For an SME that has never sold beyond national borders, internationalization can seem like an insurmountable challenge. Yet, in a globalized market, expanding abroad is often the only way to grow. But where to start? And why do so many companies fail? The answer lies in two key factors: choosing the right market and a tailored strategy, supported by competent professionals.
1. Product Analysis: Not Everything is Exportable
The first step is to ask: is my product/service suitable for a foreign market?
Not all products have global appeal. For example, an Italian DOP cheese might succeed in Europe but require regulatory or cultural adaptations in Asia.
- Example: A specialty coffee company must evaluate local consumption habits. In Germany, it could target the organic market; in Japan, single-serve formats.
2. Market Research: Where and How to Enter
Identifying the ideal market requires concrete data:
- Demographics and culture: Who are the customers? What are their habits?
- Regulations: Customs barriers, required certifications (e.g., FDA for the USA), multilingual labels.
- Competition: Who already operates in the territory? What prices do they charge?
Useful Tools:
- ISTAT or ICE reports for macroeconomic data.
- Platforms like Eurostat or Google Market Finder.
3. Choosing the Right Strategy: There’s No One-Size-Fits-All Model
Entry options vary based on budget, resources, and goals:
- Direct export: Selling via e-commerce or local distributors (ideal for digital products or lightweight goods).
- Partnerships: Collaborating with an importer or local agent (reduces risks but requires shared margins).
- Joint venture: Investing in a subsidiary abroad (suitable for complex markets like China).
Example of a mistake: An SME trying to open an office in Brazil without knowing local tax laws risks stalling the business.
4. Challenges in 2025: Why Internationalization is More Complex (But Not Impossible)
Today, globalization alone is not enough: geopolitical crises, inflation, and sustainability standards add complexity.
- Common issues:
- High logistics costs (+30% since 2021, source: World Bank).
- Difficulties in managing cross-border payments (currencies, collection times).
- Compliance with ESG rules required by B2B buyers.
5. Why Relying on Serious Professionals Makes the Difference
Many SMEs fail because they underestimate specific expertise:
- Legal consultants: Handle contracts, intellectual property rights, international disputes.
- Logistics experts: Optimize transport costs and delivery times.
- Local marketing agencies: Adapt branding to cultural sensitivities (e.g., colors, symbols, messages).
Positive example: A wine company relying on an experienced broker to enter the US market avoids labeling errors and speeds up FDA approval.
Conclusion: Success is a Matter of Planning (and Humility)
Internationalization is not a leap into the void but a structured process. It requires:
- Honesty in evaluating product suitability.
- Investments in research and external expertise.
- Flexibility to adapt to ever-changing markets.
Ready to expand your SME abroad but don’t know where to start? Visit Horecarte.com to find reliable partners and tailored solutions for your industry. Contact us for a free consultation.
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