation strategy 

A recent report from OC&C, PayPal & Google suggest that Germany, UK, US and China are the 4 leading e-Commerce shopping powerhouses, but while they clearly offer some great opportunities, there are plenty of other options around the world, via these new trade routes. In most mature retail markets, growth is beginning to plateau and where this is the case there is usually fierce competition, both with regards to pricing and brand co-existence, resulting in downward pressure on margins and less long-term opportunity. Exploring a low-cost, digital-first internationalisation strategy via marketplace or pure-play eCommerce platforms offers retailers the prospect of embracing new-market CBT and quickly become established in territories it might previously have taken decades to go into.

Learn more about the author & PIVOT 

Neil Tunbridge is the director and co-founder of PIVOT and an IORMA board member. He started his career in menswear merchandising at Selfridges and House of Fraser before moving to omni-channel retailer Emma Bridgewater where he was head of merchandising and wholesale.

Neil then spent 10 years working in the Middle East as Head of Retail at GRMC Advisory Services, a custom research & advisory consulting practice. His final role before returning to the UK was sales director of Tejuri.com, a government backed marketplace. Hired pre-launch, he was responsible for on-boarding 200+ brands including Nike, Reebok and The Face Shop.

What is PIVOT and what does PIVOT offer that I can’t get elsewhere?

With over 50 years' experience between the senior management team, Neil and his co-founder noticed that there was a glaring hole where retailers were increasingly aware of the potential to sell overseas, but didn’t know how to access these new sales channels. As a consequence PIVOT was born out of the demands of the retail industry, whereby retailers and brands were increasingly frustrated at the lack of available knowledge, insight and awareness of how to open new revenue streams.

PIVOT is an eCommerce enablement company. It is not tied to a particular software solution and not trying to disrupt or change how industry operates; it offers impartial consulting services to retail clients and subsequently uses this knowledge to bring demand and supply together. PIVOT is where brands and retailers wishing to expand meet Global digital customers through a network of ecommerce sites. Brands meet platforms and Customers shop globally.

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