Introduction.
Market research" is indispensable when considering expansion into Europe or overseas.
In particular, the European market is a complex multilingual, multicultural, and multiregulatory environment, so an ill-informed strategy will result in a misguided plan that will greatly hinder business success.
This article details the importance of European market research, the proper way to proceed, common mistakes, and practical research techniques.
Calculation of fair price and sales strategy
The first step in market research is to consider a "pricing strategy.
Since price levels and consumer values differ from one country to another in the European market, Japanese prices cannot be applied directly to export prices.
The following elements must be identified in the survey
Market size and purchasing power: How much demand is there in which countries?
Prices and characteristics of competing products: local brands and major manufacturers' price ranges
Invisible costs:
Shipping and international logistics costs
Payment fees (Europe has many non-credit card payments)
VAT (value-added tax) and customs duties
Warehousing and handling fees when stopped at customs
Fee for issuance of certificate of origin
Cargo insurance and return shipping costs
Based on this research data, the foundation for entering the European market is to derive a "reasonable price that is acceptable locally" and to design a sales strategy accordingly.
Failure to gather the wrong information
Many companies that fail in their European market research do so because their information sources are biased.
Rely solely on information from government agencies and chambers of commerce
Refer to old market reports from years ago
Prioritize your own hypotheses and wishful thinking
Such surveys result in strategies that are out of step with real market trends.
The European market in particular is changing on a daily basis, and the ability to keep up with the latest trends and regulatory information can make the difference between success and failure.
Examples of areas where up-to-date information is needed:
Consumer trends: organic orientation, sustainable demand, Gen Z buying habits
Regulations: EPR (Packaging Recycling Regulation), CE Mark, REACH Regulation, etc. frequently updated
Digital marketing: Instagram, TikTok, and other social networking sites have changed mainstream in a short period of time
Recycling regulations: tighter regulations and fines for Triman mark and PAP mark
Strategies based on misinformation gathering can lead to wasted investments and brand failure.
How to conduct effective European market research
Understanding the European market requires a combination of multiple research methods.
1. desk research (literature review)
- Statistical data (Eurostat, OECD, publicly available data from national chambers of commerce)
- Industry reports (Euromonitor, Statista, etc.)
- Price comparison of e-commerce sites (Amazon EU, Zalando, Carrefour, etc.)
2. field research
- Participation in local exhibitions and trade fairs
- Product research in retail stores, department stores and drugstores
- Local buyer interviews
3. digital research
- Trend analysis on social networking sites (hashtags, influencer trends)
- Search trend analysis with Google Trends and SimilarWeb
- Competitor web marketing research (ad placements, SEO initiatives)
Combined, they provide a qualitative and quantitative picture of the realities of the European market.
Understand the differences between countries
The difficulty with European market research is that it is "not a monolithic market.
- France: High quality and organic-oriented; compliance with EPR and environmental labels required.
- Germany: High demand for eco-friendly and sustainable products, and emphasis on quality over price.
- Italy: Tendency to find value in design and brand image.
- United Kingdom: The ratio of online purchases is very high, and digital advertising is highly effective.
The key to success in European market research is to proceed by focusing on target countries, rather than lumping them together under "the entire EU.
Local companies like Swapsss are important
It is very difficult to complete European market research on one's own, and the time, cost, and risk are enormously inflated.
Local companies like Swapsss play a major role here.
Swapsss is based in France and can provide assistance with
On-site market research: consumer research, competitive analysis, sales channel research
Regulatory support: EU regulatory support including CPNP, EPR, CE Mark, UFI, VAT, etc.
Pricing and sales strategy: calculation of appropriate prices, construction of wholesale and retail networks
Promotion support: SNS strategy, local exhibition support, PR measures
A local company can compensate for the "real-time market sense" that is often overlooked in remote research from Japan. A reliable local partner is a prerequisite for successful European market research.
summary
European market research is the first step in entering the European market and the most important process that determines the success of your business.
Lack of research directly leads to failure of sales and pricing strategies
Old information and administrative data are not enough. It is necessary to keep up with the latest trends and SNS trends.
Combining desk, field, and digital research is effective
The key to success is to understand the differences among countries and to clearly focus on the countries in which to expand.
Working with a local company like Swapsss is a shortcut to success in European market research
While the European market is challenging, it also holds great opportunities. With the right research and the support of a local company, you are on the right track to success.