Many companies with growth potential international market expansion. However, we need to consider the factors that influence trying to “go global”.
Great ideas and practices in the domestic market may not work for customers in another region or country. Therefore, business owners must be fully prepared and ready to deal with any discrepancies before international market expansion.
How to expand the international market?
Breaking into a foreign market can be a huge challenge, especially one with strict regulations and restrictions. Often, business owners want to expand internationally, but they don't know where to start. Here are eight ways to build your foothold in the international marketplace. Check out the list below to discover which is best for your company. Hopefully, after reading this, you'll know where to start.
1. Consider franchising options
Franchising is often at the top of the list in strategy international market expansion. If you don't know much about franchising yet, here's how it works:
- You establish a reputable brand (e.g. a restaurant)
- You invite restaurant franchisees to open their restaurants under your brand.
- The franchisor will pay you a fee and possibly a percentage of profits each year.
The benefit of franchising is that it is one of the simplest ways to enter new markets. Simply use your existing profitable business model, identify a franchisee in your desired market, grow your franchise and open the door to international markets.
Strategy to expand to foreign markets and serve international customers
Image source: Forbes
You can explore all the places you want, but if you don't have a strong brand in the country you're trying to break into, you'll look like every other business on the street. It's not the end of the world; many small businesses can still thrive – but it's important to remember that franchising can only be used for certain types of businesses, and it comes with a significant amount of risk because you're dealing with it. your brand to others!
2. Direct export
A popular way to expand to international market Another is direct exporting: you sell directly to the market you are trying to enter. For example, if you want to sell to Japan, you put your goods in the correct Japanese store and see how they are sold.
Your export partners are agents and distributors. These merchants act as a link between you and the stores. Trying to gain a foothold in a major Japanese retailer as a foreign entity is difficult indeed. However, it is not impossible with the help of a reliable dealer/distributor (and language service company). It's actually relatively simple. Much of the contact information you need to be successful is held by your dealer/distributor.
Of course, you'll have to learn about shipping and other factors, but on the surface, direct exporting may seem like selling in your country.
3. Looking for partners
You can find an overseas partner to assist with international marketing (in exchange for a share of sales or profits), or you can find a partner who is as committed to every aspect of your business as your role. your own game.
You must thoroughly research your potential partners to ensure that you are doing business with someone who will truly support you, not hinder you. However, if you can find a good partner, you will be able to capture the new market for international customers much faster because they know everything you don't know about that market. Partnerships are a necessity in some parts of the world. For example, if you are a foreigner, you will not be able to succeed in many Asian countries – you will need a partner in each country to help you understand and operate according to laws and the like.
4. Joint venture
A joint venture is a partnership between two or more businesses or individuals. They meet and invest in a commercial venture – the investment amount is usually 50/50 and the profits are split equally.
5. Buy a company in a new market
Buying a company in another country is by far the simplest approach to entering a new market and expand to the international market. This option has several benefits:
- You instantly claim your market share.
- You have an existing customer base and a strong brand image.
- Even if the government imposes regulations in the international customer service industry, you can quickly adapt (and these rules and regulations can actually help you because they can keep the competition going. low level competition)
- In most cases, governments will still treat you like a local company in terms of permits and other matters.
Of course, there are downsides to this approach as well:
- You are no longer a single entity and your international activities in that market will be different from the rest of your brand image.
- Buying a company in a new market can be very expensive, especially if the company you want to buy is already profitable.
- Due diligence for a foreign company, especially one based in a lesser known country, is a lot more complicated than it is in the country.
6. Turnkey product or solution (Turnkey)
Do you like building things? Perhaps you work in construction or engineering. If so, you can look for turnkey projects to bid on in other countries. A “turnkey product” is a product you build from scratch and then deliver to someone who only has to “turn the key” to get started. These projects often come from governments, so they are often the best deals. On the other hand, because of that, you will have to compete to win them for both domestic and international customers.
7. Cooperate with domestic enterprises (piggyback) to expand to international market
In this form, you have to sell products to other businesses in your country to ask them to "carry" your products to foreign markets. If those local companies have operations overseas, all you have to do is call them and ask, “Hello, can you bring my products to your overseas agents? ?”
Of course, you can phrase it differently to be more persuasive. Here you are leveraging an existing commercial partnership to penetrate and expand to international market.
Piggyback – Have a business "carry" your company to foreign markets
The license is similar to form 7 in that instead of talking to local companies and asking them to bring products to foreign markets to sell, you talk to international companies and ask them to temporarily own the product.
