In the dynamic world of eCommerce, growth is not just a goal; it's a necessity for survival. Whether you're a budding eCommerce entrepreneur with grand ambitions or a seasoned online store owner looking to stay competitive, the quest for expansion is relentless. Among the various routes to business growth, International expansion shines as the simplest and most promising path to take your online business to new heights.
Understanding the Three Routes to Business Growth
Before we explore the merits of international expansion, let's acknowledge the three fundamental approaches to fostering business growth:
1. Sell New Products (New SKU)
This approach entails the development and launch of entirely new products. While it can be exhilarating to innovate, it's not without its challenges. Venturing into new products often requires substantial investments in various aspects such as inventory management, quality control, sourcing, design, and extensive marketing campaigns. Moreover, the risk factor looms large as there's no guarantee that your new product will resonate with your target audience. Starting from scratch in terms of building customer reviews and establishing a market presence can be daunting, time-consuming and costly.
2. Sell Existing Products to More People (New Customers)
Expanding your customer base by reaching out to untapped segments or demographic groups is another growth strategy. While this approach carries less inherent risk than creating entirely new products, it presents its own set of challenges. Identifying these new markets can be a formidable task, and in today's fiercely competitive business landscape, it's no longer sufficient to rely solely on traditional tactics like trade shows and B2B sales.
3. Sell Existing Products in New Markets (International Expansion)
Now, let's focus on the third route to growth – international expansion. This strategy involves taking your tried-and-tested products and introducing them to entirely new markets beyond your domestic borders. Here's why it's the undisputed champion among the three:
The Case for International Expansion
When you opt for international expansion, you're leveraging what already works. Your existing products have a track record of success, quality, and profitability. This inherent familiarity dramatically reduces the uncertainty and risk associated with launching entirely new ventures. Unlike the gamble of creating new products, you're building on a solid foundation.
Leverage Existing Assets
Expanding internationally allows you to tap into your existing assets and expertise. You can seamlessly integrate your established customer reviews, marketing strategies, and distribution channels. This provides you with a considerable advantage over competitors in new markets and significantly decreases the need to reinvent the wheel.
Unlock New Revenue Streams
International expansion opens the door to a colossal pool of potential customers. Just consider the sheer size of the US and EU markets, totalling an astounding $1.1 trillion and €900 billion, respectively. By venturing into these markets, you're gaining access to an exciting and potentially transformative new source of revenue.
Perhaps the most surprising aspect of international expansion is the limited competition. Astonishingly, only 2% of US and EU brands venture across the Atlantic. This means that when you expand internationally, you'll encounter far fewer competitors compared to your domestic market. It's a unique opportunity to stand out, capture market share, and establish your brand as a global player.
While international expansion may seem complex and daunting, it's essential to remember that there are experts and resources available to guide you through the process. Embrace a global mindset and explore MultiChannel strategies to make the most of this growth opportunity.
By choosing international expansion, you can break free from the confines of a domestic race to the bottom and venture into exciting opportunities overseas. Don't let the fear of complexity deter you. Instead, take the road less travelled and witness your business flourish in new and untapped markets.
The potential for growth is vast, and the rewards are well worth the effort. So, think big, think international, and embark on your journey to global success.