In this guide we explain how to do international market research, exploring the key considerations to set you up for success.

Why is conducting international marketing research so important?

Whatever you think of it, globalisation is now a fact of life. For more than half a century, the biggest brands in the world have operated on a truly international scale. But in the past 25 years – the internet era – an ability to service global markets much more easily has made an international footprint even more compelling.

Near-universal penetration of the internet – often via a smartphone, equipped with GPS locators, camera and microphone – has created low-friction access for brands into markets they didn’t even know existed. Global supply chains and logistics make serving overseas markets easier than ever. And although there have been notable blips – in the form of sanctions, national protectionism and policy decisions such as Brexit – the overall trajectory is towards fewer tariff and non-tariff barriers to trade.

All that adds up to international business no longer being the preserve of multi-billion dollar blue-chip names; or even mid-corporate specialists and cool brands. Any company can now expand beyond their local market. International marketing today is a much more open field.

But the Covid-19 pandemic has also reminded us that within that global picture, markets evolve unpredictably. And they have always been subject to rapid change driven by local conditions, culture and consumption patterns.

That’s made multi-market insights even more useful for global brands already operating internationally – and any business planning to grow ‘overseas’ for the first time. Marketing research is important even at ‘home’. But in brand-new target markets with high potential, it’s nothing short of critical.

Finding a balance – with pertinent local insights or the one hand, and global uniformity for brand consistency on the other – can be a huge challenge. Marketing textbooks include plenty of examples of a failure to localise products and services, mistranslations of brand messaging (some of which are urban legends…) and other cultural blunders.

That’s made market research a crucial tool for business looking to foreign markets, both to help generate insights that can be benchmarked across their global consumer base; aggregated to inform global decisions; and ensure international progression isn’t tripped up by nuances that demand locally tailored marketing or even products themselves.

Big world, small questions – How to embark on an international market research project

So what does it take to run an international market research project? One fundamental truth about market research holds true whatever you want to find out: the tighter the brief, the more useful the results.

That’s not to say brands could, or should, never conduct wide-ranging and open-ended research studies to test general attitudes or behaviours on a global scale. But while that kind of ‘scene-setting’ work can be very valuable in one location, country or even cultural context, it can be much harder to come up with firm conclusions when you’re trying to be ‘global’. International market research might start out with the intention of finding global commonalities or appetites, but the data collected will rarely reveal universal insights.

It’s more a question setting out the kinds of insights that might drive operational, product design or branding decisions for different markets. Country specific norms for consumers and logistics will affect the brief. And different nations, cultures and infrastructure will dramatically affect the available research methodologies, too. Again: it’s not impossible to design international research projects that have perfect consistency in methodology – but for many situations, it’s also not necessarily going to deliver the biggest return on investment.

There is significant value in getting inputs from research professionals even before setting the brief. Getting those right at the outset helps the market researchers you work with get a clearer idea of how they might target their investigations and sets expectations about what’s possible – whether you’re looking at a single overseas market, the potential for an entire region or tailoring local research work to evaluate global possibilities for your brand.

International, regional or global? Approaching international market research

That decision – one or two new markets, a region (perhaps opened up thanks to changes in logistics infrastructure) or a global snapshot – probably won’t be defined by the research process itself.

For the biggest brands, global methodologies (which you can learn more about here) such as brand trackers might seem to be universal. But you still need to localise the process to draw broad conclusions. This isn’t simply a question of ensuring that two completely different markets generate results that can be compared at the global level to inform business decisions. National and regional situations are constantly evolving, adding different contexts that research should be able to factor in. Just like running focus groups around a large country, the broad methods might be the same, but the way you ask questions and interpret answers needs finesse.

The biggest global brands – such as Starbuck or McDonald’s – often undertake localisation work on their products and services, too. The Tsukimi Burger is alien to anyone outside Japan, for example. Research conducted to support these market-specific development projects is usually undertaken by local teams. But decision-makers at these companies’ HQs will still expect research supporting those decisions to meet their global standards.

For companies breaking into foreign markets for the first time, similar rules apply. They will have a standard of insight they demand from research; but they will benefit hugely from working with research teams or agencies who understand the local cultures, dialects and the most productive research methodologies.

So right at the inception we need to ask some basic questions:

Are we looking to assess products that present uniformly across the globe? (An iPhone is the same everywhere; a chocolate recipe might not be.)
How would we tailor products or positioning for a local audience? (Is this just packaging, for example, or tweaks to the features to adapt them to local conditions or cultural norms.)
What are the financial implications of these decisions? (Tailoring research to local markets and contextualising the outputs against your global strategic objectives is usually fascinating work. But will it create valuable enough insights to offset the cost of both the research itself and the tailoring?)

Speaking our language

One of the biggest issues for research internationally is translating your project into different languages (we explore that in detail here). That means not just the questionnaires or scripts that you use, but the brief (so local fieldwork teams understand your intent), the responses and insight reports.

In the era of Google translate (and, to a lesser extent, the use of English in many markets) this might not seem so difficult. But the nuances of language can be a major pitfall for brands and for research projects. Remember, even dialects and local idiom can affect both the meaning of a survey response, a focus group transcript or even the focus of a question.

Language and culture across South East Asia is incredibly diverse, so you can’t simply treat it as a homogenous region. Even in India (see our article on breaking the markets there) there are dozens of languages and cultural identities. And in Canada, for example, you need translators who know Quebecois, not just French. Making small mistakes can undermine engagement and trust, and it’s usually a relatively easy thing to get right if you know what to look for.

These language traps are particularly acute for qualitative work assessing softer or more descriptive product features or emotional product branding –especially if there is a very strong global brand identity that needs to be maintained around any local variation.

Working with local teams to ensure the meaning of questionnaires and responses is captured, not just literal translations, helps ensure marketing decision-makers aren’t trapped. Specialist translation services and research teams on the ground but who are in on the initial project brief are hugely valuable.

Realities on the ground – how cultural nuances can influence your choice of methodology for international market research

There are huge variations in the cultural acceptance of different research methodologies too. In some countries, certain methodologies simply don’t work that well. You might find a survey on WeChat in China works well; but in some markets, you may need to spend more time building rapport with consumers – and allow them a sense of anonymity to build the confidence they need to be open with you. This worked well on a recent project in Saudi Arabia, for example, where we conducted an online community.

Some societies have historically been more open to face-to-face research rather than online approaches (although this is changing as a result of the pandemic), so we often recommend a blended approach to get to comparable levels of insight versus other markets where this might be attainable exclusively through online methodologies.

Even between Germany and the UK the research context varies hugely. A lot of cultural nuance is rooted in history, too. In eastern Germany, for example, the folk memory of the Stasi is still recent history for many older people – which informs attitudes towards research and certain methodologies. So what you ask, how, where and when will differ in Leipzig compared to Paris or Birmingham, say. (And in much of the US, respondents will typically tell you much more than you need to know!)

And even well-understood quantitative methodologies – that you might think don’t require that linguistic nuance – need to be properly calibrated. For example, point scales vary around the world. In China, people are more open to giving 8s, 9s and 10s; in the UK, these are much rarer. If that’s not factored in it can skew important localisation decisions.

Research projects also need to account for infrastructure and social norms. If you’re investigating the relative strength of a drinks brand, for example, knowing how many people have access to refrigeration at home or whether drinking in the street is frowned upon will be important.

Online – not entirely global

Culture, history, consumption patterns, economics, language and infrastructure aren’t the only variations that need to be taken into account for an international research project. Technology has a potentially huge impact on the types of research you can conduct and how well it works.

The rate of adoption of devices and quality of connectivity in each market is a big factor. In some developing countries, you’ll need to tailor a more light-touch experience, with lower bandwidth requirements for online and mobile methodologies; in others, you can use more data-intensive approaches that are demanding on bandwidth and storage.

The smartphone has flattened out some of the methodological variety between markets, it’s true. Take Indonesia, for example. It was always very much a face-to-face market. But that is changing, as the need to inform faster decision making grows, with research through online panels– like our KOINS panel – taking off.

But there are still very clear cultural differences that mean it’s not simply a question of getting every market to download the same app, for example. Yet again, local knowledge is key – not just of those cultural or technological norms, but also of regulation. Data protection laws vary widely, for example.

Online survey methodologies can also lay traps on language. A couple of years ago, lots of brands were interested in the idea from Scandinavia of ‘hygge’ – a king of super-relaxed personal indulgence. There is also a word in Dutch to imply a notion of ‘coziness’, but it’s a different concept. If that crops up in responses, is it the same thing or not? Automated keyword searching and the surging use of AI analytics might not give you the whole picture.

In short: think global, research local

The smartest headquarters’ marketing teams already understand what needs to be tailored locally and what of their global branding they can apply in existing or new export markets. Knowing you can apply product branding across different markets can mean finding huge economies of scale in creative execution and being able to hook local variation into a wider brand image.

They will also trust either local marketing teams, or research specialists with local knowledge, to adapt both marketing and product sets to the conditions in their target markets. They need to know for each market what’s driving the local nuance and how to marry those with the logistical, economic and branding issues around that market.

And they know that whether it’s the attempt to tests global opinions, the openness of local consumers to existing products and branding or to uncover creative and value-creating local adjustments to products and messaging, there is no substitute for in-the-field expertise of a research partner capable of delivering to brief with the most appropriate methodologies.

The old phrase ‘think global, act local’ might be a tired truism. But when it comes to the way research is conducted to optimise performance in global markets, it’s still the number one rule.

Looking to embark on an international market research project?

Learn more about our international research capabilities, or request a proposal to discuss an international research project with us.

