{"id":2517,"date":"2017-09-21T14:12:31","date_gmt":"2017-09-21T14:12:31","guid":{"rendered":"https:\/\/brightpearl20.wpengine.com\/international-expansion-what-you-need-to-know\/"},"modified":"2024-11-22T16:22:15","modified_gmt":"2024-11-22T16:22:15","slug":"international-expansion-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.brightpearl.com\/blog\/international-expansion-what-you-need-to-know","title":{"rendered":"International Expansion: What You Need to Know"},"content":{"rendered":"

Companies that choose to trade internationally become 34% more productive<\/a>\u00a0in the first year, whilst exporting businesses are 11% more likely to survive than those who don\u2019t. Let\u2019s face it, there\u2019s no denying that international expansion is crucial for any growing retailer that is hoping to build a bigger brand.<\/span><\/p>\n

In fact, <\/span>some sources cite<\/a>: \u201cGrowing global, thinking local is the most dominant theme in propelling future growth in the industry.\u201d<\/em> So with the retail industry expanding every year (including overseas sales), this article is aimed at helping you with your global expansion plans, plus some things to consider once you are selling internationally.<\/span><\/span><\/p>\n

Why Expand Internationally?<\/strong><\/h3>\n

There are a number of benefits you can expect to receive when entering international markets, including:<\/span><\/p>\n

1. Advantageous economies of scale<\/strong><\/span><\/h3>\n

Some retailers choose to expand into international markets in order to workaround the saturation in their local or national market. By expanding globally, you can take advantage of economies of scale and develop a known brand elsewhere. If you have a particularly niche business, you won\u2019t be held back by market saturation, but if you sell a lot of similar items to others then this is where international expansion may be the best way for you to grow as a business.<\/span><\/p>\n

2. Develops and enhances strategic partnerships<\/strong><\/span><\/h3>\n

If you\u2019re not quite ready to take foreign markets by storm alone, then developing and enhancing strategic partnerships with those who have already broken into the location you want to sell to will not only help you expand globally but will also give you a competitive advantage. The idea that you are able to advertise and market to a new following with less effort on your part could be enough to make the long-term investment of international growth seem worthwhile. Whilst good partnerships will always result in shared learning as well as business growth.<\/p>\n

3. Different environments teach and inspire<\/strong><\/span><\/h3>\n

When forced to try to sell to other markets, this may show design faults or improvements needed to your current products that you may never have thought of before. A new audience is able to feedback to you in ways that your usual audience may never do. A good example of this is when Procter and Gamble wanted to expand their Pampers Diapers brand into Japan. Initially the diapers were large and bulky, but the Japanese audience required diapers to fit into their smaller storage spaces that are in most Japanese homes. The reengineered, thinner diapers not only did well in Japan, but also made its way into all of P&G\u2019s markets, including back home in the U.S.<\/p>\n

\"\" <\/span><\/p>\n

Advice for International Expansion<\/span><\/strong><\/h3>\n

Remember that expanding globally is a long-term business investment, with international markets rarely yielding short-term revenue and increased profits. Global expansion is not for everyone, and requires some in-depth research to validate the new market\u2019s potential for your particular business and any risks you\u2019ll need to take into account. <\/span><\/p>\n

But if you find this is<\/em> the best approach for you, read on for some advice on building an international empire, plus some things you\u2019ll need to consider when using business management software.<\/span><\/p>\n

1. Indirect vs Direct Exports<\/strong><\/span><\/h3>\n

When deciding to expand globally, you will need to make a choice:<\/span><\/p>\n