Your Business Is Ready To Go Global And Here’s What You Need To Keep In Mind Before You Expand
How ready is your business to go global?
Has your business recently witnessed a spurt in growth and now you’ve decided to take it global, but you’re not sure about how and where to begin with? Well, you’ve come to the right place at the right time. Your reasons to expand may vary from market exploration purposes to building a global presence. Your options are probably markets that offer less resistance like Canada, Mexico, Europe etc. But what you don’t know, is that you’re barely scratching the surface as a business. You’re missing out on other fast-growing, untapped markets.
Before you go global you must consider your options and cross-question your decisions. Let us help you spin the globe and enlighten you with information about these new markets with untapped potential that are certainly viable for your growth as a business
How to pick your market?
When you expand to a new market, you must consider the industry in that particular country and your product offerings. For example, if you are an auto business, big auto markets like Japan may be a good place to begin with. We apply the 80/20 logic here, where 80% of your international sales will come from 20% of your international markets.
Luxury brand Louis Vuitton gets a major boost from China with a year on year increase in sales. 28% of their revenue hails from Asian markets (excluding Japan) in 2017.
How to pick your expansion strategy?
You might want to go global with a multi-local approach or go global by being global alone to standardize your brand. Regardless of your decisions, it is important to consider the market culture, audience demographics, government policies and also the history of established businesses in that region.
You will need to decide between opening your own office overseas, leveraging key in-country distributors or striking channel partnerships with key companies that have access to your target customers, based on your goals and budgets.
The solutions you use in one country, may not apply to the others, depending on the challenge in those markets. For example, in China, you will need a local agency to partner with, to help you navigate the market.
Localize your products and services
Your product or service needs to adapt wherever it enters. McDonalds is by far the master of localization with different variants across different cultures. Your business needs to speak the language of the locals, utilize local digital channels of communication and comply with cultural traditions. Indians believe in certain auspicious days to purchase electronics and other appliances. The Chinese consider ‘sending money’ as an important tradition for Chinese new year.
Localize your marketing efforts
After you’ve gained insights into your target audience in your area of expansion, the next step will include tailored marketing. Your marketing strategies will have to reflect localized messaging in terms of your channels of communication and content.
You might also have to consider these questions before going global
Do you feel comfortable in that country?
Since you’ll probably have to live there temporarily to operate the chain in its early stages, you’ll need a working knowledge of the language and culture.
Will the product sell well in the targeted culture?
This will include thorough market research about what works well with a certain audience and what doesn’t. For example, Uber couldn’t take over China’s Didi cab services
Is your target market familiar with your product or service?
If not, be prepared to invest a lot of time and money in consumer education. On the flip side, if you’re the first one to introduce a new and exciting concept, the product will become synonymous with your company name or chain in the long run.
If your business is fashion, makeup, beauty, health or gadget oriented, then chances of succeeding in China and India is the highest, given the current millennial consumption and explosion of digitalization.
Make sure to download our e-book for insights into the China Market