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Taking a brand to a new market

Last update: December 20, 2024

Contents

Learn how to tap into new markets and diversify your revenue.

Key takeaways:

Expanding into new markets helps diversify revenue and reduces dependence on a single economy
Explore nearby regions first—similar cultures and easier logistics lower entry barriers
Market research is crucial to identify underserved regions and avoid oversaturated markets
Adjust pricing strategies based on competitor analysis, local tax rules and regional shipping costs
WorldFirst simplifies cross-border payments with 15+ local currency accounts, low exchange rates and support for 100+ marketplaces

Introduction

Imagine taking an exciting new journey for your brand where you expand your regional reach, tap into new markets and diversify your revenue. You no longer rely on a single market or the region’s economic fluctuations.

The global B2C e-commerce revenue is expected to increase to $5.5 trillion by 2027 with a 14.4% compound annual growth rate. Popular segments like fashion, toys, consumer electronics, food and beverages are expected to take the lead.

Another report reveals that more than half of manufacturing and retail companies in 2023 made cross-border e-commerce sales in some capacity or another. 8% of companies that didn’t already have cross-border operations plan to do so in the next 12 months.

In this blog, we explore why businesses should consider taking their brand to new markets and how they can go about it.

Why expand into new markets?

1. Existing demand for products in specific markets

If you are operating in a niche industry and the local market is already saturated, tapping into a new market can help you explore more opportunities overseas. You can look into regions where the niche is still underserved and introduce your product in those foreign markets to become a leader in the category segment. Identifying the USP of your brand can also help you build a loyal customer base.

2. Easy expansion into nearby regions

The easiest way e-commerce and retail brands can initiate their global expansion plans is by exploring the nearby regions and markets. The physical proximity makes logistics much easier, lowering the barrier to entry. You can decrease transit times, shipping costs and customs complexities. There can also be cultural similarities between the regions, which you can use to your advantage.

For instance, Australian businesses can introduce their brands in New Zealand quickly since both countries have similar consumer preferences, lifestyles and languages. The regional proximity also makes shipping easier.

Australia and New Zealand also have a trade agreement that can ease doing business in the new country. The Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) allows some goods to qualify for preferential tariff rates and even be allowed duty-free entry. (Check the latest regulations under ANZCERTA to review if your products are eligible for preferential tariff.)

3. Access to new customers

The biggest reason you should consider expanding your brand is to reach a bigger and broader customer base. As the number of target customers increases, your business will have more potential sales and market share.

4. Economies of scale

When you source and sell more products, you can negotiate better prices with suppliers for larger MOQs (minimum order quantities), decreasing the overall cost per unit and improving product margins.

Top strategies for taking your brand to a new market

Identify and rank potential new markets

The first step should always be identifying the markets where you could potentially introduce your brand. Conduct in-depth research to understand the current market conditions, business customs and opportunities.

Market research can help you minimize the risks of entering a new market. Ideally, you shouldn’t be entering a new market that is already saturated and has no demand for the type of products you offer. You should also look into how much customers are willing to pay for different categories of products. If you can’t offer a product at a price point customers expect, it may not be the right market for your brand.

Investigate any restrictions or regulations

Every country has different rules, standards and regulations. Not complying with them can be a very expensive mistake for your business. Before selling or importing products, determine what standards, certifications and tests your products require. You should also check if product packaging needs to be changed to align with regional rules.

For instance, if you’re selling cosmetics in Australia, it’s mandatory to list all the product ingredients on the outer packaging or casing where they are easily available for customers to see at the point of sale.

Analyze your competitors

Look through Amazon, eBay and other popular regional marketplaces to check your competitors and how they position similar products.

After your competitor research, you should have answers to all of these questions:

Who are your main competitors in the region and why?
How do the competitors price their products?
What are the most popular products sold by your competitors?
Are the competitors focused more on offering high-quality products at higher prices or better deals?

Determine your pricing strategy

Your current pricing strategy may not work for new markets.

New markets require new pricing strategies based on competitors’ pricing, regional tax regulations and expected profit margins. Shipping costs should also be considered when importing the products from the supplier’s country to the region where you plan to sell them.

If you want to sell on a regional marketplace, consider the commissions charged for setting up your seller account and receiving orders. Even the same marketplaces like Amazon and eBay can have different pricing in different regions.

Localize your products and services

Taking your brand to a new market doesn’t mean taking the same products you’re selling in one region to another region. It’s about understanding your new customers – How they buy, what they buy and why they buy.

You may even have to localize product descriptions and images to appeal to the local audience.

WorldFirst – Your partner as you go into new

International expansion can make outgoing and inbound payments a little more complicated. When funds cross borders and currencies need converting, costs often accrue very quickly.

With a World Account, you can:

Get paid fast into 15+ local currency accounts
Receive funds for free
Pay suppliers from 130+ countries in 40+ currencies
Pay 1688 suppliers directly
Hold funds and convert them between your currency accounts or use them to pay suppliers at competitive foreign exchange rates
Withdraw your money at a time and rate that suits you

As you expand into new markets, you can continue using the same World Account and better manage your business finances.

Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.

Based in Sydney, Jim is responsible for the WorldFirst business across Australia and New Zealand. He brings with him over 25 years of experience helping Business Owners, CFO’s and Treasury Managers overcome the challenges with cross border payments and navigating volatile foreign exchange markets.

Jim Vrondas

Author

Country Manager ANZ at WorldFirst

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Taking a brand to a new market

Why expand into new markets?

1. Existing demand for products in specific markets

2. Easy expansion into nearby regions

3. Access to new customers

4. Economies of scale

Top strategies for taking your brand to a new market

Identify and rank potential new markets

Investigate any restrictions or regulations

Analyze your competitors

Determine your pricing strategy

Localize your products and services

WorldFirst – Your partner as you go into new

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