Beyond borders: Building the capability to scale your durable goods business globally

• Ukraine presents long-term upside for first movers betting on reconstruction and modernization.
• Asia and Latin America offer rising demand fueled by growing middle classes and appetite for convenience, quality, and brand-led value.

Real market potential is about fit and foresight. Companies who are successful at market penetration do so by matching capabilities to demand and timing to inflection points.

Interpreting local market dynamics

Relevance goes beyond presence; it requires local insight and agile execution. However, global trends don’t guarantee local relevance. Consumer preferences may converge globally, but their expression varies by urbanization, household structure, and digital maturity.

Winning brands decode these nuances by factoring income, lifestyle, and infrastructure into their product pipeline and innovation roadmap.

Navigating barriers to entry

Market attractiveness is irrelevant if entry isn’t feasible. CEOs must weigh macroeconomic volatility, regulatory complexity, labor cost as well as availability and infrastructure gaps as part of market selection.

Barriers like tariffs, trade restrictions, and local sourcing mandates can quickly erode margins or delay market access. Even high-potential markets can become pitfalls without structural readiness.

For example, India’s localization requirements – including mandatory local testing, labeling, and value-add thresholds – have forced electronics and appliance brands to rethink go-to-market plans. Companies without local manufacturing or flexible supply chains risk higher costs, slower time-to-market, and reduced competitiveness.

Strategic prioritization must reflect both market upside and entry friction, ensuring investments are focused where execution is viable and scalable.

Market model fit: Structuring for strategic and commercial success

Entering a market is not just about geography; it’s about choosing the right structure and format to serve that market profitably and sustainably.

First, companies must select the right entry model:

• Greenfield operations offer control but require heavy investment and long lead times.
• Acquisitions provide instant access to infrastructure, talent, and customers but demand strong integration capability.
• Joint ventures and strategic alliances can accelerate access while sharing risk provided there’s alignment on vision and control.

Second, companies must align this with the right growth format for the market:

• Some countries justify full branded expansion, while others are better served through private label, CKD/SKD assembly, or outsourced models.
• This decision depends on factors like local consumer preferences, supply chain maturity, infrastructure readiness, and cost structures.

For example, Haier’s $5.6 billion acquisition of GE Appliances transformed its US presence overnight – shifting from a niche player into an established brand with access to R&D, distribution, and manufacturing capabilities.

By contrast, Hisense’s acquisition of Sharp’s Mexican TV plant allowed it to build regional production capability and visibility, scaling up via OEM and brand-led strategies.

There is no one-size-fits-all model. Success depends on aligning market opportunity with operating model feasibility. This ensures relevance, scalability, and resilience from day one.

For companies already operating across multiple regions, reevaluating the current operating model can unlock underleveraged assets. These might include local manufacturing scale, more efficient sourcing, or better channel alignment.

Expert input and on-the-ground insights are critical as the wrong model can turn a promising market into a long-term drag.

Evaluating commercial readiness: Competition, channels, product, and price

Before entering any market, companies must assess whether it’s commercially viable beyond simply being attractive.

Start with the competitive landscape. Is the market fragmented or dominated by a few local or global leaders? Fragmented markets offer room for disruption but also risk intense price pressure if differentiation is weak.

Then assess channel structure and maturity. Developed omnichannel ecosystems may require full digital and offline integration from day one. In contrast, traditional retail markets may need different activation and servicing models.

Product requirements are equally critical. Local certifications, compliance regulations, and technical standards can delay launches or add cost if not anticipated early.

Finally, understand local price points and value expectations. If market pricing or product feature norms don’t align with your brand’s positioning, entry could be commercially unsustainable.

Even dominant players face setbacks. For example, Best Buy exited the Chinese market after acquiring local retailer Jiangsu Five Star in 2006, due to challenges in adapting to local retail dynamics and intense domestic competition. 

Prioritizing markets, defining roles

Once market potential, entry risks, and commercial readiness are clear, the next step is to prioritize markets and define their strategic growth agenda.

For new markets, prioritization should consider both strategic fit and execution readiness. Markets can be sequenced into phased expansion waves (e.g., Phase 1 vs. Phase 2) based on potential, ease of entry, and internal capabilities.