Market research is critical for driving growth. It can inform strategy development, product development and marketing, setting you up for success. But it’s even more important when it comes to growing your business in countries outside of your home market.

The global market research process looks different from domestic market research and requires a different approach in order to get the best results. In this article, we’ll break down why global market research is so important, the challenges involved, and how to do it as effectively as possible.

What is global market research?

Global market research is an umbrella term for the collection and analysis of information that companies undertake in a country that isn’t their domestic market. This includes designing the study, conducting the fieldwork, analysing the data and reporting the results – and can pertain to anything from customer understanding to product development research. It differs from market research that takes place domestically, with an understanding of cultural differences being crucial to its successful execution.

Why is global market research important?

Global market research serves a number of important purposes. It helps companies understand their current or potential customers in international markets. These markets — and the people in them — are often radically different from your domestic market in many significant ways.

Failing to understand the often subtle distinctions between different global markets and gain a solid understanding of them before you launch a product can be a critical mistake that costs companies dearly.

Market research is equally important in global markets where you already operate. Here, it helps companies feel out new potential product launches and marketing campaigns, understand how numerous factors in those areas may have changed since they last conducted research, and better understand the feelings of their customers internationally.

Here are some of the main reasons to prioritize global market research:

What works well at home might fall flat abroad. You may have heard of Starbucks. It’s one of the most successful businesses in its home market of the US and is a hit with customers in many other countries across the globe. In many cities around the world, you’ll find a Starbucks almost on every corner.

In Italy, however, its presence is more limited. This is because the Italian coffee culture is profoundly different from what Starbucks offers, and the Italian public simply doesn’t have much of an appetite for the brand. The fact Starbucks has been able to gain a foothold there is an impressive achievement in itself and was only possible by significantly altering its product range — a change driven by extensive market research and collaboration with local businesses.

It allows you to improve operations and save costs. Market research helps you gain a more thorough and clear understanding of your new markets and the logistical and practical steps involved in operating there.

This allows you to get your operations right the first time, avoiding expensive mistakes and delays and streamlining the process so you can maximize your chances of overall success.

It helps you understand your competition and what you’re getting into. When it comes to new global markets and expanding into different cultures, competition is a huge factor. Market research helps you understand your competition so you can compete effectively and avoid being completely eclipsed by more popular brands.

When Best Buy attempted to move into the Chinese market, it failed miserably, closing all its stores in the country just five years later. Why did this attempt fail so badly? Ultimately, it was due to local competition.

Local, smaller Chinese electronics companies were able to offer similar products at a much lower price by paying staff less and offering fewer benefits. They also had stores in more accessible locations, catering to a more bike-based and less car-based customer population.

Had Best Buy spent more time researching the local market, they may have taken a different approach, or opted not to expand into China at all.
It allows you to identify new opportunities you may not have otherwise considered. By better understanding your market through research, you’ll be able to pinpoint new opportunities to grow, generate ideas for new products and strategies, and innovate in a way that increases your chances of success.

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The challenges of global market research

Doing market research on a global scale can be much more challenging than doing it domestically and there are many more factors and variables to consider. Much of your market research will involve speaking to customers in markets that differ from your home country. This can be difficult for many reasons:

Cultural

Some international markets will be home to a vastly different culture from your domestic market. This can make research difficult. It’s important to respect cultural norms and take these differences into account both when designing your research approach and analysing your results.

For example, in some cultures, like in China, people might be more inclined to moderate their views in a group setting, making it harder to get to the heart of an issue in a focus group, for instance. Understanding this can help you determine which methodology to choose, along with how to probe, and what to look for when you’re analysing the data.

Linguistic

Carrying out customer surveys, focus groups, in fact, anything involving interviews and questions poses obvious linguistic barriers in foreign markets. This makes global research particularly challenging. You’ll need to be able to connect with respondents and understand their views in the local language. Understanding nuances and ensuring key details aren’t lost in translation is vital, so it pays to work with native speakers to help you navigate these issues.

Logistical

Finding appropriate facilities to conduct research in a different market can be tough, particularly if you’re working on logistically challenging projects such as central location tests or taste tests, where you also need to factor in transporting products for consumers to test in person. For this, it’s important to plan ahead so you can anticipate problems and delays that might not exist in your home market.

Legal

In many parts of the world, there are laws and regulations in place that you’ll need to consider when designing your research approach. For example, Europe’s GDPR or Singapore’s PDPA.

(More information on the challenges of global market research and how to overcome them can be found in this article).

The right way to do global market research

Learn as much as possible about the regions you’re targeting

Before you start actually speaking to people and conducting market research, it’s essential to gain a thorough understanding of the region you’ll be working in. This helps avoid or mitigate many of the cultural and linguistic challenges mentioned above.

Find out as much as possible about the demographics, laws, culture, language etc of your chosen region. Publicly available resources can help with this. You may be able to access government statistics or reports that can give an illuminating view of the business landscape for companies in your industry in your chosen market and what other firms are doing. This can provide you with a solid base for your research before you even start talking to your target audience.

Design an effective research approach, rooted in your understanding of the market

You need to design a research approach that works in the context of the market. Every region of the world is different, sometimes in quite startling ways, from your domestic market. It’s important to make sure your research is designed in a way that reflects that.

This is important when you’re considering what methodology to use. For instance, you’ll need to ensure that if you’re conducting online research in China, the platform will need to be mobile-first due to the technological leapfrog the country has experienced.

(For more information about conducting online research in Asia, read our best practice guide)

It’s also important when thinking about sampling. For example, when conducting research in Vietnam, it’s essential to understand the striking cultural differences between North and South. People in the North tend to favour well-known brands, whereas those in the South are typically more open to new experiences,Make sure you think carefully about who you want to research at the outset, and if you are exploring an entire country, beware that these nuances do exist.

One of the best ways to really immerse yourself is by working with an agency that has boots on the ground, and offices in the location you want to explore. This allows you to build a research strategy that is adapted to your new market, helping you to obtain valuable insights.

Collect the data and analyse the results, bringing cultural understanding to bear

Once you’ve designed your approach, you’re ready to embark on the research itself.

There are multiple methods you can use here, such as:

In-person interviews
Online surveys
Focus groups
Online or mobile research

Each method has its own pros and cons, and the best research strategies will contain a blend of several approaches. Again, cultural understanding is really important here.

This can impact the way you approach every element of your research. For example, when writing a questionnaire in Japan, it’s important to acknowledge the cultural aversion to giving negative feedback. Here, if you used a typical 5-point Likert scale, responses might tend to end up right in the middle, giving an unhelpful result. Instead, try a 4-point scale to give a clear indication of attitudes or intent.

The next step is analysis, where again, a deep understanding of the market is critical to be able to properly interpret the results and to compare between countries. In Vietnam, for instance, it’s common for Vietnamese respondents to show high interest levels when asked about their likelihood to purchase a product. But these responses are not always realistic — many Vietnamese people will enthusiastically signal their desire to buy a product even when they don’t have the economic means to realistically do so. It’s important to cross-reference these results with other market data for a more reliable result.

Remember to account for translation or working with native speakers at this point to ensure success too.

Looking to embark on a global market research project?

Global market research is an essential process for any company looking to expand into different international markets or grow their presence in existing ones. It allows you to optimize your chances of success when trying new things in markets that may be profoundly different from your domestic market in numerous ways. It also helps you understand those markets much more keenly so you can better serve your customers there.

There are lots of variables that can make the research process for global market research projects much more challenging. It’s important to take the time to understand your new market before you begin the research process.

However, if done right, global market research can be a critical factor in mounting a successful market entry attempt, marketing campaign, or product launch allowing you to expand your brand across the world and reach entirely new levels of growth.
At Kadence, we help businesses all over the world expand into new global markets by carrying out in-depth and localised research. Contact us to find out more about how we can help you do the same.

Market segmentation — the process of breaking your market into segments according to factors like needs, past behavior and more — is essential if you want to gain a clear understanding of your customers and target them effectively.

Companies that use market segmentation successfully can access a whole range of benefits. Segmented marketing tends to perform significantly better, and many of the world’s most successful brands have rigorously segmented their markets for decades.

However, market segmentation is also wrought with challenges. Depending on the scale, it can be a major operation that requires a large number of resources and work. In this article, we’ll look at 5 of the main challenges facing companies as they conduct market segmentation, and how to mitigate them.

Why market segmentation is so important

Market segmentation allows you to divide your market into smaller groups, which comes with a whole range of powerful benefits. Here are some of the main advantages:

It gives you greater focus. By segmenting your market, you can target the right groups with the right products. The alternative is taking a one-size-fits-all approach, targeting a vast range of different people with the same product and marketing message, which is far less likely to convert any given person.

With segmentation you can use a different strategy for each group, tailoring your approach so your customers get more choice and a higher chance of getting exactly what they want — or at least much closer to what they want as you can offer.

It can give your brand a stronger identity. Brands and products that try to appeal to everyone often satisfy nobody. Look at highly successful brands like Coca-Cola and McDonald’s — they know who they are appealing to, the needs they want to meet and they don’t try to pretend otherwise. Nobody is drinking a coke or eating a Big Mac to be healthy or lose weight, they do it for the taste and convenience.

These brands are able to forge a strong and memorable brand identity by focusing on specific segments of the market and specific needs: in this case, people who want a refreshing and tasty beverage on the go and people who want fast, convenient food. They’re not trying to appeal to healthy gym-goers or people looking for an expensive sit-down meal, so they’re able to focus their marketing and product range exclusively on their true target market. This allows them to build a clear and unmistakable brand.

