{"id":10023,"date":"2020-03-23T17:30:16","date_gmt":"2020-03-23T15:30:16","guid":{"rendered":"https:\/\/phrase.com\/blog\/?p=10023"},"modified":"2023-09-25T10:26:14","modified_gmt":"2023-09-25T08:26:14","slug":"key-steps-to-entering-global-markets","status":"publish","type":"post","link":"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/","title":{"rendered":"Key Steps to Entering International Markets"},"content":{"rendered":"<p>Well done, your product has been a resounding success in your domestic market, but if you think it\u2019s time to sit back and relax, then you might be taking a big risk. What if there\u2019s an economic downturn or a superior competitor launches out of nowhere?<br \/>\nIn fact, the safer bet is to expand to foreign markets. International markets promise greater exposure for your brand, a diversified customer base, and more sales. Combating in the global arena can substantially improve your overall growth potential.<br \/>\nSo, <a class=\"waffle-rich-text-link\" href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/\">global expansion<\/a> isn\u2019t only a choice but often a necessity for survival in today\u2019s connected world. Entering global markets should be planned well, though, to save you from potential failure. We\u2019ve looked into how to do it the right way and which global brands are already pulling it off.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Overview<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#what-makes-a-product-globalization-strategy\" title=\"What makes a product globalization strategy\">What makes a product globalization strategy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#markets\" title=\"Markets\">Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#timing\" title=\"Timing\">Timing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#scale\" title=\"Scale\">Scale<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#method\" title=\"Method\">Method<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#why-a-local-product-experience-is-key-to-entering-international-markets\" title=\"Why a local product experience is key to entering international markets\">Why a local product experience is key to entering international markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#global-brand-examples-to-learn-from\" title=\"Global brand examples to learn from\">Global brand examples to learn from<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#netflix\" title=\"Netflix\">Netflix<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#spotify\" title=\"Spotify\">Spotify<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#airbnb\" title=\"Airbnb\">Airbnb<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/phrase.com\/blog\/posts\/key-steps-to-entering-global-markets\/#get-ready-for-entering-international-markets\" title=\"Get ready for entering international markets\">Get ready for entering international markets<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what-makes-a-product-globalization-strategy\"><\/span>What makes a product globalization strategy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When you can enter a foreign market quite easily via the internet, it\u2019s tempting to launch in as many countries as quickly as you can. However, a successful global expansion needs a bit more planning and forethought than this. There are four main elements to consider when you devise your market entry strategy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"markets\"><\/span>Markets<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When contemplating which target market to launch in, you&#8217;re spoiled for choice. Should you enter the biggest market with the largest number of potential customers? Not necessarily. Pick the market that\u2019s most relevant and where your product is most likely to succeed.<br \/>\nFor example, South Korea is one of the biggest markets for online gaming. That doesn\u2019t mean that every game will automatically take off here. If your game isn\u2019t adapted to the local culture and taste, it won\u2019t gain much traction.<br \/>\n<span        >You need to consider how your product will fit into the existing business landscape and <a class=\"in-cell-link\" href=\"https:\/\/phrase.com\/blog\/posts\/guide-to-understanding-what-customers-really-want\/\" target=\"_blank\" rel=\"noopener\">understand customer needs<\/a> in that market before making a move. <\/span>With thorough market research into the cultural preferences, current competitors, and barriers to entry, you can work out a solid <a href=\"https:\/\/phrase.com\/blog\/posts\/market-positioning\/\">market positioning<\/a> to increase your chances of success.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"timing\"><\/span>Timing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Basically, you have two choices for \u201cwhen\u201d to enter a market: be the first to market or wait and observe how successful your competitors are before following them.<br \/>\nBeing first can allow you to grab the lion\u2019s share of the new market, but you are also taking a considerable risk. Regardless of how meticulous your market research was, you still can\u2019t guarantee that people will actually buy your product. You also might face resistance from investors and local partners who are skeptical that your product will succeed.<br \/>\nWhen following your competitors into the market, you can be confident that there is sufficient demand for your product. However, you also face the risk that potential clients have already become loyal to your competitors\u2019 brands and won\u2019t buy from you.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"scale\"><\/span>Scale<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Should you enter a new market with full force or on a smaller scale? There are opportunities and risks to both approaches.<br \/>\nLaunching in a new country on a large scale can be costly. You need to put aside significant resources for marketing, legal, and <a href=\"https:\/\/phrase.com\/blog\/posts\/product-localization\/\">localization efforts<\/a>. That\u2019s a financial risk, as there\u2019s still a chance that your company doesn\u2019t take off. But, you are likely to attract the attention of potential customers and other businesses.