Going global

Thinking about taking your business international? With faster communications, dependable transportation, and more favorable trade regulations, it's easier than ever before to expand into global markets, even for small businesses.

Still, there are so many, many details. Some are obvious: meeting local regulations, adapting products to local electrical current, finding agents or distributors, and translating product literature as necessary.

Other details are not so obvious, but can have significant impact on your international business success. Two of these "details" that are right at the top of the list are understanding the country and understanding its culture.

Understanding the country

Data from chambers of commerce, governmental or private international trade organizations, and other sources provide detail after detail about markets, purchasing patterns, export and import licensing. Turning to an atlas or a geography book also adds essential pieces of information about a country, its geography, or its climate. Sometimes it takes a personal visit to a country to put everything in perspective.

For example, a British manufacturer had identified the United States as a major prospect for one of its products. The number of potential customers was about 50% higher than in the UK. The initial conclusion was that the product would sell, and the successful UK promotion and distribution efforts would easily transfer to the US.

When the marketing manager began preliminary visits to the US customer base, the light came on. More customers than the UK, but the geographic dispersion of that base was so much greater that the distribution and promotion models simply would not work. Only by physically visiting the market did this problem become apparent.

Understanding the culture

Understanding and appreciating local customs, cultures, foods and even a little bit of the language helps pave the way for business success. A number of years ago upon arrival in Singapore, a potential distributor took me to dinner at a local restaurant. Using chopsticks to remove the flesh from the fried fish was easy enough. But, when the plate of glazed peanuts appeared on the table, all eyes focused on my none too nimble fingers. Success in handling the glazed peanuts with the chopsticks brought nods of admiration and the contract negotiations the next day went quite smoothly.

At a recent dinner with European clients and their Malaysian dealer in Penang, a query from our hosts about our abilities with chopsticks resulted in a retelling of the Singapore story. As my clients and I breathed a sigh of relief in meeting the irresistible challenge from our hosts, again came those knowing nods.

Understanding other basic cultural nuances helps smooth the path to successful exporting--simple things like the etiquette of business card exchange; greeting someone in his native language; the proper protocol that stops the continual refilling of the wine or beer.

There's more to going global than just the product and business side. The cultural, geographic, personal, and language sides are just as important.

Michael T. Brandt
July 2003

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Updated:
15-Jul-2003