It reveals opportunities for innovation. Segmenting your market can illuminate new areas for innovation that you may have missed otherwise. You’ll notice ideas for new products, tweaks you can make to existing lines, and new campaigns to create.

When you divide your market into smaller segments, you’ll notice that some groups have a demand for specific things. If you treat your entire market as one block, these distinctions can easily get lost in the noise.

More accurate and targeted marketing. When you segment your market, you can speak to your customers in each respective group more directly. This allows you to create marketing campaigns and use channels that are much more tailored to your audience.

For example, some customers might respond extremely well to TikTok content, whereas others may be completely missed by that. Segmenting your market helps you avoid wasting money by targeting the wrong people, so you can optimize your marketing budget and maximize results.

It can drive international expansion for your brand. Entering a new market is fraught with challenges. But segmentation can help you hone in when it comes to launching your brand in a new market to give you a better chance of success. Segmentation allows you to target consumers with precision. You can then tailor your approach to the specific customer groups in that country, rather than simply using the same strategies you used in a different place.

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The challenges of market segmentation

Market segmentation, while incredibly useful, can be challenging to conduct and implement. Here are some of the main challenges you’ll likely encounter when segmenting your market, with our top tips on how to overcome them:

1. Cost

Segmentation is an investment. Splitting your market into groups means you’ll have to do some things, for instance, marketing campaigns, multiple times in different ways. This can work out to be more expensive than simply running one campaign aimed at a single market.

There isn’t really any way to avoid this challenge. The cost of market segmentation is always going to be an investment, but if done right, the extra revenue you will generate from targeting the segments that represent the best opportunities for your brand will more than pay for the initial investment.

2. Understanding that people can belong to multiple segments

It’s easy to fall into the trap of thinking that each potential customer belongs solely in one specific segment. However, this is an oversimplification. Imagine you’re selling a brand of wine. One of your segments might be wine connoisseurs who enjoy drinking at bars with friends. Another segment might be those who drink to unwind at home.

One person could fall into both of these segments, depending on factors like the time of the week and their current social schedule. People are individuals, after all, and their habits and desires can change based on environment and mindset.

Bear this in mind when you’re approaching a segmentation, particularly in FMCG, and consider segmenting based on occasions, asking people about different scenarios to ensure their diverse needs are represented.

3. Keeping segments precise

Segmentation only works when segments are clearly defined and are distinct from one another. If your segments are too broad and vague, you’ll lose out on many of the benefits of market segmentation because you’re not able to tailor your approach precisely enough.

To ensure your segments are narrow and clear enough, it helps to create detailed personas for each one. A persona is a fictional profile that encapsulates the core qualities of each segment, including their needs, behaviours and motivations, based on the initial research. The purpose of personas are to bring to life the segments and demonstrate how they differ from one another.

For example, if you’re selling a brand of bottled water, one of your personas might be “Healthy Harry” who buys water to drink during workouts or while doing sports events. His persona profile would contain a range of information from what motivates him and to what he’s looking for in a product. The more detail, the better — this helps you create precise and tailored segments.

4. Selecting the right segments to focus on

It can be easy to overlook some potentially promising groups when segmenting your market.

For example, you might end up disproportionately targeting one segment that makes up a big section of the market, when another might be a more natural fit for your product.

Remember, the benefit of segmentation is that it can enable you to be incredibly precise and personalised in your approach. This means that even when targeting segments that make up smaller proportions of the market, you will still see significant returns.

It’s important to take your time in this phase of the segmentation to ensure you identify the right market segments or you’ll risk missing out on some lucrative avenues for growth.

5. Embedding the segmentation in your organisation

When people try to anticipate the difficulties involved in running a segmentation, the research approach is often the first thing to come to mind. But the real challenge for many organisations is in embedding the segmentation. This is of crucial importance if the segmentation is to drive change and growth for the business.

A segmentation is only as powerful as its internal champions. Fail to get stakeholders on board in the beginning and you’ll have a tough job ahead of you getting people to harness the segmentation to inform strategic decisions and realise the resulting benefits.

We recommend taking an active approach to stakeholder management, making this a crucial element of the study’s design. Start with stakeholder interviews to secure buy-in to the project, then keep these people involved throughout. Towards the end of the project, visual outputs can help bring segments to life and keep them front of mind when stakeholders are making decisions. Workshops can also be a useful tool for taking the segmentation and using this to inform your strategy.

Market segmentation is a powerful tool for businesses. It allows you to improve your product range, tailor your marketing, and increase your chances of connecting with customers and growing your brand.

Although the process can be challenging, it’s well worth taking the time to anticipate the potential barriers and work around them. At Kadence, we help companies of all kinds with market segmentation, mitigating the challenges while boosting their chances of success. Contact us to find out more about how we can help you do the same.

Entering the Chinese market is a strategic priority for many brands. But like any market entry project, whilst the rewards are great, so are the risks. Success relies on conducting nuanced research so you’re able to develop a comprehensive Chinese market entry strategy. In this article, we’ll share our top tips for getting this right based on our experience helping brands across categories break into the Chinese market. You can also conduct our ultimate guide for market entry for further information.

The pros and cons of getting into China

Potential market entry benefits and barriers in China

Benefits to explore	Barriers to consider
There’s money to be made there. It’s a huge and growing economy.	China is incredibly competitive – with both domestic and foreign brands in play.
Consumer appetite is evolving all the time, creating openings for new brands, products and services.	It’s dangerous to make assumptions about the state of the market – and long-term planning can be tough.
Wealth is spreading, creating evolving demand and growth in most categories.	There are still huge differences between the top-tier cities and the rest; and between urban and rural markets.
Chinese consumers tend to like branded goods and seek out quality where they can.	Domestic Chinese brands have upped their game into premium spaces.
“If you can make it there…” Learn the lessons from breaking into China, and you’ll have valuable insights for other international expansion.	China has some unique attributes – including tough regulation of key industries and some long-standing consumer attitudes that might never shift.

All that being said, China is obviously a vast market, with 1,394,000,000 people. That means even capturing a small niche or focusing on one region or even city can result in big revenues.

China has more than 600 cities often broken down into four tiers. First-tier cities including Beijing, Shanghai, Guangzhou, Tianjin and Chongqing are usually classified as having a GDP over $300bn (about the size of the entire South African economy). In these, and the tier-two cities, there is widespread demand for products and services that aren’t being catered for domestically.

And despite the fast development of homegrown brands, for many consumers, overseas brands retain an allure. So although the execution of any brand proposition needs to adjust to the needs of the market – and in a country as diverse as this, market research proves itself invaluable in this respect – a look at China must be a consideration for any growth-minded business.

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When to consider developing a China market entry strategy

We see a few different prompts for brands wanting to explore the Chinese market. One is where similar products or services are performing well there, with attributes that might be replicable. For example, we’ve seen strong demand for premium Korean cosmetics recently – it’s a sign similar propositions might fly. In niche areas such as luxury handbags and cars these is a persistent strong demand for foreign brands.

Those buying patterns are highly visible. But we can also pick up less obvious trends in consumer behaviour that give clues as to potential in China. For example, we’ve seen a growing love among the Chinese middle classes for avocados. (It’s not just 2016-vintage millennial hipsters!) That suggests possibilities for brands that take the time to probe shifting attitudes.

In the first case, then, we’re looking for product features and brand offering. In the second, we’re exploring new consumer behaviours – although in each case we need to evaluate whether this is a fundamental change in consumer mindsets, or just a fad.

Underlying all that needs to be the economic rationale for entering the Chinese market. We might be able to detect strong potential demand. But will the costs of entering and sustaining this vast market – especially given its competitive nature – make sense? Remember that China has a number of regulations on commerce and media. We’ll come back to that later, but it has a bearing on the risks, and therefore the economics, of market entry.

Don’t be arrogant – success in China isn’t guaranteed

It should be obvious by now that one of the biggest opportunities is bringing in a premium, overseas brand to woo and wow the expanding Chinese middle class. But don’t be fooled by that stereotype – and don’t assume that you can just transplant existing brand approaches and expect to deliver results.

For a start, the way you deploy advertising and tailor packaging will be crucial. Chinese consumers will often be swayed by the way brands are presented, so understanding exactly how people are responding to the brand image and packaging can’t be ignored.

Then don’t assume just because you’re a foreign brand that you’ll attain a ‘premium’ differentiation. Fifteen years ago, there was almost an automatic patina of exoticism attached to non-domestic brands; they were more likely to be seen as classy and rare, helping maintain margins. Today, local brands in many categories are considered to be delivering a premium, too. And for many consumers, reliable quality and attractive features are the acid test, not the brand image.

Categories are not universal

Market research can reveal exactly how your brand might be received, and whether or not it’s going to attract any kind of premium. It’s also extremely useful at understanding which parts of any given category represent an opportunity in China – and which might be duds.

At a recent industry conference, we heard how a extremely well-known global drinks brand approached this problem. Ideally it would have rolled out its full slate of premium-branded alcoholic beverages, creating leverage around ad spend, logistics and exploiting halo effects. But while whisky is a strong segment in China, for example, wine is a much smaller niche.

At that point, another decision comes into play: research might show you which sub-categories are worth pursuing. But you also think how to enter these sub-categories. For that luxury drinks brand, for example, do they pitch the quality of the alcohol? Is it trying to project ‘conviviality’ for consumers? Is it the product heritage – seeking that ‘foreign premium’ angle? Or is it the look and feel of the products on the shelf?

The same rule applies the other way around. Yes, there are categories that are highly unlikely to be fertile ground for overseas brands – such as food, for example. It’s intensely competitive, demands a sensitivity to local tastes … but yet there might be openings in the right niche.

