Unlock success with international digital sales

In the era of globalization, understanding international markets is a necessity. According to McKinsey 2023, the ways customers interact in all business sectors are evolving: customers of today expect everything, anytime, and anywhere, with continued growth in customer preference for online ordering and reordering. 2021 Unbabel’s study across 6 countries also found that 68 % of consumers prefer to speak with brands in their native language.

 

#1 Three types of global strategies

International digital sales is not a simple transplant of your domestic strategies. Companies seeking to venture into the global market can do so through various approaches:

• In international marketing, a business is typically headquartered in one country, but trades its goods or services globally, often leveraging foreign suppliers. The primary financial support for such operations comes from the home country.
• In contrast, multinational marketing involves companies setting up offices and facilities in various countries. They manufacture, market, and sell their products or services locally, often adapting to local pricing. The regional branches in this structure usually function independently with minimal coordination.
• Global marketing, on the other hand, involves a central corporate office guiding various offices across multiple countries under a single global strategy for the brand.

Moreover, two primary strategies are used to communicate brand messages globally:

• The standardization strategy uses a consistent, unified message for all intended markets, translated into local languages. The objective of this approach is to offer a homogenous experience across all regions. Although it demands fewer resources and provides more control, standardization can present difficulties in some markets due to intense competition or unique local regulations.
• The localization strategy adapts campaigns to each specific market, factoring in the national, cultural, and individual traits of consumers. Although this method requires detailed market research, it allows brands to establish deeper, more personalized relationships with customers, resulting in an improved customer experience. A crucial aspect of localization strategy is also building a localized marketing team or finding a suitable marketing localization partner. 

Companies like Junko specialize in providing digital sales localization services, offering local expertise to help businesses seamlessly integrate into new markets. Junko’s understanding of the local culture, consumer behaviour, and market dynamics can significantly enhance marketing effectiveness, market entry velocity and overall business success in the new market.

 

#2 Key stages of embarking on the GTM journey

Successful global digital sales is a journey, not a destination. It’s a process that involves several stages of research and analysis, market entry strategy, implementation, and monitoring. Each stage is a crucial step on the road to success.

1. 1. Preliminary research and analysis: Identifying the right markets requires a deep dive into their potential size, growth prospects, competition, and consumer behaviour.
   2. Setting clear goals: Decide what you want to achieve with your exporting project and how to do so. Components to consider are: 
      • business goals for growth in the new target market, 
      • the projected sales volume you’re targeting, 
      • the specific goods or services intended for export, 
      • key action steps, and a timeline for their execution. 
      • Additionally, it’s crucial to determine the budget and other resources that are at your disposal.
   3. Market entry strategy: Once you’ve picked your target market, the next step is to choose your entry strategy—whether it’s direct exporting, direct sales through your e-commerce site, licensing, franchising, joint ventures, or establishing a subsidiary. A well-crafted marketing plan should be an integral part of your strategy for entering a new market.
   4. Implementation: This stage involves executing the market entry strategy. Putting your strategy into action involves establishing infrastructure, forging partnerships, localising marketing, and launching targeted marketing campaigns.
   5. Monitoring and control: Once operations commence, performance and feedback need to be continually monitored to keep your strategy on track and make necessary tweaks.
      

 

#3 Harnessing the 12 Cs

The 12 C framework is a compass to guide businesses through the labyrinth of global digital sales. Understanding these twelve elements – country, culture, constraints, competition, consumer, currency, costs, channels, communication, commitment, control, and change – is key to a holistic and effective international digital sales strategy. 

1. 1. 1. Country: Understanding the target country’s political, economic, social, and technological environment.
      2. Culture: Grasping the cultural nuances, including language, values, and beliefs that influence consumer behaviour.
      3. Constraints:  Identifying any limitations in the market, such as legal restrictions, and trade barriers, or infrastructural issues.
      4. Competition: Assessing local and international competitors in the market.
      5. Consumer: Understanding consumers’ needs, preferences, and buying behaviour in the target market.
      6. Currency: Considering exchange rates and currency risks.
      7. Costs: Factoring in all costs associated with market entry, product adaptation, marketing, and logistics.
      8. Channels: Identifying the most effective distribution, communication and marketing channels in the new market.
      9. Communication: Developing marketing and sales messages that resonate with the local audience.
      10. Commitment: Being prepared to invest the necessary resources and time for long-term success.
      11. Control:  Establishing mechanisms to monitor and control operations, and ensure legal compliance, and measure performance.
      12. Change: Being ready to adapt and evolve as market conditions change.

A famous example of not getting the GTM due diligence and 12 Cs right is when US retailer Walmart attempted to extend its operations into South Korea, not recognizing that its brand identity, hallmark products, and customer engagement strategies did not resonate with the local market. This oversight led to the company’s withdrawal from the country, as it realized that achieving the necessary scale was unfeasible. 

 

#4 The roadblocks on the path to global success

Before considering new market entries, it’s important to understand the current global market landscape. According to the World Economic Forum’s Global Risks Report 2023, the top global risks include a cost-of-living crisis, an energy supply crisis, rising inflation, a food supply crisis, and cyberattacks on critical infrastructure. 

While many of these risks can pose challenges, the global landscape can also open up opportunities for companies with the right strategies. Deloitte’s 2023 Global Marketing Trends report found that CMOs surveyed are prioritising new technologies, expanding to new markets, and customer personalisation to help their brands endure—and thrive—in uncertain times.

Entering new international markets is an exciting venture filled with potential rewards. However, the challenges require careful and clever guidance. Skilled international marketing is much like a master key, capable of unlocking the locks of global markets, transforming potential pitfalls into stepping stones towards international success.

 

#5 Leveraging digital sales for global growth with Junko

The international market offers opportunities for Nordic companies willing to navigate its complex landscape. Identifying these opportunities requires a deep understanding of global economic trends, customer behaviour, and industry dynamics. 

Digital sales plays a critical role in driving growth and facilitating new market entries, but businesses must also be prepared to face various challenges. A strategic approach, a deep understanding of the target market, and an ability to adapt is key to success in the global marketplace. The 12 Cs framework provides a comprehensive guide to navigating these complexities. 

With the right approach and strategy, companies can seize the potential of international markets, driving growth and strengthening their global footprint. Please reach out to our team for a detailed consultation and to learn more about how we can help your business grow.