For example, if you have a great gadget that you believe will solve the inventory problems of businesses in your new market, all you have to do is ask.
Licensing is one of the easiest methods to get started, although it is not always an “easy procedure” in general. First, you have to convince the company that your product is right for them. Then you have to convince them that it will sell well. You will then have to work with the government and attorneys to work out all the legal details of “selling” the license. It's not like selling the rights to your product. Here, you do not lose control over the product. You are simply leasing to a foreign company the rights to your goods for a certain period of time.
How to prepare for the international market
Service-oriented international customers potential in other countries costs time, effort and money. Consider what your company needs to get ready for new customers before implementing your plan. Here are some factors you need to take care of:
1. Local currency and/or language for invoices
Dealing with consumers from different countries can be challenging due to language restrictions and other issues. Fortunately, you can customize your invoice language using the invoicing software on the market.
In addition, you will likely need to use that market's currency. While you may not like this option, it can make selling simpler and more convenient for your customers, thus encouraging them to keep making purchases and sharing positive reviews. positive about your product or service to others.
2. Confirm specific delivery date
Please ensure delivery on the specific confirmed date if possible. Shipping to customers in other countries can be complicated, expensive, and may require some preliminary research. Is there a shipping solution that is right for your company? What are the costs involved? Customers demand fast, on-time delivery in a world where Asos and Amazon can fulfill orders the same day they are placed. Even if you don't use express shipping, being able to determine an estimated delivery date is a surefire way to make international customers your satisfied. You can attach a letter to the package to add a touch of class and professionalism.
While there may be difficulties beyond your control, the way you deal with them can be an opportunity to demonstrate your expertise and professionalism.
3. Be aware of your legal responsibilities
You will certainly need to deal with longer and more complex shipping contracts involved in the sale and export of items across borders. Before you start to market your products or services to the international market, you must understand the issues related to corporate income tax, customs duties and others.
Talking to your accountant or an import-export professional can provide you with important information and assist you in preparing for international sales.
4. Attract international customers
Being prepared will help you target, engage, and keep international customers better. Reaching international customers has become so much easier online. If your customers love telephone communication and you need to call them for advice or confirmation, an international PBX software solution is definitely what you need. With a phone number of that country, wherever your team is located, customers can contact you whenever needed and make it easy for you to reach them.
5. Change your website
Which market is your product suitable for and have you done market research? Is there a particular culture that you would like to attract? Which pages on your website attract the most visitors? These are all aspects of your company's internet presence that can be analyzed and improved to attract more international customers. Everything about your item, from the images and description to the navigation and how easily customers can contact you, should be researched and optimized for the foreign audience you're trying to get. attract.
Change your website to attract customers in foreign markets
Creating a content strategy is a great place to start when trying to attract an international audience. For example, creating material specifically for Australia can provide value and potentially attract customers if you are content-driven on your blog and focus on marketing to customers in Australia.
6. Invest in digital marketing
Internet ads can be tailored to appeal to a specific target and appear to customers with the right demographics. Marketing costs can vary widely, depending on your industry and target audience, so you'll need to do some research to find out what's best for you.
However, updating your website and focusing on SEO can help you increase your organic traffic, although it is much more complicated to target specific areas without additional criteria. (such as another language). Don't ignore social media as it can have a significant impact on the performance of your business. You can also explore more profitable niches and more cost-effective advertising solutions.
7. Focus on providing excellent international customer service
With that said, customer experience will have a significant impact on whether they return or recommend your business to friends, family, or colleagues. Throughout the transaction, their relationship with you and your company is key to a positive experience. Always available and ready to answer any questions, complaints or support requests that may arise and provide prompt and professional service.
If you're not just targeting international customers in the same time zone, you'll need to operate outside of regular business hours. So be prepared to respond to late-night emails if you want to provide excellent customer service to your target customers all over the world.
Barriers that have prevented us from working with international customers disappeared. Doing business with someone on the other side of the world is easier than ever. In fact, working with foreign markets is extremely attractive and brings many benefits, helping your company grow quickly. However, with the opportunity comes many challenges as well. So let's move forward and embark on strategies international market expansion your. However, being aware of the advantages and disadvantages ahead will prepare you for what is most needed for this journey.
Gcalls is a software solution to digitize the phone system of enterprises, capable of integrating with many other software, helping businesses to centrally manage customer and call data, and easily evaluate KPIs of sales teams. products and customer service, thereby increasing revenue and improving services.