Or take transport. In electric vehicles, China is some way ahead of most non-Chinese manufacturers. But outside that sub-category, partnerships with local auto-makers and dealers could yield good results. Research can help uncover where these niches might be.

Learn from others – analysing the China market entry strategy adopted by others can set you up for success

The Chinese market has been growing at pace for 40 years, so at this point there are few areas where someone else in your sector hasn’t had a go at joining the fray. Indeed, many big global businesses will have in-house experience of breaking China – and making sure the lessons from one brand, product, category or local market entry are learned for subsequent attempts is obviously crucial.

Then look at the history of the category – there will almost certainly be rival brands that have tried and failed to launch in China before you (and some that have succeeded). Analysing what they did right and wrong can reveal all kinds of lessons.

Marrying those insights with up-to-date and well-briefed market research is a recipe for success. The phasing goes something like this:

Work out where the existing opportunities lie – what can we see from published market data, the level of competition, and products or services doing well in similar markets (especially in South East Asia – countries such as Indonesia and the Philippines are also fast-evolving, diverse, vibrant and digital)?
Evaluate local competition, emerging players, and regulatory and economic risks. These will include local rules on product specifications, or potential requirements to partner locally.
Work out why there’s a gap – and why you’re well placed to exploit it. Landscape studies should also highlight consumer appetites that will help or hinder progress.
Look at who’s failed doing something similar and why; and who’s made their inroads work, and why.
Research the evolution of the market – things change fast. Who’s up-and-coming? What are the evolving consumer habits? How will you stay on top of changes?

“Can my brand expand in China?”

Regardless of what you want to test, brand is a key issue in Chinese markets. Food, for instance, is a crowded market, so launching a new product to stretch the brand is always tricky. Research can tell you whether halo effects will work in China – and how to exploit (and not devalue) existing brand equity.

For example, we recently worked with a confectionery company on the possible launch of a newly acquired brand in China. We ran taste tests, but also explored what the new brand might mean to Chinese consumers versus how it would be perceived under the umbrella brand of the parent company.

China is a fairly mature market, and there were a similar products in the market. So was it worth bringing in the new brand? Should they use the parent company’s branding to muscle into the segment? A big issue was how the new product might alter the existing overarching brand story if that was the case. Should it be a standalone brand?

We focused on one tier one city to establish the opportunity. In tier three or four cities, responses might have called into question the brand strategy – but the top-tier cities where a particular strategy might work are a very sizeable market on their own. But it’s still worth developing insights to frame that brand strategy, not just tailor a product.

The product’s premium taste and lavish packaging made its core product a hit for gift-giving Chinese, even at premium prices. But this project showed there are important areas for research to test what powers a brand has in new spaces in a market as sophisticated as China.

Research – set a baseline, monitor change

China’s rapid evolution means ‘the future’ is much nearer than many people think, however. We can assess the probable changes over the short term; the plausible over the medium term; and the possible in the long term. But when we research Chinese markets and opportunities, it’s extremely wise to keep an eye on what looks ‘long term’ because it can arrive quicker than in many other markets.

That’s one reason for entering the market with as detailed an understanding as possible is important: yes, it might change quickly – but you need a solid framework for local conditions and consumer attitudes to ensure you can monitor what’s changing, how fast and in which direction.

The good news is that Chinese consumers, very broadly, tend to be very tech-savvy. (The WeChat platform, for example, is more widespread than Facebook – with about a billion active monthly users, it’s near-universal – and has many more practical applications.) This tech-savviness is particularly useful for conducting online research, allowing for fast-turnaround methodologies and investigating consumers outside the big tier one cities. In short, it’s ideal to capture rapid changes from the baseline. And unlike some Western markets, China’s older population seems determined to be digital, narrowing the gap we see in some other countries’ research approaches.

But we would rarely suggest only conducting research online. In the huge markets of the big cities, face-to-face research is still the best way to test behavioural and experiential aspects of consumers’ lives and tailor your approach to their unique expectations and requirements.

Top tips for market research in China

Be open about what you want to achieve in China and be realistic about who the product or service might appeal to. China is huge and diverse, so pace yourself and target realistically.
Calibrate your results. It can feel daunting competing in a crowded marketplace with strong domestic rivals. But it’s a long game: what look like tiny positives from research compared to other markets can be valuable toe-holds, establishing your brand for more serious revenue growth later; or guiding your focus on high-potential niches.
Tailor your questions. You can’t be too assumptive about what people might be prepared to pay for a product or service and asking standard questions in surveys and focus groups might not help. Get your research team to develop a China-specific (and even city-specific) research plan to get into the nuances.
If it’s online, think mobile first. Not everyone has a laptop but due to encountering a “technological leapfrog” most people have a smartphone. You can conduct extensive studies very flexibly with mobile methodologies.
Test the tech. China does have more controls on internet activity than most. Test that the research platform functions properly, especially if running a study from outside its borders.
Work with local experts. Research teams with local knowledge and experience will be invaluable. These tips come as second nature and on-the-ground teams or those in the region with an intimate knowledge of China. They will provide essential depth to research – and frame insights more meaningfully.
Think about the media. Consumers love to use their phones to research brands and products, and especially influencers and social media users. Willingness to try brands often stems from these forms of media.

In most other markets – that are less fast-moving or exciting as China – your traditional strategies can secure your traditional wins. In China, research can tell you how and where you might chip away at competitors to help you target your offering more effectively – winning a slice of this lucrative market. It can also help you create a China strategy where the wins look entirely different – and deliver results that make a real difference.

If you’re considering entering the Chinese market, get in touch to discuss how we might be able to help you to build your China market entry strategy.

Market research is hugely valuable to any organisation. But understanding how consumers and decision-makers think and behave is rarely more important than when you’re trying to understand non-native markets. International business is big business – but it’s also a big investment. There are a host of issues to consider when you’re conducting international market research (for more, read our article on the topic). But getting the language right is perhaps the most obvious hurdle. So how is international market research affected by language differences?

Imagine you’re running a brand tracker to understand how your organisation is perceived across the world. You’ll need to localise the research in dozens of markets and yet still be able to draw broad, universal conclusions. For this, you’ll need to translate the survey into many different languages, whilst maintaining consistency of meaning and controlling for different emotive weights in the various dialects. Fail to do this, and the results you’ll get back could be misleading.

Why language matters

It’s not just language, of course. According to research from Columbia Business School, there are: “important cross-cultural differences in the processing, evaluation, and judgment of brand and product information. Much of this work suggests that cultural differences stem from pervasive socio-cultural … factors. For example, a good deal of research demonstrates that people have broad, culture-specific cognitive dispositions … which can guide consumer behaviour.”

But the same paper also stresses that language is a huge factor: “in recent work conducted in a consumer behaviour marketing context, we have found that structural aspects of a language can in fact critically affect one of the most basic aspects of consumer behaviour – categorisation of products. Grammar, phonology and semantics are fundamental building blocks to a linguistic system and should therefore have an impact on consumer behaviour.”

It’s not just what you say, then – but also how you say it, and to whom. All of which adds up to language, localisation, translation and interpretation as crucial building blocks of any international research project. Getting it wrong can be disastrous …

When language goes wrong

Many brands have learned the dangers of ignoring local idiom when they move into new markets. When Coca Cola first entered the Chinese market signs for ‘ko-ka-ko-la’ (the closest phonetic translation) were understood by locals as ‘bite the wax tadpole’ or ‘female horse fastened with wax’ depending on the tone.

This real life example highlights important language considerations, both in terms of asking the right questions and understanding the meaning of the answers when you’re working abroad.

Speaking their language

But hang on a second: isn’t all this slightly moot in the age of instant machine translation? Google Translate can handle dozens of languages, and even Microsoft Word now has a built-in translation function. While machine translation is improving in quality, it lacks subtlety, it struggles with idioms, and it misses the emotional salience that’s important to both qualitative and even quantitative research.

That’s even more important now that AI-type systems are being deployed to pull out topics, themes and even sentiments from research results. With systems like these, the meaning of local dialect or cultural implications could be missed. From a semiotic perspective, then, there are huge challenges with using AI for translation and analysis.

Another option could be to hire a language graduate to translate your surveys and responses. It’s true this is a step-up from the automated approach. But even if you can find a translator you trust, ensuring they understand the subtleties of local dialects and cultural nuances (see below) and the technical aspect of market research language is much harder. That’s where market research agencies like Kadence – with international offices across the globe and native speakers in house – come in handy. Having team members who instinctively understand the need to localise language and know how to do it is a major plus. After all, language and meaning evolve even over short time-spans so keeping up to date with trends and sayings is massively valuable. In Germany, for instance, 1200 new words and counting have come into being over the course of the pandemic.

The devil in the detail

The reason why all this is important is that just as culture varies widely between and within international markets, language has local subtleties. Even within English, there are layers of meaning that illustrate this point. Take the word ‘love’. He loves popping down to the shops with his mates on Saturday afternoon. She loves it when Leeds United score. They love their mum. She makes love to her sweetheart. They bask in God’s love. These are all very nuanced – and to a competent English speaker their varied meanings are obvious.

Then lots of countries have multiple languages – China, Malaysia, Belgium, Switzerland… there’s a very long list of places with minority language groups that a research project approached in the wrong way could marginalise. (Wikipedia has your back.)

Even when the language is clear, the nuances might not be. In Canada, for example, you need translators who know Quebecois, not just French. If you’re running field research in Mexico, you could stick to Spanish; or try to ensure the Spanish translation is appropriately localised for Mexican idioms; or even think about the indigenous languages that are still spoken by a minority of the population.

