How To Successfully Enter and Grow in International Markets
From Bumblebee, Arizona
You’ve got us so excited about exporting that we’ve started our very own, Betty Sue Export Club. People from all over the area come together to share ideas on how we can export our products successfully locally and internationally.
Like you, I have a food product Desert Dip Spice Mix. We are already in restaurants in the Phoenix and Scottsdale area. Since there are lots of “Winter” Canadians, our market is expanding up north.
How is the best way to continue our organic expansion? Should I start online or should I look for a distributor.
Signed,
*Disclaimer: The names of exporters and their stories have been changed to protect their identity. The names and expertise of our advisors are very real and often understated. The story is funny, the advice is authentic.
Successfully Enter and Grow in International Markets
Dear Norma and Members of the Betty Sue Export Club,
My, oh my, there are some really industrious people in Arizona. Guess that desert air brings out the entrepreneur in ya. Figuring out how to get your product to international markets can be as befuddling as trying to find your boyfriend at the Texas State Fair when you’re at one end and he’s way far at the other.
As my Mama says, if you’re missing a step in your plan, find an expert who can plan your steps. A good friend and colleague is Mr. Lee Mulkey, CEO of ALM Company, an advisory firm serving global manufacturers and distributors. Mr. Mulkey’s resume of success is packed like a mule horse heading out for a long trip. Lee has served as President and CEO of three global companies.
He’s usually on the road dealing with some big company but as a favor to Betty Sue, he said he would love to help you prepare for next month’s export meeting.
Signing off and tuning in to learn from Lee,
Betty Sue
Dear Norma Spicey and the BettySue Export Club,
So you are the woman behind Desert Dip Spicy Mix! My wife and I make sure to order anytime it on the menu. Delicious!
Congratulations on considering exporting. It will be the best decision you make for your business.
Before determining the any export market entry strategy, businesses must conduct export market research to assess the viability of international expansion.
EXPORT MARKET RESEARCH
Exporting Food Products: Regulations, Compliance, and Cultural Considerations
Exporting food products is more complex than other goods due to strict international trade regulations. Many countries enforce specific import regulations for food exports, requiring:
- Certification of food manufacturing, safety and ingredients. This is outlined in the CCG-Country Commercial Guide provided at the government website www.trade.gov. or call your local USEAC-U.S. Export Assistance Center for help from one of their international trade specialists.
- Product labeling compliance (e.g., country of origin, ingredients, and nutritional information)
- Packaging requirements, including shelf life and storage standards
Beyond regulatory concerns, exporting food products requires cultural adaptation. Different international markets have unique consumer preferences and packaging expectations. Localized packaging and branding are essential to succeed in diverse regions such as the EU, Middle East, and Asia.
Next Steps in Global Trade Expansion - How will you reach your market?
Expanding into global trade requires a well-planned export strategy to ensure success in international markets. Whether you’re exporting food products, exporting retail products, or expanding industrial operations, choosing the right market entry strategy is crucial. Below are some of the most effective ways to export and build a successful import-export business.
There are two methods to export: direct and indirect.
Direct exporting: In direct exporting, you handle all aspects of the exporting process. Using BettySue’s Riddle of the Exporter™, this means all 8 steps including market research, market entry, transportation and compliance. This method is good for experienced exporters who want full control over their markets. It also requires deep pockets to handle all expenses as you build up your markets.
Indirect exporting: Indirect exporting is good for newcomers. You find a 3rd party platform and work with them to expand your market within their platform. It allows you to get into markets with less experience and less cash up front.
If you a new exporter you may choose indirect exporting such as with a 3rd party-Amazon, Etsy and Shopify or eBay. These companies have streamlined their formats to help you set up key elements for exporting regulations and international shipping.
E-Commerce Exporting: Selling Internationally via Online Platforms
For many businesses, e-commerce is the easiest way to expand globally. Developing an export-focused digital commerce website allows businesses to reach international customers with minimal setup. Leading e-commerce platforms such as Amazon, eBay, and Shopify provide:
- International shipping options
- Pricing in USD or local currencies
- Export compliance alerts
- Translation and fraud protection tools
E-commerce is an ideal strategy for exporting retail products, as it enables small businesses to enter foreign markets without establishing a physical presence.
If you are an experienced exporter or have the type of product that needs on the ground sales assistance, you may prefer to go the long route with direct exporting. This would be through a foreign sales agent, a foreign distributor or with more complex methods such as licensing. Here are some of your options.
Industry Trade Groups: Connecting with International Distributors
Many industries have trade associations that facilitate export market research and connections with foreign distributors. These trade groups often have relationships with global trade networks, making it easier to find international customers and partners.
Foreign Distributors & Licensing Agreements
A key strategy for exporting food products and other consumer goods is working with foreign distributors or licensees. These partners:
- Have local market knowledge and distribution networks
- Can assist with government import requirements and packaging regulations
- Reduce the need for establishing a local entity
However, finding a reliable foreign distributor requires careful vetting. A strong export contract with clear performance metrics is essential for success. Don’t forget to use the services of the USEAC, the U.S. Export Assistance Centers to find vetted international distributors.
Resident Sales Office: A Low-Risk Foreign Market Presence
Setting up a resident sales office allows businesses to:
- Conduct sales and marketing activities
- Generate leads and expand brand awareness
- Avoid large financial commitments
This is a great option for businesses looking to establish a foothold in a foreign market before fully committing to global trade expansion.
Foreign Subsidiary, Acquisition, or Joint Venture
For businesses ready to fully commit to international expansion, establishing a foreign subsidiary, acquiring a foreign company, or forming a joint venture can be effective.
This strategy involves:
- Setting up a legal foreign entity
- Hiring local employees
- Managing foreign currency transactions
- Complying with international tax and trade regulations
Because this option carries much higher risks, working with a global business consultant is highly recommended.
Greenfield Manufacturing: Establishing a Foreign Production Facility
For companies looking to establish a long-term presence in international markets, setting up a manufacturing facility abroad can offer advantages such as:
- Lower production costs
- Proximity to target markets
- Greater control over supply chains
However, this global trade expansion strategy involves complex legal, financial, and regulatory challenges, requiring expert guidance.
Choosing the Right Export Strategy for Your Business - Lots of Choices
Selecting the best export market entry strategy depends on your industry, resources, and target markets. Whether you’re entering a new international market through e-commerce, distributors, or manufacturing, conducting export market research and understanding the requirements to import into a foreign country are critical to success.
Best of luck,
Lee
Lee Mulkey is the Founder and CEO of ALM Company, an advisory firm serving global manufacturers, distributors and marketing companies. Lee has served as President and CEO of three global companies. He earned his BBA from University of Texas at Arlington and MBA in International Business from the University of Dallas.
