No matter what market a brand is deciding to enter, it is never easy. Each week I will be choosing a brand to focus on and discuss how they made their big break into the European market. Before going down that path, I wanted to first research how exactly a brand successfully enters the European market. I read many articles and found paralleling parts across each. I have compiled some steps into a successful market crossover from the United States to Europe.
Step 1: Make sure the company has assessed all its options. Retail spaces in most European countries (Paris for example) are expensive and the company needs to ensure it has the funds to survive their initial entry.
Step 2: Look at if your sales in either a direct or indirect way. This means can your product benefit from the means and scale of a European distributor.
Step 3: CREATE CREATIVE ACTIVITIES into your investment model. It is important for the American brand to hire a European PR company to help get the brand out there.
Step 4: Oddly enough, the articles I read about stressed about knowing the company’s employee and corporate taxes before you enter their market. The taxes vary across Europe. Ireland, Switzerland and Luxembourg offer superior taxes. They are typically set at 10% less to attract companies. UK, Germany and France are typically the most sought after due to their sizes. The UK is usually the most popular choice for many European entries.
Step 5: Think about if the company’s value will be the same in Europe as the United States. The brand must be something new and innovative to enter the European market and gain brand loyalty and attraction right away.