How to navigate international expansion as a tech start-up

It’s the goal of many UK start-ups, particularly those in technology, to expand into the likes of Europe, North America or the Asia.

It’s the goal of many UK start-ups, particularly those in technology, to expand into the likes of Europe, North America or the Asia.

The UK tech sector is one of the most thriving in the world, worth over $1 trillion, but the global market is expected to reach almost $12 trillion in the next two years. Nourished began as a small brand four years ago, with a unique approach to personalised wellbeing that I knew had international potential. We have now sold over 53 million units worldwide in countries including the US, France, Japan and Italy. I had tremendous faith in our 3D-printed nutrition gummies, but a good product isn’t enough to guarantee overseas success. Here’s what I’ve learnt about expanding internationally.

Take a gradual approach

It’s vital to establish a solid base in the UK before you consider new, bigger markets. Nourished sold 18,000 units before we attempted to sell abroad. This strong grounding gave us the confidence, experience and income stream to try somewhere new.

We took what we learned from the UK business and first entered the US market in September 2020. Though much larger than the UK, it has a similar culture and the same language, making the transition easier. Our experience of operating overseas grew, and we were able to target Japan, as well as France and Italy in 2023, and its high demand for innovative health solutions.

Gradual expansion meant that each new market received the attention it needed, and we didn’t dilute our efforts and resources. It also reduced financial and operational risks by spreading out investments.

When we expanded overseas, we took the time to thoroughly research and understand each unique market, tailoring our products to meet local needs, trends and tastes. By gathering customer feedback along the way, we’ve been able to refine and develop our offerings, ensuring they resonate before taking the next step in our global expansion.

 Get a strong partner

We were extremely fortunate to work with Suntory, a global leader in the drinks and health and wellness industry, to launch Nourished Japan in 2023. This gave us the local know-how and marketing strength to negotiate a complex marketplace. For Italy and France, we teamed up with the French pharmaceuticals giant UPSA and leveraged their heritage brand reputation and excellent distribution capabilities.

Local experts help you understand the best market-entry strategies and regulatory requirements. You get more insights into local consumer behaviour and preferences. Collaborations with established brands also added customer credibility to Nourished’s offerings.

Adapt your products to new markets

You may have a brilliant product or service that you feel meets a universal need, but one size doesn’t necessarily fit all. Working with our partners, we took the time to adapt products and marketing strategies to local preferences. For example, we introduced new ingredients and flavours tailored to the Japanese audience, such as Yuzu, a popular citrus fruit. We also adapted our marketing approach to include a physical presence, with a pop-up shop in one of Tokyo’s busiest districts, providing a hands-on experience with our products. 

European consumers are more likely to buy vitamins from pharmacies than they are in the UK. We did in-depth market analysis to assess the best-selling SKUs in the French and Italian markets, as well as extensive local consumer tests, to determine the biggest pain points amongst potential customers.

Tailor your marketing copy and imagery to local audiences, using relevant turns of phrase and cultural references. Research the best marketing and PR channels to use. Social media might work well in one country, but editorial coverage might be more effective in another.

Investigate local regulations around product ingredients, manufacturing and marketing thoroughly to avoid time-consuming or costly legal issues.  Some countries also have restrictions on the dosages of certain ingredients. 

Be flexible and innovate continuously

It can be a challenge to react to changes in UK market conditions, from new tax regimes to economic downturns and emerging competitors. That challenge is that much greater when you’re operating across several countries. Make sure you constantly research and keep up with the latest market trends, such as economic factors and laws, and be prepared to react quickly, utilising the expertise of your partners, where you can.

Nourished’s nutrition gummy stacks are 3D-printed and personalised for each customer, with up to six billion different vitamin and mineral combinations. We are, by nature, a very inventive brand. We are always reacting to customer feedback, market trends new 3rd-party scientific research to further develop our products.  Our Collagen+ range, for instance, was launched in recognition of the it’s increasing popularity and lack of vegetarian solutions.

Make sure customer service is strong

As a new, foreign brand, you need to build up trust with consumers. A robust customer-support system is vital to this. Respond to questions about products and deliveries quickly and in good detail. It’s important to be seen as an accessible, professional operation, not an overseas firm that may not be quite as reliable or legitimate as they say they are.

Consider using a local customer service agency, which will be able to react in the local time zone and speak the same language, authentically, as consumers.

ABOUT THE AUTHOR
Melissa Snover
Melissa Snover
RELATED ARTICLES







Share via
Copy link