What Do You Need to Know Before Breaking into a New Market?
Making a move into a new market is a tempting expansion for any business. In an ideal world, it should allow you to enjoy an optimised, high-speed version of the success you’ve built in your home market. Unfortunately, new markets come with lots of things you need to learn if you’re going to establish a foothold successfully.
A failed expansion can have more consequences than you not gaining a base in your targeted market: if it takes too long to become profitable, and costs too much of the revenue from your home base, it could spell the end of your whole business.
This is a broad area, but it’s vital you understand the culture of the area you’re trying to expand into. This affects the products you offer, the price you put on them, how they’re available and how and where you market them. You can’t export your whole operation to a different market made up of consumers with different values and expect them to behave the same way.
An international research firm can give you the insight you need to understand how the new customers you are targeting will respond to your products and advertising, and give you ways to adapt your existing strategies to this new audience to ensure you’re talking to them in the most persuasive way possible.
Rules and Regulation
The rules governing a different market might be very different to what you’re used to at home: you might require permits to operate in the country, you might have to create a distinct facet of your business to work there. Your products, especially if you are in the health and beauty, or hardware niches may need to approved by a government body.
If you’re not aware of the regulations governing your industry in this new market you run the risk of serious repercussions – from fines to the possibility of prosecution. Whatever the outcome, it could spell the end of your attempt to break into this promising new market.
The final thing you need to research before you commit to breaking into a new market is the competition. If there are already a lot of brands competing for consumers and revenue in your niche, it doesn’t necessarily spell the end of your ambitions, but it does mean you have to know how you fit into the marketplace and what the unique points are that allow customers to choose you rather than your established rivals!
If you do your preparation on these three fronts, you can make sure your plans are realistic and set for success in your new market!