# China, US, India among the top 36 countries for marketplace expansion in 2018 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-10-04 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Hyperwallet 2018 Marketplace Expansion Index: Unleash Gig Meta Description: Discover top findings and key indicators for marketplaces to expand globally with Hyperwallet's comprehensive 2018 Marketplace Expansion Index. URL: https://financedigest.com/china-us-india-among-the-top-36-countries-for-marketplace-expansion-in-2018html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd041017-1-1736843410173-compressed.jpg) _Hyperwallet’s inaugural 2018 Marketplace Expansion Index provides marketplaces a data-driven approach to expansion measured across key indicators, including infrastructure, ecommerce activity, foreign competition, and workforce._ The gig economy is on the rise—and shows no signs of slowing down anytime soon. An estimated 9.2 million Americans will work in the gig economy by 2021, up from 3.8 million in 2016, according to combined research from Intuit and Emergent Research. The more than 200 percent increase presents a significant opportunity for marketplaces, both in the US and beyond. Gig economy startups, ecommerce marketplaces, and social selling companies are looking for new ways to extend their reach globally and better accommodate this growing segment of consumers. The [2018 Marketplace Expansion Index](https://walkersands-dot-yamm-track.appspot.com/Redirect?ukey=1oRxX_MRqrgck1uS572UyE4TOv_brZe2JQrCyzdVqRpE-1097509857&key=YAMMID-56951480&link=http%3A%2F%2Fexpansion.hyperwallet.com%2F) helps them do just that. [Hyperwallet](https://walkersands-dot-yamm-track.appspot.com/Redirect?ukey=1oRxX_MRqrgck1uS572UyE4TOv_brZe2JQrCyzdVqRpE-1097509857&key=YAMMID-56951480&link=https%3A%2F%2Fwww.hyperwallet.com%2F), a leading global payouts provider to millions of independent workers, conducted a macro-level analysis of 209 different countries across a wide range of metrics. A closer look at the [data then enabled](https://www.financedigest.com/seenthis-launches-emissions-dashboard-to-enable-advertisers-to-analyse-data-reduction-and-emission-savings-on-campaigns.html "SeenThis launches Emissions Dashboard to enable advertisers to analyse data reduction and emission savings on campaigns") Hyperwallet analysts to narrow the field to just 55 countries of interest. Finally, [analysts used a set](https://www.financedigest.com/coffee-bean-grinders-market-is-set-to-witness-a-cagr-of-8-1-8-9-during-2021-2031-says-fmi-analyst.html "Coffee Bean Grinders Market is set to witness a CAGR of 8.1%- 8.9% during 2021-2031, Says FMI Analyst") of four key expansion readiness categories on a scale of one to 10 (infrastructure, workforce, ecommerce activity, and foreign competition)—along with 10 sub-parameters on a scale of one to 100—to help cap the Index at the top 36 countries and assign each country to one of three tiers: Established (countries 1-12), Emerging (countries 13-24), and Evolving (countries 25-36). [Digital marketplace platforms](https://www.financedigest.com/digital-id-revolutionises-end-to-end-mortgage-and-protection-platform.html "Digital ID Revolutionises End-to End Mortgage and Protection Platform") can use the Index to better inform their expansion decisions. “Over the past few years, we’ve talked directly with marketplaces operating within the collaborative, gig, and sharing economies about the importance of approaching expansion differently,” said Brent Warrington, CEO of Hyperwallet. “Whether it’s highlighting the availability of freelance workers in a specific country or sizing up the competition, our Index helps marketplaces bring their platform to [scale in a variety of diverse global](https://www.financedigest.com/increase-in-sales-of-human-insulin-market-to-scale-revenue-growth-in-the-global-market.html "Increase in Sales of Human Insulin Market to Scale Revenue Growth in the Global Market") markets.” [Top findings from the 2018 Marketplace Expansion Index include:](https://www.financedigest.com/title-interventional-pulmonology-market-shows-huge-demand-and-future-scope-including-top-players-2031.html "Interventional Pulmonology Market Shows Huge Demand and Future Scope Including Top Players 2031") **Seamless payment infrastructure sets the stage for success** The Index’s Established category represents the most favorable environments for marketplace expansion. In fact, most countries within this category boast a high level of market dominance, impressive payment infrastructure, and exceptional logistical networks—not to mention the [opportunity for further growth](https://www.financedigest.com/infant-positioning-aids-market-application-trends-growth-opportunities-and-worldwide-forecast-to-2027.html "Infant Positioning Aids Market Application, Trends, Growth, Opportunities and Worldwide Forecast to 2027"). The average infrastructure score for the category is an eight out of 10, while the US specifically features a foreign marketplace dominance score of 100 out of 100. Such a high level of acceptance for foreign goods and services makes these markets an especially appealing choice for expansion. For marketplaces interested in paying their sellers or freelancers at a moment’s notice, Established [countries are worth considering](https://www.financedigest.com/eu-will-consider-making-countries-fill-gas-storage-energy-chief.html "EU will consider making countries fill gas storage – energy chief"). In fact, 10 of the Index’s Established [countries have a payment infrastructure rating](https://www.financedigest.com/ecb-hikes-rates-throws-lifeline-to-indebted-countries.html "ECB hikes rates, throws lifeline to indebted countries") of at least 75 out of 100. That same level of convenience can also be found within [logistical networks that help ensure deliveries](https://www.financedigest.com/teslas-logistical-challenges-overshadow-record-deliveries.html "Tesla’s logistical challenges overshadow record deliveries") are both reliable and affordable. **Intense local competition slows marketplace entry** Emerging countries serve as middle-of-the-road expansion destinations. While they [offer plenty of opportunity](https://www.financedigest.com/c-arms-market-to-offer-ample-growth-opportunities-by-2027.html "C-arms Market to Offer Ample Growth Opportunities by 2027"), Emerging countries also introduce challenges that don’t often pop up in areas that are more accommodating to marketplaces. From smaller [market sizes to weaker ecommerce retail growth](https://www.financedigest.com/dry-molasses-products-market-overview-in-depth-analysis-of-market-size-growth-industry-overview-2022-2029-2.html "Dry Molasses Products Market Overview In-depth Analysis of Market Size, Growth, Industry Overview 2022-2029"), marketplaces must be prepared to work with consumer bases that may not be as sophisticated as those found in countries identified as Established. Only one of the 12 Emerging countries (Indonesia) features a [retail ecommerce growth](https://www.financedigest.com/intelligent-delivery-the-future-of-ecommerce-and-retail.html "Intelligent delivery: the future of eCommerce and retail") score above 35 (out of 100). Similarly, the presence of dominant local incumbents may hinder a marketplace’s ability to quickly capture [market share](https://www.financedigest.com/countertop-spray-market-share-by-2028-upcoming-trends-and-analysis.html "Countertop Spray Market Share by 2028: Upcoming Trends and Analysis"). Although staying one step ahead of local competitors might prove difficult, marketplaces can get the [job done by combining a strong](https://www.financedigest.com/world-shares-rise-u-s-yield-curve-inverts-after-strong-jobs-data.html "World shares rise, U.S. yield curve inverts after strong jobs data") approach with top notch service. Companies aiming to find success in Emerging countries should also take the time to develop an entry strategy that enables them to sidestep [strict employment regulations](https://www.financedigest.com/strict-regulations-regarding-hygiene-at-industrial-workplaces-to-create-high-demand-for-industrial-dispensers-persistence-market-research.html "Strict Regulations Regarding Hygiene at Industrial Workplaces to Create High Demand for Industrial Dispensers: Persistence Market Research") as well as unstable governments. **Large freelancer pool may support development** When it comes to accommodating marketplace expansion, Evolving countries still have plenty of room for improvement. Infrastructure is just one of the many areas in which Evolving [countries lag behind](https://www.financedigest.com/new-research-reveals-the-countries-leaving-cash-behind.html "New research reveals the countries leaving cash behind") other expansion options. The average infrastructure score for countries within this category is only five out of 10. While such countries may not fit into a traditional growth approach, that doesn’t mean they’re worth ignoring. Marketplaces that take advantage of [unique opportunities](https://www.financedigest.com/manufactured-homes-unique-opportunity-to-aid-the-housing-crisis.html "Manufactured Homes’ Unique Opportunity to Aid the Housing Crisis  ") presented within Evolving countries—such as a large freelancer pool—may enjoy a first-mover advantage. First though, marketplaces [must consider the challenges that may impact their ability to enter and operate](https://www.financedigest.com/true-operational-resilience-must-include-investing-in-esg.html "True operational resilience must include investing in ESG") within Evolving countries. Vague boundaries, for example, present a double-edged sword for marketplace platforms. While scaling operations can be easier, there’s no telling whether [future regulations](https://www.financedigest.com/the-future-of-payments-flexibility-regulation-and-bespoke-models.html "The Future of Payments: Flexibility, Regulation, and Bespoke Models") could thwart such plans. That’s a big reason why the average category score for ecommerce activity among Evolving countries sits at just six out of 10. Marketplace platforms are also likely to come across political instability within Evolving countries. Corruption, coupled with violence and economic hardships, can quickly derail expansion efforts. By planning accordingly based on the specific [opportunities and challenges](https://www.financedigest.com/extracorporeal-co2-removal-market-in-depth-analysis-by-trends-opportunities-drivers-challenges-and-growth-factors-by-2026.html "Extracorporeal CO2 Removal Market: In-Depth Analysis by Trends, Opportunities, Drivers, Challenges and Growth Factors by 2026") within a country, marketplace platforms can give themselves the best chance at expansion success. To learn more about the 2018 Marketplace Expansion Index, explore an interactive map of the top 36 countries, or download a full copy of the report, visit [expansion.hyperwallet.com](https://walkersands-dot-yamm-track.appspot.com/Redirect?ukey=1oRxX_MRqrgck1uS572UyE4TOv_brZe2JQrCyzdVqRpE-1097509857&key=YAMMID-56951480&link=http%3A%2F%2Fexpansion.hyperwallet.com%2F). **Methodology** The 2018 Marketplace Expansion Index was developed to [assist digital](https://www.financedigest.com/discrete-digitization-to-drive-the-assisted-reproductive-technology-market.html "Discrete digitization to drive the Assisted Reproductive Technology Market") marketplace platforms operating in the collaborative, gig, and sharing economies gauge the expansion readiness of 36 countries. A final review of data [gathered](https://www.financedigest.com/cosmetic-packaging-market-to-gather-traction-in-developing-countries-latest-insights-by-transparency-market-research.html "Cosmetic Packaging Market to Gather Traction in Developing Countries, Latest Insights by Transparency Market Research") from a diverse collection of two-sided marketplaces enabled Hyperwalletanalysts to cap the Index at 36 countries and assign each country to one of three tiers: Established, Emerging, and Evolving. The first report of its kind, the 2018 Marketplace Expansion Index, aims to provide a data-driven approach to [global expansion by accounting](https://www.financedigest.com/building-and-construction-to-continue-accounting-for-nearly-half-of-tower-cranes-sales-globally-fmi.html "Building and Construction to Continue Accounting for Nearly Half of Tower Cranes Sales Globally: FMI") for factors that are unique to this newly evolved business model. --- This blog is powered by Superblog. 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