{"id":18,"date":"2018-12-04T16:37:02","date_gmt":"2018-12-04T16:37:02","guid":{"rendered":"http:\/\/www.highlandgrowthpartners.com\/blog\/?p=18"},"modified":"2019-01-10T02:22:40","modified_gmt":"2019-01-10T02:22:40","slug":"the-10-things-you-need-to-know-if-expanding-internationally","status":"publish","type":"post","link":"https:\/\/www.highlandgrowthpartners.com\/blog\/the-10-things-you-need-to-know-if-expanding-internationally\/","title":{"rendered":"The 10 Things You Need to Know if Expanding Internationally!"},"content":{"rendered":"\n

Are you thinking about expanding your business internationally?  \nOften, businesses facing increasing competition or pricing pressures \ndomestically may find the competitive landscape different in \ninternational markets.  Demand for products \u201cMade in the USA\u201d often \npresent companies with the ability to increase price and margins \noverseas while tapping into \u201cunmet\u201d needs.  Here are ten things to think\n about.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n
  1. Identify countries where there is demand for your products<\/strong>:\n If you already have international sales, begin by analyzing your \ndomestic sales that have been shipped outside the U.S.  Do certain \ncountries rise to the top?  You can also research which products are \nselling in large countries with robust e-commerce markets such as China,\n Japan, South Korea or the larger European countries.  Review the \nvarious online marketplaces (TMall and Rakutan for example) to see if \nsimilar products are offered, and selling on these platforms.<\/li>
  2. Pick a country which you believe can scale<\/strong>: Take \nthe top countries from #1 above and then make sure the country is large \nenough with a big e-commerce market. There is publicly available data on\n the size and growth rates of e-commerce in most countries. If China and\n India come up as your top two\u2026 then choose China because of the size of\n their e-commerce market.<\/li>
  3. Don\u2019t assume your US based business practices will work in \nother countries \u2013 be sure to adapt to each countries cultural \ndifferences.<\/strong> Many companies have failed because they took the \nsame approach to marketing that worked in the U.S.   Every country has \nspecific holidays which are ideal for promotion or unique \u201ccopy\u201d \napproaches that have unique meanings to consumers.<\/li>
  4. The regulatory environment is different in every country\u2026 don\u2019t go in without understanding how this will impact your business:<\/strong>\n You will need to know the guidelines about customs, taxes, product \nregistration requirements and much more \u2013 hire an in-country lawyer!  \nYour U.S. Counsel will be able to find and vet one for you.<\/li>
  5. Don\u2019t do it alone \u2013 find an \u201cin-country\u201d partner to take the lead: <\/strong>You\n will never be able to become an expert in every country (or even one or\n two countries).   Spend the majority of your efforts upfront, \nidentifying and interviewing potential \u201cin country\u201d partners.  It seems \nthat this should be number four or earlier on the list.<\/li>
  6. Minimize your risk – Start small:<\/strong> Even if you have\n 1000 SKU\u2019s begin with 10-25 to test the waters.  There are multiple \nreasons for doing this including validating consumer demand, and \nunderstanding pricing parameters..  It is also important to work out the\n kinks related to getting your product into the country without issues \nwhich can often be a challenge.<\/li>
  7. Select an international partner who can \u201cOwn\u201d all aspects of the business:<\/strong>\n This includes registering and paying for the registration of the \nproducts on your behalf (if necessary);getting the products from your \nwarehouse – through customs – to their warehouse in-country; managing \nand paying for all marketing efforts, customer service, distribution, \nand much more  Your partner needs to deeply understand the culture, the \nregulatory environment,, and how to navigate it AND must understand the \nmarketing landscape (see #9 below).<\/li>
  8. Inventory forecasting is CRITICAL:<\/strong> Running out of a\n product in the US is not a big deal as you can replenish stock in \ndays.  Running out of a top seller in China however poses much different\n challenges as, it can easily be weeks or even months before you can get\n it in-country, through customs and in your partners\u2019 warehouse.  \nPlanning here is crucial and must be a hands-on exercise that you have \nto be actively involved in.<\/li>
  9. Understand how consumers shop in each country:<\/strong> The\n U.S. e-commerce space is driven by individual company websites along \nwith Amazon.  In most other countries, e-commerce sales are dominated by\n \u201cmarketplaces\u201d like TMall in China or Rakutan in Japan where an \noverwhelming percentage  of sales occur.  Marketing partners must have \nexcellent relationships with each of marketplace.<\/li>
  10. Over communicate: <\/strong>Stay active with your partner in\n each country. Finding the right partner is not enough.  Once your \npartnership has been established it is imperative to maintain an ongoing\n \u201cactive\u201d relationship with your partner.  At a minimum, hold weekly \nreviews to discuss upcoming marketing promotions, sales results, \ninventory status and any open issues.<\/li><\/ol>\n\n\n\n

    There is real \u201cdemand\u201d internationally for \u201cMade in the USA\u201d \nproducts.  The international competitive landscape can also be less \ncrowded than the domestic market.  That being said \u2013 any company \nexpanding internationally will have to carefully navigate the many \npotential pitfalls that await them if they are not diligent.  The list \nabove highlights some of the keys to success.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Are you thinking about expanding your business internationally?  Often, businesses facing increasing competition or pricing pressures domestically may find the competitive landscape different in international markets.  Demand for products \u201cMade in the USA\u201d often present companies with the ability to increase price and margins overseas while tapping into \u201cunmet\u201d needs.  Here are ten things to <\/p>\n

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