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5 July 2011

Why consumers shop across border

There are a number of key reasons why consumers use cross border retail:

  • 1.       Price differentials caused by Currency, taxation and other influences
  • 2.       Goods unavailable in the domestic market
  • 3.       Experimentation due to retailer visibility in the market
  • 4.       Brand reputation of non-domestic brands
  • 5.       Service reputation of non-domestic brands (Can take orders / provide goods)
  • 6.       Word of mouth, online references , friend or relative recommendations
  • 7.       Market making by media events and sponsorship (Olympics etc)
  • 8.       Early release of high status goods
  • 9.       Access to latest technological goods
  • 10.   Time limited market offers by non-domestic retailers via 3rd parties
  • 11.   Promotions, search and adventurous shopping
  • 12.   Access to hard copy media and entertainment
  • 13.   Culturally related goods and services
  • 14.   Personal preference for goods and services
  • 15.   Time (Holiday, birthday, religious) related specialty goods
  • 16.   Quality perception of non-domestic goods
  • 17.   Retail format, support and language
  • 18.   Presence of non-domestic brands in domestic market (cross border fulfillment)
  • 19.   Direct from manufacturer fulfillment (Invisible to consumer but retailer critical)
  • 20.   Government and regional export promotions