Entering foreign markets or emerging economies can be hindered by limited data, fragmented distribution, and cultural barriers. Zimark leverages data analytics, data science, and thorough due diligence to provide a comprehensive integrated solution for localization and market entry between Chinese, Japanese, and US markets for middle-market companies.
Many businesses and clients find it challenging to enter new markets, especially when facing new situations, language barriers, unfamiliar local business environments, and consumer behaviors.
Over the long term, revenue growth powers more than 75% of shareholder value creation for publicly listed companies in the S&P 500. The importance of revenue creation or gaining traction in newly developed markets is critical for newly established ventures and even for established companies entering new markets.
Achieving sustainable topline and bottom-line growth necessitates a well-crafted Go-to-Market Strategy (GTM). This strategy should address how to position, market, and sell new or existing products and services in different markets, taking into account various market environments that align with the company's financial strategy in an efficient manner. Sometimes, this involves cross-border market entry, requiring further consideration of cultural, social, and regulatory differences.
Efficiency, Sustainability, and Profitability
Achieving growth is imperative, but scaling up needs to be profitable.
The goal of the Go-to-Market Strategy (GTM) is to enhance your EPS, IRR, or cash flow rather than inflating EBITDA numbers and relying heavily on aggressive short-term growth strategies. While we recognize that an assertive short-term approach can capitalize on market seasonality or meet capital-raising and debt-servicing needs for some clients, at Zimark, our focus is on creating long-term value with you. We aim to achieve sustainable and profitable growth while understanding and addressing your company's short-term tactical goals for Go-to-Market Strategy.
Efficiency is at the core of the process. This requires companies to leverage transaction cost reduction, resolve principal-agent problems, and capitalize on the efficiency factor generated by technology through the introduction of vast data into the process.
Breaking Down Consumer, Culture, and Language Barriers
Consumer culture and language play a pivotal role in entering new markets, impacting various aspects of the Go-To-Market (GTM) strategy. Companies aiming to enter new international markets need a comprehensive understanding of the local economic and political landscape, marketing channels, consumer behavior data, and other relevant factors. Venturing into a new market also entails setting up a localized team and ensuring seamless communication with suppliers, partners, and regulatory authorities.
For companies in the initial stages of preparing for overseas market entry, managing these aspects independently can pose considerable challenges. Making informed decisions, both data-driven and based on your company and product context, is essential for crafting a successful Go-to-Market (GTM) strategy.
We are uniquely positioned to assist you in the following markets and help you navigate the challenge of new market entry.
US and Developed Economies
Assisting middle-market companies from China, Japan, or other emerging markets in entering the U.S. market and general developed economies. We empower Chinese companies to navigate around current trade and market entry barriers imposed under existing market environments.
China
Japan
Shifting Consumer Behaviors
The evolving consumer behaviors influenced by millennial habits are transforming the landscape of marketing in both developed and developing markets. Millennials anticipate a two-way reciprocal relationship with brands, placing a higher value on relationships, respect, and social responsibilities. ESG (Environmental, Social, and Governance) is a noteworthy example of how these changing values are impacting the private equity industry as millennials become a significant part of the workforce. Adapting to the interests and spending habits of the new generation of consumers is crucial for achieving successful market expansion in the next 10 to 15 years, as millennials emerge as the dominant force in both labor and consumer markets.
Digital and Technology Transformation
The technology landscape has changed vastly over the years. Everything now needs to be data-driven or even powered by machine learning. However, for non-TMT (Technology, Media, and Telecommunications) companies, the use of machine learning is still limited because the data generated from operations is kept in non-analyzable forms. This poses challenges for using machine learning models to optimize marketing, brand positioning, pricing, and customer feedback, both within the scope of Go-to-Market Strategies and other general management consulting practices.
In these cases, a carefully crafted market entry strategy, leveraging professional market due diligence on external proprietary data generated from similar operations, comparable companies, homogeneous distribution channels, and overlapping consumer groups, can be critical for analyzing and tailoring the market entry strategy for your company.
A full-scale digital transformation is costly. It requires a careful analysis and evaluation of the company's existing marketing, brand positioning, pricing, sales, operational framework, or even financial strategies comprehensively to determine if it is a viable or profitable option for Go-to-Market Strategy.
