There are no defined rules on how entrepreneurs should introduce their brand in a new market. Still, the method you choose determines how soon you can achieve your goals.
Often, market-entry approaches are driven by factors you can’t control. This means that every market needs a different concept. To achieve success, entrepreneurs should customize their methods to fit the needs of individual markets. Let’s discuss some factors to consider before exporting to new markets.
Determine Your Target Market
This is the first thing entrepreneurs should do before exporting products to new markets. You should understand what your potential customers want and figure out how your product can provide tangible solutions. Consider other relevant factors such as distance, language, culture, and local regulations. Rather than focusing on large markets, consider the small markets, particularly if you’re exporting for the first time. Small markets often have little competition.
Carry out a Thorough Marketing Evaluation
This involves acquiring details about your target market. Conduct extensive research to understand the industry’s business growth rate, expected demand, barriers you should overcome, and competitors. Use market research reports to evaluate trends in your product and related products.
Establish whether there’s anything you can change about your product to make exporting easier. Finally, understand the export principles and requirements of the export market. Doing so is a critical way of saving yourself and your company from penalties.
Strategies to Help Your Company Export to New Markets
There are numerous methods you can adopt to make exporting to a new market easier. Let’s discuss three of them.
1. Buy a Local Company
Penetrating some markets if you don’t run a local company can be difficult due to government regulations. Sometimes you can opt to buy a local company to minimize or eliminate competition. However, this strategy not only requires extensive research, but it can also be costly. It would help if you took the time to establish how commercial the company you want to buy is. With proper execution, this strategy is one of the best as you’ll get a well-established customer base. Your only task will be ensuring continuity.
2. Joint Ventures
A joint venture, also known as a JV, is a partnership between two people or companies. They collaborate to invest in a business project. Many JVs are founded on a 50/50 investment strategy where profits are divided equally. In this setup, two or more companies work together on a particular project but remain in their respective locations.
Regulations in some of your target markets will call for a partnership. While there are different types of connections, they all involve working together to achieve a common goal. These can begin at the manufacturing or marketing stage. The kind of partnership you form depends on what you are looking for in a partner and local regulations. This strategy is valid and can facilitate entry in foreign markets whose language and culture is different from yours.
Work with Export Portal
At Export Portal, we understand how difficult penetrating new markets can be. That’s why we collaborate with experts to keep you informed on how to go about it. Whether you’re a startup or an already existing company, we shall do the hard work for you. This way, you can focus on the more technical matters for your company. Talk to us today and learn more about how we can help you take your business to the next level.