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GMA and fast.MAP research: Fancy making riches from the rag trade in Brazil and America?

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David Cole (pictured) examines the latest fast.MAP/GMA research and discovers a booming market.

If you’re thinking of selling direct to shoppers in the USA and Brazil, a good bet would be to start with clothing – since clothes are the most commonly direct-purchased foreign items in both countries – by 44% in Brazil and 32% in the USA.david-cole-md-fastmap3-web

According to new online research carried out in August by fast.MAP for the GMA, accessories are the next favoured foreign direct purchase in Brazil (35%), followed by technology items ((33%). In the USA, it’s books 26% and food (25%), whereas in the UK it’s CDs/DVDs/games (26%) and books and technology (both 23%).

Foreign white goods such as dishwashers are least likely to be bought direct by Americans (9%); musical instruments and DIY/gardening tools by Brazilians (both 7%); and motor vehicles and white goods by the British (both 3%). See chart: http://bit.ly/1ttG2Lf 

12% of US, 14% of Brazilian and 38% of British adults have bought direct from abroad in the last year. And the market is set to expand since although one per cent of Brazilians don’t plan to do so again, 19% are considering their first direct purchase from abroad, as are 16% of Americans.

27% of US consumers ‘sometimes’ or ‘often’ buy direct from abroad and a further 17% do so ‘rarely’.

Neither population is as committed to buying foreign goods direct as are those of the seven European countries already examined in this on-going GMA study. See chart: http://bit.ly/1vQMTUb

If you need tips on where to promote your goods, it’s worth noting that Brazilians’ five most popular methods of sourcing foreign goods are company websites, social networks, online publications, email and search engines. All were used by more than a third of buyers in the last 12 months.

Around three in ten Americans have sourced via search engines and emails, a quarter from company websites and two in ten from TV or radio ads, auction sites or social networks. Chart: http://bit.ly/1oRzxCr

When translation problems occur they can lead to lost sales: 62% of Brazilians and 68% of Americans have not encountered language difficulties when buying direct from abroad, but only because they either speak the language or use websites which are in their native tongue.

Ten per cent of Americans and 18% of Brazilians successfully used translation software, but 7% of Americans and 10% of Brazilians suffered problems with it.

Two in 100 received language help from the seller and 6% of Americans and 4% of Brazilians were helped by a friend. Chart http://bit.ly/1AgWK4o  

Of the 22% of Americans who had language problems, 7% managed to successfully buy the goods they wanted while only 4% of the 20% of linguistically-challenged Brazilians managed to.

Americans were far less likely to be put-off by potential currency, refund or customs problems: 38% had no such concerns, compared with 34% of Brits and 17% of Brazilians. But a clear multi-lingual explanation of company policy on these issues would help to allay fears.

Brazilians (55%) and Brits (46%) are most worried about additional postage costs or customs charges, while Americans are most concerned about the inconvenience of returning faulty or unsuitable goods (38%). Financial transactions with a different country are the least pressing (though still a significant) concern: USA and UK 31%; Brazil 37% http://bit.ly/1tnk1zp

Nineteen per cent of Americans, 13% of Brazilians and 8% of Brits have returned goods they bought direct from abroad. In the USA the majority did so by pre-paid post/courier, while in Brazil (41%) and the UK (54%) the majority bore the cost of return  postage/ courier.

Both delivery to a local agent/ retailer/ courier depot or collection by a local agent/ retailer/ courier were significantly more common in the USA (39% and 34% respectively) than in the UK (4% & 17%) or Brazil (19% & 21%).

Companies serious about expanding their direct sales into other countries can maximise their chances of success and avoid costly mistakes, by first simultaneously and speedily using online research to test reactions to their product, prices, promotional material and incentives in each country.

For more international marketing insights click here.

Methodology
The questionnaire was run from August 22 to 29, 2014, to a US panel of 2.9million adults and a 149,000 Brazilian panel.

David Cole is MD of fast.MAP. Email: david.cole@fastmap.com

Sally Hooton
Author: Sally Hooton
Editor at The GMA | www.the-gma.com

Trained as a journalist from the age of 18 and enjoying a long career in regional newspaper reporting and editing, Sally Hooton joined DMI (Direct Marketing International) magazine as editor in 2001. DMI then morphed into The GMA, taking her with it!

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