2024: AI, globalization and new challenges in e-commerce

This year showed that the e-commerce market is changing faster than ever. New technologies, expansion into foreign markets and pressure from global giants like Temu define trends that will shape the future of the entire industry.

1️⃣ Temu as a threat to European players

Temu's entry into European markets put major pressure on local e-shops. This Chinese giant, known for its aggressive pricing model and massive expansion, showed that globalization isn't only an asset, but also a major challenge. European companies now have to adapt to a faster pace of change, from logistics processes to localization to personalizing offers for foreign customers.

For e-shops in the Czech Republic and Europe it's a clear signal: Without localization and effective expansion to foreign markets it's nearly impossible to compete long term.

2️⃣ Inspiration from Europe: successful expansion of local players

On the other side we see examples of e-shops that managed to adapt and use globalization to their advantage. Czech e-shops Notino, Footshop and Kulina are great examples of companies using localization and a strong brand to expand to foreign markets. The same goes for European brands like Zalando or IKEA, which invested in localization and successfully reached a wide range of customers across the continent.

These examples show that localization isn't just about translation, but about adapting the entire shopping experience, from language nuances and cultural differences to local marketing strategies.

3️⃣ AI as a partner for breaking down barriers

2024 was a turning point for using AI in e-commerce. Technologies like Translation Memory brought more efficient product localization and cut costs by tens of percent. On top of that AI can:

• Analyze translation quality in real time.
• Identify areas requiring manual review, saving the time of human experts.
• Improve decision making with data, for example by showing which products have the greatest potential on foreign markets.

At the same time it's clear that even in the age of AI, the human stays at the center. Human input is key and separates the good from the excellent.

4️⃣ The future: globalization and efficiency

2025 will bring even faster market globalization. We expect:

• AI localization will move closer to real time, enabling faster expansion.
• European companies will invest more in content localization and personalization to stay competitive.
• Small and mid-size e-shops will open up to foreign markets more, expansion will become standard, not the exception.

Inspiration from the market: How are Czech companies doing?

On the Czech market we also see that companies brave enough to invest in localization are succeeding. At LOCO, where we help e-shops localize their products for foreign markets, we recorded this year:

• Demand growing by tens of percent, especially among smaller players who want to expand.
• Successes of companies that entered new markets with our help, from Western Europe to Scandinavia.
• Localization cost savings of more than 50 % thanks to combining AI and human input.

LOCO is one example of how technology and the right strategy can open the door even for small companies to the wider world.

2024 showed that expansion and localization are no longer optional add-ons, but essential tools for survival and growth on the global market. Czech and European e-shops still have room to succeed if they can find the right balance between technology and a human touch.

Start with localization today. 😊