Product Differentiation for International Markets

We have returned to Destin for the winter(picture below).

Our Tradewinds Council © https://www.jimthomasintl.com/the-tradewinds-councilcopy.html meetings in December and January will focus on new product development for export markets (accelerating global product launches and conducting global product road mapping).  This blog will deal with how an organization may need to modify a “US domestic” product to satisfy buyer needs and legal requirements in a foreign market.  Some companies will export domestic products without significant changes, and others may seek to develop differentiated products more acceptable to all markets.  Adapted products may need redesign, support literature changes or revised packaging (to meet labeling requirements) to maximize sales opportunities in export markets.

Product adaptations will increase costs.  You’ll have to calculate the incremental sales vs. these adaptation costs as well as understand your longer term commitment to the market. Do you want to be perceived as a US company selling a domestic product overseas or a global company meeting individual market needs?  Either option is OK depending upon your product and market strategy.

What might these product adaptations be?

• Electrical standards can vary widely between international markets. Knowing these requirements can lead to revised spec changes that will optimize the operating efficiency of the overall product functionality.
• Metric product engineering measurements should also be provided so that integration with other pieces of equipment can occur seamlessly.
• Brand recognition may be important to your product. If it is important use your brand name and ensure your trademark is registered. You should assess whether a new brand or private label would enhance your product in overseas countries where your brand is not established.
• Product certification or regulatory approval may be different overseas vs. US e.g. UL testing and should be noted in your literature and perhaps your packaging.
• Consider whether labels or product instructions must be produced in local language or required by law.
  • Is information on product content required in that market?
  • Does country of origin information need to be provided with import documentation and packaging. 

Other product related considerations that should be made include:

• Product installation.
  • Are there qualified technicians available to make product start up easier? Are they at the end user or at your channel partner? How will they find your installation instructions?
  • Are local language web instructions available to the installing tech?
  • Should products be assembled before export in modules for easier installation?
  • Local language product information including training specs, training manuals, installation instructions and replacement parts lists should be easily available.
• Warranty
  • Is your warranty the same as your domestic warranty?
  • Detail your returned goods policy and practice because reexport costs may be significant.
  • Is there a service warranty? Service expectations in export markets may be higher than what we experience in the US.

These are a few of the simple questions and concerns to address prior to exporting.  It is always better to prepare for these needs up front rather than addressing them after product introduction and buyer first impressions are made.

Do you want to have a free fifteen-minute call on improving your current products sold overseas?  Sign up on my web site or contact me directly by phone.

For the season of Thanksgiving, I am especially thankful this year.  It has been over six months since my last blog.  I took a timeout for the hardest fight of my life-seven weeks of throat cancer treatments.  I’m happy to report as of October 29th, I am throat cancer free.  Lots of gratitude for family, friends and Mayo Clinic https://www.mayoclinic.org/diseases-conditions/head-and-neck-cancers/care-at-mayo-clinic/mac-20354174.  There will be some lifestyle adjustments, however, normal activities have resumed.  I will restart protocol for a bone marrow transplant to treat multiple myeloma tentatively scheduled 2Q 2020.  And as always-Good Selling!

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