Think global, even if a new market is not your immediate focus
“Let’s get in touch again in six months when we are in the position of looking at international.”
This is a comment I got from the CEO of a company a while back and it was not the only time I heard similar comments.
This is a common conception that you think global only when you are ready to launch in another new market. However, it is an incorrect way of thinking and it is a rather short-sighted approach which could cost you a big headache and a lot of money down the line.
Thinking global should start from the point you start creating a product. It should also be a continuous process where it’s embedded in your business decisions process whether you are currently in only one market, two or more.
Why is it important?
Last year, I was approached by a Venture Capitalist to help a digital health start-up. The aim is to help them define their new product design and business proposition. Even though they plan to launch in only one country (the UK) to begin with, they have the vision that this product will be scaled and the business will grow internationally in near future (especially that it is part of the commitments they have made to their investors).
After quick research with medical professionals and potential customer groups in the UK, there was a clear direction of how they could position themselves in the market, how their brand and product should be perceived and the tone of voice they should go for, what content they should have and how they should be structured, and so on. With that, they could easily start investing money, time and efforts in designing and developing the product and business based on the output.
However, doing so will be an issue for them when they are ready to launch in other markets. Why? One of the reasons was that, the product and business they would create and build will be heavily swayed to how the medical system works in the UK (e.g. NHS-focused).
The product could well be successful in the UK with the proposition being unique from other competitors in the market. However, to make it works as well in other markets, it won’t be just some simple, straightforward changes.
It will involve changing their core business and product models. This could mean completely rebuilding their products and content, which not only will cost them a lot of unnecessary money and effort to do so, but also in the long run to maintain and govern multiple versions of products and content. If the solution then is to completely change the direction of the business and product so it aligns with their global (or multiple-market strategy), it will result in confusing the customers especially the existing ones in the UK.
All in all, the position they will be tricky and challenging.
Global mindset
Why do many feel that it does not make sense to think about other markets while their main focus is still on one market? It’s their misinterpretation of ‘think global’ means having to spend a lot of money and effort to have an in-depth understanding of many markets which they are not ready to be in.
It should not be the case. That’s not how it should be seen.
Instead, what does ‘thinking global’ actually mean? it means having a global mindset embedded within the organisation even if you’re only selling or serving in one country. It means being mindful of each decision you are about to make to ensure that they are adaptable or extendable. It means having a wider and longer view.
You don’t necessarily need to have in-depth knowledge about other markets at this point. However, it would be useful to have a certain level of global views and understanding about what might involve when it comes to adapting your products and services for a new market. These might vary between sectors and industries.
Knowing which aspects might have a bigger impact when it comes to adapting for different markets will be useful. You’ll then have a better idea of which aspects specifically that you need to pay attention to more when building and growing your initial markets.
What does that mean?
Take the digital health company I mentioned above as an example: We know that taking the UK research output literally to form their core business and product direction is not going to work for their future global expansion. Two routes they could go from there: (1) To do a quick round of research (user or expert research) in one or two more selected markets to determine a more solid direction of the product and business which is future proof and ‘global-proof’; or (2) To coach and show the team on how to identify what and when to question the impact each design and business decisions could have in a global context.
The first route is more detailed and bullet-proof while the second option involves lower cost. Both would help to achieve one outcome - to demonstrate and cultivate a global mindset and outlook within teams so any big or small decisions are made with global growth in mind.
Yes, for sure, both options mean investing additional efforts at the beginning. The ROI, however, will be significantly higher down the line on many levels, even it might take you 2-3 years or longer to expand to a new market. Don’t forget also, even when you are selling or servicing in only one market, your audiences will be from different culture or background. Think global and having a global mindset is the (main, if not one) way to go forward.
If you would like to chat further about this and what it means to your business, do get in touch.