The future of business is online. Online subscription services stream music directly to end-users without ever having to ship an album. The growth of online activity even affects companies that sell physical goods in brick-and-mortar stores by making it easier for them to reach new markets and market their goods directly to their potential customers before new products and services are even released. With an estimated USD 730 billion being spent online each year (a number that is perpetually growing), more and more companies are seeing a significant chunk of their revenue coming from international markets.
In this report, we look at the online consumption index broken down by market (country) and by language. The online consumption index ranks countries and languages by percentage of online spending. It tells us how much is being spent online and by whom. This study can be used for a number of purposes, such as:
Companies that provide online services need to know potential size (both in potential customer base as well as total revenue) of international markets. This can be used as a baseline for defining international expansion goals and measuring market penetration.
It is often not easy to make a decision to localize. While localization industry veterans are usually aware that localization is a crucial step in international expansion, sometimes they are met with resistance from budget owners in senior management who don’t fully understand the potential return on investment. Understanding the data available for each market (country) and each language, allows localization managers to build a strong case for prioritizing localization budget in order to maximize international revenues.
While it is important to understand the data available for each market and each language, there are usually other factors involved in deciding which markets to enter. For example, US companies that rely upon on-the-ground distribution networks may prioritize Spanish and French for the North American market before they decide to make the jump overseas. When expanding abroad, the country information can be used to help make decisions on where to locate their international distribution networks for maximum reach to potential international customers.
The online consumption index is calculated based on available data around output (GDP, household consumption expenditure), online infrastructure (prevalence of secure servers), online adoption (internet subscribers), and demographics of each market. We look at the online consumption index over the last six years. Because we need to make decisions today on where to invest for tomorrow, we also look at the forecasted data over the next three years to see how buying behavior will shift in the future in different markets.
If you are viewing this report online at www.nimdzi.com, all of the graphs and maps are fully dynamic so you can drill down to see specific data by hovering the mouse over individual data points in the graphs. If the full dataset is what you are interested in, then all relevant data is provided in table format as well, broken down by 217 countries and over 400 languages.For access to the full report, please log in using your Nimdzi Partners Account. Don't have a subscription? We'll help you fix that. Please get in touch with us to find out how you can get access to the entire library of Nimdzi Insight Reports.
There are 534 million Spanish speakers living in 22 countries, including the US. Territories where Spanish is spoken are diverse and unique, and they have their own geographical, historical, and socioeconomic characteristics. It is therefore not surprising that in each region they use a different variant of Spanish.
The Nimdzi online consumption index (OCI) ranks countries and languages by percentage of online spending. It tells us how much is being spent online and by whom.
Project Underwear is a reference study of the buying behavior of users online and how language affects their choices. It is the culmination of 8 months of intensive research executed across 74 countries, working with 41 local researchers in 66 languages. Ever wanted to know whether you can get by with your product remaining in English only? The short answer is NO, you will not. 9 international users out of 10 will ignore your product if it is not in their native language. For the long answer, read Nimdzi’s Project Underwear.
The HubSpot localization team has positioned itself as a high-priority (revenue-generating) strategic function critical to the continued growth of the company, with a broad scope of responsibilities that goes beyond providing translations. A key to their success has been their tight collaboration between localization and other core teams.