For brands seeking entry into the U.S. market, the highest degree of success with the lowest risk is found through partnering with established companies in the U.S. Brands need to understand their own facets and requirements to forge the right partnership here.
In the previous article, we talked about the paths and partnerships that brands usually take to enter the U.S. market: remote operations, traditional distribution, and owned local U.S. operations. Each of these models can be tweaked to best suit the brand in the context of its short versus long term goals.
BrandMX Option
From the brand’s perspective, we have established the following:
- Cost to enter the U.S. market is high: operations set-up, sales, marketing and brand-building mandate significant investments
- Time to build the sales network, if too long, could have diminishing returns: brands need to be in B2B, B2B2C, and B2C channels, i.e., “everywhere, all at once” to gather momentum and maximize their sales potential
- Risks of missteps and misalignments is high: logistics operators, distribution companies, marketing organizations (including trade shows), and legal/accounting experts abound in the U.S. market, however, it is a challenge to find the right partners, and sustain such relationships long-term
At BrandMX, we offer an option to help brands circumvent the many risks and expenses they face in their entry into the U.S. market. Our B2B marketplace is not yet another typical marketplace limited to connecting brands and buyers. We provide a full-service option for international brands: we import, warehouse, connect, sell, and fulfill orders. We act as an independent, yet vested partner, essentially an extension of the brand in the U.S.
We have an established omni-channel network and proven operational model. Our offering is viable for various categories of brands and is sustainable in the long run. Brands can minimize upfront investment, de-risk their entry into the U.S. market, realize sales within our established omni-channel network, and maximize reach, all while controlling their brand and positioning.
As seen below, BrandMX offers certain advantages vis-a-vis other paths of entry into the U.S. This comparative heatmap presentation is based on our experience in the U.S. specialty market, study of several international brands over the years, and our own value-added offering.
However, the BrandMX model is not for everyone. The curated profile of brands we work with have well-designed and manufactured products, proven sales in their own markets, premium retail price points in their respective product categories, and importantly, wide customer appeal. We onboard brands that complement, not compete with, our portfolio. Overall, it is essential that all our brands match our retailer and customer profile; only then will this be a win for the brands.