Entering a new market could be THE survival strategy you need to own in 2023. With the headwinds of recession stirring global markets, it is imperative to future-proof your business, whether you operate in the physical or digital space.
One of the ways to do that is by diversify into new markets and growing your business globally. But for this strategy to work its magic, you must do it right.
Many thanks to CyberNews for this guest contribution.
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But, Why Diversify into New Markets?
It can help you make the most of your current state of affairs. Diversification is important because:
Market Fatigue is Real
Even in the best of times, it’s common for established businesses to experience market fatigue. You may be brilliant at what you sell, but eventually, you will end up exhausting all possibilities of growth in your home market – especially if the market is experiencing an economic upheaval.
Consumers are Tired
In addition, your clients may suffer from consumer fatigue.
Given that we live in times where prospects are overburdened with marketing content on every social channel, consumer fatigue is as real as it gets. Per a Deloitte report, businesses can experience a churn rate of 30% or more.
Once your consumers tire of your marketing communication, they will go the “U” route (unfollow, unsubscribe). This will eventually affect your business.
Why let that happen when you can explore newer, fresher pastures and expand your customer base? Instead of following old customers to new markets, explore new customers in newer markets.
Diversifying into new markets gives you access to talent and labor pools. Localizing your production facility can yield a better Return on Investment (RoI) than importing your products.
You can grow your business without investing in new products or services. Simply find a new market where your existing offering has a high demand and make the most of your existing portfolio.
At the end of the day, it’s not always the fittest that survive. Businesses that think on their toes and adapt to changing global scenarios do.
Consider breaking into a new market whether your business is in strife or not. It will yield rich dividends in the coming days; you just need to trust the process.
New Market on the Horizon? Here’s What You Need to Know
Before calling the shots and entering a new market, you must prepare for the race ahead. To go about it, you must:
Do Your Research
Market research is everything!
You must know the market’s pulse before you can plan your business expansion. From the demand for your products to understanding consumer sentiments, buying habits, marketing channels with the most outreach, and preferred payment methods – there’s a lot of groundwork you need to cover.
You can choose the new market you want to expand to based on your market research. Instead of taking help from market research agencies, use a VPN to change the location and analyze the preferred market as if you were a consumer in that region to understand it better.
Use your research to devise a business strategy that levels the playing field and helps you achieve your goals.
Understand Socio-cultural Differences
Having a nuanced understanding of the socio-cultural factors that influence your market of choice can be the difference between your success and failure.
McDonald’s became such a household name worldwide because the brand dove head-first into the cultural uniqueness of the new markets it targeted. From teriyaki burgers in Japan to the McSpicy Paneer in India, product innovation has been the brand’s go-to strategy for capturing new markets.
To crack a new market, you must customize your offering to suit the unique demands of your target market.
Test the Waters
Sometimes you can do everything right, and things may still not work out. Even the most well-planned business expansions are not exempt from the travails of Murphy’s Law.
While there will always be some risk involved in breaking into new markets, always go for a test drive. Utilize landing pages and spot launches, and perform surveys to collect as much data as possible. This will not just help you right-size your business strategy.
You will be able to predict the viability of your expansion plan.
Use your learnings to re-analyze your plans and re-strategize if necessary.
Strike the Right Partnerships
Every ship needs an expert navigator to steer it through hell and high water. A business is no different. You may be a seasoned entrepreneur with years of experience behind you, but you’d need someone who is an expert in the market you’re targeting.
Harvest the right partnerships so you can take strides in the right direction.
Attend local networking events, become co-sponsors, and go for brand associations – endless options exist. Choose one that suits your business requirements the best and build around it.
Deliver an Experience
Nothing speaks to your customers better than the experience you curate for them. Instead of focusing on your product or offering, build intimate relationships with your clients and make them an offer they can’t refuse.
Everything must leave an impression – from your marketing and advertisements to your customer service.
Remember that you’re starting from square one and need to go the extra mile to grab your customer’s mindshare. Show them your worth and express your willingness to cater to their needs. Prove to them that you have their best interests at heart.
Dipping your toes in new waters may seem intimidating, given the current global economic scenario. However, a business can never be risk-free. Take a calculated risk, but go for it.
Understand what you’re good at and how to do it better than your competitors in a new market. Invest your efforts, but don’t put all your eggs in one basket. Be strategic about expansion.
You can make it work with the right research, testing, and analysis. Just have the conviction to do it.