Expanding internationally to achieve increased growth has historically meant great efforts and physical establishment with vast investments in everything from staff to premises. The arrival of e-commerce has changed the prerequisites and the quick digitization rate in the last year has given e-commerce a big push forward. But how does one in fact implement a successful internationalization?
Read our guide to a successful internationalization here.
Reaching new markets is so much easier today, but to establish an international presence is still challenging. While most companies benefit from gazing towards new markets, some profit more from an international expansion than others.
– D2C-companies, for example, often aim for an international expansion already at an early stage when building their company. As soon as the commercial platform is fixed and sales are in swing, many starts expanding internationally which makes them grow very quickly, says Håkan Nylander, Chief Strategy Officer at Litium.
Companies that can move into new markets at once with digital solutions hence gets to handle a considerably less complex internationalization and can in many cases go through with their expansion in several markets at the same time. The data collected later gives concrete insight, which creates a better basis for decisions when it comes to further investments.
–To kick start sales is always the first challenge. To carefully map out available channels, the terms of the local market and potential and relevant target groups are therefore crucial to assess one’s possibilities. In general, we recommend starting small to get going and then scaling up once interest increases.
Technical requirements for expansion
Another important factor to consider is of course which regulatory requirements that need to be observed. For a beginner it may look like a jungle, so if you´re uncertain, Håkan recommends bringing in someone from the outside, regardless of the help is to be found in the immediate partner network or in industrial organizations that offer counseling. Without technical requirements however, an international expansion will be undermined.
–Without a platform that offers the right support for digital commerce, the internationalization may become an administrative nightmare with a large amount of extra costs and a heavy load of manual work. In view of this, Litium has developed a ground support for our clients, a global framework with integrated PIM, Product Information Management, which creates the right prerequisites for efficiency and control when entering new markets.
Håkan explains that Litium as a platform can be configured completely based on the client’s individual needs, including which products to sell and how, in which markets and which channels to use. As the business grows in the new markets, the platform scales up so that the company may handle their international venture in a simple and effective way.
– Our flexible platform for digital commerce, with its advanced support for both language and currency as well as logistics and different payment methods, will become a key factor for companies who want to carry out a quick and simple internationalization – regardless of their needs, Håkan Nylander concludes.
Read more tips on how to make a successful internationalization in our guide!