The Transition of a Local Furniture Business to a Global One

There are many benefits for businesses seeking expansion in international markets in today’s world. We live in a global economic society where financial growth is fueled by entering new markets. Whether you are a mid-sized furniture company or even successful in your home country, shifting towards the international scene will allow larger revenue and market growth. Of course, there are several obstacles when implementing the expansion. This article will provide you with clear insights on why and when you should expand overseas, the challenges often associated with it, and why our furniture business is actively pursuing such expansion

Why is making the leap overseas worth it? 

1. Boost sales and Revenue
   Becoming less dependent on the home market and stretching your business model internationally means you will acquire more customers. Very often, furniture businesses that offer the same services in new countries can charge higher, this way they increase revenue and strengthen their client base. This is important because it allows you as a business to offer competitive pricing across different regions.
   

   The local tax system also plays a crucial role for companies attempting to decrease operating costs when setting up in new territories. Countries such as Panama, Cyprus, Malta, the United Arab Emirates, Qatar, and Ireland are some examples that offer better tax conditions than other countries. 
   

   If you want to stand out in the market you may also want to diversify to maintain a higher revenue. For instance, Coca-Cola reported increased sales in China and India, this helped maintain a positive revenue stream during a period where there was slower market growth in countries with high economic instability. Therefore, diversifying risks allows companies to afford losses during unforeseen events and helps combat any uncertainties in markets.
   

2. Competitive advantage
   Expanding abroad allows you to improve your company’s reputation and help build strong brand awareness. You will be able to gain customers that are under the radar and develop strategic partnerships, as a consequence you will have more authority and credibility. 
   

   On top of that, rising talents looking for job opportunities will serve your clients with their language skills and diverse backgrounds. Finding solutions to stand out in the market will also enable you to find cheaper suppliers as a furniture business and by adapting to different local needs, your competitors will find it hard to keep up with your celebrated venture.

What are the main challenges of expanding internationally?

1. Supply chain complexity and regulatory issues
   When it comes to sourcing products there are several challenges businesses may face. Local tax rules, packaging standards, and currency are some examples. Working with new suppliers increases the chance of unethical business practices. In fact, according to the Ethical Trading Initiative, “ 77% of businesses believe that modern slavery exists at some point in their supply chains”.
   

   Complex regulatory and compliance issues (as well as various forms of corruption) can cause bottlenecks in your supply chains. For example, Europe has higher standards with respect to environmental protection and sustainability. This might translate to laws requiring more expensive packaging and tedious paperwork. All this can hinder your speed of distribution.
   

   If you are paying suppliers to complete projects in the desired country, your profit margin may be at a loss due to fluctuating currency rates. In this case, it is best to agree on a price in advance and set up a forward contract or even pay the whole furnishing/ refurbishing process in the same currency as the one you're selling in. Additionally, to avoid dealing with the burden of your home-based account with foreign banks, you may have to set up a new business entity to avoid all the necessary paperwork with the international bank.
   

2. Language and cultural differences
   To achieve optimal results outside your home country, it is crucial to understand the importance of cultural and language differences. You may not have overseas customer service but hiring a lawyer and translator might be necessary from the country you are moving into. 

   Finally, it is not easy to persuade a foreign customer or business to invest time partnering with you when there are just bigger brands in the international market. Although it may be difficult to penetrate the market, it is still worth tackling those challenges with the right practices. Next, we will discuss how our company in China ( Sinoalex) has put those practices in action but is also taking the necessary steps to broaden its local community.
   

The Transition of Sinoalex

What we have achieved so far:

Sinoalex tackles most challenges discussed earlier.

We offer clients the opportunity to tour the entire process from labeling, design, packaging and all the way to materials used. For example if your home-country and project is based in Dubai, our team of designers and manufacturers will work in close collaboration with your architects and engineers. The cultural exchanges that takes place during these kinds of collaborations are always enriching to all concerned, the valuable fuel is to stay positive through the entire process when challenges arise.

 Africa is experiencing a fast rate of growth in the current economy, the consumer market is maturing and numerous building projects are being encouraged. 

Sinoalex’s is a proud participant in the Intercontinental project in Dakar, Senega for example. A signed agreement for a 250-room InterContinental Hotel with 3000m² of commercial and office space.

As one of the major furnishing consultants, Sinoalex has installed furniture both indoor and in outdoor areas. In close cooperation and on completion, the estate will also offer restaurants, swimming pools, a conference and a business centre. 

Another project Sinoalex has furnished well-over 85% is Kempinski in Egypt. It may be a challenging task for hotel owners to find well-selected furniture for each space that will create a lasting impression on guests. Our partners provide world-class service but 15 years of experience in design, installation and furniture maintenance. We are proud to have fitted over ¾ of Kempinski’s indoor and outdoor spaces. With professional interior designers, we have coupled the highest levels of furnishing for all room types, including a presidential suite with an impression of personalized luxury.

Follow the link for our projects section to see the complete list of projects completed below
https://www.Sinoalex.com/projects

With the right partners and team you can go on a long way ensuring that your company is compliant in each new market. 

Lofty goals tend to have more promising results. Sinoalex is ready to hit the global stage and transform into the leading furniture platform worldwide. 

With our successful business projects in Africa, we are more than ready to expand into Asia. India, The Philippines, Singapore and Vietnam are also enjoying rapid growth and are developing their entrepreneurial ecosystem with infrastructure and economic growth. Already being flood by western businesses, Asia provides endless opportunities for expanding your business, We are making moves to acclimate to the market culture in Asia.