The Ultimate Guide to Foreign Market Research.
Episode 45. Start Global Insights – podcast for exporters.
Many companies jump into new territories without proper foreign market research, leading to costly missteps. Relying on intuition rather than data can leave your international sales efforts feeling like a guessing game.
Many perceive market analysis as a difficult task reserved for large corporations. However, in a recent episode of Start Global Insights, it’s host Dmytro Shvets sat down with Olga Gvozdyova, an advisor to the director at the Entrepreneurship and Export Promotion office in Ukraine, to bust this myth. Olga, with her extensive experience in market intelligence and international trade development, shared invaluable insights and practical tips for businesses of all sizes looking to navigate the complexities of global markets.
Listen to the full episode at Apple Podcasts, Spotify and YouTube Music.
The Cost of Neglecting Foreign Market Research
Olga highlighted a common scenario: companies, especially those just starting to export, often request a list of potential partners without understanding the critical need for prior market research. While some initially dismiss the idea, they frequently return later, realizing that proper research could have saved them significant time and money.
A striking example Olga shared involved a Kyiv restaurant planning to open in Warsaw. They assumed Polish consumers in Warsaw would have the same dining habits as Ukrainians in Kyiv, basing their financial estimations on this faulty premise. This proved to be a costly mistake, as Ukrainian consumers tend to view restaurant visits as small celebrations, ordering generously, while Warsaw consumers often opt for business lunches or solo meals, ordering less. This story perfectly illustrates why pre-emptive research is essential.
A Practical Framework for Market Exploration
So, how can businesses approach market research without it feeling overwhelming? Olga suggests a systematic, multi-step process, emphasizing that “you are not alone” and much information is already available.
Seek Assistance: Start by identifying organizations that can help. Olga recommends reaching out to export promotion offices, Chambers of Commerce, and sectoral associations, as they often have existing market information.
Start with Desk Research (Secondary Research): This involves looking for information that is already publicly available online. Olga proposes focusing on several key areas:
Market Overview: Understand the market size, potential, and any economic or political trends that could impact your product or service.
Consumers: Research consumer behaviors, how they differ from your home country, current trends, and demographic situations.
Competitors: Analyze their products or services, their range, strengths, weaknesses, certifications, and sales methods.
Market Barriers: Identify potential obstacles like import tariffs, quotas, specific legislation, additional voluntary standards, and cultural differences.
Uncovering Valuable Data: Olga’s Top Resources for foreign market research
Olga shared a wealth of resources, both free and paid, that her team utilizes daily:
International Organizations:
World Bank Data: Excellent for unified information on GDP and demography.
Trade Map: A free and simple-to-use tool for researching export and import trade volumes. Olga believes every future export manager should learn to use it.
Specialized Databases:
Passport (Euromonitor): A powerful, though expensive, database for local consumption data and unified market information.
Statista: Offers partially free access and is great for providing different resources, including local and international data, and consumer surveys for creating customer profiles.
Industry-Specific Sources:
Associations: Many associations, especially in Europe and North America, publish extensive research on their respective sectors, including consumption data, forecasts, and trends.
Sectoral Media: Industry-specific publications and websites often provide deep insights through expert interviews, forecasts, and analysis (e.g., Furniture Today for the US furniture market).
Reports by “Big Four” and Consulting Firms: Companies like McKinsey often release interesting public reports with valuable market information.
Government & Public Data for market research:
Export Promotion Offices: Olga mentions resources like great.gov.uk (UK), export.gov (US), and the Australian office for their comprehensive information, guides, and insights into potential niches.
Import Promotion Organizations (Europe): Open Trade Gate Sweden and CBI.eu offer research on European markets, including demand, regulation, and tips on finding buyers.
Yearly Reports of Stock-Listed Companies: These public reports often include market research conducted for their international expansion strategies. Tools like Edgar in the US can search through these reports by keywords.
Government Tenders: Public tenders, especially in the EU, provide details on requirements, winning companies (potential competitors or partners), and market demands.
Digital Tools:
Google Ads Transparency: Allows you to analyze competitors’ advertising messages and imagery to understand their product positioning.
Online Supermarket Stores: Many supermarkets have online platforms where you can check prices, packaging, ingredients, claims (e.g., natural, vegan), and certifications.
Mintel: While not free, their blogs offer insights into consumer behaviors and tastes across different regions.
AI (Artificial Intelligence): Olga notes AI can be a “very good starting point” for finding local sources, associations, and competitors, though she cautions to always cross-check the information.
Beyond the Desk: The Power of Field Research
While desk research is foundational, Olga stresses the importance of combining it with field research.
Interviews: Engage with potential consumers and partners. The key is to ask open-ended questions that deepen existing knowledge and test hypotheses, avoiding questions you could easily answer online.
Trade Shows: View trade shows as more than just B2B opportunities. Encourage employees to actively explore competitor booths, observe trends, and gather intelligence, even trying competitors’ products.
Store Checks: For physical products, visiting supermarkets or local markets provides direct insights into what’s selling, packaging, and local preferences.
Navigating Information Overload
With so much data available, it’s easy to fall into “analysis paralysis”. Olga offers practical advice:
Prioritize Usefulness: Focus on information that will directly help you adapt your strategy for the target market.
Leverage AI for Summarization: Use AI to condense lengthy reports and extract key messages relevant to your product.
Build a Resource Library: Create a personal library of reliable resources, especially those updated annually, to facilitate ongoing research and strategy adjustments.
Continuous cycle
Ultimately, market research should be viewed as a continuous cycle, not a one-time event. The information gathered not only guides initial entry but also helps identify new niches, refine strategies, and even empower local partners by sharing valuable market insights. Olga shared a compelling example of a gluten-free product client who used their research as an “advocacy tool” to demonstrate market growth to a retailer, securing a partnership.
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By embracing a strategic and persistent approach to market research, businesses can confidently navigate the global landscape, turning perceived complexities into clear pathways for international success.