Digital marketing is indeed efficient, and results are measurable and quantifiable. Nonetheless, when factoring in the return on investment (ROI), the digital marketing framework may not be suitable for every industry, segment, and consumer niche. Counterintuitively, because each major player emphasizes digital governance and online traffic channels, an effective strategy that truly generates stable acquisition and top-line growth can sometimes have high user acquisition costs and relatively low ROI. The situation is different between China, Japan, and the US, and it is also different for each product category and target consumer profile.
Digitization or technology is only a tool. While BCG, KPMG, and other larger players emphasize digital transformation for large unicorns backed by leading private equities, our focus is on middle markets with respect and understanding of the importance of sustainability over fancy ideas. We will work with you, chat with you, and communicate with you in great detail to ensure that expectations and details are aligned for each case we take.
Integrated Solution with Capital Planning
For venture-backed startups and companies in the pre-IPO stage, considering how new market entry or top-line revenue expansion aligns with the needs of exit or IPO —both in terms of topline growth creation and financial planning—can be a critical factor when choosing the right go-to-market strategy for the company.
Building a Go-to-Market (GTM) strategy with significant synergies with other corporate goals requires a combination of data science, research, and financial planning.
Toolkits, including data analytics, models such as machine learning and time series analysis, and financial modeling, can be utilized in the processing.
Zimark Go-to-Market Framework
Consumer Culture and Language
We assist clients in overcoming information barriers due to cultural, language, and local consumer habit differences by leveraging our market expertise.
Market Growth and Segmentation
We utilize proprietary vendor data for tailored insights aligned with your business model and product characteristics. Employing both quantitative and qualitative analyses, we provide robust growth potential estimates and identify suitable opportunities. Interviews with vendors, suppliers, management, and consumers, if requested, will also enhance market segmentation evaluation. Additionally, we will thoroughly evaluate micro and macroeconomic risks if needed or requested by clients.
User Profile and Consumer Insights
Creating a comprehensive 3D view of your target user base and consumer behaviors both online and offline.
Product Positioning and Competitors
We conduct in-depth competitive benchmarking and develop a strategic roadmap for prioritized growth opportunities aligned with your product positioning. Additionally, we may also create product extensions and geographic roadmaps to further analyze potential growth based on your product positioning
Sales Channels, Efficiency, and Conversion
Analyze and prioritize key online and offline distribution and marketing channels based on financial models, data analytics, and information gathered during the diligence process.
Branding
The new framework's key element is brand advocacy. Savvy market makers understand the significant impact of word-of-mouth recommendations and consumer criticism on sales. In the digitization process, the emphasis on recommendations is even greater. We will assist you in:
1. Identifying drivers of brand choice, including technical attributes, functional benefits, and emotional benefits.
2. Selecting the target market space.
3. Identifying brand benefits.
4. Developing a brand execution strategy and playbook aligned with the company vision and overall strategies.
Pricing, earning, and profitability
Building financial or data science models to assess current markets, project future growth, and prioritize opportunities. This helps in reducing transaction costs and improving efficiency through organizational structure, pipeline, and channel optimizations.
Digital Transformation
If digitization provides significant strategic value to GTM strategies, we'll collaborate to implement efficient processes for prioritizing use cases and project initiatives and adopting changes in management pipelines. This involves effective governance to track the progress of the digital transformation process to ensure it creates value for the topline expansion.
Integrated Solution and Capital Planning
An effective Go-to-Market Strategy requires integrated design across all aspects of business operations, including marketing, sales, branding, and operational framework. Most importantly, it must align with the financial goals the company aims to achieve through market entry. We will collaborate with you to ensure that the GTM strategy aligns with the target financial milestones with the support of the financial modeling and valuation projections.
The benefits of a feasibility study or a full-fledged Go-to-Market (GTM) strategy significantly outweigh its cost.
If you have any queries on formulating the right go-to-market strategy for your business, please contact Us. We'd be delighted to hear from you.
 | Zhiyu Wang Partner ZImark Advisory Whatsapp: +86 15021463427 Email: jack.wang@zimarkdigital.com Wechat: zimarkofficial Line: +1 7745389536 |
