The advantages of marketing overseas for retail businesses
Retail businesses rely on their ability to create and sell products that are wanted by consumers, making it a highly volatile sector.
The retail sector was particularly hard hit in 2013, so finding ways to tackle the problems faced are high on the agenda for many companies.
Marketing products abroad through various partner companies could be an option to boost sales and brand recognition.
Using this approach is in the minds of around three-quarters of online small and medium-sized businesses in the UK, according to Optimus Performance Marketing.
Their study looked at the coming 12 months and plans that the various businesses had for expansion – a necessity for some of the businesses that have struggled in more recent months.
The value of testing the market
Businesses said the top reasons for using such marketing techniques were based on the fact there are deemed to be fewer risks and financial costs.
At the same time, it also represents a good way to test a market’s reaction to a particular brand or product.
These aspects are important for businesses that are keen to avoid financial hardship and the threat of administration and insolvency – especially given the sector’s hardship in 2013.
Of the 602 UK-based businesses questioned by Optimus, 69% revealed plans for expansion in 2014 while 74% of those doing so were planning an online marketing strategy for such a move.
Affiliate marketing was chosen over advertising and public relations techniques for several reasons, with respondents saying it represented less financial risk to do so.
Some 14% of businesses also revealed that they were impressed by similar approaches that have been taken by competitors and were keen to follow suit.
The U.S.A, Canada, China and France were particular areas of interest for expansion, given their economic backgrounds and the number of businesses located in these countries.
Opening up new areas for sales potentially increases the amount of finance available to a company, providing additional security should a retail business fall into a similar trap as those in the sector who have not been as successful.
By Phil Smith