In this series, we are exploring the two biggest challenges that make e-commerce brands apprehensive about expanding their presence and growing their operational footprint. Part 1 of this series looked deeply into the very first challenge SMBs face i.e. inadequate capital. Today, we are addressing another elephant in the room – inadequate market understanding. This discussion will cover how aggregators can help the brand tackle them.
Read on!
Understanding New Markets
To expand into a new e-commerce market, it’s crucial to develop a market entry strategy. Many successful brands start off their research with a market entry strategy document that helps them get a 360-degree view of the market for their expansion objectives. The document captures, brands’ focus on consumer trends and existing competition, estimate expected sales and revenues, and proposes how and by when it aims to achieve its goals. However, many e-commerce companies, struggle to create this strategy document because they tend to miss out on all the underlying factors that go into its preparation. Since they are usually focused on their home market, they lack the time and resources required to gain an understanding of new markets. They don’t know how these markets operate or the challenges and opportunities available there.
A brand can take the support of e-commerce aggregators to gain a complete market understanding. Their knowledge of various markets, and the opportunities and challenges in each, can fill in the gaps in market research. They also know how to best take advantage of the opportunities and minimize the challenges to ensure a successful entry into a new market. For these reasons, any e-commerce firm looking to expand into an unfamiliar market will be well-served by partnering with brand aggregators.
Understanding New/Potential Customers
Regardless of the kind of products a brand offers, it’s unlikely that “everyone” would be a customer. That’s why it’s imperative for any e-commerce company to identify its target audience, understand what the audience is looking for, and then tailor its sales and marketing strategies to ensure that the messaging resonates with the right people in the right way.
But all of this is easier said than done when the brand is faced with the prospect of stepping out of its comfort zone into a new market for the first time. Many e-commerce companies don’t know how to identify their target audience in the new market and struggle to create accurate customer profiles because they don’t have enough insight into customer demographics, personalities, or purchase behaviors.
Brand aggregators in such cases can be a sort of great help! The most knowledgeable and expert brand aggregators use tools enabled by Artificial Intelligence, Machine Learning, and other technologies to conduct customer research and design strategies for customer engagement and relationship-building. They understand consumer trends and perceptions about the company’s products or its substitutes. Consequently, they position the product properly to appeal to these buyers and maximize conversions and sales. These aspects are crucial for success in a new market, especially an unfamiliar or challenging one so brands looking to expand should definitely consider partnering with an experienced aggregator.
Communicating Product’s Value Proposition
A value proposition that provides clarity of messaging can grab and retain the attention of prospective customers. It can improve their understanding of what they stand to gain from the brand, enhance their engagement with it, and give customers a tangible reason to complete the purchase. All of this can lift conversion rates and boost sales. In the long term, a value proposition is at the core of an e-commerce brand’s competitive advantage. And this is exactly what overwhelms many companies. Smaller brands struggle to articulate their value proposition and communicate it clearly to potential customers in a new market. Also, since they lack an understanding of the market and potential customers, they are unable to create a strong value proposition that can effectively bridge the gap between what a customer needs and what the brand can offer.
Again, all of these are very real and very tangible challenges that make e-commerce hesitate and rethink their plans to expand into new markets, regardless of the potential for higher sales and bigger profits. While some brands fail to communicate their product’s value proposition, the smart ones hire brand aggregators to communicate their value proposition and leverage it to guide the brand’s sales and marketing strategy in a new market. Aggregators bring capabilities around omnichannel marketing and can completely manage all branding, marketing, and lead generation activities so the expansion-ready brand can focus on its core business activities and ensure a successful launch.
Conclusion
Expanding into a new market is not an easy task. It requires a lot of research, patience, and resources to complete a mountain of tasks both before and after entering new shores. These challenges can be particularly overwhelming for e-commerce companies based in small towns, operated on a shoestring budget, or operated by small teams with limited business acumen or technological expertise.
Fortunately, “overwhelming” does not have to mean “let’s give up and stay in our home market.” E-commerce brand experts like Ergode work with e-commerce brands who aim to expand into new markets but are hesitant to take the final step due to the challenges we have explored in these blogs.
If any of these obstacles apply to your company, please contact us. We will work with you to find the best possible solutions for your brand and help you make a successful and grand entry into the new markets of your choice.
