What You Should Know If You Want To Grow Your Online Business Worldwide
If your business has already conquered the local market, then you probably wondered at least once how to bring it to a new level. An excellent opportunity is to enter foreign markets.
Let’s be honest: scaling up a business is not an easy task, but if you have a clear plan and understanding of what, when, and how to do it, then you will be able to win over a foreign audience. Today, we will discuss what modern businessmen must account for when attempting their online business expansion.
Things to Establish Before Starting Global Expansion
- Know your target market
Choosing the right market is the first thing you should do. Today, China, with sales of over $1,935 trillion, is considered the fastest-growing e-commerce market. By 2024, the revenue of Chinese online stores will grow up to $1,556 trillion, showing an increase of 8.7% (compared to the amount of $1,115 trillion in 2020). Mexico and Canada are also skyrocketing in the ranking of top e-commerce markets.
However, the Chinese market is not the best choice for most sellers, as there is fierce competition from large local companies. One of the approaches when choosing a market is to choose neighboring countries since delivery will be both cheaper and faster. Learn everything you can about your target market before you attempt expanding your online business there.
- Research target audience’s wants and needs.
Understanding your target audience in a new region is key to building an engaging brand and creating successful ad campaigns.
You should determine if your product is suitable for potential buyers. For example, if you sell two-piece swimwear, then Arab countries are not the best market for you, because of their strict religious and cultural traditions.
Interestingly, some products that are not in demand in your country may be in high demand in another market. For instance, some women’s shoe manufacturers may have unsold small-sized goods, which are in high demand on the Asian market, because Asian women commonly have smaller feet.
- Learn about competition
The next thing you should do is assess your competition. Do your research by analyzing whether products similar to yours are being sold on the market you are interested in.
Make a list of your direct competitors, analyze the strengths and weaknesses of their products, their methods of promotion. The idea is to take the best from your competitors while making your product superior and more affordable.
- Invest in proper localization.
Owners of online stores often have a question: “how can I convey information about my product to foreign buyers?” The answer involves website localization.
Localization is the process of adapting content for a local audience. Research shows that the majority of customers rarely buy from websites that are not translated into their local language. When entering the global market, if you do not want to lose customers, localizing the content of your online store is a wise decision. To do this, we recommend that you seek help from specialized localization agencies. A good localization service provider has extensive experience in this area and is aware of typical problems that arise when localizing an online store website.
- Ensure compliance with local and international laws.
Packaging standards vary from country to country. For example, in the United States, companies must only include directions in English (and sometimes in Spanish). In Europe, however, instructions for even a simple product must be offered in several languages, sometimes as many as 24. Before manufacturing your products, check with a local lawyer and ensure that you adhere to local applicable laws.
H2: Venturing Into a Brave New World
The wave of globalization that has swept the corporate world over the past two decades is not subsiding. On the crest of this wave were those companies that timely realized the importance of international expansion. Be among the leaders and expand your business internationally for optimal results and the best prospects for the future.
Merissa is a researcher, writer, and aspiring translator who loves writing informative articles and sharing her acquired knowledge with a broad audience. Her two passions as well as strong suits are marketing and linguistics, so she prefers topics that allow her to shed light on pressing questions of modern businessmen. Merissa spent four years working for international companies as a business researcher, which makes her uniquely qualified to answer various business and marketing queries of her readers. Besides work, she loves fishing and camping.