Driven by the needs of clients with a global presence, more promo companies are doing business internationally, a phenomenon facilitated by everything from partnerships with overseas counterparts to key acquisitions of industry firms in foreign countries, particularly in Europe.
A trio of promo C-suiters (all on the just-released Counselor Power 50 list) whose firms do extensive business internationally took to the stage at the ASI Power Summit on Tuesday, Oct. 15, to discuss their reasons for going global, the opportunities international expansion presents and the many difficulties in conducting business overseas.
The panel included: Debbie Abergel, chief strategy officer of Counselor Top 40 distributor Nadel (asi/279600); Heather Smartt, CEO of Top 40 supplier Goldstar (asi/73295); and Carleen Gray, CEO of apparel decorating powerhouse GroupeSTAHL (asi/88984). Michele Bell, ASI’s senior vice president of content and global alliances, hosted.
The panel offered practical insights into what it takes to do promo business on the international stage. A top tip? Know the labor and employment laws of each nation you’re operating in, as they can be vastly different than in the United States. Requirements, for instance, when letting someone go or the hiring process can vary and be more stringently regulated.
Another key takeaway? You must tailor a strategic go-to-market plan for each nation in which you intend to do business. Sometimes, the approach must be modified within a single nation’s borders, given cultural differences. “How we go to market in northern France and Paris is different than how we go to market in southern France,” said Smartt, an American expat who’s lived abroad for a decade and a half and recently took over the lead role at Goldstar.
It’s also important to understand the cultural mores – the way people interact when doing business. In certain European countries, the let’s-get-down-to-business approach in America can come off as rude and overly aggressive.
Meanwhile, be prepared to put boots on the ground abroad. “If you decide to go global, you need to have senior members of the leadership team make the time investment to be where you’re operating,” said Abergel. By way of example, either Abergel or fellow Counselor Power 50 member (and Nadel CEO) Craig Nadel visit the distributor’s U.K. office once every four to six weeks.
It’s also essential to be well-versed on laws pertaining to everything from sustainability-related regulations to taxes and importing in each specific country. And, while it can all be a lot of work, there are potential sizeable benefits.
“It can be a back-and-forth win-win,” said Gray, “where opportunities you develop in one market lead to opportunities back home and vice versa.”
