While staying local may work for some businesses, most companies crave expanding overseas and entering an international market. Heading into new territories can offer growth opportunities, help form a global customer base, get you ahead of the competition, and provide access to more talent.
Economic downturns can be challenging, they can also present opportunities for strategic expansion. Remember that all your competitors are in the same boat, and some might even be going out of business. If you have the financial means, a carefully planned company expansion can skyrocket your business ahead of the pack.
Are you ready to plan your new market entry strategy? Continue reading to find out how you can find and research your next international market to enter it with success.
What Is International Market Expansion and Why Is It Important?
International market expansion is a growth strategy that takes your business abroad and offers your product/service to a new customer base.
Why is it important? Here are some global expansion benefits:
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Increased sales and profits
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New and expanded customer base
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Opportunity to try new products and services
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Revenue diversification
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Access to more talent
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Lower operational costs
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Competitive advantage
To get started, let’s see how to identify new markets that are worth your time.
1. Identify New Markets
Before you start working on your international growth strategy, you must be sure that you’re ready to expand. It’s time to go global if your domestic market is becoming too small. For example, your sales and customer rate are slowing down, and you’re getting more inquiries about your products/services abroad.
Pro tip #1: A great place to begin researching new markets is your website. Use analytics (e.g., Google Analytics) to see which foreign markets show the most interest in your business. Analyze where the visitors are coming from and what pages they’re interested in.
Although this is just the start, keep in mind that you’ll need to localize your sales and support content to be able to sell in the potential markets. Don’t put it off. Language Inspired will help.
2. See Where Your Industry and Competitors Are
After analyzing your website traffic, evaluate what markets are prevalent in your industry and among your competitors. You can take two approaches – go where others have already paved the way or blaze your own path.
Heading into an already saturated market can be challenging, especially in the current economy. Sure, the demand is there, but so is the competition. It can be worth your while if the market is still growing and you’ve got something unique to offer.
Otherwise, you might want to look into unexplored territory. This approach can be riskier, but it can also reap more significant rewards.
Pro tip #2: Language localization plays a crucial part. Consider what languages are used in the potential market and how adaptable your product or service is for the new audience. Some markets might be easier to enter than others, which can be crucial if your finances are limited.
3. Research Your Target Market
Once you’ve decided on a market, you need to research it in as much detail as possible.
If you’re focusing on a specific country, analyze its typical customers and how they conduct business. Identify what language they speak. If there’s more than one, which is the primary language? Inspect the regulatory requirements for establishing a new legal entity.
Pro tip #3: Research what customers value the most in your new target market. It could be product cost, service quality or speed, customer support, etc. To avoid unwanted situations or your brand being perceived the wrong way, you must clearly understand the local culture and social norms.
It’s even more important to pay close attention to your target audience's cultural characteristics and peculiarities during economic uncertainty. If you’re not careful, you might come off as foreign or ignorant, worsening your chances of expanding overseas.
4. Test the Waters
There’s no need to go all in right away. Use quality translation services and content localization to test the waters.
Pro tip #4: As you start targeting a new market, focus on the content that has performed the best for you. Use analytics to identify which pages of your website have the most significant impact in your original language and localize them first for your new market.
Once you have enough content in more than one language, do some A/B testing to determine how the translated content performs compared to the one in English in the target market. If the results are promising, expand on the localization services.
5. Find Partners
Entering new markets is no easy feat. It takes time to build long-lasting relationships and earn customer trust, especially in these unpredictable times of economic downturn.
Finding the right partner in your industry or partnering with a company that has already expanded into your new target market can be very beneficial. Whether it's insights about the local customers, laws and regulations, or general knowledge, everything will be helpful on your new path.
Pro tip #5: You also need a reliable partner to help you with localization. Approaching your new customers correctly and with the right content will play a crucial part in your overall success.
A language service provider like Language Inspired has extensive expertise in many industries and provides high-quality translation and localization services. Partner with us to receive an individual approach to your translation and localization needs and easily enter new markets.
Summing Up
Despite the recent decline in the global economy, expanding into new markets ahead of your competition can bring you to the top of the pack once things pick up the pace.
Every international business expansion strategy builds upon proper research. Start by analyzing your website traffic and identifying where your industry is performing well. Once you set your eyes on a market, study its business environment and customers. You need to gather as much information as possible to make your efforts worth it.
Don’t rush into a new market. Start by localizing part of your business to gather some valuable insights. Try to find experienced and reliable partners to reap all global expansion benefits. Language Inspired is here to help you easily enter new markets and make your experience as smooth as possible.