5 rules of successful global penetration for new brands
- Presenting a line
Even if the product is great, innovative, well designed etc.… it is, very unfortunately, too difficult to succeed with 1-product line. Distributors as well as buyers for retail chains always look for a line of products. A huge amount of products are developed for the Kid market every year, in order to penetrate the cluster and stand out it is better to present a line of products to attract the major buyers in each market.
- Come with News
What your brand brings to market place? innovation? new? new feature? improving something already existing? This is tricky: something super innovative is not always what distributors or retailers look for. It seems too risky to try…especially when many countries are in economic crises; they strengthen the lines that are more “secure” but the consumers especially moms, always look for new ideas, concepts, fresh products. In summary: Bring news to the market place convince the buyers to take the risk and let consumer experience to determine the success of your brand.
- Best value for money
Pricing is a key factor in brand successes. When considering going to the global market the correct costs and pricing is crucial. There are more loops in the chain so, if the whole value chain cannot earn and be happy, there is no point?…Yes, you can always look for ways to sell directly to retail in some cases but buyers change very often and it is hard to keep up without being a local company meeting the buyers regularly…This makes the costing more challenging therefore making sure distributors earn their share is the better way to go for mass distribution..
- Do your homework
When considering global distribution, it is important to learn the standard needs and adjust the expectations accordingly. New companies that know standard needs (Samples, Packaging, MOQ, requirements, expectations of first orders etc.) have a better chance to penetrate new markets but If conditions are too tough, or companies expect high first orders, without being flexible enough, they will be facing hard time trying to distribute in some markets.
- Remember the human factor
Behind products and lines, there are people, and the people managing their brand are very important. It is important to be honest, straight forward, “human beings”, fun but serious, want to succeed but always with important values. That way, we ensure to enjoy our work and have a successful business domestically and with our customers worldwide as well…
Karen Klein