In the Philippines, Filipino and English are designated official languages. But Spanish is commonly spoken (a legacy of its own colonial role), as well as Tagalog, Minna and even Arabic.

That poses interesting questions about how your sample might be affected by language choice. Remember: you might only be interested in affluent consumers in a given market, say, and that means choosing the dominant language is no problem. But for a genuine look across a country – regionally and socially – a different approach might be needed.

Tone and culture – how these differences can affect international market research

Then tone has to be calibrated, too. Understanding why emotions are triggered in different cultures or regions is really important. In eastern Germany, for example, the long history of the Stasi secret police means that even though the country reunified 30 years ago, suspicion about intrusive questions lingers. That means a deftness in your translations will be important.

In France, questions about sexuality or religion are usually considered unacceptable unless you carefully rephrase the survey to yield the information you need. It’s true even in English: what’s the difference between ‘a hobby’, ‘a pastime’ and a ‘personal skill’? How might asking about those different categories affect the kind of responses you’d get?

Cultural salience is also a stumbling block. Someone in a focus group might quote a nursery rhyme to evoke a particular emotion or assumption. A native might pick up a lot of meaning; a foreign translator might understand the context; but a machine translation is just going to give a verbatim that lacks any appropriate meaning.

Practical considerations when it comes to language differences in international market research

When it comes to qualitative research, a lot of the nuance you need comes from non-verbal cues, and those are much harder to evaluate. Here, it’s not even a question of your translation services, you need ‘boots on the ground’.

From a quant perspective, there are practical considerations around research-specific translations. Some text will appear much longer when translated. For example:

ا هي المدة منذ زيارتك الأخيرة للطبيب؟
自您上次看医生以来有多长时间？
Wie lange ist Ihr letzter Arztbesuch her?
How long since your last visit to the doctor?
Berapa lama sejak kunjungan terakhir Anda ke dokter?
Gaano katagal mula noong huli mong pagbisita sa doktor?
¿Cuánto tiempo ha pasado desde su última visita al médico?
Combien de temps depuis votre dernière visite chez le médecin?
நீங்கள் கடைசியாக மருத்துவரிடம் சென்றதிலிருந்து எவ்வளவு காலம்?

That might mean the translation of survey questions has to be tweaked to be more practical or accessible to users depending on the format or technology being used in the field. It’s another reminder that having a single, integrated agency working on the project – handling the research design as well as the fieldwork and analysis – will bring many benefits.

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Beyond language – thinking about local context in international market research

We’re always mindful that when a global brand puts forward a research hypothesis, not only do we need to translate the language, but we need to be able to contextualise that hypothesis for individual markets. Equally, you also have to be able to take local outputs and fit them into a balanced global interpretation. A lot of that depends on the purpose of the research. Are we looking to assess uniform global products? Work out which markets to target? Tailor products or positioning for a local audience? That will shape how we make insights actionable for a brand.

This is where brands and their research agencies need deeper levels of understanding. Exposure to local culture, language, attitudes and even research norms makes a big difference to the value a project can deliver.

Ultimately, research projects need to be localised, not just translated. Miles in the US and UK; kilometres mostly everywhere else. That applies in a host of areas, not just weight and measures. Most people outside America are familiar with the frustrations of ‘US Letter’ being the default paper size in many software products! Ask a French sample how many pounds they would like to lose on their next diet, and you might get some confused responses.

Aiming for transcreation

With so many factors on top of the raw translation, many brands choose to ‘transcreate’ their research projects for new counties, not just translate them.

What is transcreation in translation?

Transcreation is “the process of adapting a message from one language to another, while maintaining its intent, style, tone, and context. A successfully transcreated message evokes the same emotions and carries the same implications in the target language as it does in the source language.” (Thanks again, Wikipedia.) This makes it the go-to approach for the many research projects that seek to reveal consumer attitudes or emotions to particular brands, products or categories.

In research terms it means identifying the purposes of the research – looking at the brief and how the insights will be used within the organisation – and asking how best those requirements can be met within different countries or regions.

Clearly many of the outputs may need to be standardised. But if the local research team understands the brief and the outputs, if they can parse the emotional intent of the research, they can recreate the desired level of investigation and effectiveness in another language. That might mean changing the actual content well beyond simply translating.

But it does also mean that the intent of the research project is translated, not just the words of a survey. Ultimately, marketers will get more value from their international research if they work with an agency that can deliver against the broad brief and desired outputs from a project using people with a deep understanding of different markets.

Looking for support with international market research?

At Kadence, we have offices in 10 countries across the world. We’re proud of the diversity within our offices too – with project teams spanning colleagues from Sweden to Taiwan. To understand how we can help you navigate the challenges of international marketing research, take a look at our international market research capabilities or get in touch to discuss a project.

Whether it’s an entirely new geographical region with a range of cultural, linguistic, and economic factors to consider or just a new age demographic — breaking into a new market is rarely easy.

There are all kinds of risks to try to mitigate and hurdles to overcome. Brands will never manage to avoid every potential pitfall, so a degree of complication should be expected.

Businesses that can minimize these risks and challenges can reap serious rewards. In this article, we’ll look at 5 of the biggest risks and barriers businesses typically face when entering a new market.

Let’s start with the risks.

The risks of market entry

There’s no risk-free way to enter a new market. Some may be easier than others, but problems are always possible. We can break down market entry risks into three main categories — internal, external, and legal.

Internal risks for market entry

Internal market entry risk factors are those that come from within the organization. These are generally easier to control than external risks but are often unpredictable and seriously damaging.

Management and organization

How well is your company structured? In your home market, it’s sometimes possible to function successfully with a flawed organizational structure. However, those drawbacks can become painfully obvious when you enter a new market.

Some common management mistakes include:

Unclear vision from leadership. A lack of coherent vision from the people in charge can lead to widespread confusion and inefficiency. Ensure your goals are established and communicated to everyone on the team.
Sudden staff changes. When a new member joins the team to replace someone else, they must have all the necessary information and direction. Failing to do this can often result in failures in communication and significant setbacks when entering your new market.
Lack of coordination. Working together effectively is critical in a new market — especially one far away from your home market. Your team members must be on the same wavelength, up-to-date with current processes, and in regular communication with each other and leadership.

Human error

Human error is one of those risks that we can’t always control. Mistakes happen in business and life, and while we can’t predict them very accurately, we can certainly say that people will make mistakes.

When entering a new market, a simple mistake can set a project back and send out ripples into the entire process. Usually, one or two small mistakes won’t mean the end of the world, but a series of minor errors can add up.

That could involve failing to convert currency accurately, using the wrong measurement units, or giving incorrect advice about cultural norms. In these cases, one small mistake can quickly snowball into a major setback if nobody catches it.

Logistical issues

Things like delays, accidents, labor shortages, transport and delivery problems, and other logistics and infrastructure challenges can be significant roadblocks for businesses when entering a new market.

These hurdles are especially relevant when expanding into developing countries and regions. Here, infrastructure and technology are often very different from what you might be used to in your home market, so it will be harder to predict delays and disruption.

Markets in developing countries sometimes use more manual processes, so there is often a greater need to work closely with local teams and sometimes the need to adapt your services.

Tech issues

The technology and equipment you rely on as a business won’t always work seamlessly. One considerable risk for market entry involves technology failing to get the job done effectively in a new market.

One example is the Internet of Things devices, which can be powerful assets for businesses when monitoring conditions and optimizing processes in manufacturing. However, if your devices or networks fail, it could cause a significant setback.

If you’re looking to enter a developing country, it’s worth bearing in mind that technological infrastructure can differ greatly from your home country. In some countries, we’ve seen a leapfrog effect, where newer technologies have been adopted to a greater extent, as there are fewer issues with moving away from legacy systems.

Cash flow problems

Entering a new market requires a lot of financial resources, and if the supply of money is interrupted or halted, it can cause major problems for your operation. If not promptly dealt with, internal issues like this can quickly stop a market entry attempt.

External risks for market entry

Businesses must contend with many external risk factors and risks that stem internally within their organization. These can be much more difficult to control and are often unpredictable.

Regulations

It’s essential to be aware of and comply with the local laws in your chosen market. One recent example is Europe’s GDPR law which requires anyone doing business with European customers, or any company based in Europe, to adhere to strict data privacy rules.

Local regulations and requirements are often overlooked — and this can be especially tricky in emerging markets where regulations can be harder to interpret if you’re unfamiliar with the landscape.

Failing to keep up with regulations can be high — the maximum fine for GDPR violations is €20 million or 4% of your annual global revenue. A mistake here can seriously damage your entire company, not just your new market activities.

Politics

Politics can be hard to predict anywhere in the world, although businesses can be reasonably confident that radical changes won’t disrupt their market entry efforts in stable regions.

However, all bets are off in less stable parts of the world. Revolutions, wars, and sudden and significant new legal changes are just some of the political risks you must contend with when entering a new market.

Sudden changes to government can have severely damaging effects on your business. One example is when Fidel Castro’s government took control of Cuba in 1959, seizing hundreds of millions of dollars of US-owned property and companies.

Social unrest

A country (and a market) is nothing without its people. Events involving social unrest and widespread disruption are constant sources of risk for businesses in many markets around the world.

Riots, protests, and revolutions can cause damage to premises and shut down businesses for long periods, while nationwide strikes can leave you without a workforce. It’s crucial to have a plan of action to ensure survival during civil unrest.

