Assessment? Check! Your strategy? All mapped out. You've also already determined your target market. But you've still got some way to go before you can cross borders... Some 'required stops'.

You're fully convinced of the benefits of internationalisation by now. You see it as an important lever for the growth of your business. But it's a process that doesn't happen overnight and is the result of a long decision-making process. You've carried out a preliminary assessment of your options before venturing into foreign markets. A checklist and initial indispensable considerations, so to speak, to find out whether the project was worthwhile. You then considered the choice of the most appropriate strategy for your business... You considered direct solutions such as e-commerce or commercial distribution. Or perhaps more sustainable establishment models, such as opening a branch or subsidiary, implementing synergies through a joint venture or a merger acquisition. This decision is based on a thorough analysis of the situation specific to your organisation. This approach often requires meticulous guidance. You will have also determined your target market during this process, which is a very important step. Your project's success now depends on the implementation of an action plan. And this phase inevitably brings with its new considerations and decisions...

NO SUCH THING AS ONE SIZE FITS ALL

In any case, your plan depends on your internationalisation strategy. The launch of an e-commerce platform or the choice of an intermediary imposes different requirements – in terms of due diligence obligations, financial resources or the definition of the target market, for example – than a merger acquisition. What's more, every merger-acquisition process is unique. What does this mean? That each adventure requires a tailor-made approach that considers the specific characteristics of your company, your products or services, your sector, your competitors, your added value, and more. Furthermore, the mapping of your international growth will be highly influenced by the characteristics of the target market. No magic formula then? Correct, but we do point out some common 'required stops' that deserve your attention. 

1. The 'local' considerations

France is not Belgium. And Belgium is not Germany and certainly not Japan or Brazil. Each country has specific characteristics that shouldn't be taken lightly. It's more than 'folklore'! These are real 'keys' that you must assess correctly in order to make a difference. Numerous (internationally renowned) companies have come to grief while trying to do this. It's another commercial reality that can have a major impact on your action plan:

• Cultural codes and language
• Relationships with partners
• Corporate culture
• Consumer habits and expectations
• Do’s and don'ts
• Don't lose sight of the regulatory aspects: they're essential!

Note that a product that is successful in the domestic market will be perceived differently elsewhere. It will prompt you to take certain preliminary actions: call in experts from the country in question, carry out a more in-depth market study, participate in more local trade fairs, etc. 

2. Adaptation of your commercial range 

An important reflection that causes you to reassess a series of parameters:

From a commercial point of view: do your products and services meet the target group's specific needs? Does your range satisfy the previously identified needs? Is it sufficiently appealing? How will you position yourself? Does the quality meet the local standards? And so on.

From a legal point of view: the key question is whether you comply with the local market's regulatory or administrative requirements. Do you need special certifications? Do you have to comply with specific technical obligations? And so on.

You must answer these questions to determine whether your market access strategy is ready in all respects: marketing and communication, value proposition, distribution methods, logistics chains, payment methods, etc. Not to mention your pricing policy. It may show that you need to make some adjustments at the production, distribution or commercial level. 

3. Choice of partner 

This isn't an easy task. Whatever your internationalisation project, this point plays a key role. You therefore need to set very clear objectives, missions and criteria that will serve as a guide to identify, prequalify and select the best local partners. The risk – and therefore the importance – of this approach is even greater in the case of a merger acquisition. A long-lasting marriage that must not fail... You will therefore need resources and time to complete your due diligence process. 

4. You still have a way to go... 

The following steps are no less important. We can give you the following tips in the meantime:

• Carryout a thorough risk analysis.
• Prepare a budget for your expansion project and ensure you work out several scenarios, because you can always come up against surprises. Consider the fiscal context and the local market's specifications (infrastructure costs, employment costs, etc.).
• Plan distribution and transport circuits.
• Prepare a detailed schedule for your project's roll-out.

Conquering international markets is an indispensable growth lever for companies. Such a project can take different forms or follow different paths: from e-commerce to mergers and acquisitions.