<br \/>\nEntering on a small scale could mean releasing a limited version of your product or targetting only a narrow subset of your intended audience. While you have the chance to <a href=\"https:\/\/phrase.com\/blog\/posts\/guide-to-understanding-what-customers-really-want\/\">learn more about the new market<\/a>, you also limit risks. However, you are much less likely to gain traction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"method\"><\/span>Method<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The last element to figure out is how exactly you are going to enter your selected market. This decision can largely impact your results. You could manage everything on your own or resort to methods such as:<\/p>\n<ul>\n<li>Licensing: Transfer the rights to market and use your product to an established foreign company.<\/li>\n<li>Partnering: Find a local partner that can provide valuable insider knowledge and contacts.<\/li>\n<li>Joint venture: Choose a partner to create an independently managed company to market your product.<\/li>\n<li>Piggybacking: Add your product to the portfolio of a larger, established company.<\/li>\n<li>Acquisition: Purchase an existing local company to gain immediate market share.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"why-a-local-product-experience-is-key-to-entering-international-markets\"><\/span>Why a local product experience is key to entering international markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The biggest brands, like Coca-Cola, have realized a long time ago that they&#8217;ll succeed in foreign markets only with a local approach. So, they adapt their products to not only speak the language, but look, taste, and feel local, too. This process is known as localization, and it has many moving parts.<br \/>\nHere are a few numbers from <a href=\"https:\/\/csa-research.com\/Featured-Content\/For-Global-Enterprises\/Global-Growth\/CRWB-Series\/CRWB-B2C\">CSA Research<\/a> that speak for themselves:<\/p>\n<ul>\n<li>65% of internet users worldwide prefer content in their native language.<\/li>\n<li>40% of people across the globe won&#8217;t buy in other languages.<\/li>\n<li>73% of online shoppers across markets want product reviews in their language.<\/li>\n<\/ul>\n<p>This is especially relevant for digital products that face more competition than ever before. Your customers have the power to stay with you or leave. They can tell their friends about your product or not. Fact is, you need your clients more than they need you. That\u2019s why your product experience is critical.<br \/>\nWhile a lousy experience can chase users away, a great experience can increase usage and build loyalty among your customers. With a free trial and subscription models, customers don\u2019t feel locked in and can switch easily to a competitor. Your product needs to provide value right out of the gate to stay relevant. And that\u2019s only possible with careful localization.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"global-brand-examples-to-learn-from\"><\/span>Global brand examples to learn from<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are global brands that are absolutely nailing it when it comes to adapting their products to local markets. Here are three examples:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"netflix\"><\/span>Netflix<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After conquering the U.S. market, the streaming service set its eyes on Europe, Africa, and Asia. However, the language barrier turned out to be quite a challenge. Netflix simply introduced subtitles for all of their shows and soon started to incorporate and produce local content to keep foreign subscribers hooked.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"spotify\"><\/span>Spotify<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With <a href=\"https:\/\/newsroom.spotify.com\/company-info\/\">271 million users worldwide<\/a>, the music streaming giant has perfected its strategy for entering new markets. Their secret is a private beta period designed to build buzz for the full market launch through local influencers and early adopters. This allows Spotify to quickly optimize local features based on user feedback.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"airbnb\"><\/span>Airbnb<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Airbnb excels at being international and local at the same time. Their website is now available in <a href=\"https:\/\/airbnb.design\/words-of-welcome\/\"><span style=\"font-weight: 400;\">62 languages<\/span><\/a>, reaching 4 billion native speakers worldwide. Operating in 191 countries also meant accepting local payment methods and currencies. And to remove even more hurdles, Airbnb offers localized sign-up methods, for example, Weibo or WeChat for Chinese users.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"get-ready-for-entering-international-markets\"><\/span>Get ready for entering international markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The most successful brands prove that every global business needs a local approach to succeed in international markets. Localization is a major step in truly becoming \u2018glocal,\u2019 but shouldn\u2019t stand in the way of your global expansion strategy. Fortunately, localization services can support you in adapting your product and content to local tastes. With a translation management tool like Phrase, you can manage your entire localization process and get it right from the start.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Get to know the essential steps to entering an international market and learn along the way from brands that have already climbed to the top.<\/p>\n","protected":false},"author":6,"featured_media":2597,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","_searchwp_excluded":"","footnotes":""},"categories":[37],"class_list":["post-10023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-business"],"acf":[],"_links":{"self":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/10023"}],"collection":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/comments?post=10023"}],"version-history":[{"count":5,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/10023\/revisions"}],"predecessor-version":[{"id":65203,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/10023\/revisions\/65203"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/media\/2597"}],"wp:attachment":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/media?parent=10023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/categories?post=10023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}