Using the country you selected (Brazil) in your final project, what are the key issues that must be addressed by global companies engaging in e-commerce in this country?
Example of this assignment:
Japan is the third largest e-commerce market next to China and the United States (Kersey, 2020). With its large e-commerce market, excellent logistics infrastructure, and a population with considerable purchasing power, Japan is an attractive market for foreign companies (Kersey, 2020). However, in 2020, data revealed that only 10 percent of Japanese consumers buy goods online from foreign companies (Kaplan, 2020). Several factors play into this low percentage including Japan’s single language culture, brand loyalty to Japanese brands, and traditional cash payments culture (Kersey, 2020).
Foreign companies looking to enter Japan’s market must “be able to advertise, brand, and provide customer support in Japanese (International Trade Administration, 2022). Most of Japan’s population does not read English and tends to buy mainly from Japanese language sites (Kaplan, 2020). Global marketers must consider this factor and put efforts towards extensive localization to provide customer support, advertising, and branding in Japanese in order to attract the country’s consumers.
With this single language, culture means Japanese consumers’ loyalty is mainly towards Japanese brands, specifically towards local, brick-and-mortar stores. There is still a lasting traditional cash payments culture in Japan, meaning the Japanese tend to buy products in physical stores and not purchase online (Kersey, 2020). However, the e-commerce market is rapidly growing in Japan making it still a potential market for foreign companies to break into (Kersey, 2020). There are other issues when it comes to Japan’s e-commerce, but these are the key issues that global companies must consider before entering the market.
