Author: Barry Long, VP, North America, Sales Innovation.io
Expanding your business into new international markets is an exciting venture, especially as the global SaaS market continues to skyrocket. According to Gartner, worldwide end-user spending on public cloud services is projected to grow by 20.4%, reaching $678.8 billion in 2024. However, while the potential for growth is immense, the journey is not without its challenges. Before taking the leap, it's crucial to consider fundamental aspects that can make or break your international venture.
1. The People Factor: Navigating Hiring and Expatriation
Hiring the right talent is a time-consuming process, especially when establishing a presence as a lesser-known brand in a new market. Meticulous planning is key, covering everything from understanding local labour laws to navigating expat costs for top executives should you choose to parachute one in. If you go that route, consider the total investment of what the cost would be like. International schools are expensive and tax equalisation is burdensome to the expat and employer.
2. Cultural Adaptation: Meeting Your Audience Where They Are
Adapting to local cultures goes beyond hiring; it's about understanding your customers. In regions like Asia Pacific and Japan (APJ), where social media is integral to business communication (think WeChat, Kakao and WhatsApp), readiness to tap into these platforms is crucial to meet your audience where they are.
3. Localisation and Globalisation: Beyond Language
While language is less of a headache in the era of SaaS, localisation efforts remain critical. 72% of consumers are more likely to make a purchase from a website if it contains information in their native language. Remember to ensure your product aligns with local business norms and is contextually appropriate. Beyond language readiness, consider the globalisation aspect—how well your solution addresses country-specific requirements and complies with local regulations, covering areas like tax, data privacy, EU data and government regulations about cloud data storage.
4. Solution Readiness and Customer Acquisition: A Holistic Approach
While customer acquisition is vital, don't overlook servicing and retention. Is your billing platform ready to accommodate local currencies? Choosing between local currencies and USD billing involves careful consideration, each with its set of pros and cons and not only around FX. Adjusting your pricing model to local conditions can boost revenue by up to 30%, ensuring a competitive edge.
5. Assessing the Opportunity: Going Beyond the Initial Customer
Organically securing your first in-market customer provides some comfort, but putting the emotion aside, do run the analysis. Delve deeper into the total addressable market (TAM). Understand local competition, gather insights from both current and past customers, and gauge the true opportunity at hand. Embrace a strategic approach to ensure long-term success.
6. Collaborating with Experienced Teams: The Catalyst to Success
It might seem daunting at first, but as you delve into the intricacies of international expansion, consider partnering with an experienced launch team. Insights garnered from building large enterprises in the market can serve as a catalyst, paving a faster path to profitability, generating customer loyalty, and mitigating financial and reputation risks.
While the allure of international expansion is strong, a thoughtful and strategic approach is paramount. By addressing these challenges head-on and leveraging the expertise of seasoned professionals, your journey into the dynamic markets of Asia Pacific can not only be successful but transformative for your business.
