Tip no.3 for your Global Strategy

No.3 in my series of what companies entering new markets should do, yet 90% do not – adapting your product offering. A slightly longer post, hence the article for one the most committed of all the sins of taking your company into new markets.

Once companies have had success with a product in one market, many assume that they can replay the same product to market journey in new markets.  The reality is that each market requires new entrants to be aware of the cultural values and behaviours before they invest all their time and money.   Some pay lip service to this without actually appreciating the reality of what is required to integrate your product. Regardless of whether you believe that your product is more advanced or efficient than any in the new market, if you cannot get this message across and establish distribution then you will fail.

Selling your product successfully often starts with the vehicle you choose.  For example, China often requires establishing a joint venture with a local partner, which – depending on the partner – will yield better results than starting your own business as business relationships are well set up over years.  Conversely, in Singapore there are incentives for overseas companies to set up their own offices and the market is open to new arrivals, who can fast track their market entry.  

This is true of physical and digital products. Another example of the latter is video games. China is the largest games market in the world, yet it operates very differently from the rest, especially the western markets. Without a solid partnership with a Publisher in China you have no hope of gaining traction for your game, even if you have a best seller in the US. Your game will also require modifications, both around content and your monetisation paths to truly succeed in the market.

Similarly, marketers need to change up their own channels according to the behaviours of each market, and this can vary across countries within the same region. For example, in Brazil, a marketing campaign might find more success with promoted messages on Facebook or Instagram due to the popularity of this social network there, while in other Latin American countries, Twitter might attract a larger audience more quickly, and thus be a more effective marketing tool. While some channels work across a large number of markets, you want to explore what delivers the best result in each market by conducting detailed market research that relies heavily on local, in-country experts in advance.

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