Major non-violent social movements and trends can also impact your business. If you fail to show solidarity or are perceived as insensitive to a specific public sentiment, this could cause reputational damage.

Cultural differences

Entering a new market often involves introducing your business to an entirely new culture, which comes with a whole host of new risks.

Brands need to be aware of different customs and cultural nuances. Failing to adapt can impact how your products and services are received in the new market. You’ll need to consider how culture will affect how your new customers will receive your marketing. A television commercial beloved in Western cultures might be perceived as grossly insensitive in more conservative cultures.

It’s easy to get excited about entering a new market and the potential it might offer your business, but you need to do your research upfront. Is there actually a market for your product? Will it need to be adapted for success? And at what point does this become unfeasible?

Knowing when not to enter a market is just as important as knowing when to invest.

Natural disasters

It isn’t just people that businesses have to worry about when entering a new market — nature itself is often working against them. Natural disasters are a significant source of risk when establishing a presence in certain parts of the world.

Hurricanes, earthquakes, floods, droughts, and many other disasters can quickly stop any market entry effort. They can destroy property, interrupt shipping, and close down entire economies in hours. Worst of all, it’s often impossible to predict when the next disaster will strike.

One way to mitigate damage is through insurance, although coverage in developing countries has historically been low. Research shows that only about 1% of natural disaster-related losses between 1980 and 2004 in developing countries were insured, compared to approximately 30% in developed countries.

Market issues

There are several external risks in the market. These can take the form of unexpectedly tough competition, fluctuations in the cost of services and resources your business relies on, and volatile exchange rates, leaving a dent in your profit margins.

Legal Risks

There are many legal risks to consider when entering a new market, and this type of risk encompasses internal and external activities.

Every region in the world has its own set of laws and regulations, which can change significantly even between parts of the same country. For example, it’s legal in many U.S. states to sell cannabis; however, this could carry a severe penalty in others.

Some legal risks to consider are lawsuits, patent rights, and data privacy regulations. To ensure you stay on the right side of the law, you must work with local lawyers in your target market. A major legal setback like a big lawsuit could end your market entry campaign, so ensure you stay on the right side of local laws.

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Barriers to market entry

As well as risks, there are also multiple market entry barriers to consider. Fortunately, these are far more predictable than the risks mentioned above. It’s almost guaranteed you will encounter these obstacles during your market entry journey, so it’s easier to prepare for them.

There are many barriers, but we will cover two of the main ones here – costs and marketing challenges.

Costs

Entering a new market is a costly endeavor. You’ll generally need considerable resources to make this happen, and costs can be much higher than expected.

Some market entry campaigns cost less than others — trying to reach a domestic demographic with your product is more financially workable than establishing a solid presence in a foreign market such as China.

A successful market entry will allow you to make back your investment over and over. But it’s important to understand what costs you might need to consider when entering a new market.

Export and import costs

Moving to a new overseas market typically involves a certain amount of moving goods across borders. Even if you establish a manufacturing base in your new market, there will be costs associated with importing certain materials and goods from your home market.

Switching costs

This refers to the cost involved in switching to a new supplier, brand, product type, or alternative. You might have to do this a number of times when entering a new market, and these costs can add up quickly.

Marketing costs

Reaching your target audience in a new market will require a certain level of expenditure, depending on how well-known your brand is. For example, KFC opening a restaurant in a new region will have less work to do than a smaller and less famous company. Costs include market research, advertising, digital marketing, and analytics.

Access to distribution channels

This is how you make your product available to your customers. Accessing and managing a distribution infrastructure in a new market comes with various costs.

It’s important to anticipate as many costs as possible when entering a new market. Even if you do a great job of this, it’s likely that some costs will still spring up and take you by surprise. Make sure you have the financial resources available to handle these unexpected expenses.

Getting your marketing right

As well as the many costs associated with market entry, another barrier facing companies involves marketing.

Marketing is essential to make your voice heard and your product known in your new market. You need to immediately start connecting with your target customers across various channels and establish your brand as an option.

Marketing in a fresh market comes with a range of challenges. We already covered costs above, but here are some other key marketing considerations:

Demand

Before you even set foot in a new market, do enough people want to buy your product? Your marketing campaign will be an uphill struggle if there isn’t existing demand for your offering. It’s much easier if people are already clamoring for what you have. This is where market research is crucial for helping you to size the opportunity.

Competitors

Entering a new market means — most of the time — walking onto another company’s turf. You’ll need to show your target audience that you can offer something better than your competitors.

Brand identity

Your brand has an identity; it can take a lot of work to import that identity and everything associated with it into a new market. How do you establish yourself in a certain way and send out the right message to your potential customers? Again market research is vital here to understand what to retain and what to adapt.

Customer loyalty to existing companies

We already mentioned your competitors. Many of the customers in your new market will have existing loyalties and strong ties to them. Luring customers away from a brand they have used and loved for decades is much more complex than simply attracting a new customer to your brand. You must stand out, offer something extra, and communicate this clearly. It’s worth paying attention to your competitors and what people like about them.

How will you reach your audience?

Consider how the people in your new target market get their information and spend their time. For example, if you’re targeting an older demographic, investing heavily in influencer marketing might not be a good idea. On the other hand, magazine and TV ads may work to great effect.

Cultural issues

If you’re expanding into an overseas market, you’ll need to consider the differences in culture and how this affects the tone of your marketing. Make sure your messaging doesn’t come across as offensive or inappropriate or appear tone-deaf due to a lack of understanding about cultural nuances and norms. Understanding cultural differences is an area where it pays to work with people who understand the culture intimately. Take the case of Starbucks — whose attempt to break into the Israeli market fell flat due to hubris and a lack of understanding of what the Israeli customers wanted.

Marketing can take a lot of work to get right, which is even more true when entering a new market. The most important thing is to research your new market as heavily as possible and gather as much information as possible before beginning your campaign. Also, be prepared to adapt your approach as you go along in response to data and feedback.

Market entry always comes with a massive amount of risks and challenges. No business can escape this, not even those with a global presence.

But when you get it right, you can reap significant rewards.

Kadence has helped companies of all shapes and sizes research their target markets and gather all the intelligence they need to lead an informed and successful market entry campaign. To find out how we can help you do the same, check out our guide to market entry or get in touch today.

How do you enter a new potential market?

Expanding your brand into new markets allows you to reach potentially vast numbers of new customers and grow your revenue massively. However, the process can be complex and filled with complications.

A market entry strategy maximizes your chances of success when moving into a new market. In this article, we’ll look at some reasons to consider moving to a new market, the differences between domestic and international markets, and some strategies you can use.

Market entry defined

Market entry strategy is a plan to expand the visibility and distribution of a product or service to a new market. Market entry research helps brands to expand into new domestic or international markets where the competitive, legal, political or cultural landscape might be less known.

Market entry research is the path to understanding a new market. It helps brands identify different success factors, reveal potential challenges, and discover hidden potential opportunities.

Why move to a new market?

First up, why should you consider moving to a new market in the first place? It’s challenging and expensive, so what are the reasons that make it worthwhile? Here are some of the main ones:

You’ll gain more customers and make more money – The number one reason to consider new markets is to grow your business and increase revenue by selling more products to more customers.
There might be no more opportunities for growth in your home market – If you’ve maxed out what your local market is capable of in terms of revenue, expanding to new markets may be the only way to grow.
You’ll reduce risk by diversifying your business – If one market suffers for whatever reason, you’ll have others to keep you going.

Domestic markets vs. international markets

Are you planning to enter a new domestic market or take your products overseas to sell in a foreign country? The approach for each of these will be very different.

Domestic markets

Typically, this will be much easier than entering an overseas market. The culture will be the same, everything will be geographically closer, and things will likely be very similar to your existing markets.

International markets

Global expansion is where things become more complicated. You’ll have to factor in several differences in how you currently run your business. These include:

Cultural differences
Administrative differences
Economic differences
Logistical challenges involved in transporting goods abroad

Things to consider

Before you enter any new market, it’s crucial to take some time to confirm whether you can afford the move. Can you afford the costs of exporting, working with intermediaries, tax, and all the other expenses involved? And what proportion of the market can you realistically expect to be able to serve?

You must also consider if the product or service will work in your intended market. Market research (both online and offline) plays an important role here — ensuring demand for your product justifies the export cost.

Risks of entering new markets

There are also numerous risks involved in entering a new market, including:

Country risks, like the possibility of political unrest, sudden changes, or financial issues that could impact your business.
Foreign exchange, such as the possibility of currency exchange rates changing, could seriously affect your bottom line.
Cultural risk, which essentially means the possibility of your new business venture running into challenges due to significant differences in culture and customs.
Weather unpredictability. Are you moving into a market where natural disasters and weather conditions could cause damage to your facilities and cost money?

Once you have carefully researched your new market and weighed the potential risks, you may decide it’s worth entering. If so, there are several different strategies you can employ, each with its pros and cons.

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Different market entry strategies

Direct exporting

Direct exporting is where you ship your products to the new market directly. You’ll have to handle all aspects of the process independently, from transport to payments to operations in the new market.

This method requires more resources and time compared to working with an intermediary. You’ll need to create an exporting infrastructure, train employees, and make and receive international payments, among many other challenging tasks.

On the plus side, this approach maximizes your profits as you don’t need to pay any third parties. You’ll also have complete control over your sales and marketing processes.

Indirect exporting

Indirectly exporting involves working with an intermediary. It has some advantages, such as:

Much lower risk. An experienced third party will take care of the exportation process, which minimizes the risk of failure.
You can focus on your own business and domestic markets without being occupied by your new ones.
Fewer resources are required on your part.

