5 Key Points when Entering a New Market
Entering a new market can help grow your business to the next level but you should also limit your risk, or you may fail.
Big and small companies make the same errors in what should be obvious areas, basic research of the competition or the local laws and regulations.
Let’s look at five key points that should be considered.
The Competition
Knowing who your competition is in the new market is essential but even that isn’t quite enough now.
Top brands often have history in the territory and strong loyalty from their customer base which can be hard to penetrate.
You need to consider how:
- Your product can exceed that of your competitor
- You can build a strong brand that connects with your customer
- You can fit into the market while rising above the industry standards
Culture and Language
Don’t under estimate this area, it can make or break your business.
Consumers can differ greatly in different territories, in South Korea they are more inclined to believe their fellow people and their opinions, which are shared in mass online.
Localization of your website, online marketing strategy and even the name of your product can matter. Car companies often change their model names in different countries, they even do it in the film industry. Remember the 1994 film called Leon? In the United States it was called The Professional.
Understanding local laws, regulations and bureaucracy
This area is a complete minefield and if not dealt with correctly can have disastrous results. Not only could you damage your reputation in the industry, but you could also find yourself breaking local laws.
Often a professional consulting company can guide you in the right direction and suggest a good law firm to help you.
Another area to consider here is how to your product certified to sell in the territory, this can be complicated and is usually different from your own country.
Gaining trust for your brand
This area is closely connected to Culture and Language.Understanding the needs of yourconsumers as well as their problemsand lifestyle choices will go a long way.
Knowing what social platforms are popular are important, is it Facebook, Pinterest, Instagram? Or neither. This is when you might consider a local agent who has invaluable knowledge of the territory and its unique idiosyncrasies.
Scale your market entry
Having a solid plan in place will save you a number of headaches later. This will help you move forward with your goals and predictions.
It is also important to understand the cost of your entry to the market. Remember costs vary from country to country. Contact local consultancies to give you an idea of the stages of entry like:
- Compliance and certification
- Logistics
- Marketing
To find out more about bringing your product into the Korean market you can contact us at:
