Going into foreign markets can be risky business and the economic crisis has left many businesses risk adverse. However, this is the perfect time for smart companies to look at global marketing and international expansion. Here’s why:
Expanding Internet Users
One of the biggest propellers of current international trade is the internet. It has greatly facilitated the process of reaching customers throughout the globe. Broadband penetration rates have skyrocketed throughout Europe. But in many developing countries, new internet users are exited at the prospect of buying goods and services that were previously out of reach. What does that have to do with your business? The cost of entry into foreign
markets has never been lower. Access to foreign buyers has never been greater. Thanks to the folks at Internet World Stats, I’ve been able to create the charts you see in this post.
Growth in Purchasing Power
Emerging economies have created a new middle class. More and more of these people are using the internet and broadband access is rapidly expanding. As their incomes grow and they get used to online shopping, your opportunity to sell products and services to them grow as well. Developed economies are also more comfortable spending money online now-a-days.
Currency Exchange Rates
If you are doing business in US Dollars, you’ve seen more currency fluctuation than usual. By diversifying your financial assets, you are securing the future of your company. When your currency is weak it reduces the costs of your offerings abroad. If your currency rate is rising, then marketing overseas becomes relatively less expensive (although your exports will not be as cheap as locally produced goods). Having family in foreign countries, I check currency rates for both business and pleasure; exchange rates help me plan the best time to visit or send gifts. My favorite tool for this is the XE Currency Converter.
In today’s volatile business world, companies must be aware of local economic changes. Slowdowns happen for many reasons and in any location. Inflation spurred on my by rapidly increasing fuel prices and falling home values foretold the US recession. That recession spread throughout the various parts of the world. Brazil, on the other hand, actually grew during this period due to reduced unemployment, growth in the middle class, and consumer buying power. Although that growth is slowing down now, the US is starting to recover. Diversifying your target market is a good way to protect your business, especially against unforeseen obstacles, like natural disasters.
A Rewarding Experience
Breaking into new markets can be quite profitable for companies fulfill an unmet need. But in addition to profits, reaching out to other cultures is rewarding in other ways. International marketing is an opportunity to learn different ways of thinking and looking at things. It increases problem solving skills as it forces you to look at a problem from different angles.
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