Test, Learn, Scale: De-risking Global Expansion

For ambitious brands, the question is no longer whether to expand internationally, but how to do so without exposing the business to unnecessary risk. A full-scale international launch is a significant undertaking, requiring substantial investment in logistics, marketing, and local operations. A misstep can be costly, eroding profitability and damaging brand reputation.  

The most effective leaders mitigate this risk by adopting a phased, data-driven approach: Test, Learn, and Scale. This methodology allows brands to enter new markets with confidence, using real-world data to build a robust business case before committing to major investment.  

Test: A Marketplace Entry Strategy

The ‘Test’ phase is about validating a market with minimal financial exposure. Rather than investing heavily in a dedicated international storefront, brands can use online marketplaces as a low-risk gateway to gauge consumer interest and demand. Platforms like Amazon, Walmart, and TikTok Shop provide immediate access to vast consumer bases in new regions.  

Success in this initial phase requires a sophisticated multi-channel strategy. THG Commerce’s proprietary Marketplace Management System (MMS) simplifies the complexity of selling across various platforms. It connects brands to leading marketplaces and social channels, providing the ideal environment to test product viability and gather initial performance data.  

Learn: The Role of Data and Localisation

Once a market has been validated, the ‘Learn’ phase begins. This is where you move from basic sales data to a deeper understanding of profitability and local consumer behaviour.   

First, analyse the initial performance on marketplaces. Are you acquiring customers profitably? What is the average order value? This is also the time to embrace localisation. Research shows that 73% of customers are more likely to purchase if information is in their native language. Effective localisation, however, goes beyond simple translation to include local currencies, preferred payment methods, and culturally relevant marketing.

The central goal of the ‘Learn’ phase is to accurately calculate the true, long-term return on investment. Brands must account for all associated costs, including market research, localisation, marketing spend, technology fees, and fulfilment. By attributing ROI to specific channels and analysing deeper metrics such as Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC), you build a precise, data-driven picture of a market’s true potential. 

Scale: Profitable, Long-Term Growth

Only after a market’s profitability has been proven in the ‘Learn’ phase should a brand ‘Scale’. This final phase involves committing to a full-scale market entry, backed by a business case built on real-world data and accurate ROI projections.  

International expansion offers immense potential, but only for those who approach it strategically. The Test, Learn, Scale framework enables brands to mitigate risks, simply challenges, and unlock the true potential of borderless commerce.