With New Zealand’s exports expanding by 10.5% year-over-year (YoY) in December 2022 according to CEIC Data, it comes as no surprise that businesses will look towards the international market for expansion opportunities. Being able to trade internationally is every domestic brand’s success story.
Alongside the digital revolution that has made e-commerce a joyous welcome to every economy, it is now more easy for businesses to dabble in global trade. As lucrative it sounds, expanding globally is equally a risk to undertake.
Maintaining a cautious disposition is necessary as you don’t want to jump the gun without making an informed business decision. As you explore the opportunities for foreign trade, consider these three ways to protect your business before embarking on a global expansion.
It’s easy to make assumptions when strategising for business but success relies heavily on excellent research. Analysing your markets and the environments they operate in not only helps you narrow down geographically but also map out realistic projections for both expenditure and revenue. Knowing the needs of these markets and allocating the right sum to localise your products will bode well for your business.
At the same time, you want to address the key barriers to international trade, namely high taxes and duty, strict customs regulations, import and export quotas as well as product licences. These are examples of protection policies in the international trading system imposed by jurisdictions to limit foreign competitors and enable local brands to flourish.
Planning your finances around these obstacles prior to reaching out to the international market will help you be in better control of the process. This will avoid you running the risk of dealing with high operational costs that slash into your profits.
Consider metrics to establish a more solid ground for expansion. These include those like PESTLE that analyses the external influences of your organisation and its impact on business success. There is also the Total Addressable Market which helps you calculate the potential value of a market and determine its profitability.
Now that you have narrowed down the international markets to target, your next step is to outline a business strategy. Some questions to help you in your strategising include:
What human and non-human resources do I need?
What does my current inventory look like?
What is my forecasted demand for this market?
How can I target potential customers in this market? What platforms do I use? (i.e. social media, mailers, etc.)
What are the cultural sensitivities of this market I need to pay attention to?
What are the legal and regulatory requirements of this market?
Where can I hire a legal counsel to oversee all business practices in the market?
Needless to say, any international trade expansion requires teamwork. From product differentiating to delivery, establishing communication across your teams or external stakeholders for a smooth execution is necessary.
An international business is only successful if it partners with a trustworthy logistics team. In fact, according to a 2022 study conducted by Ipsos and Octopia, a poor delivery experience would prevent 85% of its respondents from ordering from the same retailer again. With this in mind, businesses should not skimp on the costs of putting in place a sound logistics solution to ensure customer loyalty and retention.
Engage DHL Express so you can trade internationally with a peace of mind knowing your customers will receive their products quickly and on time. With options for time-sensitive shipping and same-day delivery, alongside on-demand alternatives, your customers can enjoy flexibility when shopping your products online. You can focus on growing your business internationally, leaving the logistical shipping and returns to reliable experts like us.
Create a DHL Express corporate account to get started today!