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Long road: entering new markets is not easy and time-consuming, but patience and investment are rewarded

20/ 05/ 2024
    Foreign markets, key mistakes and lessons learned when entering new markets, basic tips - these were the topics discussed at the Exporters: Talk & Network event organized by the European Business Association in cooperation with OTP Bank last week. In particular, Sergiy Shakalov, founder of KNESS, Igor Blystiv, Marketing and Innovation Director at Kormotech, and Dmytro Kazavchynsky, CEO of CLIXAR, shared their experience. Thus, the KNESS representative emphasized that the company had various options for cooperation at the beginning of the office opening: a person to coordinate it, a partner. The company has opened offices in Poland and Latvia, however, the next offices will be planned differently. CLIXAR operates in more than 80 markets, and does not relocate from Ukraine as a matter of principle. View the presentation Kormotech started its first exports in 2011-2012, with Moldova, Belarus, Russia, and other markets among the first. However, in 2014, the company decided that it was time to reorient to European markets. View the presentation So, the key insights from the speakers are as follows: Knowledge of the local language is important and sometimes crucial. For example, in Ukraine, many more people know English than in Poland. There are also difficulties with highly qualified personnel. Perhaps the situation is not as difficult as it is in Ukraine today, but there are still issues, because people migrate. It is worthwhile to enter an “empty” market with a product, or with the product that will provide the greatest recognition or help to build trust in the best way. The key challenges today are the following: logistics (because if a truck delivers products in a month instead of a week, the contract is likely to be broken), human resources, in particular, due to mobilization and migration, etc. Entering markets depends on the product and the team, because each market has completely different strategies and tools, and you need to be ready to change your strategy several times in the same market. Therefore, you should first choose a market to work in, and only then choose the tools for launching, developing, and working. By the way, specialized agencies may not always be effective for a business in terms of launching in a new market. Some markets may be good for training, but not for making money (especially those that are geographically close to Ukraine). It is very important to understand the culture of the market in order to choose the right approach for it (for example, in the Lithuanian market, people work well by instructions, but if there are no instructions, it is very unlikely that responsibility for a certain decision will be taken; in the Polish market, the level of discount plays a huge role; in the Romanian market, the level of promises is very high, etc.) Therefore, before entering a particular market, it may be useful to have a training on intercultural communication. In no case should you focus on several products in a new market, as this reduces efficiency and loses your competitive advantage. Finally, all the speakers summarized that entering new markets is a difficult and very long process, and you should be prepared for it at the beginning in order not to be disappointed and demotivated. Therefore, you should be patient and ready for hard work, especially at the beginning and even if the product is of high quality. Because the issues of workplace culture, trust, and reputation take time to develop. We sincerely thank the speaker for interesting insights, useful lessons and advice. Special thanks to OTP Bank for cooperation!
01/

 

Foreign markets, key mistakes and lessons learned when entering new markets, basic tips – these were the topics discussed at the Exporters: Talk & Network event organized by the European Business Association in cooperation with OTP Bank last week.

In particular, Sergiy Shakalov, founder of KNESS, Igor Blystiv, Marketing and Innovation Director at Kormotech, and Dmytro Kazavchynsky, CEO of CLIXAR, shared their experience.

Thus, the KNESS representative emphasized that the company had various options for cooperation at the beginning of the office opening: a person to coordinate it, a partner. The company has opened offices in Poland and Latvia, however, the next offices will be planned differently.

CLIXAR operates in more than 80 markets, and does not relocate from Ukraine as a matter of principle.

View the presentation

Kormotech started its first exports in 2011-2012, with Moldova, Belarus, Russia, and other markets among the first. However, in 2014, the company decided that it was time to reorient to European markets.

View the presentation

So, the key insights from the speakers are as follows:

  • Knowledge of the local language is important and sometimes crucial. For example, in Ukraine, many more people know English than in Poland.
  • There are also difficulties with highly qualified personnel. Perhaps the situation is not as difficult as it is in Ukraine today, but there are still issues, because people migrate.
  • It is worthwhile to enter an “empty” market with a product, or with the product that will provide the greatest recognition or help to build trust in the best way.
  • The key challenges today are the following: logistics (because if a truck delivers products in a month instead of a week, the contract is likely to be broken), human resources, in particular, due to mobilization and migration, etc.
  • Entering markets depends on the product and the team, because each market has completely different strategies and tools, and you need to be ready to change your strategy several times in the same market. Therefore, you should first choose a market to work in, and only then choose the tools for launching, developing, and working. By the way, specialized agencies may not always be effective for a business in terms of launching in a new market.
  • Some markets may be good for training, but not for making money (especially those that are geographically close to Ukraine).
  • It is very important to understand the culture of the market in order to choose the right approach for it (for example, in the Lithuanian market, people work well by instructions, but if there are no instructions, it is very unlikely that responsibility for a certain decision will be taken; in the Polish market, the level of discount plays a huge role; in the Romanian market, the level of promises is very high, etc.) Therefore, before entering a particular market, it may be useful to have a training on intercultural communication.
  • In no case should you focus on several products in a new market, as this reduces efficiency and loses your competitive advantage.

Finally, all the speakers summarized that entering new markets is a difficult and very long process, and you should be prepared for it at the beginning in order not to be disappointed and demotivated. Therefore, you should be patient and ready for hard work, especially at the beginning and even if the product is of high quality. Because the issues of workplace culture, trust, and reputation take time to develop.

We sincerely thank the speaker for interesting insights, useful lessons and advice. Special thanks to OTP Bank for cooperation!

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