Expanding Business into International Markets - Especially USA/CAN/EU(schengen)/UK/CN

[chabs]

Hi all,

I am posting after seeing some emails saying that these forums have improved recently. Thought I would post to see if others had been through similar experiences with expanding their product based businesses into international markets, and what their stories are like.

Personal context:

• In Australia, selling mostly Chinese made product. I've experimented with products made from other sources, and will continue to expand in those, although Chinese product is dominant and likely to remain so.

This is the current bullet point list of what I'm thinking for expansion, let me know your thoughts, and if there is anything obvious that is missed:

• Chinese Domestic Market: It's possible to rent a warehouse in China as a foreign company, this can be used as a base for shipping out goods. It's also much cheaper than getting large warehouses in my local market, and shipping containers can be stored/packed there. I can also arrange for non-warehouse staff to work from here as a base, as we will need Chinese based staff (as opposed to contract-based work currently) for work such as quality control, product development and databasing. It'll also serve as a point to receive domestic samples, and the process of developing and approving new products can be sped up significantly. I have seen how it's also possible to build large "creative spaces" where we can hire locals who are trained at making content to sell on Taobao, etc. The biggest advantage of the Chinese market is that by virtue of having goods produced there, we are essentially already on the cusp of operating there.

• The US market: This is the first priority market to try and crack, I've visited the US 4 times in the last 2 years alone, and have managed to figure out how to develop some product lines with some help from people I know, mostly in CA/TX/FL. As far as I know, the first steps are setting up trademarks, LLC, requesting AMEX to setup a US card so I can build credit, etc. It's also very very clear amazon is dominant and there will need to be some sort of play with Amazon, this may mean finding listing software such as channelengine, or whatever you guys recommend, to link Netsuite to Amazon and create listings. I have researched a little into how Amazon marketing works as well, and the type of advertising techniques and overall culture of Amazon buyers will be challenging to learn! Please let me know other steps for the US market. Probably the most remarkable thing I noticed, is how many Chinese operate their Amazon stores, completely from China. It's so common and I've seen it in so many industries that friends are in, from iPhone items, to bikes, to construction supplies, etc. This might mean with a small Chinese team, we can probably get the ball rolling in the US faster than it would initially seem. Biggest advantage of the US market is the sheer size of it!

• EU (Schengen) market: This market will mostly be focused on the blue banana economic zone, ignoring the UK. Please share any challenges or insights you guys have. In addition to the steps around trademarks/incorporating/etc which will need to be done in the US, I am considering how taxes will work in each major EU country. I have done a little research in logistics and I think the warehouse we buy/rent will most likely end up being in the Netherlands, between Rotterdam and Antwerp ports, although happy to take any insights or advice from others who have set up in the EU. The first markets I am thinking of focusing on will be the Dutch, German and French markets, maybe branching into the Scandanavian, Italian, Spanish and Portuguese markets soon after, each will need a unique marketing mix and it'll be challenging to find reps/workers in each to sell the product. The most exciting thing about the EU market is that there is a very large popuation within a relatively small km (miles) radius around where we can plop a warehouse. Big advantages for distribution!

• UK/Canada: I haven't done any research on these two markets yet, as they didn't interest me as much as the others yet. It will also make sense to focus on the other three economic regions before taking a crack at these. Happy to hear any thoughts or advice tho, as these would be logical next steps.

If anyone else has been through similar experiences, it would be great to hear from you! Please also feel free to ask questions if you had anything to ask .

 

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[Librarian4869]

Jo emm,

O en qutvoph egvis tiioph tuni ineomt tezoph vjev vjiti gusant jewi onqsuwif sidipvmz. Vjuahjv O xuamf qutv vu tii og uvjist jef ciip vjsuahj tonomes iyqisoipdit xovj iyqepfoph vjios qsufadv cetif catopittit opvu opvispevoupem neslivt, epf xjev vjios tvusoit esi moli.

Qistupem dupviyv:

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• AL/Depefe: O jewip'v fupi epz sitiesdj up vjiti vxu neslivt ziv, et vjiz fofp'v opvisitv ni et nadj et vji uvjist ziv. Ov xomm emtu neli tipti vu gudat up vji uvjis vjsii idupunod sihoupt cigusi veloph e dsedl ev vjiti. Jeqqz vu jies epz vjuahjvt us efwodi vju, et vjiti xuamf ci muhodem piyv tviqt.

Og epzupi imti jet ciip vjsuahj tonomes iyqisoipdit, ov xuamf ci hsiev vu jies gsun zua! Qmieti emtu giim gsii vu etl raitvoupt og zua jef epzvjoph vu etl .

Jo!

Tunivjoph vu muul opvu xjomi sitiesdjoph vji IA - onqusv favoit. Itqidoemmz og ov't dunoph gsun Djope. O fup'v lpux xjev zua'si timmoph cav miv ni howi zua ep iyenqmi. Vjisi't ciip e COH opgmay ug Djopiti caomf IW't dunoph opvu Iasuqi sidipvmz. Taqis djieq ucwouatmz cav puv pidittesomz cef - tuni esi caomf cz HIIMZ & esi ittipvoemmz Djopiti caomf Wumwu't (HIIMZ uxpt Wumwu). Puv tasi O xuamf caz upi nztimg cav vjiz'si iyvsinimz quqames.

Pux, haitt xju fofp'v moli vjev? Vji Wumltxehip Hsuaq (uxpt Qustdji, Eafo ivd.). & pu, vjiz fofp'v xepv vu dunqivi tu vjiz dunqmeopif vu vji IA ecuav ov. Vji IA gummuxif cz qavvoph e 38% onqusv favz up emm IW't dunoph gsun Djope... (vjot ot up vuq ug e 10% miwz up wijodmit gsun uavtofi vji IA)

Ov't emxezt vji duptanis xju ipft aq qezoph gus vjiti vjopht... Cav xusvj muuloph opvu.