Why Global Market Research is Essential Before Expanding Overseas

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Taking your business to a new market can be an exciting time, especially if you have a successful business seeing rapid growth in your own market.

There’s no denying the interconnectivity of the global economy, and it’s understandable why Australian businesses are increasingly looking beyond their shores for growth opportunities. The United States, with its vast consumer base and dynamic business environment, often emerges as a prime target for expansion. However, the journey from local success to international triumph is fraught with challenges. This is where global market research becomes not just beneficial but essential.

Despite achieving success in Australia or New Zealand, many businesses venturing overseas, particularly to the United States, can struggle to establish a foothold in the new market. According to the Bureau of Labor, about 20% of businesses go under after their first year in the US and 50% by their fifth year. 

The critical first step to avoid being a statistic is to really understand the new market. Set your brand up for success and avoid the pitfalls of targeting the wrong audience with the wrong message or product focus before you invest a single dollar in the expansion.

Table of Contents

Understanding the Importance of Global Market Research

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Global market research provides businesses with essential insights into new markets, helping them make informed decisions and develop effective strategies for international expansion. As we move throughout 2024, the need for comprehensive, actionable market intelligence has never been more important.

The Changing Landscape of Global Markets

The global market is constantly evolving, influenced by factors such as technological advancements, changing buyer preferences, and economic shifts. The COVID-19 pandemic, which began in 2020, has accelerated many of these changes, making up-to-date market research even more valuable.

From Australia to the US: A World of Difference

While Australia and the United States share some cultural similarities, their markets can be vastly different. From consumer behaviour to regulatory environments, understanding these differences is key to successful expansion.

Key Areas Where Global Market Research Makes a Difference

1. Consumer Behaviour and Preferences

One of the most important aspects of entering a new market is understanding local consumer behaviour. You need to ensure you are selling to the right people, in the right way at the right place. Ask yourself:

  • What is your competitive advantage?
  • How do you stand out from others in what could be a very crowded market?


US consumers may have different perspectives, buying habits, and expectations than their Australian counterparts.
In-depth market insights can reveal these nuances, helping you make better business decisions with customised research. 

2. Market Size and Growth Potential

Accurate forecasts of market size and growth potential are essential for strategic planning. Determine the growth potential, competitor environment, and whether it is the right market to enter at this time.

I know clients who want to go to the US, and I ask them – what coast, state, or even county will they enter first? Many are unsure. 

Global market research reports can provide a timely, detailed analysis of market conditions specific to your industry, helping businesses identify the most promising sectors and segments for their offerings.

3. Competitive Landscape

Every market has its unique competitive dynamics. You need to understand who the key players are in the marketplace, their share, and their strategies. The way you promote your product or service in Australia will be different from how you market it in the US. 

International market intelligence can provide a comprehensive overview of the competitive landscape, helping Australian businesses position themselves effectively in the US, or other markets. 

Our industry experts can help you inform your marketing communications and ensure you are speaking to your customers in a way that is relevant, engaging, and motivating to increase conversions. 

4. Regulatory Environment

The regulatory environment in the US (and other countries) can be complex and varies by state. Thorough in-depth analysis can help navigate these complexities, ensuring compliance and avoiding costly mistakes. 

5. Economic Factors

Economic indicators, inflation rates, and market conditions can significantly impact business success. Worldwide market forecasting provides insights into these factors, helping businesses anticipate challenges and opportunities.

We can also help you validate product market fit in a tough retail economy. This is vital in risk management for new market entry and avoiding the costly mistake of taking the wrong product or service into a market. 

Leveraging Cutting-Edge Research Methods

As we move further into 2024, the methods used in global market research are becoming increasingly sophisticated. Here are some cutting-edge approaches that are providing deeper, more actionable insights:

AI and Machine Learning for Global Industry Research

Artificial Intelligence (AI) and machine learning are revolutionising market research and innovation. These technologies can analyse vast amounts of data quickly, identifying patterns and trends that might be missed by human analysts. This leads to more accurate forecasts and deeper insights into market dynamics.

