Several business owners from across the world consider the U.S. as their priority for expanding their business globally. This is true for businesses from almost all sectors. Many businesses these days launch their products via Amazon and this allows them to reach a huge customer base in the U.S. and grow beyond the confines of the local market.
The next logical step for expanding your business is tapping the European markets. Several business owners do not consider Europe as the go-to-market for their expansion automatically. It appears to be a far away and untested market to many.
However, if you are not thinking about Europe as a part of your business growth ambitions you are in all probability leaving some money on the table.
Opportunities and challenges for business in the European Union
Expansion in the European Union presents a different set of challenges than selling in America however; it is within the reach of the businesses.
You need to look at the trade agreement your country has with the European Union and can consult the experienced businessmen already operating in Europe. They can tell you about the challenges they faced while growing business in Europe and their other experiences. They can also tell you about how to overcome these challenges.
If your country has signed an economic trade agreement with Europe it means things have become easier to do business with the 29 members of the union.
Tips for doing business in Europe.
Comprehend the opportunity.
You can find a massive demand in Europe for the quality products made in your country.
If the products you make in your country have a reputation for quality you may realize that they already have brand equity in Europe. Many businesses have found out that their European customers were emailing and calling them about their products immediately after these products were launched on the U.S. Amazon platform. This can be the main reason that has propelled several businesses to test the European markets for expansion.
It is normal for Europeans to research a brand and when they find out that your brand is already doing business in the U.S., they can make a quick decision to buy it.
Begin in a country whose market makes sense for your business.
If you expand in Germany you might want to consider a partnership with Germany payroll outsourcing, as they will take care of all the services that might change from country to country. But if you can expand into the U.K. it allows you to set foot into a market that is more open and in all probability much similar to your market.
If this is the case you will not be required to make major changes to your packing structure for accommodating the local language and preferences.
Take advantage of the established eCommerce platforms.
If your business sells all your products via Amazon it can be a vital element for your business’s European strategy. In all probability, Amazon takes care of your distribution, logistics, and fulfillment. Amazon also helps in providing customer support and this allows you to focus more on other aspects of doing your business.
In addition to this, selling through Amazon allows you to build trust with European customers that already enjoy a good relationship with the huge e-commerce platform.
Working with local partners.
Many people while beginning their business operations in Europe make the mistake of doing everything themselves. They opt to do everything from the formulation of the business in the selected nation, packaging, distribution, to marketing all by themselves.
However, keep in mind that doing business in Europe is different from in the U.S. You have to understand many things, and it is challenging. Within the first few months of starting the operations, these businesses will realize the importance of working with the local experts as it helps in navigating through all the nuances.
Getting in touch with the locals in the E.U. allows you to understand the local regulations, law, and tax system. Not only this, but the local expertise also allows you to recognize different customer behavior, and develop the best practices for marketing to the European countries.
One good example of this is the packaging. If you have French text on your product, and it is translated into German for meeting the standard, do not assume that this is going to meet the required standards. Nuanced language means that you need to adapt the labels for German-speaking customers in Europe. The local experts can aid you in this regard and other subtle changes you have to make for doing business in that country.