Introduction.
The rapidly growing European EC market represents a great opportunity for Japanese companies. Through cross-border EC, it is possible to develop sales channels that transcend language, cultural, and business customs barriers, and to establish direct contact with customers. This article provides a comprehensive overview of practical steps and precautions for achieving success in the European EC market.
Significance of EC in Expanding into Europe
The size of the EC market in the European Union as a whole continues to expand, and the EC usage rate in major countries (Germany, France, Italy, Spain, etc.) is increasing every year. When Japanese companies enter the European market, they can approach local consumers directly through EC without having to establish a physical base, thus reducing initial costs.
Types of EC
Differences between B2B, B2C, and D2C and how to use them
The EC models utilized in Europe fall into three main categories:
B2B (Business to Business): Sales of industrial products and commercial products. Cooperation with trade shows and industry-specific websites are key.
B2C (Business to Consumer): Sold to individual consumers through Amazon EU, Cdiscount, etc. Demand is also great for cross-border e-commerce.
D2C (Direct to Consumer): Sell as your own brand on your own website. Branding and SNS collaboration can make the difference between success and failure.
Points to keep in mind when building an e-commerce site
Looks and results are two different things.
Although European users have different UI/UX preferences for purchasing behavior in different countries, the following three points are of common importance:
Visible and credible design (avoid overly Japanese expressions)
Inflow strategy (SEO, advertising, SNS, etc. to attract customers from multiple angles)
Maximize CVR (introduction of payment methods supported in Europe, language localization, return policy)
Fundamentals of Overseas SEO
Points to note in SEO for Europe:
Optimization of language variations: UK English vs. US English, French vs. Belgian French, etc.
Competition for search rankings: In the global market, competition is 10 times greater. Local keyword selection and Hreflang settings are essential.
External Linking Strategy: Linkage with highly reputable local portal sites and media contributed to the domain evaluation.
SNS integration and regular content updates: Marketing in conjunction with SEO is key.
European EC Regulations that Japanese companies must comply with
There is a risk of suspension of sales if the following regulatory responses are inadequate
CE/UKCA Mark: Required for electronic products, toys, medical devices, etc.
Triman/PAP Mark and other recycling labels: Packaging Laws and Regulations
Age limit labeling/Country of origin labeling: Obligation to label by category
INCI notation: essential for the cosmetics category
For food and supplements, nutritional and allergen labels are also covered.
GDPR
Prerequisites for operating an EC in Europe
GDPR (General Data Protection Regulation) is an EU law regarding the handling of personal data. The maximum fine for violation is 4% of annual turnover. The following actions are required
Obtaining prior consent for cookies and presenting choices
Clear privacy policy statement
Establish a system that can respond to requests from users to delete or correct data
Indicate information on the use of third-party tools such as Google Analytics, Meta Pixel, etc.
Strategies to Achieve Results in the European EC
Local needs research: Utilize Google Trends and market reports
Development of shipping infrastructure: warehousing and fulfillment collaboration within Europe (e.g. Amazon FBA EU)
Automate language and currency support: leverage multilingual and multicurrency capabilities in Shopify and BigCommerce
Marketing that integrates advertising and SEO: Integration of multiple channels such as SNS advertising, PR, SEO articles, etc.
summary
Entering the European e-commerce market is an arena where even small and medium-sized companies can achieve great results if they have the right preparation and strategy in place. Working with a local presence support company such as Swapsss, you can achieve steady market penetration while minimizing risk.