Statistics show that the companies that expand internationally have more chances to become successful. It is a true statement. If it were to compare the companies that do not trade internationally, with the ones that export their products and services, it is easy to notice that the ones that have entered foreign markets generate more revenue.
Why is this happening?
The reasons vary according to the industry the company is acting on. The companies that have decided to trade internationally have managed to become successful because they were confident in their skills and products. Also, it is essential to have knowledge of the market you are trying to access, because beyond the borders of your country, clients have different requests and expectations.
Before starting to market your expansion, it is advisable to learn everything you can about the land. The companies that failed to grow their businesses internationally have something in common; they were not able to gain a deep knowledge of the country where they intended to launch their products.
Learn from the mistakes of the companies that failed to expand in the country where you want to bring your brand. The key is to adapt to the needs of a foreign client, and here is how you can do it.
Know what marketing tools are reaching the target audience
The first thing you have to check in terms of marketing about the land where you want to expand your business is the type of marketing companies are practicing. The majority of states promote online marketing, but there are also states where traditional marketing is highly practiced, because people have little or no access to the Internet.
If online marketing is used, then you will have to do your homework, because there are great chances to be major differences in the way it is practiced. For example, in many states, Google is not the no.1 search engine, and Facebook is not the main social media channel used. If you want to have guaranteed success, then it is important to know what the most popular online channels and search engines are, and to focus the promotional campaigns there.
Find out if there are potential clients for your products
When entering a new market, all companies have to invest a lot of time and resources to create their marketing strategies. In order to create effective strategies, it is important to identify if there are potential customers that would be interested to buy from your company.
For example, if you intend to offer toy products for sale, you will need to check the number of children who live in that country. In order to find this, research for testing new markets is required, because not only their number, but also the income of their families is important. It is also essential to know the number of boys and girls, and how your brand can reach them. How can you bring your products in the houses of your clients? Do you need to plan promotional events, to market your products in magazines, do you need to create content for newspapers or television?
Find out if there are any advertising restrictions
All markets have their own regulations in terms of advertising. Before deciding your expansion’s destination, you should learn about the state rules. Depending on the type of products, you offer some regulations may be stricter than the ones in your home country. It is recommended to check the regulations especially if you intend to sell tobacco, alcohol or other similar products. These products are subjected to certain legal limitations on advertising in many countries. There are also states where the advertising of this type of products is banned, and you are not allowed to promote them.
Adapt your products to the local culture
Any brand that intends to bring their products on a new market needs to adapt them to the requirements of the market. If you fail to adapt to the cultural differences from the new country, it will cost you time and money. For example, if you used to promote your products with the help of an animal or colour in your home country, you should check if they provoke the same positive emotions in the new land.
Your products should provoke interest
One of the most essential factors that will influence your expansion on a new market is the impact the product makes on the market. For example, there are countries where the best strategy to enter the industry is to offer your product, at the lowest possible price. It will convince clients to choose you instead of one of your competitors. Your purpose is to generate public interest and to give your products a boost.
You need excellent financial management
The main question you need to find an answer to is how you can find financing for your international expansion. In addition, you will need to figure out what you can do to keep the cash flow running smoothly. In case you do not have the needed funds, you will need to get financing from the bank. In some cases, this means that you will have to expand your credit without putting up collateral.
Find a partner
Sometimes the best strategy to enter a new market is to find a local partner. You have the option to find a partner that will act as your mentor in launching your business internationally. It is important to choose someone who has a passion for the business industry, and who has the same values you share. Also, it is essential for your partner to have experience in the industry, because they should help you grow your business.
The greatest advantage you have if you find a local partner is that they totally understand the local business environment. They are immersed in the local culture, and they know what changes you have to bring to your products, they to meet the requirements of the market. If you do not have a local partner you will be competitively disadvantaged, and this is the last thing you want.