On June 27, CFDA organized a workshop focused on optimizing brands’ international e-commerce strategy. The workshop was hosted by Getting to Global Founder Joshua Halpern, who was joined by Nancy Zhang of BorderX Lab, Christopher Edge of DHL US, John Cafarelli of Ernest Supplies, and Michael Zakkour of Tompkins.

The Getting to Global Initiative works with partners and a network of public and private sector stakeholders to leverage existing data, expertise, tools, and services that will contribute to a small or medium size business’ global journey. Consumers are shopping online more than ever, but a key learning from the workshop was that online consumers are increasingly shopping globally. Consider the statistics:

• 82 percent of online shoppers have made at least one purchase from a merchant abroad.
• 46 percent of online shoppers feel it is not important if the online retailer is based overseas or not.
• 24 percent of frequent web shoppers make 24 percent of their purchases from websites outside of their home.

Cross-border online sales will reach $1 trillion by 2020. However, 74 percent of fashion brands are not prepared to service their top global markets because of three primary barriers:

• E-commerce platforms lack the technology and are not built for cross-border transactions.
• International orders can expose you to risk like fraudulent orders, inaccurate shipping quotes and customs holds.
• There are many unknowns; international orders can take two to three times the amount of work as a domestic order and that can be overwhelming!

Our panel of experts offered insights into how to approach an international e-commerce strategy:

• Incremental Growth: Don’t invest a lot of money in the beginning; start by testing small. Brands know where there primary international markets are through the data they collect from their BTC channels. Targeting those markets to reduce your risk.
• Adjust your value proposition per market: What a customer values in your domestic market may not be the same in your target international market. Research your local markets for delivery methods, shipping costs, and product selection and see how you can offer a unique value.
• Build your audience: Evaluate the best platforms to reach your customer in each market. New markets require the same amount of brand building and must be unique and authentic to that audience. Additionally, if you decide to work with a local distributor or showroom, they can help build your brand and lay that foundation. After three to five years, you can consider taking matters in-house.
• Find local brand ambassadors: Before taking the plunge to sell overseas, build a network of local ambassadors that will help you promote your product. Every time you travel, schedule some time to meet with local influencers – they really appreciate the genuine connection with the brand and that will translate to brand loyalty.
• Protect your Intellectual Property: Work with a local or international lawyer and purchase your trademark internationally and for each market.
• Localize payments: Foreign banks may not authorize international transactions. If you are selling direct to consumer and are not working with a local distributor, work with a local bank which you can set up through an agency network. Localizing payments will help you reduce payment declines, exchange rate fluctuations and increase customer experience during check-out.
• Pricing Strategy: Will you sell direct to consumer, work with a showroom, or sell through a distributor? When considering these options, evaluate how these additional costs will affect your margins and the cost of your product in international markets. Increased costs for shipping and working with a distributor can price you out of certain retailers or markets.

These additional resources are available to help optimize your website to increase conversion with an overseas customer:

Getting to Global offers a free Duty and Tax calculator

BorderX Labs is redefining a new global customer journey for fashion brands by helping to boost brand awareness, drive consideration, built loyalty and optimize global fashion campaigns for locals markets.

BorderX Lab’s innovative technology and curated content lets global brands sell directly to Chinese shoppers without the need for an agency, JV partner or China team. Through their Beyond App, their mobile marketplace for Chinese shoppers recreates the safe, authentic, and high quality online shopping experience of leading U.S. and European retailers and brands using big data and personalization technology.

Discover DHL

Zonos offers international customers a localized shopping and checkout experience with landed cost, translation and shipping options.

Give your international visitors a welcome warm welcome by using a pop-up system like JustUno to show a welcome message in the local language.

Pictured: Christopher Edge, John Cafarelli, Nancy Zhang, and Joshua Halpern.