How to customise your exports
It’s rare to find an exporter that sells the exact same product or service in their international markets in the exact same way they do in Australia. Here’s how to customise your exports to suit your destination markets for better sales.
Every exporter knows they need to heed cultural differences to succeed overseas. Even exporting to New Zealand, often thought very similar to Australia, requires a cultural understanding of the market and business environment there, for example with regard to its Maori heritage. The worst thing you could do is assume that the market is similar, and blunder your way in.
So whether you’re looking to alter your product or service to make it more suitable in an overseas destination, change your marketing to better communicate with potential customers in a specific country, or learn more about doing business to avoid etiquette mistakes, customisation is the name of the game.
“The key to successful entry into an international market is not only knowing when to compromise and adapt, but knowing when to stand firm,” says Amit Mehta, consultant at DC Strategy. He says many businesses underestimate the power of local culture in its ability to make or break its global ascent.
Mehta uses an 80/20 rule whereby 80 percent of the business—containing the core values of the company—must remain untouched, whereas “the remaining 20 percent should be adjusted to capitalise on the unique facets of the local market”.
One example he uses is fast food chain McDonald’s, which conquered non-beef-eating nation India, despite its fame as a beef hamburger restaurant. McDonald’s realised that selling beef hamburgers was not its core business, it was actually “the systems, processes, marketing campaigns and vibrant fit-outs” that made the business work, says Mehta.
The chain happily changed the menu to suit the local palate, offering the Maharaja Mac, a chicken-based version of the ‘two all-beef patties’ Big Mac. “McDonald’s has taken every element that makes the business successful and adjusted the offer such that the core of the brand is not lost, but the nuances of the local market are catered for,” explains Mehta.
Set the standard
Quality standards and other regulations that may apply to your business, products or services could be a cause for customisation. Some markets may even use these standards and regulations as an unofficial trade barrier, so be aware that paperwork could be difficult and the bureaucracy process a hindrance.
One poignant example of how regulations could affect your business is the recent Russian ban on kangaroo meat. Earlier this year, Russian supervisory body Rosselkhoznadzor had “concerns of bacterial contamination” according to spokesperson Alexei Alexsenko. “We had quite a few shipments of kangaroo meat infected with [E. coli] bacteria, which is absolutely prohibited by Russian law and regulations.” The ban came into effect on August 1 and—since 70 percent of roo meat exports went to Russia—brought the industry to its knees.
Could the industry have avoided its fate? Perhaps if the harvesting of roo meat were more systemised to ensure the supply was free of E. coli, the sector would still be selling to Russia.
Services may also need customisation to suit a country’s standards and regulations. There are licensing requirements that apply to legal practitioners in each jurisdiction, for example, that may restrict either where they practise or how they practise. Lawyers may need to undergo a conversion test, or may need to work alongside a practitioner who has qualifications from that jurisdiction to operate their practice.
Mind your language
Linguistic customisation is often the most obvious change you may need to make, which could include translating everything from ingredient lists to place of origin tags, instructions to marketing material. Even in English-speaking countries you may be obliged to provide translations: for example in Canada, even if you are not selling to the French-speaking province of Quebec, you must have written material in both English and French.
Even if you have no legal obligation to translate material, it may make good market sense. In southern parts of the USA, for instance, having material in Latin American Spanish as well as American English may extend your market because of the region’s large Hispanic population. The other thing to watch is the dialect of language you use. In the example given, I cited Latin American-Spanish, which differs from European Spanish, and also American English, which differs from Australian English.
Awareness of these differences will prevent translation mistakes and marketing gaffes. One interesting case was Mitsubishi, which had to rename its Pajero for Spanish-speaking regions because it meant ‘masturbating man’. It was instead marketed as the Montero.
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