As a brand creates revenue and gains momentum on domestic marketplaces, executives may start to wonder if they should grow their brand internationally. Expanding to international marketplaces is complicated, can be overwhelming, but building a solid strategy before expanding internationally will streamline the process.
At Pattern, we’ve helped countless brands build their international strategy with our proprietary data, global marketplace experience, and local expertise in established and emerging regions.
Building an international strategy must be calculated and methodical, and here are five considerations at the core of going global:
1. Distribution by Country/Region
First, it should be no surprise that the methods and strategies companies use to transport products from the distribution centers to customers can vary by country or region. Handling order fulfillments may look different from shipping and packaging options, to delivery and transportation. Although the basic steps of global distribution may remain the same, the nuances of regional distribution may vary.
If your brand already has a high-level distribution strategy in place in the areas you are currently selling, then it’s possible to modify and use it to go global.
2. Consumer Demand
Before expanding to a specific country, marketplace, or entire region (across multiple marketplaces), it’s important you thoroughly research and understand the consumer demand for your product. Do you have data to show that your expansion market(s) has a need for your product?
Beyond product-market fit, additional parts of consumer demand analysis include: consumer behavior, awareness of differences in cultural norms, and the beliefs and values of international buyers. Having access to data-driven insights and analysis on traffic and conversion, like Pattern’s reporting, is key to understand consumer demand in certain regions.
3. Product Registration and Regulatory
Countries around the world set up regulations and processes to protect their consumers from any hazardous imports. Because of that, it only makes sense that these countries may have different product registration requirements and standards. Before expanding to new regions, a brand should make sure their products are registered with the appropriate government institutions and follow all production best practices to prevent any roadblocks.
At Pattern, our regional experts have the resources to manage marketplace setup and understand administrative requirements necessary to help scale global growth for your brand.
4. Localized Pricing
When it comes to localized pricing, international ecommerce retailers should keep in mind two things–currency conversion and customer perception of price. As brands look to expand internationally, thorough research should be done to understand the currency conversions at each stage of the product life cycle in order to figure out the optimal localized pricing, while still retaining a net profit.
Remember, because of cultural differences, final pricing may be perceived differently by customers on international marketplaces. For example, in the western countries, it’s common for prices to end in a 9, but in other countries, it may be best to use a round number instead. High market saturation of certain products may also affect consumers’ perception of pricing, making them more likely to pay a higher price for the product than in a low-saturation market.
5. Localized Labeling
Different countries and regions may have unique requirements for product labeling. Awareness and understanding of these requirements is key to a successful international strategy. For example, labeling may need to be in a certain language, and some countries may require brands to include certain product information.
Your domestic team may not be equipped to handle all translations and regulatory conversations, so having the resources in place before attempting to expand globally will help prepare you for expansion. As a global ecommerce partner, Pattern has a team of regional experts and end-to-end resources to ease the pain of complying with local product labeling requirements.
Build a Successful International Marketplace Strategy With Pattern
Moving into global markets requires a significant amount of research and planning–that usually starts with these 5 considerations. Having a solid strategy in place before your brand starts expanding to international marketplaces will make the overall process much smoother, easier to manage, and with a higher likelihood for success..
Going global can be intimidating, costly, and overwhelming to grow revenue, but with Pattern as your 3P trade partner, you’ll have the experience, resources, and data to successfully expand your business internationally. Our global expertise and footprint makes international growth on marketplaces frictionless and profitable.
Is your brand considering global marketplaces? Contact us.
Want to learn more about how Pattern helps brands go global? Watch this message from our co-founder and CEO, Dave Wright.