How to take a home-grown brand and scale it internationally
Many factors have contributed to our success in scaling the business. From quality manufacturing to strategic collaborations to our extensive distribution partners, market research and much more, every ingredient in our journey was meticulously planned and executed by the team.
Lets’s start with our manufacturing and distribution. ILG's state-of-the-art manufacturing facilities in Switzerland, France, the Far East, produce high-quality products that reach over 100+ countries, distributed through an extensive network of 23,000 points of sale worldwide. The success of this distribution model is rooted in the strength of our global supply chain, bolstered by strategically located ILG hubs and our international distribution partners.
We have invested heavily in our growth – especially in our marketing efforts – and our vision and expertise allow us to take each brand’s DNA and translate it into products that resonate with consumers globally, from watches, accessories and jewelry to small leather goods, eyewear and fragrances.
Of course, I often get asked how we scaled so successfully – what’s the ‘trick’?
Well, to start with, you must conduct thorough market research to identify target regions where your products or services have the highest demand. Then establish a strong, adaptable infrastructure that can support international operations, including robust supply chain management and scalable technology platforms.
And while nothing beats a strong vision and old-fashioned hard work, I do subscribe to what’s sometimes referred to as the ‘REACH’ model of management. This is designed to help business leaders succeed in global markets by making their brands more trustworthy, appealing, and sustainable abroad.
The first step is establishing relationships with local partners. These partnerships help bridge cultural divides and build trust, making foreign brands feel more local.
For instance, Starbucks successfully entered the Chinese market by collaborating with regional partners and adapting its offerings to local tastes. Similarly, TikTok’s parent company, ByteDance, promoted regional leadership to better reflect cultural diversity, which contributed to its global success.
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However, these strategies must also account for local regulations and values.
ByteDance is currently facing regulatory challenges in the US and Europe over privacy concerns, while Starbucks once faced backlash in China for opening a store in the culturally significant Forbidden City, leading to its closure.
Ultimately, the REACH model offers a strategic approach for companies entering foreign markets, emphasizing the importance of cultural integration and regulatory compliance. While no model is perfect, it provides a useful framework for navigating the complexities of global business.
At ILG we are incredibly mindful of the importance of cultural understanding. Cultures vary widely in how much they trust foreign partners – as seen in a?recent global survey?that asked people how much they trust people from foreign nations.
The results showed that Americans were pretty trusting of foreign business partners – 75% indicated they either “somewhat” or “completely” trusted them, while only 17% of Chinese people did so. Trust in foreign nations tended to be much higher in developed Western nations than in other world regions. This means that in countries where trust in foreign nations is low, incorporating local partners is key for establishing a foothold.
Financial planning is also crucial – ensuring you have the necessary capital and resources to sustain long-term international growth. You also need to monitor your progress and be flexible, adjust strategies based on market feedback and performance metrics.
Finally – and this is live or die when it comes to global business – maintain open communication with your international teams, building a unified culture that respects local differences while pursuing a shared global vision.
Do all this and nothing should stop you.
Commercial Officer India, Middle East and Africa (IMEA) at Safilo Group
5 个月Great journey Naresh????
Director at Ajay Diam LTD
5 个月Keep progracing wist wishes
Builds strategic partnerships in public and private sectors to impact growth
5 个月Congratulations Naresh on what has been an inspirational journey. Hats off to you and your colleagues.
CEO at Scholars International Group
5 个月Your story is most inspiring Naresh.. and I know your journey continues with full gusto! Congratulations!
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5 个月You deserve the success you got. I happened to be a testimony of your ascension for years and appreciate you humanity and talent. Congrats my friend!