With the double whammy of the pandemic and Brexit, expanding your business abroad could look like a risky project while uncertainty in both areas prevails.
But branching out into a new market can be exciting, so preparation, preparation and more preparation is key before taking the plunge.
It is important to test the market first – as you do not want to split stock too early. If your local market is the best performing one (as is usually the case), you do not want to be in a position of not being able to supply to those customers.
Digitally test the market you are planning on entering. Run provocative and interesting ad campaigns on social media and see how people react – read the comments sections. Allow people to purchase overseas from your website, do not worry about the additional duty you need to pay, you are not trying to make a profit here – count this as part of your research.
Listen to and take note of feedback
If you enter a new market, customer experience is still key – there are too many brands that do not take it seriously. Allow conversational e-commerce to happen with customers, take on their feedback and learn about local markets and local culture, from social media to customer service queries and Facebook ads. You want to be able to advise your customers on how to use your product and ensure they have a seamless experience, from point of purchase to unboxing and using your product correctly.
Build up a good network of partners
Make sure you build a good network of international partners who can advise on the culture and consumer habits. If you do not know how to execute on certain areas, you can find a partner to do it for you, providing they follow your brand guidelines. There are loads of flexible warehouse solutions, so you do not have to ship products from a long way off (which is also good if you are aiming to be carbon-neutral).
Do your research in foreign countries
Regularly visit the country you are selling into, to ensure you understand the local culture. Is there a gap in the market due to the culture, religion, climate or landscape? Choose your retail partners and distributors wisely – put some feelers out through your networks. It is worth speaking to a few people to get the lay of the land. Look into the difference in price elasticity; at home, a cup of coffee might be worth £4, but somewhere else it could cost the equivalent of £10. You also need to completely rethink your marketing strategy and calendar, to factor in new promotional and national holidays.
Protect your brand identity
Your brand identity needs to be controlled via a central hub, with clear values that you communicate all over the world in the same way. There is no good having one thing in one place and the wrong thing in another. For example, if you are going to show a commitment to diversity, this needs to be consistent across all markets.
Branching out into a new market can be a daunting prospect, but it could be the best thing to happen to your brand.
Reanda UK is a subsidiary of leading independent accountancy firm Grunberg & Co Limited. Our aim is to help businesses and individuals to navigate the UK’s world-renowned business and tax infrastructure, and to support them with their international ambitions. To find out how we can help you, please contact us.