Difficulties in the bureaucratic field: what are the mistakes to avoid upon arrival in the USA
Undertaking an internationalization process allows Italian excellences to seize important opportunities for development and growth for the company. However, one of the main problems faced by Italian SMEs is related to bureaucratic difficulties.
One of the fundamental things to be managed upon arrival in the States, in fact, is precisely this aspect. Often Italian entrepreneurs, while aware of the potential of the product they are going to offer, are held back by concerns related to the difference in regulations and rules for the expansion of their business. What are the mistakes to avoid in order to overcome obstacles related to the scope of corporate internationalization? Let's find out together.
1. Packing of your product
One of the first risks that the entrepreneur might encounter is an incorrect analysis of his product. As well as requiring licences for certain types of imports, several United States agencies have special marking and labelling rules. If your shipments do not comply with them, your exports may not be allowed to cross the border.
Due to the lack of knowledge of the American market, certain entrepreneurs are convinced that it is enough to label their products as "Made in Italy" to impress US investors, although Italian products are very popular in the USA, and there are numerous attempts of counterfeiting (i.e. fake Italian food) and to undermine the portion of the market dedicated to local products as well.
We must remember that the correct labeling and packaging of products (with the consequent documentation) are essential for the success of internationalization and the true expansion of Italian excellence.
2. Preliminary study for positioning
Another mistake is not do perform a preliminary study on the possible competition already present that could offer the same services. Conducting a Market Analysis can be very helpful in determining the advantages and disadvantages of setting up business in specific countries.
Plan your market entry and evaluate your market position. You’re very familiar with your position in your current market, but you’ll need to consider your positioning in international markets. Evaluate the competition and their positioning to help you find your own place. Consider your targets.
Due to differences in consumer taste, lifestyle, and spending, you may need to target different customers internationally than you do at home. Take a close look at geographical, demographic, psychographic, and behavioural data as you narrow in on your target customer base. The United States is the greatest example of Melting Pot in the world. In this country so many ethnic groups live together with different tastes and habits, that it becomes necessary consequently to understand how to position their product on the market.
3. Documents and permits: rely on an expert
In today’s competitive market, it is important to recognize that U.S. importers and distributors are tenaciously trying to minimize risk. F
or international brands trying to find new partners, it can be very difficult to penetrate the market as each potential partner will scrutinize their brands to ensure that they are positioned to sell through and guarantee repeat inventory orders. An export provides them assurances and understands what it means to be successful in the US market and has the necessary resources to implement a winning go-to market strategy. With proper preparation and guidance, the US market can be a lucrative business venture for international brand owners.
You should look at hiring internationalization company such as Strategy International, who not only knows and understands the US market, but also has a deep experience managing import brand introductions. While some professionals may think they understand the US market, they may not be practiced in managing all the challenges import brands face.
In order to be credible in this large market, the importance of the documents and permits necessary for the sale must not be underestimated. With the help of a trusted partner, all bureaucratic barriers an entrepreneur can imagine, dissolve: their products will be free to circulate on the American territory thanks to the collaborative support of competent staff. An example? Read the article "With SI-Log Network seize the best opportunities on the US market".
In conclusion, it is normal that an Italian entrepreneur, wanting to internationalize his business on the American market to feel a little overwhelmed and intimidated by the bureaucratic difficulties he might have to face. Although the US bureaucracy is less complex than the Italian one, it is necessary to fulfill the obligations efficiently. Relying on a competent partner is the best solution to overcome these barriers and bring your business overseas.
Want to know more about internationalization? Click on the button below and read our success story: an Italian company in the food sector that has opened its own market in the United States!