6 Challenges of Expanding Overseas for Manufacturers and Their Solutions 

  Many manufacturers wish to grow their operations overseas and enter new markets. While it is certainly true that the opportunities of such expansion are certainly worth the risks, often manufacturers fail to see the challenges of going to foreign markets. This can lead to costly mistakes that not only damage prospects overseas but problems also at home for manufacturers. 

  In this article, we would like to talk about the seven main issues that manufacturers face when going to foreign markets, and what solutions we offer can address them. 

Problem 1: Not determining if there is a fit for your product in a foreign market 

  Before entering any market, you have to see if there is a good fit for your product. Simply put, you must examine if your product will sell. Simply getting your products on the shelves is not enough. You have to know if there is room in the market and whether customers in your target location are receptive to your offerings. 

  This means considering the many elements of the destination country, including cultural nuances, local preferences, as well as current trends. 

Solution: Always work with a local partner to distribute and promote your products. Find those that you can partner with in the long term, not just as temporary solutions for market entry. They know best the nuances for successfully selling to the local population. For those looking to expand to the US, AiseBuild can be the partner to promote your products and expand your distribution network. 

Problem 2: Marketing

  Marketing is a delicate art. Do too little and you risk not capturing enough business in an area. Do too much, and you’ve wasted valuable resources. 

  Thus, you need to be careful when it comes to marketing your products. For that, expert opinions are needed on various channels of promotion, such as how you should package your products to what ad spaces you should occupy in order to reach your target clients. You must also figure out what your competitors are doing so that you could shape your message to beat theirs. 

  This also means combing the digital landscape in your industry in order to figure out what you need to do in order to rank higher on local searches. 

Solution: Great marketing starts from research. Do a thorough SEO and marketing analysis in order to guide your actions. At AiseBuild, we provide SEO and marketing research so you can have a thorough understanding of how to reach your target market. 

Problem 3. Shipping 

  Shipping costs can cripple a business when going overseas. This is of paramount importance, especially in this day and age of supply chain disruptions. A kink in the system can take down all the rest. A minor delay can lead to mass cancellations of orders. Contingencies can arise at any moment, just as China’s COVID-19 lockdown effects have rippled across global supply chains. 

Solution: Partner with companies that have access to a robust shipping network. We at AiseBuild have a great network of freight forwarders that can provide international shipping and importing services. 

Problem 4. Customer Service 

  Great customer service is always a part of a thriving business. For many companies, however, delivering excellent service to overseas clients can be hampered by the distance. Working from afar has its limits, especially when there are local competitors who would be happy to assist from up close. One slip can cost first impressions with a customer, and that risks developing critical relationships to gain market share abroad. 

Solution: Develop a local customer service team that can handle clients in overseas areas. If you partner with AiseBuild, we can serve as your local customer service team. We can provide your customers with samples, data, quotes, and order status from your local office in the US.

Problem 5. Relying too much on traditional sales channels

  Many manufacturers make the mistake of thinking traditional channels are their principal domains of business. This hands a lot of control over to third parties such as distributors, who only select certain products from your offering on their shelves. Thus, you need a sales channel over which you have more control. 

Solution: Use e-commerce. Allow your transactions to be done online while coupling it with local customer service that can ensure a great end-to-end customer experience. At AiseBuild, we provide PIM and B2B e-commerce platforms that sell and promote your products as you see fit. 

Problem 6. Too few distribution channels

  Just like how they say it is not good to put all of your eggs in one basket, the same goes for distribution channels. Over-reliance on one or a few large distributors can be very problematic. 

  For one, large distributors, at least those in the US, won’t buy all of your products and ideas and put everything you sell on their shelves, thus limiting your sales. Second, there is a big risk on your products when your target countries put restrictions on your product category or your distributors decide to exit your products. This may result in significant lost sales in a short amount of time. 

Solution: Develop diverse distribution channels. This can significantly reduce your business risk. AiseBuild can help you build your sales channels in the US market and reduce your reliance on one or a few large distributors.