International expansion can be an important growth factor for your company and an undeniable source of opportunities – both commercially and in terms of innovation or resilience. After a complete assessment of your current situation, an inevitable question follows: which strategy should you apply to realise your project? There's no magic formula or mapped-out path: in reality, you often adopt a wide-ranging approach based on various strategies. Nevertheless, we do see some broad outlines. And each has its own strengths and limitations. Whatever you decide, your choice should fit into an overall thinking and be in line with the current situation and the future of your business. The objective? Increasing your chances of success and keeping the risks under control as much as possible. 

1. Direct and indirect export

This is naturally one of the most widely used strategies for conquering foreign markets. You can sell your products abroad through one or more channels:

• E-commerce: E-commerce is a fast and accessible solution to get 'far' with limited resources. Internet sales have grown very strongly in recent years but have a significant impact on the logistical workload. This includes not only technology and conformity, but also the commercial aspect. You are far from your target market and must deal with competitors from all over the world, while the internet knows no borders – and that's both an asset and an obstacle.

• A local intermediary: A gamble without too many risks, because you make use of the power of local sales – your agent delivers the customer's orders locally and you transfer them. The only thing left to do is to decide how to distribute your products. In this regard, it's important that you make full use of your knowledge of the foreign market. Think, for example, of consumers' consumption habits and expectations. Although this approach does not require major investments (payments on commission), it isn't entirely without risk. The success of your project is entirely in the hands of your local contact, leaving you to count on that partner's reliability.
• Commercial distribution: A similar approach to conquering the international market. This strategy can be implemented quickly and is the result of cooperation with independent distributors who are based in your target area. They buy the goods and then sell them, enabling you to benefit from their expertise and network. Unlike the intermediary, this distributor takes several tasks off your hands (invoicing, collection, marketing costs or import costs). Choosing the right partners and determining the terms of the contract is no easy task. After all, your project's success depends on it...
• Transfer of patents or technology: This is a way to make your know-how or technology pay off, not your products. This transfer of skills gives a foreign entity the right to use your methods or innovation within the framework of a previously established contract (geographical area, duration, etc.). An opportunity to go international where you 'outsource' production, sales and distribution. Contract preparation is one of the stumbling blocks of this approach.

2. Local establishment 

Another model for internationalisation is to establish your business abroad. This means that you go local: you establish your entire value chain in another country, or you produce, distribute or sell your products there yourself. This geographical approach necessarily requires greater investment, but it also gives you more clout. This approach is also a way of reinforcing your resilience: the financial and commercial risks, as well as the pressure on your value chain, are spread over several areas. Over the years, a more flexible approach has also been introduced, allowing companies to move more flexibly in line with the international situation. Various options are also available here:

• Subsidiary or branch: In both cases, it's a matter of establishing a firm and lasting foothold in the local market. However, the project requires a solid foundation and a long-term vision. You should also think carefully about the legal status: do you opt for a subsidiary or for a branch? Consequently, when making this decision, take into account various factors: the degree of autonomy, the desired degree of decentralisation or consultation, the legal and tax implications, whether or not to produce locally (to take advantage of cheaper raw materials, for example), the financial resources that you can mobilise, and so on. In any case, a perfect lever for applying the well-known formula 'think globally, act locally'.
• International joint venture: This principle is based on the creation of synergies. Your company joins a company that already has a local presence and both companies complement each other. Each company benefits from the other's strengths while sharing the activity's risks, control and common costs. Such a joint venture or partnership often requires a customised legal structure. As you can see, a joint venture is not an easy marriage. It's therefore crucial that you find the right partner and come to an agreement with them concerning each party's input and responsibilities.
• Merger or acquisition: This growth strategy offers a few advantages. What's the greatest advantage? A merger or acquisition is a method of consolidating and diversifying your business. It's also a 'quick' way to conquer a new market by exploiting the local company's competitive advantages (technological, commercial, etc.). Such a project naturally entails not only potential benefits, but also risks. For example, you may misjudge the sources of value creation or the risks, or have difficulty integrating.

