Entering a new market may look like a major accomplishment for international businesses pursuing global expansion. Still, opening an office, registering an LLC or Ltd., launching a product — all of this doesn’t necessarily mean that a company will earn attention and gain trust from local customers.
This is what Valentina Drofa, Founder and CEO of Drofa Comms, concludes in her latest op-ed for Forbes Business Council. She argues that international companies had better reconsider their approaches to expansion in terms of how they communicate, establish credibility and what they contribute to the markets they enter.
In short, she claims that entering a market and earning a place in it are two very different things.
Why Global Expansion Starts With Local Relevance
According to Valentina, one of the most common mistakes businesses make is assuming that their success in one region will naturally carry over to another.
Yet, local audiences may have little knowledge of a company or don’t have any good reason to choose it over established competitors.
As she draws on it, businesses entering a new market should be ready to answer one question: “Why should this market care that we came here?”
The answer implies that companies need to demonstrate what they can contribute to the local business ecosystem, regardless of this contribution’s form. It may be done through expertise, educational initiatives, industry partnerships or community engagement.
Why Localisation Goes Further Than Translation
Another issue Valentina examines is how businesses approach localisation.
Translating marketing materials and adapting social media content is one thing. Another crucial one is a proper market-entry communications strategy. According to Ms. Drofa, it must consider business culture, local media, customer expectations and thoroughly select the people who will represent the company.
Valentina uses Hong Kong and mainland China as an example. Despite their geographical proximity, the two markets have distinct regulatory environments, communication channels and business practices.
Subsequently, a PR strategy that works in Hong Kong may be ineffective in mainland China. Drawing on her experience working with international businesses, Valentina highlights several priorities for companies planning global expansion:
- Prove local relevance by explaining what the business contributes to the regional market.
- Adapt communications to local realities, including media channels, business etiquette and customer expectations.
- Work with local professionals who understand the market and its cultural nuances.
- Invest in long-term relationships. Credibility only develops through consistent, recurring engagement.
- Support local initiatives and ensure the company’s actions reflect its public messaging.
Ultimately, global expansion requires patience. To establish a physical presence for businesses is a no-brainer. Yet, earning the trust of local partners, customers and industry communities takes sustained effort.
Read Valentina Drofa’s full Forbes Business Council op-ed.
