Challenges of Taking Your Brand International
Want to take your business international? The expansion will unfurl a few risks, advantages, and disadvantages for which you ought to design brand expansion strategy. For a company trying to expand business internationally there are various concerns and factors to consider before entering a foreign market.
Define Your Global Strategy
How to expand your business internationally?
Knowing what you expect from international market is the first step of creating a successful Global Strategy. This may further involve an in-depth study of the company’s domestic standing and marketing strategies. To go deeper into international business expansion strategy, we held a Twitter chat and dug out few significant points for you. The tips shared by analysts and industry experts in #mark2fashion tech will give you more insights on expanding presence internationally. Go through the following recap to know the whole story.
Q.1 Which factors should small businesses consider before going international?
For small businesses, creating and maintaining a domestic audience is the first step towards international success. Once this is achieved moving towards the international market becomes a bit easier. Few factors that play major role in converting a company from domestic to international are
Market research– When entering a foreign market make sure you have intense knowledge of the customs of the targeted market. Collect data relevant to the targeted countries and try to learn everything about their import/export value and currency fluctuation. Do an extensive research on the targeted audience behavior towards similar business and the consumption pattern of the customers.
Competitor check– Conduct a market research of your competitors. Get answers to few questions like,
Have they made a presence in targeted countries?
How did they approach the new market?
What were the challenges which they faced while exploring their potential in the market?
While conducting the competitor research keep in mind how differently your brand will approach the market. Check few more viewpoints of market experts on expanding the global presence of a brand.
Q.2 What are the different ways for a brand to market their product internationally?
Expanding a business internationally (if done correctly) can reap huge rewards – millions of potential customers, a secure and stable business infrastructure. On the flip side expanding a business geographically can be a daunting undertaking and include significant risks. You must focus on finding ways that can significantly reduce the risk/cost and increase the chances of success of your international plan. Consumer behavior analysis will help strategize in this direction.
Understanding consumer behavior– The shopping preference or habits of your domestic audience can be vastly different from the habits of the international country. There are different ways a brand can market their product internationally but a thorough study of consumer behavior of target country has utmost importance.
For example – Walmart made a mistake before creating its presence in china. They did not research the consumer behavior before setting up a store near the industrial area, as consumers prefer shopping closer to home rather than the office.
Q.3 How can going international affect a brand’s local presence and vice-versa?
Companies looking to expand internationally must first secure their domestic presence. When a domestic brand plans to reach globally, the decision brings with itself several implications that may affect its local presence too.
If you have satisfied customers in your local market their reviews will help attract attention of global audience too. At the same time, their brand loyalty increases on realizing the fact that their favorite brand has a global reach. By and large, it’s a thing of pride for many customers to use globally acclaimed products as to them it vouches for quality and better customer service.
Q.4 Which challenges are faced by brands marketing their product internationally?
While creating your brand’s presence internationally always make sure that you are thinking globally and strategizing a comprehensive plan. The amount of insights and understanding of target customers you bring along while expanding your brand makes the first impression.
Try to showcase your clients an extensive market research. Before entering the international market make sure you are aware of the challenges your brand is about to face and chart out a stepwise plan to overcome the challenges of target market. Two things that can help greatly in this regard are,
Understanding country’s culture– Every culture has its own particular customs and taboos. If your company does not recognize the peculiarity of cultures you may end up offending the potential customer. The needs of target audience and clients of the international market may not be the same as the domestic audience.
Find the right partner– When you are expanding your brand, do not start it alone. You need a partner/mentor who can vouch for you and has a complete knowledge of the market you are planning capture.
Expanding your brand internationally does not have to be a scary proposition. Ultimately consider these points along with the right amount of time, money, dedication and awareness of international market and it will not only but ensure the global expansion of your company