So, you're a successful European startup eyeing the US market? Fantastic! You've built a killer product, your website is sleek, revenues are above $1M and you're ready to crack the nut that is the biggest Western consumer market? You might think it's as simple as hitting "translate" on your Shopify store, shipping a container to a US warehouse, and boom – you're rolling in dollars. Not so fast! I've seen it firsthand, working with over 20 amazing brands over the past 5 years in the German Accelerator and Start 2 program. I helped brands like Trelino, heatIt, Blockhuette, Merula Cup, YouCandy, Koawach, and Skotti, navigate the choppy waters of US expansion. And let me tell you, it's more complicated than you probably imagine. Just like launching any new venture (something I dive into in my book "Dare to Launch"), US expansion requires strategy, nuance, the right network, and a whole lot more than just a language change.
Here are the top 5 mistakes I see European brands making:
1. The "Translate and Ship" Fallacy: This is the biggest one. Simply translating your website and product descriptions is not enough. You need to localize. Think about it: Does your brand messaging resonate with American consumers? Are your product names culturally appropriate? Do your marketing materials reflect US preferences? For example, with Merula, we had to consider how their minimalist, European-focused feature-focused branding was not going to excite the young female population in the US market. The sterile website has to become more colorful with a diverse group of women showing how they feel vs. what you would put on an engineering drawing of a menstrual cup. We worked on refining their value proposition to connect with the target US audience.
2. Ignoring the US Customer: Europeans and Americans have different buying habits, preferences, and expectations. Did you know that there are ~40,000 Dollar Stores in the US? You can't assume what works in your home market will work here. Customer segmentation is crucial. Who are your ideal US customers? Where do they shop? What are their pain points? With Trelino and heatIt, we dove deep into understanding the US outdoor recreation market to tailor their messaging and target the right customer segments. They also got to test their product at regional REIs.
3. Underestimating Logistics & Fulfillment: Shipping a container to a US warehouse is just the beginning. You need a robust fulfillment strategy. Understand Customes. Where should your warehouse(s) be located? How will you handle returns? What about sales tax compliance? These are critical questions that can make or break your US launch and change your pricing compared to your home market. I helped many brands explore different warehouse options and connect with logistics providers who specialized in handling their type of product from food and beverage brands to digital health products to Weber-sized BBQs hard to ship cost-effectively in the US.
4. Neglecting the Power of Partnerships: You can't go it alone. Building a strong network of partners is essential. This includes everything from branding and marketing agencies (I can make some great referrals!), to distributors, retailers, and even other founders who have successfully launched in the US. For Skotti, connecting them with outdoor enthusiasts and getting them ~20 beta testers was invaluable for their initial US market penetration. I also helped connect them with a General Manager when they needed a new one who had scaled outdoor brands and sold them to PE.
5. Thinking your own Shopify Store is everything: Compared to Germany for instance, Amazon is the go-to platform without any objections by consumers. In most cases, a listing on Amazon is the entry point into the US market. However, Simply listing your products won't guarantee sales. You need a solid Amazon strategy, including keyword optimization, compelling product listings, and effective advertising campaigns. And that doesn't mean you can forget about your own Shopify store! It's crucial to have a strong direct-to-consumer presence as well.
Expanding to the US is a marathon, not a sprint. It requires careful planning, strategic execution, and a willingness to adapt. Don't fall into the trap of thinking it's just about translation and shipping. Too many brands don't allocate resources and get discourages after they find out that their ROAS on channels like Facebook or Google is much lower
Your US expansion can be a huge success, but it takes more than just a "copy-paste" approach. Want to chat about your US expansion plans? Take a look at our 8-week online 3-week in-person Brand Xpand program tailored to the needs of European entrepreneurs starting to sell their products in the US. BrandXpand - APPLY NOW
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