Essential steps in going global
"To minimise the risk of exporting or setting up operations abroad, a structured, strategic approach is needed to ensure limited business resources produce maximum business results."
Monday, March 23, 2020
With loosening boundaries between global markets and increased cooperation in international trading, goods, services, people, capital and ideas are being exchanged at an unimaginable rate. There are benefits aplenty in going global, including but not limited to growth and diversification of revenue sources, larger market shares and increased brand presence. The concept of jumping headfirst into international expansion as a result of the incentives may be tempting, but businesses should be aware that there is a substantial level of risk involved in the process. In order to minimise the risk of exporting or setting up operations abroad, a structured, strategic approach is required to ensure limited business resources produce maximum business results.
Ensure you have all owners and senior management on board the expansion plan, adequate team members from various departments including marketing and sales to support you, and the financial capacity to make a long-term commitment to the project.
Pinpoint the critical feature that will distinguish your product from its competition in the foreign market. Conduct sufficient market research on the local culture and customs, so that you will be ready to adapt and localise the product for the market. Being equipped with local insights will enable you to better understand local consumer behaviours, potential product interest and demand, purchasing power as well as to ensure you avoid making a cultural faux pas when dealing with local business partners.
Be aware of the regulations, product testing and certification requirements of target countries and regions that apply to your product. As manufacturers, you will need to overcome technical trade barriers that governments implement to start trading. This process can be complicated, time-consuming and costly, and if handled inaccurately, could potentially delay the time-to-market, rake up significant costs, and lead to the loss of competitive advantage for the business.
Define your objectives clearly so that you could formulate a plan that is aligned with your goals. Your strategic plan should include a budget outline, target markets, possible opportunities and risks, potential competitors, marketing and distribution channels, pricing, a localisation strategy pertaining to product packaging, labels, regulatory requirements, cultural preferences, amongst others, and a timeframe to achieve all of the above.
Do you have an experienced compliance partner who can help you navigate complex, local regulations in the foreign market efficiently and effectively?
Through TÜV SÜD’s 150 years of experience and capabilities, we have proven to be a competent third-party accreditation partner for enterprises looking into international expansion. We provide experts that understand each manufacturer’s unique approval requirements, helping to save time and resources throughout the entire process of bringing products to global markets.
Our Global Market Access (GMA) solution revolves around five aspects:
Governmental Mutual Recognition Agreements (MRAs)
TÜV SÜD is a designated conformity assessment body for a range of products globally, helping to negate the need for duplicative testing, inspection or calibration of goods upon entry into importing countries.
Third-Party Accredited Bodies
TÜV SÜD holds multiple accreditations by regulatory bodies around the world, which manufacturers can leverage as a stepping stone for a more expedient, formalised and structured approach in obtaining ISO certifications.
TÜV SÜD has bilateral agreements with multiple certification agencies, including the Korea Testing Laboratory, Standards Institution of Israel and Communications Regulatory Committee (CRC), allowing us to gain approval or certifications from other Certification Bodies where required or requested.
As a member of the CB Scheme, TÜV SÜD offers manufacturers and exporters opportunities for increased global marketability.
Interface with Regulators
TÜV SÜD is able to obtain the necessary approval and certification issued by the regulatory agency of the target region or country on behalf of manufacturers and exporters, in order to expedite the process.
International expansion may be daunting due to the navigation of complex restrictions that governments impose in the form of product testing and certification regulations. With our one-stop GMA solutions, TÜV SÜD is the ideal partner to consider when businesses are planning to enter foreign markets. To understand more about GMA and the approval process, access our E-Book for in-depth information on how we are willing and able to support you.
Overview of compliance requirements for electrical goods.
Bosnia and Herzegovina