5 Tips to Grow Your Business Globally

Entering into Global markets is a great way to organically grow your business. However, many small to mid sized businesses have a hard time, if they even venture to go global at all, entering global markets. Here are 5 tips for businesses looking to expand their business by entering global markets:

  • Revise your pricing strategy to suit local purchasing power. I like using this example: Microsoft is having a difficult time getting Mainland Chinese computer users to use their operating system and Office products. Why? Simply, it costs too much for locals to buy Microsoft products. Linux is popular in China simply because it is open-source and an affordable solution for that market. Mainland Chinese purchasing power is very low compared to those in the US or Europe. So, pricing your products and services according to local purchasing power is a must when entering foreign markets.
  • Tailor your product or service offering with the local market in mind. Why is Unilever having such success in Asian countries such as India and China? They tailored their products to be affordable for the general consumers who were mostly living in rural areas and were low-income earners. They did this not by offering a super-family size packaging but a smaller or "sachet" size packaging only marketed to these countries and demographics. As a small or medium business you would have more control over whether you can change the way you offer your products simply due to less red tape and top level management to go through thus making it easier to enter global markets.
  • Find a local partner who is on the frontlines. Having worked at a multinational company in their Asian headquarters, I've seen far too many times where the Directors and CEOs sitting in their offices in the US and UK blindly launch new products in emerging markets (Asia specifically) simply due to media coverage and media hype about the latest and greatest market to be in. Often times than not, not listening to your frontline staff or getting the "real deal" from those on the frontlines in those markets will lead to failure. They know those markets intimately and hear and know about things that may not get reported in international news.
  • Know your local market and regional competitors. I remember one case where a business owner who ran a relatively successful online retail cosmetic business in North America and wanted to move that business model into China. The reasons why I believed it was not a feasible business model for that market:

    • There are literally thousands of physical retail shops selling low-cost to brand name cosmetics.
    • ECommerce and credit card usage in China is not popular. Cash still rules commercial transactions.
    • Mainland Chinese women go to Hong Kong to buy name brand products because they know that in Hong Kong the products are authentic.

    So, it's important to know whether your product, service or business model will be able to compete with local competitors. Ask yourself: "How are locals in these markets presently sourcing these products or services?"

    Speaking of Asia as a region, often times you will need to look at regional competitors as well who may be headquartered in Hong Kong or Singapore but also market into the rest of Asia. So, being aware of regional competitors as well as local competitors is important to determining your place in these markets.

  • Be mindful of the local business culture. When you are developing business partnerships with local companies, be mindful of the way they do business in their country. For instance, the Asian region as a whole, consider the concept of "Face" an important concept. In Asian culture, it is not polite to be too direct or give direct rejection or create confrontations. Having cultural sensitivities will go a long way in developing your business partnerships in global markets.
  • In this age of the Internet and as more countries are being wired in, it's becoming more feasible for businesses of any size to expand into international markets. So, start growing your business and expanding your reach. If you follow the tips above, you'll have a good start to going global.

    Copyright © 2004. Ethan Hathaway.

    Wayne Po, is the Founder and Marketing Consultant of Ethan Hathaway (http://www.ethanhathaway.com): A virtual consultancy that helps small to medium sized businesses with their B2B marketing communications challenges and helps global SMEs market better into Asian markets as well as Asian based businesses needing help marketing overseas.



    Global Market in the Cyber world?Go and Get It !

    With the Internet opening up the doorway to the global... Read More

    So What Do You Do?

    Once you have the attention of a business prospect, at... Read More

    Fail Your Way To Small Business Marketing Success!

    Are you willing to fail your way to great marketing... Read More

    Marketing Planning - Preparation and Accountability

    We all know the saying, "Failing to plan (prepare) is... Read More

    Whats Your Marketing Weak Link?

    Your marketing weak link could be undermining the rest of... Read More

    Think Creatively While Reinventing Your Marketing and Selling -- Its For Your Survival!

    We live in a world that for many has become... Read More

    Maximizing Your Yellow Page Investment

    Yellow Page users are the hottest of all prospects ?... Read More

    The Value of a Good Sales Letter!

    Regardless of how many forms of promotional material you create,... Read More

    Beware: Marketing Sinkholes Ahead!

    Life provides your business with enough opportunities for failure. Don't... Read More

    Help! What Happened?

    Let's be honest, when you're writing sales material for a... Read More

    Brochures that Generate Sales Leads (and How to Write Them)

    One rule in direct mail is that your letter sells... Read More

    Fundraising Letters Should Raise Donors, Not Donations, When Mailed to Strangers

    Are you willing to spend $1.25 to raise $1? To... Read More

    Celebrity Product Placement: A Primer

    With more and more companies wanting to integrate their products... Read More

    Pricing Strategies in Marketing

    Price is an often overlooked marketing strategy, as many tend... Read More

    Lessons From a Six Year Old

    My 6 year old daughter Emily knows exactly what she... Read More

    Educating Your Customers

    One of the biggest marketing mistakes businesses make today is... Read More

    Provacative Research Works

    If you want to double your business, then you need... Read More

    Mailing Lists ? Keeping it Simple

    The right direct mailing list targets people who want your... Read More

    Eight No Cost Ways to Market Your Business

    Are you trying to promote your business with a tiny... Read More

    Direct Mail Offers: Eight Steps to Making them Effective

    Every direct mail package you drop in the mail should... Read More

    Writing Guarantees that Sell

    "This offer is good but can you guarantee it."Why write... Read More

    Resistances To Marketing a Practice-Part 1

    If you are a therapist, counselor, or an alternative or... Read More

    4 Steps To Increase Your Job Sign Marketing

    It's no secret that using a job site sign can... Read More

    Getting Your Services Used

    Every day I talk with professional service providers who do... Read More

    Go Guerrilla

    Jay Conrad Levinson coined the term guerrilla marketing, which I... Read More

    If you'd like to keep up-to-date,
    please complete the form below and we'll put you on the mailing list
    to receive our twice-yearly newsletter for supporters

    * Your email address:
    * choes your language: