Here are six things to consider before expanding into a new market: 

‍1. Production & Stock

Entering a new market also entails increased stock flow and production requirements due to the rise in demand. It is crucial that the brand be ready for this, able to ensure supply in all of the areas where it operates, based on a balanced and effective procedure, and constantly keeping in mind realistic and long-term goals. Your production must already be sufficiently developed to meet the requirements and objectives you have established for the new market, while still maintaining a strong presence in the others.

2. Having a solid structure and confidence in your brand story and marketing‍

Being able to know what makes the product special and how the brand can stand out within a new market, is a must! You worked your ass off to create your brand and bring it to life. No one else will know it or present it better than you.

Confidence in your brand story and knowledge of the product is essential in order to sell it - if you don't know what makes your product special, how will the consumer know? 

If you still trying to figure out what differentiates your brand/product, maybe you’re not ready to go into a new market yet. 

3. Have experience and lessons learned from selling in your initial market (s)

Experience is essential for having an overview about how your product performs with the market and how it relates to your customers. It allows you to to gather information and lessons that you can later use as input in your new market entry strategy. Some of the info you should look for:

- Types of consumers / Customer research

- Price points

- Sales Channels

- Marketing strategies / actions

- Overall idea of budget needed

- Feedback on your product

4. Time & Budget Resources

Time is an important resource, as we are all aware. It takes time, effort, and commitment to flourish in a new market. The majority of the outcomes you might expect in a new market depend on your time and financial resources. With Lexir, you can maximize the use of your resources. We provide you the resources you need to take to activate your brand based on whatever budget you have, and help you save time by presenting all relevant data on our app/software, where you can have an overview and control over your brand.  

‍5. What type of distribution is correct for you / Distribution channels / Plan for logistics and supply chain challenges

One of the most important aspects to consider is how you will distribute your products in the new market. 

In our view there are two main possible ways to do your distribution, both are effective in their own way depending on the type of brand and needs you represent. 

- Middle-Person Distribution Model

It is a useful model for companies that already have a global presence, some market clout, and financial clout. Some advantages: 

- Increased initial exposure and sales

- Improved access to customers

- Effortless in sales and market entry - As a major brand with considerable notoriety and budget.

But it’s only working for a specific kind of brand and it is extremely outdated. It was envisioned for a non-digital environment when brands faced trouble and restrictions when trying to contact consumers.

It has a lot of drawbacks:

1. Outdated - Not an idealized model for the digital and universal industry.

2. High Starting barriers - It is associated with a high start-up cost. 

3. Expensive - High investment is required to compete with other brands. Margins are excessively limited.

4. Limited - Its exposure is related to how well the product performs and the budget you have. 

5. No transparency - The brand has no control over its growth process and activity in the market. 

- Direct Distribution Model

It is a model created for Craft&Independent brands. It allows them to reach the consumer directly, easily, and without any minimum budget requirements or the need to give up control. Let’s move to the pros&cons

Pros:

You own your process:

- Margins

- Prices

- Stock

- Sales & Marketing model

- Budget

- Low-risk & Low starting costs

- Easy way to enter & Grow new markets

- Equal Opportunities within the market, independent of your budget 

- Access to Lexir Community - Have at your disposal numerous of easy actions to activate your brand.

Cons:

- You have to know your brand and to have confidence - know exactly what works best to sell your products. 

- Requires effort from the brand in order to introduce the product into the market. 

Because we understand that Craft & Independent companies don't adapt to the previous model owing to the aforementioned reasons, we wanted to allow those brands to play the same game, by different rules, solving their friction points and giving them the opportunity to compete with multinational brands

Lexir replaces traditional distributors and importers,  we make it possible to easily start and grow in new markets, giving them all of the resources they require and providing them the power of a distributor. We do Distribution as a Service, combining the digital and physical aspects that are essential to grow and succeed in new markets and you can manage it all from our app/software - keeping full ownership and control over your brand and process. 

You can learn more here: docs.lexir.com‍

6. Your Goals & Fast Growth. 

Usually, when you think of expanding into a new market, we associate it with a time-consuming process. But you know what? Now, more than ever, it is possible to introduce your brand into a new market in a relatively short period of time. All of the previously mentioned actions take some time to execute, yet depending on your brand objectives and resources, your brand can be active and available in a new market within a month. Believe us - been there, done that! 

A new market is always an exciting and enticing possibility for brands. In this post, we have outlined the key factors you should take into account before making that shift, based on our experience. It's crucial to give things considerable attention and consideration. If you're considering expanding into additional markets or would need more information on how to achieve it, reach us here.
We’re always happy to get to know new brands that are doing things differently.