Every year, thousands of businesses make the same costly mistake: assuming home market success will translate overseas. Within months, many burn through hundreds of thousands of dollars with little to show for it.
Roughly 70% of companies that expand internationally without proper research either fail or severely underperform. The solution? Investing in global market research services through a qualified global market research firm before making your move.
International expansion sounds exciting on paper. New customers, bigger revenue, brand recognition across borders. But the truth is that about 70% of companies that go global without proper research end up either failing completely or severely underperforming. Such a risk is not worth taking.
Understanding the Hidden Costs of International Expansion
Expanding to a foreign country means more than just dealing with a different location. It is essentially entering a different playing field with new rules, different competitors, customer expectations, and cultural codes that are not apparent from the outside.
Here’s what most companies get wrong when they skip professional research:
- Pricing missteps – What seems mid-range at home might position you as luxury or cheap elsewhere
- Hidden competition – Local brands dominating market share that you didn’t know existed
- Cultural blind spots – Marketing messages that fall flat or accidentally offend
- Distribution disasters – Choosing channels that don’t work in that specific market
- Regulatory nightmares – Compliance issues that halt operations and drain resources
A global market research firm can tell you exactly where you need to be positioned before you print a single price tag or sign a lease.
Core Capabilities of Global Market Research Services
A global market research firm doesn’t just hand you statistics. They become your eyes and ears in a market where you’re essentially blind.
Here’s what they deliver:
- Market validation – Confirming real demand exists before you invest
- Competitive intelligence – Identifying all players, their strengths, and market gaps
- Customer insights – Understanding how buying decisions actually happen through market research surveys and interviews
- Regulatory guidance – Navigating compliance requirements and certifications
- Cultural analysis – Spotting opportunities and avoiding costly mistakes
- Entry strategy – Recommending the best approach based on real data
With better knowledge obtained through this type of market research, the likelihood of making costly mistakes decreases, such as using packaging that could offend someone from a different culture or developing marketing strategies that miss the mark with the target audience.
Understanding the Investment and Risk
Here’s something that should grab your attention: companies that invest in global market research services before expanding internationally are three times more likely to achieve their revenue targets within the first two years.
Professional global market research services require a meaningful investment, but this should be viewed in context. The cost of comprehensive research typically represents a small percentage of your total expansion budget—usually between 2-10%—while failed international expansions can result in significantly higher losses due to wasted investment, opportunity costs, and brand damage.
Think of it strategically: you’re allocating a modest portion of your budget to protect the majority of your investment. This isn’t an expense—it’s risk mitigation that dramatically improves your probability of success.
The Value of On-Ground Intelligence
An authentic international company that specializes in global market research firms relies on their field staff engaging with real customers and observing their behaviour at retail locations. They do not rely on out-dated information from several months ago; instead, they use information provided by their field staff via first-hand experience, as well as qualitative research conducted in focus groups, and ultimately, conducting quantitative surveys of the targeted market that shows what the consumer does versus how they articulate the behaviours to an interviewer (as an example).
Critical Areas of Market Intelligence
- Market Size and Growth Trajectory: urrent market size should not be the only factor to consider. Growth rates and future projections must also be evaluated. A smaller market with strong growth potential may be a better source of opportunities than a large market that is stagnant.
- Regulatory Environment: Every country has its own set of requirements for product standards, labeling, and certifications. If you overlook these details, it can delay your launch by months or you can suffer from costly compliance violations.
- Distribution Infrastructure: The way products get to customers can be very different from one market to another. Factors such as e, commerce penetration, retail consolidation, and payment preferences influence your strategy.
- Competitive Positioning: Knowing who your competitors are will help you discover the areas where the market is not saturated. Sometimes, the largest competitor is not the one you would have expected based on your home market experience.
Strategic Timing for Market Research Initiatives
A global market research company should be brought in at least 12, 18 months before the launch that you have planned. Rushing decisions will not be necessary as you will have time to use the insights strategically. Find out which market you want to enter by letting the research guide you and not by deciding on your own. Usually, the research goes through different stages: brief market screening, detailed study, and strategy creation. By starting it early, you will have the possibility to change your mind if the research uncovers some unexpected difficulties or better opportunities.
Making Informed Expansion Decisions
Expanding internationally without professional research is like taking a trip to an Although there is a lot of uncertainty involved in an international expansion, making informed decisions regarding international expansion increases your chances of success. Working with a global market research company allows you to allocate resources wisely and maximize the potential for success for your expansion. The data is conclusive; companies that conduct international market research prior to their expansion will reach their revenue target much quicker than those who do not conduct international market research.
Conclusion
unknown place with a blindfold on. Sure, some people may stumble upon a successful trip, but for the majority, it doesn’t work that way. Many of the top businesses in their industry spend time learning their customers and markets before they take action. They partner with experts who provide the insights needed to avoid expensive mistakes and accelerate growt. Your next market could be your biggest opportunity or costliest mistake. The difference? Choosing to invest in knowledge before capital.
Do you want to confidently expand into new markets? We provide you with complete global market research services to help you turn uncertainty into actionable strategy. Contact us today to schedule a consultation to learn how proper market intelligence can help you grow internationally.