{"id":429,"date":"2015-05-27T00:00:00","date_gmt":"2015-05-27T00:00:00","guid":{"rendered":"https:\/\/www.motionpoint.com\/?post_type=blog&p=429"},"modified":"2023-09-25T11:14:54","modified_gmt":"2023-09-25T15:14:54","slug":"growing-economy-and-empowered-consumers-make-colombia-an-engaging-emerging","status":"publish","type":"blog","link":"https:\/\/www.motionpoint.com\/blog\/growing-economy-and-empowered-consumers-make-colombia-an-engaging-emerging\/","title":{"rendered":"Growing Economy and Empowered Consumers Make Colombia an Emerging Online Market"},"template":"","blog_categories":[5,9],"resource_categories":[],"targeted_localized_audience":[],"document_categories":[],"class_list":["post-429","blog","type-blog","status-publish","hentry","blog_categories-international-business-strategies","blog_categories-marketing-strategies"],"acf":{"blog_short_description":"Brands are expanding into Colombia, thanks to economic growth and governmental reform. MotionPoint clients are seeing surges in web traffic and revenue from the market.","news_inline_styles":"","blog_video_id":"","article_body":"

Compelling business expansion opportunities are afoot in Colombia. You need only look to this May 14 story<\/a> in El Tiempo,<\/i> the country\u2019s largest newspaper, to see why:<\/p>\n

\u201cThe 30 Foreign Brands That Are Coming After Colombian Consumers,\u201d the headline reads.<\/p>\n

The Spanish-language story reports that 30 major international brands are eyeing Colombia as an ideal market to launch new retail efforts. Among the vanguard are several high-profile Spanish fashion brands. Other iconic brands such as Abercrombie and H&M are making moves to be within the country quite soon.<\/p>\n

Fashion is one of several major growth markets in Colombia. According to the El Tiempo <\/i>article, Colombia has already seen a 6.2% increase in catalog and online fashion sales over 2014\u2019s sales. In recent years, the country has seen store launches for international brands such as Gap, Victoria\u2019s Secret, Dolce & Gabbana, Burberry, Zara, Mango, Rockport, Frey Wille and others.<\/p>\n

So what has these international brands \u2013 and many others, in other industries \u2013 keen to expand into the Colombian market? Credit years of economic growth, governmental reform, and improved infrastructure (including investments in Internet and mobile web access).<\/p>\n

Indeed, Colombia\u2019s story is one of \u201cresurgence and reinvention,\u201d an analyst for global management consulting firm AT Kearney recently wrote<\/a>. \u201cThis place has every opportunity to do well in the years ahead, and deserves to be better known.\u201d<\/p>\n

The country now has the third-largest economy<\/a> in Latin America (surpassed only by Brazil and Mexico), and has experienced explosive economic growth, particularly during the 21st century. From 1990 to 2015, the country\u2019s GDP (PPP) grew from $120 billion to nearly $700 billion. This growth greatly impacted Colombian residents: per-capita GDP (PPP) has increased by 833%, and poverty levels dropped more than half<\/a> during the same time period.<\/p>\n

\"\"<\/figure>\n

This has greatly strengthened Colombia\u2019s middle class, according to AT Kearney\u2019s 2014 Global Retail Development Index<\/a>.<\/i> Household spending is up, unemployment is down, and the middle class \u201cis poised to spend more,\u201d the report said. \u201c(A) surge in credit card offers has helped increase spending on products and services that would otherwise be unaffordable.\u201d<\/p>\n

The nation\u2019s economic growth has been especially robust in recent years. In Q1 2014, Colombia\u2019s economy grew by 6.4% compared with the same period the previous year. The Economist<\/i> reported<\/a> that this increase overtook Peru\u2019s, making Colombia \u201cthe fastest-growing of the bigger Latin American economies.\u201d<\/p>\n

Much of this growth hails from years-long governmental reforms<\/a> and strong commodities exports. Oil remains Colombia\u2019s main export (comprising more than 45% of its commodities exports), but industries such as electronics and automobile manufacturing have grown over the past 15 years. Colombia is now Latin America\u2019s second-largest producer of domestically-made electronics and appliances, behind Mexico.<\/p>\n

Falling oil prices in recent months have cooled the country\u2019s growth, though perhaps not has much as some analysts have predicted. According to the World Bank<\/a>, Colombia\u2019s GDP growth rate in 2013 and 2014 was a steady 4.7%. Earlier this month, a board member of the Andean central bank predicted a growth rate of 3.5% or higher<\/a> this year. That\u2019s an undeniable decline, but better than initial forecasts of 3.2% \u2026 and it\u2019s also better than the Latin American average, forecasted by the World Bank.<\/p>\n

Despite recent fluctuations, many of Colombia\u2019s residents are earning more, and are increasingly using the Internet to research and make purchases.<\/p>\n

According to a recent Euromonitor International study<\/a>, online retail sales will grow by a 25% value CAGR at constant 2014 prices. \u201c(B)ut the predicted rate might be faster,\u201d the report said, \u201csince in Colombia, e-commerce is still in its developing process, with companies even more interested in developing the online channel, as well as the interest of pure e-commerce players to develop operations.<\/p>\n