On the other hand

Profits are lower since you have to pay your intermediary.
You’ll be disconnected from your customer base, so you’ll miss out on important insights and lessons.
You’ll lose complete control over sales and marketing abroad.

There are several different options when it comes to indirect exporting. Here are some of the most common ones.

Indirect exporting with buying agents

Buying agents are representatives of foreign companies that want to buy your products. You’ll work through them when selling your products to your new market.

They’re usually paid by commission and will try to negotiate the lowest possible price. Sometimes, buying agents are government agencies.

Indirect exporting using distributors

You can sell your product directly to distributors or wholesalers, who will then distribute the product to retailers.

Indirect exporting through the management and trading companies

Export Management Companies (EMCs) exist to take care of all your export and sales processes in your new market.

It’s worth taking some time to research and find the correct EMC, as most specialize in a particular market and region. They’ll help you identify markets, find customers, handle all shipping and logistics, and more.

Indirect exporting through piggybacking

Piggybacking is where you allow another non-competing company to sell your product. This can work exceptionally well if the partner company already has a customer base and distribution infrastructure in your target market.

You’ll get immediate access to your new market but for a fee.

Producing products in the target market

Another option is to manufacture your products within the target market. This saves you the cost of transport and the many logistical challenges involved in exporting your product abroad.

However, you’ll also need to consider the many challenges in manufacturing your product abroad, legal issues, costs, possible risks, and more. Depending on your situation, this could be a good option.

(For more information on the most effective strategies for entering a new market, check out our top four marketing strategies article).

Franchising / Licensing

While franchising is often associated with fast food or quick-serve restaurants, it can successfully aid expansion in many different categories.

Franchising is where a semi-independent business owner (the franchisee) pays fees and royalties to the franchisor to use a company’s trademark and sell its products or services.

While franchising and licensing are both business agreements where certain aspects of the business are shared in exchange for a fee, a licensing agreement is typically more limited.

Entering a new market can be extremely rewarding and allow your business to move to the next level and achieve new growth. It’s essential to research all the options and ensure the export strategy you deploy is the safest and most effective for you. You’ll also need to thoroughly research the market to understand its potential and position your product for success, something we cover in our Ultimate Guide To Market Entry.

Kadence can help you do that. We have extensive experience assisting businesses by conducting game-changing research to create effective strategies for market entry. To find out more, learn about our market entry services or get in touch.

Market entry is the process of entering a new market, whether at home or abroad. There’s a lot to consider when taking this step, and it’s certainly not a simple process. In fact, for every successful market entry, about 4 will fail.

A new market doesn’t necessarily mean a new geographical area. It could mean selling your product or service in a new language or targeting an entirely new demographic of people. If you do choose to move into a new part of the world — especially if it’s abroad — this comes with its own unique set of challenges.

In this article, we’ll dive into a market entry and some of the challenges involved. We’ll also cover some steps you should take to maximize your chances of success in your new market.

Why enter a new market?

There are lots of good reasons why you should consider expanding beyond your current market. Some of the main ones are:

You want to gain more customers, grow your company, and increase your revenue. This is the most obvious reason — new markets represent untapped opportunities for growth and to make more money.

You’ve hit a ceiling in your current market. Perhaps you’re struggling to grow more where you currently are, which is an impetus to seek out new pastures.

There may be a legal requirement to offer your product in new markets. For example, you might be required to sell your product in different languages.

To keep up with competitors. If your competitors are expanding into new markets, you risk being left behind if you don’t do the same.

Domestic vs foreign market entry

Domestic markets will likely be quite similar to your existing markets, whereas international markets present some new challenges to overcome, such as differing cultures, laws, and languages.

However, foreign markets can also bring great benefits and the opportunity to become a truly global brand. If you decide you are ready to take the plunge and expand overseas, this will come with a whole host of brand new challenges.

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How to excel at market entry

Research the market

What is the size of the market? What is its growth rate? Where is the market heading and what are the key trends to watch? These questions can help organisations understand the potential return involved in entering a new market and are typically answered by a combination of desk research, interviews with industry experts and primary research.

Research your customers and what they want

This is important at any stage of business, but it’s especially crucial when entering a brand new market. The more different your new market is from your current one, the more important this step is.

How do you get to know your customers?

Focus groups
Online surveys (and other quantitative research methods)
In depth interviews (IDIs)
Telephone depth interviews (TDIs)
Online communities (and other online qualitative research methods)
Ask your sales team for their experiences of customers’ opinions
Spend time in that market. There’s a lot you can learn – from better understanding consumer behaviour to getting a grip on the competitive landscape

In your research, you’ll need to consider a few key questions, such as:

Will your product work in the target market? What works well in your current market might not take off at all somewhere else. Is there any real demand for what you’re offering, and does it justify the cost of entry?
Will you be dealing with different demographics of people? Will they have different pain points, goals, and budgets? How will you address these differences?
Will you need to adjust your marketing strategy or move to new channels? For example, if you’re trying to move to an older market, social media marketing might not be the best approach to take.

Research the competition

Who are your competitors in your new market and what are they doing? These will likely be different from the competitors in your original market, but this may not always be the case.

Entering a new market, you’ll immediately be at a disadvantage to established companies. You’ll need to overcome customers’ long-term brand loyalty and familiarity with other products, and you’ll be competing with brands that already know the landscape well.

You’ll need to work hard to beat your competitors while also fitting into the new market. As such, it’s worth spending time and resources so you can find out as much as possible about your competitors and learn from them. One advantage of being a new entrant is that you can avoid the mistakes other players have made in the past, helping you to optimise your strategy and get ahead.

Understand the culture

When moving overseas to a new market, the cultural differences can be vast. If you want to succeed, you’ll need to make sure your business is on the same cultural wavelength as your new market.

This means adapting to the culture and customs. The best way to do this is by working with people on the ground – or indeed by spending time there and getting a feel for a new place. We have offices across Asia, the US and Europe, so when we work with clients on market entry projects, we’ve already got a deep understanding of the culture of the market they want to target, which can be a huge advantage.

Understand the local laws and regulations

When moving into a new market, the last thing you want to do is run afoul of the local laws. For example, the EU’s GDPR regulation, built to protect the data privacy of EU citizens, applies strict rules for businesses. Failing to comply can result in a hefty fine.

It’s best to work with a local lawyer who can advise you about all the regulations you’ll need to be aware of and help you navigate this new legal landscape.

Have a clear future plan

When you enter a new market, it’s important to have a clear idea about where you’re going. How are you going to grow and scale? 65% of startups fail because of premature scaling — how will you make sure you grow at the right pace?

Take some time to put together a clear roadmap and market entry strategy that will ensure you develop and grow in your new market in exactly the right way.

Entering a new market is always fraught with challenges. It’s best to work with a team of experts who can help you formulate a strategy that works — guiding you through the complex and demanding process of making a move.

At Kadence, that’s our job. We’ve worked with countless companies, helping them lay the groundwork for a successful move into a new market. To find out how we can do the same for you, read more about market entry in our comprehensive guide, explore our market entry services or just get in touch today.

Market size is a metric that gets discussed a lot in the business world, but what is market size, and what does it actually mean?

There are many misconceptions about the real meaning of the term, which can result in people making the wrong decisions or failing to make the most of their strategy.

If you can accurately determine your market size, this gives you a significant advantage from day one. It allows you to secure better investments, make clear-headed plans, and avoid getting sucked into a strategy with no future.

In this article, we’ll break down the basics of market size and show you how to determine yours and differentiate it from other concepts.

What is market size?

Market size refers to the total number of potential buyers for your product. Alexa defines market size as “the number of individuals in a certain market segment who are potential buyers.”

More technically, it’s the total number of potential customers or sales in a given period (usually a year) or the total potential revenues you can reach in that time.

Why is market size important?

There are many reasons why you should be interested in your market size and how to determine it accurately. Here are some of the main reasons:

Gaining investment.

Market size indicates the potential for any new business, product, or service. If you can show that you have a good chance of making money — and how much — it’ll be much easier to secure investment.

Develop a solid marketing and business strategy.

Knowing who your market is, how big they are, and how much money they represent gives you a strong foundation for building a strategy and setting clear future goals.

Determine budget and hiring plans.

Knowing your potential trajectory for growth helps you budget more accurately and hire the right team for the task ahead.

Budget better.

Use your R&D budget wisely by better understanding who your customers are, what they want, and how you can deliver it.

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How to determine market size

How do you actually figure out your market size? There are several ways to go about this:

Identify the target market for your product or service.
Carry out market research to assess the level of interest in what you’re offering — will people buy it?
Gather data on the number of potential customers and transactions per year. There are many secondary resources you can consult to help you do this.
Assess the total revenue generated in that segment of the economy in a given year.

Is your market size too small?

So — you’ve calculated your market size, but what does that number mean? How do you know if your business is worth pursuing?

The answer depends on the market and the size of your business, but there are some good general guidelines. Usually, $100 million is on the lower end, and if your market size is smaller than this, it may prove difficult to convince stakeholders or investors to get on board.

What is the serviceable obtainable market?

Determining your total market size is only the beginning, and this information alone is only worth a little.

You’ll only be able to reach some potential customers. No business has the marketing tools, scale, and budget to capture the attention of every person in their market. And that’s without even mentioning competitors. You’ll never corner an entire market, and the most you can hope for is usually a small slice. According to Tx Zhuo of Karlin Ventures, “If it’s 1 to 5 percent of the pie, you have a realistic plan.”

This is where we can turn to a useful metric called serviceable obtainable market (SOM). SOM refers to the potential customers (and potential revenue) you can realistically hope to reach with your marketing tools and budget.

