While no single tool can provide all the answers when examining potential expansion opportunities, the Forrester Readiness Index (FRI) for eCommerce uses a wide breadth of data to aid retailers in identifying key markets for investment and potential growth opportunities.
The 2020 version of the FRI report features an updated framework that evaluates 15 quantitative variables in 54 countries. The new framework also provides a forward-looking view of the index, as we have forecasted all the variables through 2023. The composite Forrester Readiness Index is made up of two separate scoring indices: 1) the environment score, which includes consumer indicators and economic indicators, and 2) the retail opportunity score, which includes retail-specific indicators. As the report ranks countries based upon these two scoring metrics, we ended up with five different “readiness” levels.
To understand the impact of the current and future eCommerce environment as well as the retail opportunity, our model offers multiple ways to analyze the data. Our interactive Excel tool (included within the report) allows for deeper levels of customization, as well as the ability to compare metrics between two countries. Some of the key findings include:
- The US and China continue to dominate. When we examine all 54 countries together, the US and China dominate the ranks; they’re No. 1 and No. 2 in terms of readiness, due to their sheer size and expected growth over the next four years.
- India remains the most attractive investment after the US and China. Between 2019 and 2023, India boasts the third-highest retail opportunity score (behind the US and China). The country is the fastest-growing online retail market in the world, and continued investments by Walmart (Flipkart) and Amazon will drive this growth in the coming years.
- Russia is the third-fastest-growing eCommerce market in Europe. Russia boasts the highest opportunity score in Eastern Europe, and we expect it to grow its eCommerce market rapidly over the next four years. We expect only Italy and Romania to experience faster online retail growth over the same period.
Our updated framework allows all retailers to better understand the global eCommerce landscape in the coming years. For more in-depth analysis, please see our recently published report, “Forrester Readiness Index: eCommerce, 2020.”
Retailers and marketers may also be interested in our related report, “Forrester Readiness Index: Digital Marketing, 2020.”