At Going Global's recent event in London Olympia, December 2015, Sarah Pavlou, our Managing Director and Founder of Kyclo, spoke about putting your Brand into the right Hands, Markets and Homes when expanding into new markets.
"When on holiday and purchasing an item in a foreign currency, have you ever mentally translated the value of that item into a currency you know and understand?"
Now imagine when a country changes currency permanently. Perhaps it is going into Europe. Think of the positive impact of change – greater infrastructure, increased employment opportunities, etc. At the same time, however, the cost implications of amending and localising marketing materials, product and service packaging and ticketing from one currency to another is colossal.
Think also about how long it takes for those experiencing this change to adapt. To this day, consumers in southern Europe are still transitioning. How long will it take them to fully appreciate and internalise the value of that which they buy so they are reassured that they are making sensible buying decisions?
"When on holiday and purchasing an item in a foreign currency, have you ever mentally translated the value of that item into a currency you know and understand?"
Now imagine when a country changes currency permanently. Perhaps it is going into Europe. Think of the positive impact of change – greater infrastructure, increased employment opportunities, etc. At the same time, however, the cost implications of amending and localising marketing materials, product and service packaging and ticketing from one currency to another is colossal.
Think also about how long it takes for those experiencing this change to adapt. To this day, consumers in southern Europe are still transitioning. How long will it take them to fully appreciate and internalise the value of that which they buy so they are reassured that they are making sensible buying decisions?
Change Management
In much the same way, a business moving into a new market requires adjustments both internally and externally. So too do the businesses partnering with these companies and the consumers buying from them. Being aware of these changes allows for businesses to better plan their expansion processes and activities. It is a matter of time, patience, emotional intelligence, transparency and trust.
Have you the correct internal teams for managing change and are your people positive and motivated enough to bring out the best in their now new international business and new members of their team? Get it wrong and it will break you, get it right and you will reap the rewards.
Have you the correct internal teams for managing change and are your people positive and motivated enough to bring out the best in their now new international business and new members of their team? Get it wrong and it will break you, get it right and you will reap the rewards.
Is there a demand?
With the right mindset now in place the questions are where, with whom and when do you expand? How much of a brand do you push into a new market and how much do you pull back by localising your offering? How do you ensure that brand image and product remain consistent?
Fundamental questions around local market conditions, including demand and buying behaviours, should be top of your list to minimise risk and maximise opportunity Never make assumptions that if one brand works, yours will too. When determining which market, which partner and where you should be positioned in your new market, think about who you are, your company values, pricing strategies, competitors, the customers you are targeting and their buying behaviours.
Fundamental questions around local market conditions, including demand and buying behaviours, should be top of your list to minimise risk and maximise opportunity Never make assumptions that if one brand works, yours will too. When determining which market, which partner and where you should be positioned in your new market, think about who you are, your company values, pricing strategies, competitors, the customers you are targeting and their buying behaviours.
Localising your Brand Offering
Souring partners is not a case of following names and companies in the market that carry other brands. More importantly it is fully understanding your brand requirements, addressing your experiences to date and defining what makes the perfect partner for YOUR brand.
Only when you can define your partner and what you expect from them can you seek potential candidates effectively. The word 'potential' being the operative word at this stage. When shopping for a coat you wouldn't buy based solely on the fact that it kept your warm. Other things matter like style, fit and detail. Franchise partners should be approached in the same way – don't take things at face value. Instead, fine tune your franchise agreement, pursue their background and credentials. If you don't know how to do this then employ people who do.
Only when you can define your partner and what you expect from them can you seek potential candidates effectively. The word 'potential' being the operative word at this stage. When shopping for a coat you wouldn't buy based solely on the fact that it kept your warm. Other things matter like style, fit and detail. Franchise partners should be approached in the same way – don't take things at face value. Instead, fine tune your franchise agreement, pursue their background and credentials. If you don't know how to do this then employ people who do.
Win-Win Partnerships
Franchising is a partnership and both parties are looking to make money. It is neither a quick win model nor an opportunity to grow quick with little responsibility. It requires the successful management of multiple sites across mulitple locations working with multiple cultures, currencies and languages.
Rather than a daunting business model it is proven to be the most safe and successful route to market - a shared business development process where the sum of the parts is greater than the whole.
Rather than a daunting business model it is proven to be the most safe and successful route to market - a shared business development process where the sum of the parts is greater than the whole.
FOR MORE INFORMATION ON HOW TO GROW YOUR BUSINESS THROUGH FRANCHISING
Email Us @: info@kyclo.com
www.kyclo.com
Email Us @: info@kyclo.com
www.kyclo.com