The importance of cross-border e-commerce market segmentation and its strategic analysis

Market segmentation is not the result of human will, but is caused by the development of productivity, the increase in product types and the improvement of quality, consumers have more choices, and the competition between markets is becoming increasingly fierce. In the field of cross-border e-commerce, we face a large and growing group of consumers, each of whom has unique psychological needs, lifestyles and behavioral characteristics. Taking clothing as an example, consumers have diverse motivations for choosing. Some people pursue fashion and are willing to spend high prices to buy; some focus on showing social status and choose international famous brands; and some prefer practical and economical clothing and choose popular clothing.

Cross-border e-commerce target market model

In the cross-border e-commerce market, companies can choose different target market models according to their own conditions:

• Intensive Single Market: Suitable for small businesses and start-up companies with limited resources. By concentrating resources and cultivating intensively in a market segment, they can achieve a higher market share, but they also face challenges. Greater risk.
• Selective Specialization (Multiple Segments): Selecting multiple segments that are attractive and consistent with the company’s goals and resources, but that are less relevant but can Spread risks and improve overall profitability.
• Product Specialization: Focusing on producing one product and selling it to different types of consumers helps a company establish an image of expertise in a specific product area, but may also face challenges due to technological change challenge.
• Market specialization: Providing a variety of products specifically for a specific consumer group can help deepen customer relationships, but if the purchasing power of this group decreases, it will have an impact on the business.
• Complete Market Coverage: A strategy used by large companies such as IBM, General Motors, and Coca-Cola to diversify their products to satisfy a wide range of consumer needs.

Steps to determine target market

The process of identifying cross-border target markets includes:

1. Selected market scope: Clarify the market positioning of the company in a specific industry as the basis for subsequent strategic planning.
2. Understand the needs of potential customers: Analyze the common needs of potential customers from the perspectives of geography, demographics, psychology, etc.
3. Divide and name market segments: Segment the market based on similarities in customer needs and make them specific for identification.
4. Screen the target market: Eliminate market segments that do not meet the company’s positioning and initially determine the target market.
5. In-depth analysis of the target market: Evaluate the market size, competition situation and consumer response to ensure that the selection meets the target market selection criteria.

For example, Company A provides high-end business people with portable golf training simulators for offices through Alibaba International Station. Its market positioning is precise, covering everything from the first-level category Sports & Entertainment to specific products Golf Training Aids. levels of subdivision.

Marketing strategies for cross-border e-commerce target markets

• Undifferentiated marketing strategy: Treat the entire market as a single goal and use a unified marketing plan to attract as many buyers as possible. It is suitable for products with widespread demand and a high degree of standardization.
• Differentiated marketing strategy: Design independent marketing plans for different market segments. Although it increases costs, it can better meet customer needs and enhance brand influence.
• Concentrated marketing strategy: Focus on one or a few market segments and occupy market share through specialized production and sales. This strategy is especially suitable for small and medium-sized enterprises with limited resources.

To sum up, when formulating market strategies, cross-border e-commerce companies need to comprehensively consider market characteristics, consumer needs and their own resource conditions, and rationally select target markets and marketing methods to achieve long-term sustainable development.