Issues faced by international marketers in distribution of goods

What is International Marketing?

International marketing is the practice of selling, and distributing goods and services internationally in order to satisfy the needs of diverse worldwide markets.

In order to engage with customers successfully around the world, marketing tactics must be modified to fit various economic, cultural, political, and legal environment. In order to increase their reach, establish their brand, and obtain a competitive edge in the global market, businesses use market research and customise their offers. (More)

Issues faced by international marketers in distribution of goods

When you setup business or trade to a different country it comes with some challenges and variations in infrastructure, laws, and customer expectations, overseas markets present a special set of difficulties for distribution of product just because to protect the local consumers and local market.

In order to ensure seamless product distribution across borders, these are some difficulty faced by international marketers:

1. Regulatory and Legal Barriers

Governments and other regulatory agencies set regulations and limitations known as regulatory and legal barriers.

Companies must adjust to different import/export regulations, product standards, and licensing requirements in different nations. 

Any non compliance of rules may leads to fines or legal consequences.

Example: In order to comply with local food safety requirements, a food company expanding to a new nation might need to reformulate its product.

2.  High Transportation and Tariff Costs

Transportation cost is defined to be the cost of moving goods from place to place, whereas, Tariffs are taxes charged on goods bought from other countries.

 

Long-distance freight transportation is very expensive, and that's before municipal taxes, import taxes, and tariffs are added. Furthermore, exchange rates, or changes in currency values, might cause costs to unexpectedly exceed expectations.

Example: lets suppose Indian rupee becomes weaker against the US dollar, it becomes more expensive for an Indian company to import machinery from the USA.

3. Weak Infrastructure in Some Countries

Infrastructure is described as the underlying physical systems of a firm, region, or nation, and it frequently involves the creation of public goods or manufacturing operations.

In some locations, warehouses may lack adequate facilities, ports may be small or congested, and roads may be in poor condition. This makes timely and safe delivery of goods more difficult. 

For instance, if there are insufficient cold storage facilities to keep the products fresh throughout transportation, a company that sells frozen seafood to remote areas of Africa may encounter difficulties.

4. Political and Economic Uncertainty

Deliveries may be unexpectedly blocked or delayed by political disputes, new trade regulations, or changes in governmental policies. Slowdowns in the economy can also lower demand, which forces businesses to modify their supply strategies. 

For instance, in the event of a trade dispute between two nations, one may suddenly raise tariffs on specific goods, rendering them unaffordable for consumers.

5. Complicated Transportation and Supply Chains

Road, rail, air, and sea are the main transport options in supply chains. 

Getting goods from one country to another often means using ships, airplanes, trucks, and warehouses along the way. Each step has to be well-planned. If one step is delayed — such as a ship stuck at a port — the entire delivery gets pushed back.

For instance, a sports shoe company shipping goods from Vietnam to the United States may have weeks-long delays due to unfavourable maritime weather or a lack of cargo containers.

6. Managing Stock in Many Countries

It's challenging to maintain the proper supply levels in every nation. Money is spent when there is too much stock, and sales are lost when there is too little. Because each market has its own unique seasons, trends, and events, it is more difficult to forecast demand.

Example: A clothing brand might sell winter jackets in Canada while selling summer clothes in Australia at the same time. Managing these differences requires careful planning.

7. Relying on Local Partners

Numerous multinational corporations rely on regional distributors to manage sales and delivery. The company's reputation in that nation may suffer if these partners perform poorly. 

For instance, if a luxury perfume brand's local distributor in another nation offers subpar customer service or distributes expired goods, the company may receive complaints.

From infrastructure constraints to legal barriers, international marketers face a variety of distribution difficulties. Thorough market research, solid local relationships, and adaptable logistical plans are essential for overcoming these challenges. 

Businesses can guarantee the seamless and effective worldwide distribution of their goods by foreseeing and adjusting to these obstacles.