How To Expand Into The International Retail Market

If you’re looking to bring your business online globally, odds are you’re far from alone. According to Advertising Week, 73% of business leaders consider entering their business into new markets. There are, however, a few essential components to consider first. 

Global expansion is a long-term investment, and shouldn’t be thought of as an easy short-term process. In fact, Advertising Week also reported that  this is the exact reason why so many businesses suffer once they’ve expanded overseas. Read on to find how to expand into the international market and the best practices to take into consideration if you’re hoping to bring your company overseas.

Make sure you’re doing your market research. Without it, you could be making a seriously expensive error. Ask yourself what golden opportunities your business can serve in another area of the world. Are you introducing a twist to a classic cuisine? Could you establish a luxurious clothing brand at an affordable price? 

It’s vital to look into the customer potentials in multiple areas to ensure there’s a market eagerly awaiting your products/services. A company will gain valuable insights into the various demographics to ensure an informed decision is made for the benefit of the business, as per Kantar.

Ensure you’re not only strategic in the way your business is introduced, but that you also demonstrate caution in whichever country you plan to enter. Each area of the world has their own laws and cultures that need to be respected. If this isn’t considered in advance, then you may not only face legal action, but the reputation of your company will be put at risk. 

Home Depot, for instance, failed their expansion into China quickly. In the US, Home Depot is known for serving customers with a DIY mindset in suburban communities. However, when this model was copied and pasted in China’s suburban areas, it quickly crashed and burned. Those who have wealth in China, don’t typically reside in suburban neighborhoods. They also mostly rent their homes in cities, which means they aren’t looking to renovate the spaces themselves. If this evaluation was done by Home Depot beforehand, they would have seen from the data that China would not have been the next best move. 

When you get to this stage in the business, that doesn’t mean you have to continue down the path alone. Certain countries offer government assistance for those looking to expand in their domain. The UK, for example, supports global trade with discounted local marketing services, as per the British Chambers of Commerce. 

There are also international business consultants available, who can help steer you in the right direction. They can help with the legal aspects as well as the positioning of your company in a new country.

By creating an online community through social media platforms, you can measure the demographics of your audience and see where they’re located. For example, if you own a coffee brand and 35% of your followers are located in Sweden, then it may be beneficial to look into possible expansion opportunities. When it comes to business and growth and marketing, it’s almost always a better financial decision to cater to the existing interested market than investing money and resources with the hope to persuade a different audience. 

You can also utilize other digital platforms to streamline the process of your business for a better customer experience. With platforms such as NetSuite, Salesforce, Quickbooks, and others, there are several resources available to cater to your company needs from an online perspective.

For increased revenue, improved customer retention, and increased market share, it’s important to focus on the customer and their personal experience with the brand. If this isn’t done, it will become more difficult to penetrate the market in different international environments. Customers may then frequent local competitors instead.