A recent report from Forrester* states that most US and European-based manufacturers still focus on eCommerce in North America and Europe and that brands should be exploiting multiple markets via the online channel.  International retail is not a new concept but few do it well and there are numerous examples of ventures which have failed.  So what do you need to do it right?

In the first of three blogs focusing on my 10Ps of Internationalisation, I discuss ‘Vision’ which has two elements.

Proposition

The consumer proposition is the mix of product, price, availability, content, service and customer experience.  Those retailers that succeed in this can all single out one or more distinctive elements of their proposition such as Ocado’s delivery offer, Net-a-porter’s use of product, editorial and service or Zappo’s range and service expertise.

In the international context, the proposition needs to be adapted to consumers in each new region, as an approach that works in a domestic market may not do so overseas.  It is vital to understand the following:

• How well is your brand known in new markets?
• Do you want the brand to be a local or an international player?
• What is critical to the proposition and what can be flexible?

Plan

Many multichannel retailers who enjoy domestic success enter international territories with little brand awareness and need to think like start-ups.

Customer acquisition and retention are the fundamental drivers of growth and all plans need to adhere to this maxim.  Retailers should set realistic online targets to avoid over investment, by separately modelling customers, categories and channels.  A number of retailers still plan based on simplistic outcomes such as average order value, web traffic and conversion which although easy to model, typically don’t materialise.

So, when turning to the international market, growth and investment should be planned by modelling relevant local market data, rather than assuming similarities to domestic information.  

*Establishing A Global Direct Online Sales Footprint: An Analysis OF B2C Manufacturers’ International Expansion