Expanding Globally? Consider These Insights for Proven Success

There are many benefits of expanding into new markets across the globe, including extended reach and market size, diversification of consumer base and income streams, and a competitive advantage that comes from the innovation required to appeal to a wider audience. Global expansion also comes with challenges, as companies navigate unfamiliar legal and regulatory environments, cultural differences and logistical complexities. For prepared businesses, however, the potential rewards of global expansion can be significant. Over a decade ago, The Lumistella Company began its expansion into Canada and the UK. Today, our products are sold in 24 countries across five continents. Some of the key factors that led to successful expansion are:?

• External resources. Leveraging external resources like The Toy Association , the Georgia Department of Economic Development and Cobb Chamber of Commerce allowed The Lumistella Company to gain valuable insights and identify high-potential markets through targeted market research that would inform our international expansion strategy.
• Distributors. Because a large part of The Lumistella Company’s past business was seasonal, utilizing the expertise of distributors was instrumental to our international expansion strategy, ensuring efficient market entry and maximizing sales potential in new markets.?
• Consumer expectations. Modifying product features to suit consumers in new markets is key to unlocking growth opportunities. For example, by translating books to local languages and setting the right retail price points, companies can resonate with local audiences, overcome cultural barriers and achieve long-term success in new markets.?
• Strong brand marketing. Our premier brand, The Elf on the Shelf?, is a household name in the US, but awareness is still growing in many international markets. Creating a cohesive and consistent brand identity and brand experience that resonates with consumers and builds long-term loyalty is crucial to global expansion.??
• Compliance awareness. Product compliance can be a significant hurdle because of the variety of international standards, local regulatory compliance, privacy policies and sustainability concerns, but they don’t have to be a roadblock to a company’s success. With a proactive approach, ensuring products meet all requirements is possible. Being prepared is key.?
• Ability to adapt. In today’s dynamic global marketplace, it’s important to be agile when it comes to manufacturing capabilities. The Lumistella Company focused its efforts to adapt production runs to meet diverse regional demands, optimize logistics for efficient distribution, and ensure strategic warehousing solutions for each target market.??

Companies can enjoy a wealth of benefits and advantages from venturing into the global marketplace. With careful planning, solid strategy and a strong commitment to success, businesses can begin to consider the significant impact and exponential growth opportunities a global presence can bring.??

Ilango Sankaralingam, SVP, Consumer Products

Ilango joined The Lumistella Company in 2022 and leads the consumer products division with a renewed emphasis on growing global sales and streamlining the supply chain. Prior to The Lumistella Company, he founded Smart Play, LLC an educational toy company. As President of Smart Play, Ilango was instrumental in developing a comprehensive toy line that was distributed across multiple channels including mass retailers and educational institutions. Ilango was also the COO at Kids II Inc. and managed the day-to-day operations of the fast-growing baby products company.?