Yahoo News Four lessons in international growth from successful brands
From picking a location to why lingua franca rules, business experts share their hard-won advice on how to break into overseas markets.
Trying to take a brand into a new market is difficult, so get help and advice wherever you can – even if that means studying tourists.
That's what happened to Whittard of Chelsea, when a steady stream of Chinese visitors to its London stores suggested that there was
demand for the classic tea brand in that country.
Knowing which market is right for your brand's expansion is only the first step, however.
"Don’t just assume that what works in the UK works overseas," explains Mark Dunhill, the company's chief executive. He says that it pays to research the market and find a local partner who's engaged and passionate about your brand.
That partner also ought to be credible and financially stable.
For Whittard, that was Chinese e-commerce giant, Alibaba Group's Tmall Global and its affiliate Cainiao, which act as a "gateway to China for brands without a physical presence in the country".
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"It’s very easy to think of China’s 1.4 billion consumers and assume success, but signing up and initially getting yourself abroad is just the first step. The bigger challenge is staying there," says Mr Dunhill.
"Do your homework and be aware of who you're getting involved with and what they can do for your business.
"By partnering with Alibaba, we didn’t have the need to employ a whole team of people; we made the most of its vast ecosystem."
Finding a local partner or hiring local staff or consultations can help smooth out cultural concerns, according to Keith Austin, chief executive of Event Marketing Solutions, a global roadshow provider.
‘‘[Be] prepared to take the time to understand the culture first – something that we quickly learnt when one of our team members took a cup of tea with her left hand: an act we then found out can cause offence,’’ he says, adding that hiring local staff and consultants will help smooth out cultural issues.
"It has certainly been a steep learning curve. Having valued advisers on the local culture will not only save embarrassment, but also help maintain professionalism."
Make time for face-to-face meetings
However, you can't leave your entire expansion effort to local operators. Philip Rook is the chief executive of Spreadshirt and has experience bringing other US online ventures to the UK, such as AskJeeves and iVillage.
Every country has its own unique preferences and one size will not fit all
Claire Walker, Firefly Communications
Those businesspeople trying to win business overseas should sign up for an airline points card; Mr Rook advises getting on a plane regularly.
His company's Las Vegas factory is starting work when the German HQ has gone home, and "emails, system tickets and a few late night calls don't build a relationship," he notes.
"Even the best, most dedicated management will find themselves feeling alienated by distance. Distrust and demotivation soon sets in and small problems build into the idea that HQ doesn't care,"
he says. "So when expanding into the US, never underestimate the effect of turning up in person."
Pick the right locations for logistics
Graham Kingsmill, managing director of Expedia's business travel arm, Egencia, agrees. To ensure enough C-suite level leadership at new offices, he relocated the chief technology officer from Seattle to Paris.
"This is more geographically central to our teams in the US, Europe and Asia," he says, adding that he also staggers his work hours to overlap with each market. "He gets more face time with the teams, even if online, and is more in touch with the specificities of these local markets."
If you're going to take the time to visit the new offices frequently, one practical consideration is ensuring that they're easy to reach.
Moneypenny is a British call centre operator that expanded to the
US. Company co-founder, Ed Reeves, suggests considering geography; his firm chose Charleston, South Carolina. And lovely as it is, it’s two flights from the Wrexham head office. "A location that could be directly accessed would be more efficient," he says.
Lingua franca rules
Language is another hurdle. Visual presentation tool, Prezi, was founded in Hungary, but now its 300 employees are spread across offices in San Francisco and Mexico City as well.
It’s important for business owners to not discount international markets, which will become increasingly important post-Brexit
Steve Hickman, KPMG
Despite the company's origins, head of HR, Emőke Starr, argues that you should continue to operate in English, as it remains the international language of business. "If you want to position yourself as a global business, make English your working language," she says.
Others disagree, including Claire Walker, chief executive and founder of Firefly Communications. Ms Walker believes that working in multiple languages with marketing material and social content can give you a leg up with the locals.
Small differences can put off consumers, she argues; Britons will notice American spellings, while anyone selling to Germans should avoid superlatives such as "bigger" and "best" as it jars with them.
‘‘Every country has its own unique preferences and one size will not fit all,’’ she explains. ‘‘Making the effort to write and speak in a local language goes a long way.’’
Steve Hickman, director at KPMG’s enterprise practice, says that post-Brexit, British companies need to look beyond the EU for trading relationships, helping diversify their risk and creating a more resilient, valuable company by expanding into new markets.
“It’s important for business owners to seize the opportunity, and to not discount international markets, which will become increasingly important post-Brexit,’’ he says.
‘‘With careful planning and using the wealth of good economic intelligence available, businesses can thrive in the global economy.’’