Big Data Analytics for Multinational Market Insights

The sheer volume of data available today is staggering. Big data analytics allows researchers to process and analyse this data, turning it into valuable market intelligence. This can include everything from social media sentiment analysis to real-time tracking of consumer behaviour.

ESG Considerations for Sustainable Expansion

As sustainability becomes increasingly important to consumers and investors alike, market research is evolving to include Environmental, Social, and Governance (ESG) factors. Understanding how these issues impact consumer choices and market trends is crucial for businesses looking to expand internationally.

The Impact of Global Market Research on Strategic Decisions

Armed with insights from global market research, businesses can make better, more informed strategic decisions. Here’s how:

Product Development and Adaptation for Cross-Border Retail Markets

Global industry research can reveal whether products need to be adapted for another country. This might involve changes to packaging, features, or even the core product itself to meet local preferences and regulations.

Global Consumer Economy Research for Pricing Strategies

Pricing is often a delicate balance between profitability and market competitiveness. Global market research can provide insights into pricing trends across the globe, consumer willingness to pay, and competitor pricing strategies, helping businesses find the right price point for the US market.

Marketing and Communication Strategies

Effective marketing often relies on understanding local cultural nuances and communication preferences. Market research can guide the development of marketing strategies that resonate with US consumers.

International Distribution and Supply Chain Management

The US is a large and diverse market with complex distribution networks. We can help identify the most effective distribution channels and highlight potential supply chain challenges.

Case Studies: Australian Success Stories in the US Market

To illustrate the power of global market research, let’s look at a few Australian companies that have successfully expanded into the US:

  1. Atlassian: This software company used market research to identify a gap in the US market for affordable, easy-to-use collaboration tools. Their insights led to a product strategy that resonated with US businesses.
  2. Billabong: The surfwear company leveraged international market trends analysis to understand US fashion trends and consumer preferences, allowing them to adapt their product line and marketing for the American market.
  3. Boost Juice: Before entering the US, Boost Juice conducted extensive research on American dietary preferences and the competitive landscape in the smoothie market. This led to a successful partnership strategy for US expansion.

We recently conducted a market sizing study for Honeysticks, a New Zealand children’s brand that wanted to understand its Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) before expanding into the US.

Through an online survey of US parents and from their CRM, Honeystick was able to obtain a clear understanding of the ‘size of the prize’ and where to target their marketing spend. 

Through upfront research and capturing first-party data specific to your brand, product, or service, you can significantly de-risk your market entry. 

This way you can build the business case with confidence and determine the cost-benefit ratio of entering that market.

How Insights Exchange Helps With Intercontinental Market Exploration

While some larger corporations may have in-house research capabilities, many Australian businesses benefit from partnering with specialised consultants when expanding internationally. 

At Insights Exchange, we have an extensive breadth of coverage, with staff in 7 countries ready to deliver you insightful and impactful data. Our team has:

  • Expertise in global markets
  • Access to proprietary data and analytics tools
  • Experience in conducting both qualitative and quantitative research
  • The ability to provide customised, actionable insights that will actually benefit your business

Looking Ahead: Market Research Trends for 2024 and Beyond

As we look to the future, several trends are shaping the field of global market research:

  1. Increased Focus on Real-Time Data: With markets changing rapidly, there’s a growing demand for real-time insights.
  2. Emphasis on Predictive Analytics: Beyond describing current market conditions, there’s a growing focus on predictive analytics to anticipate future outlooks.
  3. Greater Customisation: As businesses seek to stand out in crowded markets, there’s a shift towards more customised, granular research solutions.

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For Australian businesses looking to expand into the US market, global market research is not just a useful tool—it’s an absolute necessity. In an increasingly complex and fast paced global economy, the insights provided by thorough market research can mean the difference between success and failure.

By leveraging leading research methodologies, working with experienced consultants, and staying abreast of the latest market trends, Australian businesses can position themselves for success in the competitive US market. 

As we move further into 2024 and beyond, those companies that prioritise global market research will be best equipped to navigate the challenges and seize the opportunities of international expansion.

Remember, in the world of global business, knowledge truly is power. Invest in global market research, and arm your business with the actionable insights it needs to thrive on the international stage.