{"id":9722,"date":"2024-07-23T08:05:52","date_gmt":"2024-07-23T06:05:52","guid":{"rendered":"https:\/\/eurotext.de\/en\/?p=9722"},"modified":"2024-09-30T08:47:57","modified_gmt":"2024-09-30T06:47:57","slug":"e-commerce-in-scotland","status":"publish","type":"post","link":"https:\/\/eurotext.de\/en\/blog\/e-commerce-in-scotland\/","title":{"rendered":"E-Commerce in Scotland"},"content":{"rendered":"

With its rugged landscapes and historic castles, Scotland is often thought of as a country steeped in tradition and rural charm, but the nation is also emerging as a prime target market for foreign e-commerce companies. With a tech-savvy population, robust digital infrastructure, and increasing consumer demand for online shopping, Scotland presents a lucrative opportunity for international businesses looking to expand their reach. This article explores why e-commerce companies should consider tapping into the Scottish market.<\/p>\n

Key Facts and Figures<\/h2>\n

Scotland occupies the northern third of Great Britain, covering an area of 78,772 square kilometers. That makes it around the same size as the Czech Republic<\/a> or the German <\/a>state of Bavaria. However, with about 5.3 million inhabitants, it has a population density of just 70 people per square kilometer \u2014 only one-fourth of the UK average density. Scotland\u2019s only land border is shared with England<\/a> and stretches nearly 100 kilometers. The largest cities include the capital, Edinburgh\u2014famously the first city in the world to have a fire brigade\u2014Glasgow, and Aberdeen. Scotland boasts a coastline approximately 3,540 kilometers long.<\/p>\n

Although Scotland is part of the United Kingdom, there have been repeated discussions about leaving the UK, and a 2014 referendum resulted in the rejection of Scottish independence. As a member of the UK, Scotland\u2019s head of state is the British monarch. However, Scotland has its own parliament, separate from that of England. Before Brexit in 2020, Scotland was part of the EU. As of October 2021, however, EU citizens can still travel to Scotland visa-free but must show a passport to enter the country.<\/p>\n

The UK’s Human Development Index (HDI) is 0.94, ranking it 15th globally, with a GDP of around US$3.34 trillion and a purchasing power parity GDP per capita of $54,126 in 2023. Scotland uses the British pound. Interestingly, three major Scottish banks issue their own banknotes, which means there are a total of four different versions of each denomination. These bank notes are accepted throughout the UK.<\/p>\n

Scotland is one hour behind central Europe\u2014when it\u2019s noon in Berlin, it\u2019s 11 AM in Edinburgh.<\/p>\n

Language<\/h2>\n

English is the official language in Scotland and has been the main language there since the 18th century. However, there are a number of dialects and accents spoken throughout Scotland. Most significantly, Scottish Gaelic speakers can be found throughout Scotland, particularly in the north of Scotland. The Scots language, which is much closer to English, was used in the Lowlands of Scotland before English became the primary language. Today, the UK government accepts Scots as a regional language and it is recognized under the European Charter for Regional or Minority Languages.<\/p>\n

As far as e-commerce localization<\/a> goes, Scottish English varies mainly in pronunciation from standard British English. That means that having a UK-English version of your website is sufficient. However, not all<\/i> English variations are equivalent. You will want to have a separate UK English and US English version of your website if budget allows, as the spelling, grammar, and tone of the two are different.<\/p>\n

Economy and Trade<\/h2>\n

As part of the UK, Scotland contributes to the world’s fifth-largest economy by GDP, valued at nearly $3.5 trillion. Scotland\u2019s on-shore GDP alone exceeded $247 billion in 2023. In 2021, 71.63% of the UK workforce was in services, 17.7% in manufacturing, and 0.6% in agriculture. Agriculture is vital in Scotland, with over 75% of the land used for farming. Key products include barley and wheat for whisky and beer, and high-quality meat from cattle and sheep, particularly in the Highlands. The forestry and fishing industries are also significant, with Scotland producing a third of the UK\u2019s timber and 70% of its fish catch.<\/p>\n

Industries like coal, iron, and zinc mining, and North Sea oil and gas extraction are crucial, with oil and gas accounting for 17% of Scotland\u2019s economy. Scotland exports oil, gas, chemicals, electronics, clothing, machinery, textiles, and whisky.<\/p>\n

Although its exports are significant, Scotland imports somewhat more than it exports. As of the second quarter of 2023, Scotland had imported goods with a value 20% higher than that of their exports. In 2021, the country imported goods valued at \u00a3106 billion and exported \u00a386 billion, for a trade deficit of around \u00a320 billion. Scotland\u2019s main trading partner is the UK, followed by EU countries.<\/p>\n

Internet and E-Commerce Trends<\/h2>\n

In 2020, 93% of Scottish residents reported having internet access, with 99% of households in well-off areas reporting internet access. Significantly, the Scottish government has made a major push to increase the availability of broadband internet in rural areas. The Digital Scotland Superfast Broadband program invested \u00a3463m to extend broadband access to more than 950,000 homes and businesses across Scotland. Over 95% of premises in Scotland now enjoy faster internet access. An additional \u00a3600 million is being invested through the Reaching 100% (R100) program to deliver broadband infrastructure in some of Scotland\u2019s most rural areas.<\/p>\n

The most common means of accessing the internet according to a recent survey is a smartphone \u2013 86% of internet users accessed the internet this way. Residents over the age of 75 were more likely to use a computer or tablet to get online, while those between 16 and 25 were most likely to use a smartphone or computer. This highlights the importance of having mobile-friendly e-commerce websites.<\/p>\n

A Statista survey found that 84% of respondents use the internet to purchase goods and services. And with 81% of Scottish consumers reporting that they go online to access social media, we can see that social media marketing could be an effective strategy here, as in so many other countries.<\/p>\n

E-Commerce and Brexit<\/h2>\n

Following Brexit, people were shocked to see exports from the UK to the EU drop by 68%. And EU residents may hesitate to order from the UK due to the added costs of customs and import duties. However, people living in the UK are still fairly open to cross-border shopping: a 2024 survey found that at least 52.5% of US and UK consumers have ordered products from online shops in other countries.<\/p>\n

Younger age groups between 16 – 44 were most likely to have made cross-border purchases, with more than 61% of all of these groups having made at least one cross-border online purchase in the past 12 months. People over the age of 55 were far less likely to shop internationally. While selling to Scottish consumers from the EU is no longer as simple as it was before Brexit, it is still entirely possible to attract Scottish consumers as an EU-based e-commerce business.<\/p>\n

Conclusion<\/h2>\n

With a substantial customer base, good infrastructure, and a penchant for online shopping, Scotland is an appealing market. Although Brexit has introduced new trade complexities that increase the bureaucratic and logistical burdens, it by no means takes Scotland out of the running. Especially if you are targeting other areas of the UK already, there is practically no additional effort involved in serving Scottish consumers as well. Given the country\u2019s location and connection to the rest of the UK, it\u2019s certainly an interesting opportunity for expansion.<\/p>\n
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