Entering a foreign market is not an easy endeavour, but it can be extremely worthwhile. The benefits of expanding into new corners of the globe extend beyond simply getting your goods and services in front of new audiences. It can be a galvanising force that takes your business into the future.
Foreign expansion requires businesses to think in entirely new ways and to come up with new ways of operating that can breathe life into the whole organisation. And while it can sound like a risky move in the beginning, the fact is that, on a long-term basis, it can actually help to safeguard the company’s financial health. If the market performs poorly in your home country and revenues begin to slide, having a presence in a foreign, better-performing market can make all the difference.
As you might expect, penetrating foreign markets is a big challenge. Even established brands have failed when going overseas. There’s no magic bullet for success (just as there’s not with any business venture), but there are things you can do to improve your chances. In this post, we’ll run through a few effective strategies that can put you on the right track.
Choose the Right Markets
You’ll be making things much easier for yourself if you enter markets that make sense for your brand. There are usually clues as to which countries/regions make a logical choice. For instance, have you been getting web traffic from a specific country?
If you think your products/services have broad appeal, then consider selecting a market that you already understand, or where you already have contacts. It’ll be much easier to set up in, say, France, if you’ve been there more times you can remember, have a good grasp of the language, and so on.
Conduct Thorough Market Research
It’s important to conduct thorough market research when you’re expanding anywhere, but it’s extra important when it’s in a foreign market. Though you may have had success in your home country, it’s best to approach the new market as if nothing — other than the product — will automatically be successful in the new zone.
Your market research will uncover a lot of invaluable data, including the demand for the product, competitors, obstacles you’ll have to overcome, and so on. In all likelihood, you’ll need to hire an outside company to do this for you.
Write In the Local Language
You’ll need to invest in new copywriting for your website if you’re entering a market with a different language from your home language. Google Translate is good for quick translations, but it’s not good enough to market your brand.
It can sometimes be worthwhile changing the text even if the new country does speak the same language. For example, if you’re a British brand trying to make it in the US, then adjusting the writing to the more American way of saying things can be useful. However, remember that sometimes it’s worthwhile retaining your voice — people in the US do generally respond well to British-style talk, after all.
Work With Local Influencers
It’s unlikely that you’ll have much of a reputation in the market you’re expanding into. Even if people are somewhat familiar with your brand, you’ll largely be an unknown quantity. One effective way to build brand awareness in territories where you do not currently have a reputation is to work with local influencers. They can function as brand ambassadors, increasing brand awareness among their followers. To get started, you’ll need to connect with influencers from your intended market, find a suitable influencer, and then come up with a posting plan. Done correctly, it can fast-track your entry into a new market, since you’ll effectively be piggybacking on an established name’s popularity.
Figure Out Payment Options
However you currently accept payments might work in your new chosen market, but in all likelihood, you’ll need to make some changes. Even if the option that you currently offer is available in the new market, that doesn’t necessarily mean that people know what it is/use it.
You’ll need to conduct some research as to which payment options are known and trusted. It’s also worth keeping in mind that including an obscure payment method can actually cause consumers to distrust a brand. It’s best to work with local experts to ensure that your payment methods will all be logical to your customers.
Remember: Great Customer Service is King!
People like great customer service all over the planet. However, what that looks like in practice is different from one place to the next. There’s a world of difference between customer service interactions in the US and the UK, for instance. To ensure you can offer great customer service, you’ll need to have a sense of what people expect. At the bare minimum, you’ll need to make it easy for people to get the help they need. For instance, by providing help in the local language, having a local phone number, and things like that.
Get Feedback and Adjust
It’s unlikely that you’ll get every detail of your entry into a foreign market correct at the first time of asking. In the early days of the venture, try to get as much feedback as possible. This can be indirect feedback (sensing what’s working, and what isn’t), or direct feedback (asking customers about their experience of buying from your brand). From there, make adjustments as needed. It’ll likely take a little bit of time before you land on the final form of your brand in the new market.
Conclusion
As we said at the beginning of the article, there are many advantages to entering a foreign market. It’s a challenge that can help to take your business to the next level. Indeed, by expanding into a new market, the true potential of your operation may be realised. Of course, this journey will be difficult — arguably as difficult, if not more so, than getting your business set up in the first place. However, you’ll likely find that it’s a worthwhile, engaging journey to go on!