Say what you will about the digital era, but consumer preference for e-commerce has encouraged many businesses to mobilise online. Of course, taking one’s company global is a tremendous step — one made with the hopes of tapping into new revenue streams and building a renowned reputation for quality branding.
E-commerce now comprises 30% of total retail sales in the United Kingdom — a 10% increase from 2020, valued at $120 billion. According to the International Trade Administration, 82% of U.K. residents bought something online in 2021.
Now is the time for retail businesses to jump on the bandwagon as emerging markets make waves worldwide, but how does one successfully take their brand global? These five steps can guide retailers to expand their reach.
1. Build a Global Team
Building a global team to ensure overseas success is the first step in going global with a retail business. Companies must forge relationships with supply chain partners in local communities and market their brands to consumers there.
Naturally, employers must consider immigration policies during the hiring stage and throughout the individual’s tenure with the business. It’s important to note that employers are responsible for any fines accrued when immigration problems arise, triggered by promotions, demotions or mergers. Companies should research their country’s and other countries’ foreign worker laws to understand the requirements.
2. Consider Infrastructure
Going worldwide with your retail business will likely mean people will miss out on Friday’s in-office team meeting. How could they possibly attend in person when they’re across the ocean? Relaying information from headquarters and immediate decisions, in general, will also prove challenging with time differences and varying operational management.
Retail business owners must reconsider how to lay out their infrastructure in a global market — who are the decision-makers at other locations? Do international offices have well-functioning technologies to communicate? Squaring away these details is crucial before launching a business globally.
3. Create Customer Experience
An optimal customer experience is more vital than ever when going global with a retail business. Customers have numerous options in e-commerce, so brands will want their customer service to set them apart from the competition.
Integrating the latest software that improves the buying experience will make a difference. For instance, customer chatbots ensure round-the-clock support when no one is around to answer enquiries. POS loyalty programmes also allow companies to increase their customer base — 64% of retailers find loyalty programmes improve customer relationships and encourage repeat business.
4. Streamline Returns Process
Returns happen often and can be a hassle for customers and the brand — that’s why basinesses should square away their return policies before branching out their retail business into global markets. Clothing accounted for 35% of returns in the U.K. in 2022, while electronics accounted for 8%.
Some U.K. retailers have resorted to charging customers a fee for returning items to online stores. However, they play with fire when they impose additional costs. The Retail Insight Network found 41.8% of consumers would switch retailers if a brand started charging them for returns. Another 17% said they would buy less from a brand that charged customers for returns.
5. Scope Local Markets
Breaking into a new local market isn’t as easy as showing up at the door. Retail businesses must scope out these places to ensure they’re welcome. For instance, some companies may be met with resistance from local communities, competitors and governments, making their efforts to establish themselves null and void.
Sending a global team member to determine whether locals want or need one’s business is the best way to know if a move is best for everyone. Any aversion to a new market will make it harder to operate on a global scale, potentially costing the company millions.
Take Your Retail Business Worldwide Wisely
Branching into global markets requires careful preparation and research. Retailers want their expansion to succeed, not be a mistake that hurts their bottom line. Considering the benefits and risks of taking a business worldwide should be every company’s priority, followed by a smart execution strategy.
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