Businesses today are expanding their roots, not only nationally but internationally. But, is it easy for a business to just think of setting up a plant in foreign lands? What factors do they consider? What strategies do they use?
There are various factors which play a key role in helping the businesses decide whether to move into a new location or not. These factors are competition, resources, target audience, spending power of people, the business environment and the government policies. But, does checking these parameters ensure success for the business? The answer to that is no!
The market may seem lucrative, your product may be a new product for the market, but there are a lot of local factors that play a key role in the acceptance of that product in that market. This is where Marketing plays an important role. Marketing is assumed to be the tool, only for initiating the sales funnel and to increase the brand presence and outreach. In new markets, marketing plays a different role, an introducer!!
Knowing the likes of the people and placing the brand in front of the people such that a feeling of connection is generated, and people start accepting the brand and the products. Companies around the globe are now open to exploring opportunities in every corner of the world. This has increased competition and led to inter-woven economies. Recently, the world economies have taken a hit due to Covid-19, but the change is not limited to macro parameters but can also be seen in various micro parameters, such as behaviour of people. People have adapted to these changes; work from home has become a new normal and according to a survey 60% of Americans working from home would continue to do so. The new habits generated during this lockdown would result in new businesses, especially in the E-commerce domain.
This is an opportunity which is up for grabs but would require due diligence. In respect to Cross-Border commerce, one such important factor to look out for are trends! In western regions, shopping increases near Christmas, but what is interesting is that this trend has also been observed in countries like India, Singapore and Japan, during the same time. Other events such as Black Friday or the Thanksgiving day are the things that brands need to look out for and should have proper marketing strategies built around them, to ensure they do not miss out the opportunity for outreach and increased sales. These trends keep popping up by accident or are intentional, like Singles day gained popularity on its own whereas El Buen Fin, a spin-off retail event was produced by Mexico intentionally. Marketers need to acknowledge this pattern shift and work on either inclining their brand with these events or work on building their own events.
In absence of marketing, no brand could bring buyers close to buying their products in a Cross-Border trade. The most important thing is trust, customers who are loyal to your brand are your brand ambassadors but in new markets there is absence of reviews and what’s left is the word of the brand. If the message is not clearly conveyed or the products are not properly placed the brand performance may take a severe hit in the market. Marketing helps bridge that gap by enhancing the pre-purchase experience of the customer and providing a feeling of connection and trust. In the times to come the role of marketing would be more important as brands are becoming more and more competitive and the methods of data analysis are more dominant in deciphering the trends and insights into the human behaviour.