Although several businesses achieve huge profitability in the domestic market, they struggle to replicate the same success in international markets. This is because market entries are highly challenging. There are a number of uncertainties and challenges involved while entering a new market.To successfully enter a new market, businesses require a thorough understanding of the current market dynamics, including the competitive forces, barriers to entry, business environment, and market trends. Without these insights, navigating the business environment can be extremely challenging and can set the business up for failure.
Given our expertise in formulating go-to-market strategies for global organizations, we helped a European retail firm to successfully enter the US retail market. This success story highlights how the client was able to understand the US retail market, identify the untapped opportunities it had to offer, and successfully launch its products based on the market entry research conducted by our experts.
Even leading retail brands fail to crack success in the US retail market. This is because gaining a thorough understanding before leaping into a new market is crucial for businesses to succeed and drive profitability. Don’t get left behind. Request a FREE proposal today!
US Retail Market Overview[spacer height=”20px”]
The United States is an attractive market for retailers across the globe. The increasing preference for British fashion in the US has opened up a multitude of opportunities for European retail brands to substantially grow their business in the US retail industry. However, for European businesses looking to enter a developed market like the United States, undertaking a thorough market research and competitive landscape analysis is inevitable. Also, staying abreast of the trends and innovations in the sector becomes imperative for retailers looking to expand to the US retail market.
Business Challenge[spacer height=”20px”]
The client is a retail company in Europe.
Our client, a European retail company was looking to expand its operations to the United States. Before entering the US market, they wanted to understand the competitive landscape, evaluate how pricing strategies differ in the US retail market, and analyze the sales strategy that would be most effective. Besides, the client wanted to devise a sound market entry plan to cost-effectively enter the US retail market.
Other key objectives the client was looking to achieve by leveraging Infiniti’s market entry engagement were:
Understand current business models in the US retail market
As direct-to-consumer (D2C) retail business models provided a ton of benefits, such as the ability to get products to market quickly and deepen the relationship with customers, the client noted that major retailers in the US adopted this business model. With Infiniti’s help, the client wanted to understand the retail business models gaining popularity in the retail market. In addition, they wanted to adopt a business model that resonates with their target audience and showcases their unique value proposition.
Identify the right business partners to support operations in the US retail market
As drop shipping (where retailers just act as the middleman between manufacturers and customers) was gaining popularity in the retail market, the client wanted to identify the right business partners to support them in their drop shipping process. Also, to successfully establish their business operations, they wanted help in finding the right partners, such as financiers, distributors, suppliers, and marketing agencies.
Identify packaging trends in the US retail market
As packaging highly influenced customers’ buying behavior in the US, the client wanted to identify the packaging trends in the US retail industry. Also, with our solution, the client wanted to identify lucrative market opportunities to capitalize on them to drive sales.
Evaluate market entry modes
The client noted that some retailers choose licensing and joint ventures while some others opted wholly-owned subsidiaries as an entry mode to the US retail market. Therefore, with Infiniti’s help, the client wanted to identify the best route to enter the US retail market.
Our experts can help you avoid pitfalls and identify suitable pathways for navigating a new or foreign market. Contact us today!
Solutions Offered[spacer height=”20px”]
Our experts conducted a market size analysis. This phase of the engagement helped the client to evaluate market size and growth rate. Also, our team conducted market scanning and monitoring analysis to evaluate regional market developments, industry trends, and gather insights into evolving regulatory changes in the retail market.
As a part of devising a market entry strategy, we also conducted a retail industry analysis. This phase of the engagement assisted the client in identifying retail business models and packaging trends gaining popularity in the US retail market.
Our experts also conducted a marketing strategy engagement, where the experts helped the company to monitor marketing and sales initiatives undertaken by the top retail companies in USA. This phase of the engagement helped the client to set up a robust product marketing plan to reach out to their end-users.
Results Obtained[spacer height=”20px”]
By leveraging our market entry research, the client was able to gather comprehensive insights into the US retail market, identify the untapped opportunities it had to offer, and successfully launch its products. Also, our experts assisted the client to identify the right business partners such as financiers, distributors, suppliers, and marketing agencies to support them in investment and marketing activities. Our experts even helped the client to develop a road map for success.
Consequently, the client was able to successfully establish their foothold in the US retail market. Also, within the first twelve months of entering the new market, the client was able to exceed their revenue expectations and achieve savings of over $2.2 million.
With over 15 years of experience in helping global giants enter new markets, our experts can help you to devise a sound market entry strategy. Request for more info to know the approaches undertaken by our experts to help you devise a sound market entry plan.