Replicating an existing business from another country ?

[samuraijack]

The business is in another country (not the U.S) and is fairly new (~1 year) but with growing revenue. It is selling a product but the product itself is not special at all (it can be bought in many big chain stores, something as common as a screwdriver). IF sourced correctly, the value comes from quality for the price and probably the biggest reason for it's success, the marketing model. The product is targeted to a specific demographic, and agreements can be made to sell the products directly to this demographic AND have it be sold by the target demographic (giving % per sale) and also being sold online as well. The price of this product has to be competitive (I know this is not a good thing as per TMF ) with the big chain stores.

Now, the business model is validated in that country, it is a "first world" country so while culture may be different, the infrastructure on which the model is built is almost the same. However, there may be slight differences, and the lack of competition (discounting the big chain stores) worries me. The need is there, but it is a need like a new homeowner needs to buy a bathroom rug (aka, they will most likely buy what affordable, and in front of their face. The product is detached from personal identity).

Even though the model is validated in that country, before spending a dime on inventory, I want to have concrete validation in terms of the model working in the U.S. I am spending time on forums, and social media and will network in person to get feedback. I do not want to spend too much time validating as that may be a negative sign in of itself. Since I view the risk as high, one of my criteria is that no inventory will be ordered without pre-sales. This is my first business attempt and I will appreciate any thoughts on this, thanks!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[sle3pyguii]

he need is there, but it is a need like a new homeowner needs to buy a bathroom rug (aka, they will most likely buy what affordable, and in front of their face. The product is detached from personal identity).

Isn't that more of a want than a need?

For validation, you can try out the landing page + Google Ads/Facebook Ads to see if you get any leads/pre-sales. It's pretty simple as you don't need more than a day or two to make the page and you can run it for however long you want.

 

[RazorCut]

Is this a one off purchase (like a screwdriver) or where you can get repeat customers?

What are the barriers to entry and why? Regarding validation can you share the country this sales model is from? It'd very doubtful anyone will make a connection with it in the USA and even if someone did in the origin country (which is probably very doubtful) they wouldn't be in a position to compete anyway.

It is one thing to protect your discovery but another to make the details so vague that it makes it very hard to offer any help.

I want to have concrete validation in terms of the model working in the U.S.

Then do exactly as sle3pyguii has suggested.

I do not want to spend too much time validating as that may be a negative sign in of itself.

I don't follow. If you HAVE to have concrete validation then surely it is worth spending the time and energy proving or disproving your hypothesis.

Since I view the risk as high, one of my criteria is that no inventory will be ordered without pre-sales.

Have you sourced the product? Do you have samples? Why do you see the risk as high?

From what I can glean from your post if this item is readily available in many chain stores in your country then there is a need. If your main difference is quality then I take it yours will sell at a much higher price than the chain stores. Unless there is, AND you can demonstrate this MUCH higher quality over the competition you could struggle.

 

[samuraijack]

Isn't that more of a want than a need?

For validation, you can try out the landing page + Google Ads/Facebook Ads to see if you get any leads/pre-sales. It's pretty simple as you don't need more than a day or two to make the page and you can run it for however long you want.

It was probably a bad analogy. I was trying to make the point that it is necessary, but that type of product is in every household already, but its the marketing model that works. It sort of like that company selling knife sets that no one wants except with this, the people are targeted at the time actually need to buy new ones.

Landing page + ads is a great idea. However as I mentioned above, customers will only buy during a certain time period, so I might need to get creative with this. Thanks for the input, any other advice you have is welcomed.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[samuraijack]

Is this a one off purchase (like a screwdriver) or where you can get repeat customers?

It is a one off purchase, however the customer base is renewed yearly.

Have you sourced the product? Do you have samples? Why do you see the risk as high?

I see the risk as high because everything relies on the sales model based in another country, which some people will say proves it works, but I want to be sure before spending money on the products. I have not sourced the product yet (it is a bundle of items, which I will likely have to get from different suppliers).

From what I can glean from your post if this item is readily available in many chain stores in your country then there is a need. If your main difference is quality then I take it yours will sell at a much higher price than the chain stores. Unless there is, AND you can demonstrate this MUCH higher quality over the competition you could struggle.

This is one of the reasons that worries me because the price has to be competitively cheap. It is targeted towards the 18-20 year age range. I cannot market it as high quality / high price so it must be good quality AND as cheap as the chain stores. That is one of the hurdles I have to get over.

Appreciate the comments and any further insights. Thanks!