So how can you calculate your SOM?

How to calculate the serviceable obtainable market

There are several ways to calculate your SOM. According to Jared Sleeper, an investor in early-stage companies, you can take three main approaches.

#1. Top-down. This approach relies on analysts’ predictions, forecasts, and assumptions about your market. It’s often based on conjecture and estimates to some extent. Consider statements like: “The wireless headset market is forecast to reach $2.5 billion by 2023”. It’s suitable for a general overview of the situation, but it’s a little vague and can be challenging to understand what proportion of the market you can realistically corner.

#2. Bottom-up. This involves starting with your price and how many units you can realistically expect to sell.

How many customers can you reach + how much is each sale = your SOM.

It’s more tailored to your specific situation instead of a broad assessment of the whole market, so it’s a more reliable way to work out your SOM.

#3. Value theory. This final strategy is less precise, but it still has some usefulness. It involves considering the value your product or service adds compared to alternatives and estimating how much customers would be prepared to pay for that extra value.

Sleeper recommends options 2 and 3 since they consider the specifics of your business and how you would interact with the market, as opposed to a general prediction.

It may make sense to use a blend of all three approaches to gain the fullest picture of your SOM and provide as much insight as possible to your stakeholders or investors.

Calculating market size is an important step on the road to building a successful business or launching a new product or service. However, it’s only one step. The metric on its own isn’t worth a whole lot unless you can also show how much of that market you can reach and compete for.

Market research is a crucial part of determining your market size, SOM, and laying the foundations for a successful business. To find out how Kadence can help you with this, take a look at our market sizing services or get in touch with us today.

Many global economies are defined by stagnant growth, falling populations and saturated markets, making growth for brands a tricky proposition. In many ‘emerging markets’ there are still big opportunities grow… if you keep your eyes open.

Many businesses are looking to fast-growth, high-energy markets outside the so-called ‘developed’ economies to fuel their expansion. Unlike congested and sometimes shrinking economies in ‘the west’, many parts of the world are seeing rapid population growth, fast-rising incomes and are adopting transformative technologies without the burden of legacy investments. The result? Vibrant new opportunities for businesses.

But while entering any new market is a challenge for brands, moving into these more dynamic economies – often with very different cultures, business practices and consumer expectations – can be particularly tricky. Berlin isn’t the same as Birmingham, but many of the norms in both markets are recognisably similar. Head to Beijing or Bamako, and the assumptions you make about brand, product and business practices will be challenged.

Take a phased approach to understanding the opportunity afforded by new markets

The best way to understand your opportunity in different markets is to take the traditional phased approach to research. This involves the following considerations.

Which markets might we look at? Consider the number of consumers, the country’s income levels and the stability of its economic and political structures. You can also examine the maturity of business practices and think about geographic location, transport links and accessibility in-market.
What’s the macro environment like in a market we want to enter? Revisit all the above, in more detail. Focus on specifics – such as the transport and tech infrastructure; and business support networks (such as accounting firms or legal protections on IP) – and how the trends are evolving in those areas.
How does the competitive landscape affect its attractiveness? Pay attention to other outsider brands and how they’re doing; but also domestic rivals and potential competitors poised to move into adjacent markets.
What are the practical issues for market entry? In new markets further afield, transport links, language barriers, different cultural norms and local regulations can throw up roadblocks.
How do we adjust our product, service or messaging to optimise our offer there? As above, but remember that very different cultures and climates can challenge even the most basic assumptions about how a product will perform.

Step away from the generalisations

It’s vital to acknowledge that ‘emerging markets’ aren’t as uniform as the term suggests. Far from it. There are so many variations by region or category that talking about common features of ‘emerging markets’ is a dangerous over-simplification. And there are as many differences within countries as between them. This particularly true in countries where rapid urbanisation has seen a break with traditional cultures outside cities.

(That’s true for any generalisation, of course. Alcohol brands, for example, can’t even treat the US and Canada the same. North of the border, there are drinking-age laws set province-by-province, massively complicating online alcohol sales. They might look the same in terms of development and even geography and demographics. But they’re not.)

That’s not to say there are no rules that apply to entering markets that share particular attributes. The pace of economic or population growth, or the expansion of middle-class consumers with disposable income, might always be a feature of your selection process for target markets.

But in many categories, consumption is growing so quickly that only the real beneficiary of a ‘toe in the water’ market entry is likely to be knock-off brands and domestic substitutes able to adjust output more responsively to local conditions, especially where legal protections for intellectual property are less secure for global players.

All these caveats mean that in-depth research into new-market consumer appetites, infrastructure and competition is just as important in growth areas as it is in more mature markets.

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Assessing new markets – 5 key considerations

All that being said, knowing the likely biggest points of difference when entering markets with strikingly different fundamentals is still important. Five things to consider:

1. Affordability

In many emerging markets, disposable income may be much lower for large parts of the population. For global products, that means understanding the more affluent segments better and targeting marketing appropriately. For localised or commodity products, the question is cost. Can you use local manufacturing, logistics and even branding to deliver your product to a mass market?

2. Distribution

Getting product to consumers might be more challenging. For brands that rely on developed economy logistics partners, understanding infrastructure constraints, developing local contacts and ensuring quality of service is crucial. When Haagen-Dazs first entered China, it set up its own warehouse and delivery network to ensure the product reached consumers correctly.

3. Localised branding and marketing

What works well in Boston, may not succeed in Beijing. Cultural understanding is key to ensuring that your marketing and branding hit the spot further afield. Caveat: remember the urban/rural split. Many urban consumers are ‘world citizens’ and expect to be treated as such.

4. Watch for local rivals

The cachet of being a global brand can help enter emerging markets. But cost, customisation and the risk of ‘brand colonialism’ can make more assumptive Western brands seem out of touch and vulnerable to local alternatives.

5. Native teams

As a global market research agency, we benefit from having local teams in the markets we evaluate for clients. This means we understand the cultural context, consumer trends and broader macro situation. It is possible to enter emerging markets at arms’ length. But having local people in decision-making positions is the surest way to avoid clumsy cultural or operational missteps.

Look for leapfrog opportunities

There are plenty of upsides to emerging markets, too, beyond simply vast numbers of new customers. In some cases, our research will throw up opportunities that just aren’t available in mature markets at all.

Look at the way different platforms have developed to cater to the nuances of local markets, for example. In many fast-developing economies, traditional channels have been leap-frogged by the adoption of newer technologies. This often happens where older tech infrastructure has attained much less penetration, allowing a newer tech to fill a void.

In many African countries, for example, low population density and long distances between conurbations means traditional copper or fibre telecoms can be limited. But mobile telecoms are more practical and affordable. They offer a plethora of additional over-the-top services that have led to an e-finance and e-commerce boom. Entering those markets will require different thinking about distribution – as well as marketing and payments using creative local solutions.

Remember, e-commerce is not the same everywhere

The Philippines is another good example. In other countries, Facebook might be just part of your online marketing toolbox. But there, Facebook has attained an absolutely dominant position in e-commerce – for one simple reason. With lower average incomes, Facebook and local mobile companies realised their penetration was constrained by the cost of network data. So almost every plan has free Facebook data regardless of contract status. For market entry success in the Philippines, Facebook is going to play a big role.

But we need to distinguish between being available on those platforms on the one hand; and entering a market on the other – which involves boots on the ground. Yes, that’s more investment. But you’re also surrendering less of your margin to platform owners and logistics providers.

A staged approach to entering less well-understood markets, starting with the more popular local social networks or e-commerce platforms, allows you to refine the consumer profile. Companies also get time to get to grips with the legal and financial frameworks that might shape future involvement; and see how local fulfilment clarifies their operational options.

Don’t assume that tried and tested e-commerce strategies from the US and Europe will work everywhere in the world, however. Amazon, for example, simply doesn’t have a presence in some markets. In others, consumers can use the site, but limitations on distribution and other logistics mean delivery times, cost and availability are prohibitive. Local research about the best platforms for reach and fulfilment is a must.

Lazada, Shopee, Zalora and Carousel, are some of the top e-commerce sites in South East Asia. These names may not be familiar to firms outside the region. But they can play a crucial role for testing in these markets. Again, it’s worth working with people who understand how to optimise those platforms, as well as interpret the effectiveness of marketing on them; and what the results say about the potential for deeper market entry.

Understand the technicalities of new markets

Even online entry into a very unfamiliar market can be daunting. Moving in for formal distribution, licensing or agent agreements or even setting up locally or buying into a native business brings with it additional issues that need to be researched.

European companies with experience of entering new markets in the EU can find the regulatory and legal considerations in countries farther afield a challenge. Even in the US there are federal laws and individual state regulations over companies and property to contend with. This can make establishing a new business relatively tough. And that’s considered a ‘developed’ market.

In parts of South East Asia, many European companies report lengthy delays in registering businesses. Others discover that in some markets domestic firms have particular benefits. This could be a form of protected status, or reserved access to certain kinds of contract. This is worth exploring in due diligence especially if you plan to sell to government agencies that are often required to ‘buy local’.

Don’t make any assumptions

Most of the key factors for market entry will depend on exactly which market you’re looking to enter. There are very few hard and fast rules that apply across the generalisation ‘emerging markets’.

But there is a common theme from this guide that should frame your thinking: these markets change – fast. Before committing to entering any market – and especially ones evolving so rapidly – it really pays to research the opportunity fully. This is something that Kadence has helped many clients with, allowing companies to succeed in lucrative emerging markets. Find out more about our market entry services, or get in touch to discuss a project.