According to the latest data, cross-border sales in the United Kingdom in 2020 increased by 57% year-on-year. In the fourth quarter, when the holidays gathered, transaction volume skyrocketed, and cross-border e-commerce business volume increased by 42% compared with the same period last year.
According to statistics of 270 British retailers and brands engaged in cross-border business, the cross-border business has grown steadily since April 2020. Following the atmosphere of national shopping during the holiday season, sales began to surge sharply in early September, and the trend has continued since then.
Holiday shopping: demand in the European Union exceeds that in non-EU regions
The survey data shows a big difference between the consumption habits in the EU and non-EU regions. In 2020, the non-EU market will usher in an unprecedented online shopping frenzy. However, similar to previous years, from September to December, consumer market demand in the EU has gradually expanded, reaching a peak before the holiday.
The European Union region has shown its dependence on British products, especially the enthusiasm demonstrated during Black Friday and Cyber Monday. Industry analysts said that consumers in the EU are worried that once Brexit takes effect, British brands may usher in price increases, which is one reason for the surge in sales.
The trend of online shopping is on the rise
Mobile shopping has been the general trend since 2018, and even cross-border shopping loves mobile. It may be caused by the increase in the population base of working from home due to the epidemic.
From the perspective of the UK’s domestic market, the epidemic has promoted the transformation of consumption habits. Initially, cross-border shopping was primarily driven by consumers in non-EU regions. However, as the dust of Brexit settles, the consumption habits of EU consumers will also change. Every savvy shopper started to stock up before Christmas.
British retailers and brands should pay attention to the trend of shifting from physical store shopping to online consumption. The growth of the online cross-border business will help fill the gaps in the poor management of physical stores. After all, transformation is inevitable; some consumers are interested in British products and brands. With the UK’s trust and support, this may be the “best time for local companies in the UK.
In addition, retailers should pay attention to “brand localization”, adapt to the local market and consumption habits, and “adjust to local conditions.” A robust D2C model can be connected to individual edge markets, which will significantly help expand the international business and improve consumer satisfaction in the long run.