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How to enter new regional markets?

Today’s economic situation is complex. Logistical problems, inflation, currency fluctuations, the energy crisis, and the ongoing pandemic… These circumstances significantly affect world trade on the one hand, and on the other hand, the global economy is undergoing a digital transformation and is increasingly connected to the Internet.

Online shopping has been gaining momentum over the past decade, and the pandemic has caused explosive growth. So, according to Statista, in 2021, global online sales amounted to $ 4.9 trillion, and in 2023 they will reach $ 6.5 trillion. The forecast for 2025 is 7.4 trillion.

Ecommerce retail sales
Growth of Ecommerce retail sales in the world in the coming years

The share of e-commerce in total world trade is increasing from 18% in 2020 to 24%, projected by 2024.

The development of digital trade gives significant advantages to the brand or manufacturer. One of these advantages is the increase in business mobility. With a skillful approach, tying the demand and customer preferences, entering new markets, and trying hypotheses are much cheaper than traditional retail. The business model is easier to scale.

When using marketplaces, there is no need to invest in opening physical warehouses and stores or creating a branded website. You can take advantage of the opportunities of trading platforms that offer a ready-made infrastructure for selling and delivering goods.  

In addition to increasing the revenue and scale of your company, entering new regional markets allows you to diversify risks, especially now, when the global political and economic situation has become precarious.

The most exciting markets in coverage, dynamics, and customer demand are the USA, Europe, and Asia including China. Each of these markets has its own characteristics, traditions, and infrastructure. Consumer preferences, methods of making purchases, and payments are different. While in some places, such as in America, Amazon is popular, other marketplaces have a significant share in sales in other countries, like Shopee in Asia, AliExpress and JD in China, and Mercado Libre in Brazil.

All these and many other nuances must be considered when you organize omnichannel e-commerce in a new region for your business. It must comply with the host country’s regulatory requirements, logistics specifics,  payment processing, and receipt methods.

In addition, entering another country’s market requires understanding local competition, local legislation, trading platforms, and product content localization.

Gaining buyers’ trust in a new market is difficult, and you can expect pitfalls. But we at Syntes have been through this journey before. Our activity’s essence is managing D2C channels for well-known brands, fully outsourcing all processes: placing goods, accepting payments, delivering orders, and interacting with customers. We help large brands and manufacturers to enter new regional markets and start successful trade in them with the help of marketplaces or our own branded online store. The entry period into foreign markets depends on the chosen country and the brand’s readiness. With a high speed of management decision-making, it is realistic to deploy sales this year, having timed to the peak of consumer activity in November-December, which significantly impacts trade. For example, in the traditionally “festive” fourth quarter in the United States, sales can reach 30% of the annual turnover of retailers.

Syntes specializes in organizing D2C sales for large brands and manufacturers, including determining the country’s potential for a particular product, managing an online store or brand store on the marketplace (Amazon, eBay, AliExpress, etc.), content localization, promotion, interaction with customers, payment acceptance and fulfillment. In its work, the company uses an MDM platform of its own design based on data science methods and extensive data analysis.

Syntes is an international company. We help our clients solve cross-border delivery issues, receive funds for goods sold, and conduct activities transparently and legally. Our experience allows you to lead you to success through all the difficulties.

New regional markets and marketplaces are a great chance to increase revenue and your competitive strength. You can build on success in other foreign markets by starting to sell products in Europe, Latin America, or the Middle East.

Need more information? We can make an individual plan for entering a new region for your company and product. To do this, you can schedule a meeting with the VP Development here.

Do not hesitate because you need to act quickly and decisively in these challenging times.

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Syntes, an international company, develops a next-generation MDM (Master Data Management) and PIM (Product Information Management) cloud platform and provides brands and manufacturers with services for creating, managing and automating D2C (Direct-to-Customer) sales and marketing channels. Syntes solutions and services are used by the world’s leading brands and manufacturers of consumer and business products such as Razer, Scarlett, Pantone, X-Rite, AVerMedia and others. Syntes is a registered trademark of Syntes, Inc.

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