International expansion: five common mistakes to avoid

International expansion can bring countless benefits to your business. It can be one of your most profitable undertakings, bringing increased revenue and new customers. However, proper planning and understanding local habits are crucial to avoid setting off on the wrong foot.

This guide highlights the five most common mistakes businesses make during an international expansion. All you have to do is avoid them.

1. International expansion for the wrong reasons

Some companies expand internationally on impulse or for short-term opportunities. Unfortunately, expanding for these reasons rarely leads to success. For example, entering the German market requires a clear understanding of why you are choosing this country, what are the expectations of the locals, how your product or service fits this market, etc.

Here are some examples of “poor rationale” for expanding into the international market:

• Expanding into Brazil just because you receive one order from someone in that country
• Following your competitors’ internationalisation initiative without carrying out your own market research
• Launching in Morocco just because a member of the team once lived there…

These examples serve to demonstrate that not all reasons for internationalising a business are sound. Focus instead on the long-term goals of your international development, the resources available and the potential losses that you can bear. You should also define the performance indicators you will follow to ensure you do not invest too much time and money in a project with poor potential.

The lesson: do not rush. Move your pieces into place one at a time by analysing your progress and failures as you go.

2. Not researching local culture

Before opening a branch abroad, take the time to learn about local culture and market dynamics. You can do this by carrying out a SWOT analysis. This will allow you to pinpoint the Strengths and Weaknesses of your product or service with respect to the Opportunities and Threats generated by the target country. Just because a product worked in Northern Europe does not mean it will also work in Tunisia (or Spain).

Regardless of the size of your company, you are not immune to this mistake when taking it international. Take the example of Home Depot. In China in 2006, the middle class and homeownership were expanding, and the brand therefore assumed it was the ideal time to launch there. But it failed to study the ways in which the Chinese consumer makes purchases, and also the fact that DIY was not really practised in China. Six years after launching in China, Home Depot withdrew from the market, having failed to win over the local population.

The lesson: take advice from experts in the culture of the country in which you want to expand your business. This will allow you to ensure the viability of your internationalisation project.

3. Not translating your website into the languages ​​of the target countries

Another common mistake is to only have your e-commerce site in English or to translate it only to English. The reality is that seven out of ten people prefer to shop in their native language, even if they speak English fluently. Therefore, you should not underestimate the importance of localising your site, your emails, the labels inside your packages, etc.

 All texts that form part of the purchasing process must be translated to be as relevant as possible for each individual target.

Here too, you will need to conduct research into:

• The online purchasing habits of consumers in the target country
• Relevant keywords for each country
• local marketing trends, etc.

Localising a product or service is more than merely translating a product sheet. Colours, tones, metaphors, jokes and cultural references must all be adapted to meet the cultural context of the target country.

Finally, allocating an appropriate budget for the translation of your website will allow you to avoid machine translation related errors.

The lesson: use a professional translation service such as TextMaster to ensure the ideal translation of your offer into the target language.

4. Not adapting your marketing strategy to the local culture

Another mistake to avoid when taking your business to the international stage is forgetting to adapt your marketing strategy to the local culture (slogan, prices, online payment methods, etc.).

As mentioned above, the purchasing habits of consumers vary from country to country and this can greatly influence your chances of success.

For example, in the United States and China, consumers tend to buy through online marketplaces like Amazon. Conversely, consumers in France and Italy prefer to order directly from the merchant’s website.

The same idea applies to your prospecting. If you intend to advertise on social media, you need to know about best practices as well as the networks and apps your target market commonly uses. If you are considering expanding into Thailand, for example, you will need to learn how to use and convince people on LINE, the most popular social media platform in Thailand.

The lesson: be flexible with your marketing strategy and draw inspiration from what works for similar brands already established in the country you are targeting.

5. Overlooking cultural differences in negotiations

Of all the common mistakes made during internationalisation, this one is the most underestimated by far. As a business owner or e-merchant, your interaction with locals will be key (customers, business partners, delivery companies, etc.). During these often strategic exchanges, it is essential that you know how to behave and which phrases will help you win them over and help you negotiate. Similarly, you will need to choose the right words when responding to customer reviews in order to make the most from negative feedback.

The lesson: to understand cultural differences at an international level, we recommend the book “The Culture Map: Breaking Through the Invisible Boundaries of Global Business” by Erin Meyer.

Summary of the mistakes to avoid during internationalisation

Here is a brief recap of the five actions to avoid if you want your international expansion to have the best chances of succeeding:

1. Expanding into the international market for the wrong reason
2. Not researching local culture
3. Not translating your website into the languages ​​of the target countries
4. Being too rigid in your marketing strategy
5. Overlooking cultural differences during negotiation and communication

Learn more by checking out our complete guide to cross-border e-commerce.

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