Presence in established markets is just the starting point. Companies must ask: Are we capturing the full potential, or leaving value untapped? Reinvesting in these markets – through portfolio refreshes, new distribution models, or brand repositioning – can drive outsized returns with lower risk than new entries. Even globally present firms often discover pockets of underperformance, such as markets where margin improvement, share growth, or brand repositioning can unlock significant upside.

Ultimately, each market, whether new or existing, should have a clear role.  It might serve as a scale driver, a profit pool, or a long-term strategic bet. This clarity enables smarter resource allocation and sharper execution.

The goal isn’t just more markets but impactful engagement in the right ones.

Step 2 – How to win: Accessing the market with precision

Choosing the right market is only half the battle: the real challenge is how to win once you’re in.

Success in durables doesn’t come from entry alone. It comes from tailoring the strategy to local realities: navigating trade regulations, selecting the right channel partners, adapting product portfolios to local needs, aligning pricing with perceived value, and building the operational agility to respond fast.

Successful brands execute with speed, precision, and local relevance. They don’t just enter a foreign market, they gain traction, build share, and scale profitably.

The next phase is not about expansion; – it’s about executing with precision.

Understanding the market landscape: Local complexity, global forces

No market exists in isolation. Even after selecting where to grow, understanding the regional dynamics shaping that market is crucial to defining how to win. Asian manufacturers, particularly from China, are exerting deflationary pressure across markets, offering high functionality at accessible prices and changing the global benchmark for value. These players are no longer confined to entry-level tiers; they are moving upstream with increasingly credible designs and fast innovation cycles.

At the same time, tariff policies and shifting regional trade agreements are altering production economics and distribution decisions. In some markets, local assembly or regional sourcing can mitigate cost volatility and regulatory risk. Companies entering new markets must map these structures clearly and design their cost-to-serve model accordingly. Aligning with regional trade flows is now an essential part of profitable access. For incumbents, shifts in trade agreements or supply chain policy can also open new cost or sourcing advantages, making existing markets more attractive.

Apple’s China+1 strategy, for example, has led to significant investment in India – balancing rising geopolitical risks in China with the need to diversify manufacturing footprints. India was not just chosen for its market size, but for its growing manufacturing ecosystem, favorable government incentives, and alignment with shifting global supply chains. However, recent tensions in the region highlight that even secondary hubs carry exposure that must be carefully evaluated.

Positioning and brand experience: Making the value tangible

Brand equity isn’t inherited but earned through consistent relevance. This starts with clarity in positioning and consistency in execution. The most successful entrants communicate a clear promise – whether that’s smart affordability, design leadership, or long-term reliability – and then reinforce it across every customer touchpoint.

This includes localizing packaging, marketing content, and service models to align with cultural preferences and purchase behaviors. In price-sensitive markets, service availability and responsiveness can be a bigger differentiator than spec sheets. Brands that demonstrate relevance and reliability from the start build trust and long-term share.

Channel strategy: Turning access into advantage

Channel access is often the make-or-break factor in new market success. The right local partners, such as distributors, retailers, or digital platforms, accelerate market entry, bridge operational gaps, and provide critical local insight.

Leading companies increasingly pursue targeted alliances, local joint ventures, or even acquisitions to gain faster access and deeper control. These structures help bypass infrastructure limitations, secure shelf space, and localize execution.

Reach alone is not sufficient. What sets leaders apart is execution capability. Leading brands choose partners that deliver execution capability, including fulfillment, after-sales service, compliance support, and digital performance. In mature markets, mastering marketplace ecosystems (e.g., Amazon) is critical, where operational excellence and NPS scores directly influence visibility and growth.

Sustained performance depends on:

• Clear cost-to-serve models across channels and categories
• Fast, reliable delivery and returns infrastructure
• Active management of digital shelf presence, from CPC campaigns to content optimization

In existing markets, re-energizing partner networks or digitizing legacy channels can reignite momentum and sharpen competitive edge.

Samsung’s expansion in Uzbekistan illustrates the power of this approach. By partnering with a capable local distributor, it accelerated market entry while helping modernize the partner’s operations. Ultimately, it  created mutual growth and long-term advantage.