\u201c(E)-commerce still has plenty of potential for development in the following years,\u201d Euromonitor continued, especially considering the current improvements of Internet access in lower-income municipalities. The country now has the longest fiber optic network in Latin America. (TV Azteca, a leading producer of Spanish-language television programming, is largely behind the push<\/a>, which will increase the number of Colombian municipalities with fiber-optic access to 96%.)<\/p>\n

Indeed, Colombians are especially comfortable making online purchases<\/a> in the categories of electronics & computers (43%), fashion (36%), entertainment (31%) and travel (29%). They also spend more time online each month<\/a> than the Latin American average.<\/p>\n

(You\u2019ll learn more about Colombian\u2019s online purchasing power in the fashion <\/b>and travel <\/b>sectors shortly.)<\/p>\n

Smartphone use is exploding, too. According to data compiled by LatinLink<\/a>, Colombia recently surpassed Argentina to become one of the top 3 smartphone markets in Latin America. Last year, Colombian mobile web use increased by nearly 60%, compared to 2013.<\/p>\n

The market isn\u2019t a perfect one, but it\u2019s clear that major brands are seeing lots of opportunity there, and are investing appropriately.<\/p>\n

Can your company reach these increasingly-connected consumers?<\/b> You bet. Many organizations launch localized websites to complement their international brick-and-mortar retail efforts. This makes a meaningful difference in connecting with, and building trust among, new customers in new markets.<\/p>\n

However, we\u2019ve also found that companies can still generate traffic, engagement and revenue with Colombian consumers without investing in brick-and-mortar endeavors. Localized websites are driving companies\u2019 global growth, and we have the data to prove it.<\/p>\n

The MotionPoint Perspective<\/h2>\n

MotionPoint works with companies across dozens of industries, translating their general-market English websites into other languages. We also optimize those sites\u2019 content and more for maximum engagement and conversion.<\/p>\n

We operate hundreds of Spanish-language websites for our clients. These sites are often initially launched to engage the U.S. Hispanic market. However, as we recently reported<\/a>, our clients quickly discover that these sites often generate interest and sales from Latin American consumers, including Colombians.<\/p>\n

We recently examined the performance of nearly a dozen Spanish sites, noting the traffic, engagement and conversion hailing from Colombia-based consumers. We focused on two industries: travel and fashion. The statistics tell a very interesting story.<\/p>\n

For instance: One international airline (which supports flights to Colombia and other Latin American countries) has seen a traffic increase of nearly 40%<\/b> to its Spanish-language site in the last two years from Colombian consumers. Ticket bookings through that Spanish website from Colombians increased an astonishing 859%<\/b> in the same timeframe.<\/p>\n

Another airline supporting Latin American travel saw a 73% increase in traffic<\/b> from Colombian visitors over the last year. A cross-country railroad\u2019s Colombian-based revenue has increased 28%<\/b> since last year.<\/p>\n

The lift to travel-related sites extends to airports, too. MotionPoint operates the Spanish-language website of an international airport in the southeastern United States. This site saw a 27% increase in traffic<\/b> and 17% increase in revenue<\/b> from Colombian sources.<\/p>\n

Analysis of fashion websites shows similar robust growth. One international fashion brand\u2019s Spanish site has seen a 26% increase in traffic<\/b> and 41% increase in revenue<\/b> from Colombia since last year. This is especially noteworthy, considering the company does not have a brick-and-mortar presence in Colombia. (However, expansion into the market, perhaps informed by this online engagement & revenue, is presently underway.)<\/p>\n

Another international fashion brand\u2019s Spanish site has also seen increases in traffic (40%) and revenue (27%) from Colombian shoppers. This company doesn\u2019t have a brick-and-mortar presence, either.<\/p>\n

Finally, a major UK-based fashion retailer, which launched a Spanish e-commerce site to initially engage U.S. Hispanic shoppers, has seen a 17% increase in traffic<\/b> and 25% increase in revenue<\/b> from Colombia.<\/p>\n

The takeaway is clear: Colombia\u2019s economic growth and stabilizing infrastructure have created a population of financially-confident, online-savvy consumers. Companies keen to expand into emerging markets should strongly consider localizing their online content for Spanish speakers, to experience similar lifts in website engagement and revenue.<\/p>\n

Your company can win big in Colombia and other Latin American companies, too. Contact us<\/a> to learn how our in-market experts can effectively localize your organization\u2019s website to generate growth in this ever-growing market.<\/i><\/p>\n","article_body_code":"","news_image":{"ID":4294,"id":4294,"title":"Hero_Growing-Colombian-Economy.jpg","filename":"Hero_Growing-Colombian-Economy.jpg","filesize":135632,"url":"https:\/\/www.motionpoint.com\/wp-content\/uploads\/Hero_Growing-Colombian-Economy.jpg","link":"https:\/\/www.motionpoint.com\/blog\/growing-economy-and-empowered-consumers-make-colombia-an-engaging-emerging\/hero_growing-colombian-economy\/","alt":"","author":"2","description":" \t","caption":"","name":"hero_growing-colombian-economy","status":"inherit","uploaded_to":429,"date":"2015-05-27 00:00:00","modified":"2015-05-27 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