EIGHT REASONS TO TAKE YOUR BRAND GLOBAL
Some beauty entrepreneurs start with the intention of being an international brand, while others only contemplate it after they have a foothold in their home country, or the opportunity arises.
Whether you are a focused, growth-minded entrepreneur obsessed with how your brand can dominate the world or a dreamer who envisions seeing your brand in exotic places, here are eight reasons you should consider when taking your brand outside your home country:
1. Increased sales and profitability
We start with the most obvious. With the global beauty business valued at roughly $532 billion and forecasted to grow to $800 billion by 2025, it makes sense that you want a bigger piece of the action.
2. Spreads risk over more customers and geographies
This follows the same theory as “don’t put all your eggs in one basket.” Shifts in consumer tastes and behaviors or economic swings in a market can impact your business. By opening new markets and finding new consumers you can mitigate your risk across a broader area.
3. Reduced costs due to increased volume
Having more customers consume your products increases your production volume. Being able to order larger amounts from your vendors will get you pricing reduce your COGS and generate more profit.
4. Gain an advantage over your competition or be the first-to-market in another country
In some cases, the competition in your home market has not expanded internationally or reached the markets you are targeting so you may have a first-to-market advantage. With the advantage you may be able to secure the best partners and take a leadership position early.
5. Attract investment from those who see your vision
By having greater and more diverse exposure to your product across more markets, you may grab the attention of someone looking to invest. Even having the courage to expand internationally might signal to an investor that you have the growth-mindset required to lead the company to higher potential.
6. Locate new talent or resources
New markets bring new relationships, diversity of thought, and access to people, ideas, and best practices that can help evolve your brand or company. Keep your eyes and mind open to new possibilities.
7. Exposure to innovation
Selling outside your home country may provide an opportunity to identify innovation early that could help you, your brand, or company. This could come in the form of new ingredients, processes, suppliers and more.
8. Extend the life of your product
Markets can differ due to cultures, preferences, and tastes. Timelines for trends also varies. So, while your product lifecycle in one market may have peaked or be on the decline, another market might be in the growth phase, giving you more opportunity for a longer period.
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