4 Rules to a Winning New Market Entry Strategy in 2021
We're living in turbulent times both economically and environmentally. When the market is exposed to similar external forces, volatility is bound to follow. The immediate impact on consumers' confidence and spending habits echoes this uncertainty, laying the grounds for the market turmoil of 2020. The high rates of vaccination across developed economies reassure for global reopening, fortifying the current recovery stage for Q32021. Despite this positive sentiment, the uncontrollable environmental crisis in major developed economies threatens to cast a shadow over the anticipated economic uplift. A sense of unpredictability leaves financial analysts perplexed for the upcoming Q42021. As a consequence, the global business landscape has evolved to a even more complex state. At the same time, the growth in digitalization has facilitated and lowered the barriers to new markets. More and more businesses are now considering taking the next step to expand into new regions. Still, the complicated market situation and the recent shift in consumer behaviour has reshaped the basis of a successful new market entry strategy. So, to win at bringing a product across a new market and scale-up, there are now a few other important factors to be considered.
Localization - The one that rules them all
Localization means the translation and cultural adaptation of a product to the local needs. To protect our clients and ensure their success in any new market, RW works closely with ICD Translation to deliver and build a bulletproof localization strategy. When a company is considering expansion, a pivot point is to convey its brand image and present its product in a way the audience will understand and love. ICD’s team of accredited, native-speaking language specialists provide accurate language translation, localization, and professional interpretation services to help companies engage their global audiences. To have a free professional overview and guidance for your localization strategy, please read below.
Despite the growing digitalization and seamless flow of information and products across markets, clients are still at the heart of each process. About 40% of internet users will never buy from websites that are not translated for the market and 76% of clients are likely to return only if the aftercare is in their native language. Localization builds the bridge between the company and the client. Let's take a conservative market such as Italy, what will be the success rate of any solution if it's in English? Much lower than what it could have been. Even though the majority of people globally are fluent in English, they still are more likely to buy a product they understand - precisely 60% of the global consumers are more willing to purchase a product in their language. Still, localization is not only about translating a product but also about adapting it to the cultural expectations of the region. Cultural appropriation has become a vital point for the success of any business. Let’s look at why.
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Cultural Appropriation and Adaptation
In an increasingly global world, cultural differences, and our responses to them, can sometimes create barriers to succeeding in a new market. Therefore, cultural appropriation and adaptation is a key factor to scaling up in each region. It shows the respect that the company has for local traditions and norms. It also helps the product reach the audience quicker. Developing sensitivity to, and knowledge of, other cultures can improve your relationships with customers, employees and vendors while also improving business processes, sales and the quality of the products and services you offer.
Let’s put it into perspective. An example would be the date format across different countries. In some markets, it’s common to use the month/date/year, in others date/month/year. Now picture that the company that enters this particular market sells an event scheduling software, how do you think sales will be impacted if the software is adapted to the local date format? As they say, it's always in the details. When working with a professional localization partner, these details and the overall excellence of your adapted content will make your product stand out in the crowd. Each solution has key features that might need to be modified for individual market preferences to ensure seamless UX and boost sales and this is where localization comes into play.
Adaptive Marketing Strategy
Regardless of how successful a marketing campaign has been in the company's domestic market or even in a new region, the marketing team must adapt their strategy to the expectations of the local audience. Markets across the globe are diversified now more than ever, battling different challenges, leaving almost no room for a universal approach. A campaign that reflects the local mentality, beliefs, and needs will reach the client in a way that inevitably will stimulate sales. One obvious issue is that the segmented approach for each new market will inflate the budget quite a bit. In the case of startups and small scale companies, such an increase in costs will simply be out of their grasp.
Another point to be considered is the fact that internal marketing teams don't usually have the instinct and inside knowledge for the market. At the same time, if they don't implement a tailored approach, there is a risk of failure. What we usually advise our startups is to consider the opportunity to work with a local marketing company or use the help of an external marketing consultant. Often the rates of similar providers are competitive and cost less than onboarding a new team for the region. Still, they have the knowledge, experience, and understanding for the local needs to make sure that your product is well perceived in this market.
Tell a Good Story
In the highly digitalized world, we live in today, clients now have access to every product possible with a single click. Why would they choose yours? People buy ideas. Storytelling allows for the marketing team to build a deep and meaningful connection with the local audience. By communicating the brand through stories, a company can elevate the meaning of the brand and better crystallize how it fits into customers’ lives. If the story fits into the frame of the local understanding and mentality, potential buyers will desire to be associated with that product because it reaches them on a personal level. That personal connection is what diversify a brand and inspires consumers to support you by buying your product.
Ensuring the success of a company’s expansion is a complex goal that covers multiple aspects that sometimes could be easily overlooked. This is just a sample of all the pivotal factors to consider when planning to enter into a new market. Our team at Recreational Work can support you plan and execute a winning new market and business development strategy that will yield results. Our partner, ICD Translation, will gladly help out with a free consultation on your localization needs for each industry.
Find out how you can benefit from a free localization consultation!
Please, contact the most suitable localization specialist for your needs:
Kristina Johnson (eLearning & General Industries) email:kristina@icdtranslation.com
Karen Leyton ( Medical Devices) email: karen@icdtranslation.com
Peter Kugi (Food and Beverage Equipment Industry) email:peter@icdtranslation.com
Ralitsa Dimitrova (Tech & Fintech Industry) email:raly@icdtranslation.com