Global expansion is about mastering the art of localization and using modern solutions to sell like a local. On June 27, Locad participated in Going Global: Retail Growth Tactics For Global Success, an event organized by the National Online Retailers Association (NORA). During the event, industry leaders shared their insights and strategies for global e-commerce expansion.
The central discussion began with a fireside chat between Amanda Green from Treasury Wine Estates, Stephanie Rogers from TransPerfect, and Dan Ferguson from Adore Beauty Group as the Moderator. The duo discussed navigating international markets and the opportunities for Australian businesses.
Nish Advani, Locad’s Commercial Lead, was one of the supporting partners for this session, bringing Locad’s expertise in cross-border solutions to round out the group discussion.
Catch the highlights from the event, along with insights from Locad’s team of cross border experts on how to prepare your e-commerce business for global expansion.
Setting the Stage for Expansion
International market expansion is a multifaceted challenge. It demands a deep understanding of market nuances and requires significant investment to cater to a larger customer base. Entrepreneurs must evaluate the market growth potential and ensure it aligns with their company values and long-term objectives. Finding the right fit is key to sustainable success in global expansion.
1. Product-Market Alignment
Tapping into new markets demands careful research and adaptation. With over 75% of Australian family businesses growing in 2023 and more than 80% optimistic about their future growth, expanding into new markets has become a top priority until 2025 (PwC).
Europe and the United States offer promising opportunities for Australian companies due to their stable and profitable markets. Europe is a strategic target for Australian sellers, thanks to its robust infrastructure, strong consumer rights, and safe data environment. Similarly, the US has a free-market economy, minimal language and cultural barriers, and a vast consumer base.
However, these opportunities come with challenges for Australian sellers. Adapting products to meet diverse consumer preferences and cultural expectations is crucial. For instance, Australians excel at innovating technology and value relationships. American consumers focus on functionality and clarity in products. In Europe, stringent standards on sustainability require businesses to commit to environmental, social, and governance (ESG) issues. Successfully broadening horizons in these new territories requires strategic considerations and adjustments. Sellers must tailor their products, adjusting to local market demands.
2. Market Fit Assessment
Given the growth potential driven by e-commerce, each market offers distinct and compelling opportunities for Australian Sellers. However, not every opportunity may align with a brand’s strategy or operational capabilities. Before expanding into a new country, sellers must assess internal readiness and market conditions.
Harnessing the market potential of 833 million shoppers in the EU and US requires careful consideration of regulatory environments, economic conditions, and strategic fit. Despite sharing similar consumer behaviors, Australia and the US have distinct legal structures.
Expanding into the US entails entering a complex tax system, from international tax implications to varying local, state, and federal requirements. Inventory storage and distribution can incur high costs if not strategically planned. The expansive geography of the US and EU results in substantial transport costs and could delay order delivery. Additionally, sellers will have to compete with local players and consider high entry costs to enter these markets.
3. Strategic Brand Localization
Businesses must pay meticulous attention to branding that resonates culturally and legally in each target market. Localized branding involves aligning both marketing strategies and operational practices with local expectations. This includes navigating shipping regulations, handling customs duties and taxes, and familiarizing oneself with a unique calendar of seasonal fluctuations, and peak shopping periods.
Understanding and complying with each country’s regulatory and legal requirements is essential for Australian businesses expanding into new markets. Sellers must consider changing currencies and local languages for compliance and market acceptance. For companies without local operations, these can be challenging without help from local enablers.
Managing logistics across different regions demands robust infrastructure and real-time tracking capabilities. Local last-mile carriers can help Australian e-commerce brands ship orders on time, at affordable rates and delight customers. Sellers can secure long-term success without investing in fixed resources in the target market.
Mastering E-commerce Down Under to the World Over
Localization often ends up being the last priority when going global. However, success hinges on developing a strategy that integrates every channel, stays true to your brand’s core identity, and respects the unique cultural and market dynamics of each region.
After the fireside chat, Nish Advani, Locad’s Country Lead, personally joined the discussion and shared the importance of localization in all aspects of the expansion journey.
E-commerce today makes it possible for Australian businesses to expand beyond borders and sell like a local in new markets. While consumers express an affinity towards native home-grown brands, international players can resonate through localization—on market penetration, operational, and shipping levels. If you are a business with aspirations to go global, Locad offers you its cross-border services to optimize costs and sell like a local across the globe in markets such as the US, EU, or around APAC.
Missed us at NORA’s Going Global? Meet the Locad team at Booth H124 during the Online Retailer between the 24-25th July 2024 at the ICC, Sydney. We’ll be looking forward to seeing you there.
