To Conduct or Not to Conduct Market Research?

This may be a difficult question for some, but let’s look at it from a practical perspective. You have just started a new company. After making an initial investment in operating costs and hiring an employee responsible for everything, you realize that the demand for your products is not as high as you expected. You try doing things differently, attempting to outperform the competition, but the results still do not materialize.

Such a scenario usually ends with the closure of the business and unpleasant experiences with covering the company’s costs. However, if you had conducted a market analysis and studied consumer behavior before starting the business, you might have discovered that launching in this area would not be profitable. In life, proper preparation and decision-making based on data and facts rather than emotions significantly reduce the risk of unpleasant surprises. The same principle applies in business.

The First Step Before Expanding to a New Market

If you are considering expanding into a new market, you should not act solely on an idea or intuition, but primarily based on sufficient data. It is important to weigh all the pros and cons, calculate the expected entry costs, and analyze consumer behavior during the period when your online store will be launched in the new market. Of course, you cannot predict everything, but you will be at least better prepared.

An important part of such research is also pricing your products for the target market. You need to calculate how much it costs to produce a single product compared to the price at which you sell it, including your margin. Then, you should find out the prices at which competitors sell their products. It is also essential to consider consumer behavior, as customer moods and trends can change constantly. Additionally, it may happen that customers in the new market expect an additional feature or service with your product that customers in your home market do not demand.