Similarly, LG’s entry into the US appliance market was accelerated through deep engagement with the National Alliance of Trade Merchants –  a network of independent dealers. Instead of competing head-to-head with entrenched giants via big-box retail, LG built trust and visibility in underserved regions through this network, enabling targeted market penetration and brand building at scale.

Ultimately, channel strategy is not just an enabler – it’s a differentiator.

Adapting the offering: Localized products that resonate

Winning access requires more than bringing existing products into a new market. It requires adjusting the portfolio to reflect what local consumers truly value. Consumers across many geographies now expect AI-enhanced functionality, energy efficiency, connectivity, and clear sustainability credentials as part of the baseline offering.

High-performing companies adapt their product roadmaps to meet these expectations quickly. This may involve customizing specifications, offering region-specific configurations, or ensuring compliance with local standards and certifications. At the same time, they streamline portfolios to focus on high-demand, high-margin SKUs, accelerating time-to-market while minimizing complexity.

LG’s success in India is a clear example: by designing appliances tailored to local conditions – such as refrigerators that withstand frequent power cuts and washing machines with settings for traditional garments – LG built deep market relevance and outpaced global competitors. Thoughtful localization not only accelerates adoption but also creates durable brand loyalty in new markets.

Pricing and value: Competing smart, scaling right

Entering a new market means entering a new pricing logic. Consumer willingness to pay varies not only by income level, but also by perception of value and comparison to local alternatives. With the rise of aggressive, lower-cost competitors, particularly from Asia, brands must defend their margins while still appearing relevant on the shelf.

This requires localized pricing strategies rooted in consumer value perception – not just currency conversion. Companies are increasingly designing manufacturer’s suggested retail price ladders based on purchasing power parity, supported by value-based narratives that justify premiums through durability, service, and performance. In parallel, pricing flexibility at the channel level ensures that dealers and retailers remain motivated without eroding brand integrity.

Execution and scaling: Turning plans into penetration

Accessing a market isn’t a one-time launch – it’s a series of deliberate moves, each building on the last. This is equally true in established markets where layered execution plans can reignite underperforming categories and drive incremental share. Companies that win invest in real-time market feedback loops, regularly reviewing sales data, partner performance, and consumer response. Early momentum is used to refine the assortment, optimize pricing, and expand the channel footprint.

Execution plans should be phased, measurable, and agile with local ownership wherever possible. In this stage, discipline matters as much as ambition. The goal is not just entry, but traction – and ultimately, scalable growth in a market that has already been deemed strategically essential.

Organizational and digital readiness: Enabling scalable execution

Strategy only delivers impact when execution is enabled at scale.

Winning companies bridge global vision with local action through clear governance, empowered in-market teams, and real-time systems that connect sales, inventory, and operations.

Local talent matters – especially in relationship-driven markets – but it must be backed by integrated infrastructure (ERP, CRM, SCM) to ensure visibility, speed, and accountability.

Common failures stem from poor links between sales forecasts and supply planning, leading to mismatches and missed opportunities. Resilient execution requires tight control over the end-to-end value chain.

As digital channels become central, organizations must evolve; this involves building specialized teams for e-commerce, performance marketing, and digital merchandising.

Scalable growth depends not just on the model – but on the muscle to deliver it.

Closing thought: Expansion is a capability – and it starts with precision

Global expansion begins with strategic clarity – but it’s won through disciplined execution, local adaptation, and operational control. In today’s volatile environment, success in the durables sector depends not just on entering the right markets, but on building the capability to scale sustainably within them.

That requires more than ambition. It demands rigorous scenario planning to reduce uncertainty and align cross-functional teams. Leaders must quantify potential through market share targets, value-based pricing, and end-to-end profitability projections. At the same time, scenario modeling helps stress-test plans – identifying inflection points, ROI thresholds, and risks that could derail execution. Phasing strategies, pilot launches, and contingency pathways must all be embedded upfront.

Ultimately, expansion is not a one-time initiative – it’s a core organizational capability. This capability applies not just to entering new regions but to deepening relevance and performance in markets where the company already competes.

In global expansion, the winners won’t be those who move fastest but those who build the muscle to scale, adapt, and sustain.

Ready to scale with precision? Our team can help you define the right markets and win in them.