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Black businesses need continuous patronage to survive. To keep the ball rolling, there may come a time when you need to look beyond your locality and tap into the global market. Penetrating the global market is a big step. Even big brands generating seven figures don’t find it easy.
But the reward is mouth-watering. Here are the six ideal ways black-owned businesses can penetrate the global market.
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Use Piggybacking
This is a cost-effective and swift global market penetration strategy that black businesses can use to grow. The piggybacking market penetration strategy involves asking non-competing businesses to add your products to their overseas inventory.
If they agree, you and the company will share the profit for every sale made. Piggybacking marketing is perfect for businesses that have contacts with brands selling abroad. There are business expansion guides on Amazon that can help you learn more about piggybacking and how to implement the strategy effectively.
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Licensing
Black-owned businesses can use licensing as a marketing strategy to penetrate the global market. If, as a black business, you have a product in high demand, you can find another brand with a large customer base and issue them a license to sell your product.
For example, a black-owned movie production company can sell another black school supply brand the right to use images of film characters on notebooks, lunchboxes, and backpacks. The good thing about this strategy is that it requires little investment and can bring a high return on investment (ROI).
Engage in Joint ventures
A joint venture market penetration strategy is usually a partnership between domestic and foreign brands. Both businesses will invest funds share control, and ownership.
The foreign business partner provides connections, expertise, and access to the new market. With that in mind, you need to carefully pick your partner and ensure that you include everything that will guide the partnership in the agreement. These include how the businesses will run, the amount each party will invest, and how the profits will be shared.
Start Selling Online
This is the easiest way for black-owned businesses to penetrate the global market. Generally, all you need is a secure payment method and a reliable way to deliver the products to the buyers.
However, selling online requires good Internet marketing strategies to help put your business in front of your target customers. As such, you’ll need to invest in online marketing.
This might include creating viral social media content, building an email list, and optimizing your website for keywords that target specific locations. The good thing is that most of these strategies aren’t hard to implement. With the right guides, you can easily start using them for your business. Get online marketing guides on Amazon if you’re unsure about how to start.
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Seek to Export
Another ideal way black businesses can extend their business reach is by entering a new market with the help of local distributors. This method works pretty well because your chosen local distributors will bring their knowledge of their local market.
Well-known and established local distributors usually have a full contact list of wholesalers and retailers who will buy the products immediately after they arrive. Most times, local wholesalers and retailers even place orders before the products arrive. Several global businesses operate in this manner.
Adopt Franchising
This market penetration strategy is like licensing but needs a lot more heavy lifting. It’ll work well for you as a black-owned business if you have strong brand recognition. For example, businesses like Starbucks and McDonald’s use franchising to expand their businesses globally.
A franchise is a chain retail business where a group buyer or an individual pays to manage a brand’s branch on the brand behalf. This strategy was usually popular in North America, but it’s now used globally.
Black businesses can use it to expand their business use globally. The most appealing thing about this strategy is that it offers businesses a way to make a profit while taking an indirect business management approach.
Market penetration strategies provide black entrepreneurs and businesses the roadmap to expand their reach and tap into other markets. As a black-owned company, you can use the six strategies to expand your business reach. You also get one or two business expansion books on Amazon to learn about other strategies we didn’t cover here.
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