Market Research Is Essential When You Sell Overseas: Here’s How You Do It
Before you dive into international trade, it’s crucial to carry out comprehensive market research to determine if it’s a viable venture for your business. We heard from Meera Govind and Reanna Bowman from Newable in our recent Intro To International Expansion masterclass - but in case you missed it, here’s what they told us about how to run market research for selling overseas.
Define your objectives
First thing’s first, work out the objectives of your market research: what do you need to know to be sure selling in a given market makes sense for your brand? Make a list of the information you’ll need to collect, including:
market size
consumer preferences
demand for your type of product
competition analysis
regulatory requirements
Identify target markets
Next, identify potential target markets based on indicators that are suitable or compatible with your aims. Think about the following:
country demographics
economic indicators
cultural and legal similarities
population size
income levels
language
cultural values
interests and hobbies.
Be encouraged to use your own data to ascertain market viability too. Maybe you’ve noticed increased sales from France, or growing site traffic from the Netherlands. Use your e-commerce data, including on Google Analytics or any other platform you use to track this information, to identify overseas interest in your product.
Choose research methods
When it comes to how you’ll collect your data, select research methods based on your objectives and target markets. What information is readily-available (market research reports, reviews, census data, your own e-commerce data) and what will you need to collect yourself (user surveys, focus groups, interviews and observational research)? Collate these for a well-rounded view of the viability of the target market.
Competitor analysis
Remember that your brand likely exists in a wider context of brands that offer similar products or services - but this doesn’t have to be a bad thing.
Make a list of your competitors and consider their pricing, target audience and market positioning. Research how responsive the target market is to these brands: what works well for them, and how can you become more competitive in that respect?
Inversely, identify if your offering has a competitive advantage over existing products desired markets, such as unique features, quality, pricing or branding.
Use competitor analysis to determine your own pricing strategy and brand positioning.