As you can see, your international project's success depends on many factors. And, first and foremost, on your own strategic choices and your ability to develop a clear vision of exactly what you want to achieve. From the development of a commercial partner network to a sustainable local presence, there are many options that deserve not only thorough consideration, but also professional guidance.

We can no longer deny the benefits of internationalisation. But is your business ready for it? A thorough assessment to measure your project's success is therefore a must before you cross the border.

Just because your business is doing well in our country doesn't mean that you can just jump into the export market. An international breakthrough is an important strategic (and necessary) choice that requires extensive preparation. The first step is to take a detailed look at the state of affairs of your company. Because that way you can:

1. Highlight your strengths and success factors: a specific skill, your expertise, your brand image, etc.;
2. Identify your weaknesses: both internal (poor knowledge of the target market, need for funding, etc.) and external factors;
3. Prepare your structure for 'new' demands: in terms of human resources and in financial, organisational, legal or commercial terms;
4. Draw up your roadmap: make the necessary changes, maximise your assets and find the right solutions for your weaknesses.

A COMPLETE TOOLKIT

Such an assessment is not market research in the literal sense of the word, although some elements will eventually overlap or complement one another. The assessment should also enable you to gain insight into existing opportunities (competitive advantage, commercial trends, etc.) and threats (changes in legislation, major competition, etc.). To do that, you must be able to look at your foreign target group with the necessary distance.

There are many tools for this. Examples include the SWOT analysis, Porter's five forces model, the Boston Consulting Group matrix or the PESTEL analysis to measure the influence of macro-environmental factors. So, feel free to use those tools, but also remember the importance of step-by-step guidance.  

A MUCH-NEEDED SELF-ANALYSIS

Give attention to different elements. To achieve a relevant assessment, you must also find answers to a series of important questions:

1. Create your 'identity card'
   Take an unbiased look at your organisation. What are your values, culture, references, image, etc.? How are you perceived by others? Does your positioning match your identity? Through these questions, you'll also gain insight into the reasons for your successes and failures on the international market. It's interesting to repeat the positive points and learn from your mistakes. 
2. Analyze your position on the domestic market
   Take stock of your commercial position. Examine the evolution of your recent results and your weighting in your segment (market share, competition, degree of dependency, etc.). Find out what stage your products and services are in (launch, growth, saturation or decline). Next, you can consider your market's prospects and future: how will it evolve? A very important question at a time where the challenges of the sustainable transition are radically changing many sectors.
3. Assess your products and services
   Each country has its own specific obligations and standards. So, ask yourself whether your products and services are 'compliant', both commercially and legally. Perhaps you need to adapt them? Or maybe your production or delivery method needs to change (e.g. to respect the cold chain and guarantee reasonable delivery times)? In other words, are you ready for the step from a commercial point of view?
4. Lay bare your capabilities
   If you want to conquer foreign markets, you must be able to cope with that growth rate on an operational level as well. Can you increase or adapt your production capacity to the new demand? Are you ready for that in terms of supply and logistics? Also take into consideration the reliability of your partners and suppliers. And don't forget that your inventory will increase, and you must also have guarantees in that regard as well.
5. Examine your financial situation carefully
   Going international means a big investment for your company. So, take a close look at your finances and see whether you have enough funds to bring the project to a successful conclusion. You need these resources, for example, to launch commercial initiatives locally (while waiting for the first revenues), to 'transform' your company in the necessary areas, to support your activity in your own country or to recruit additional staff.
6. Carry out an analysis in the area of human resourcesTo export, you need qualified and skilled staff (production, sales teams, communication, after-sales service, R&D, etc.). You may also need to train staff or recruit new talent with international experience. Although internationalisation can be an extra motivation for your employees, it will also require additional efforts from them. So, don't lose sight of the 'human' factor either!

This complete audit of your structure gives you everything you need to make the right choices. Have you got the commercial strengths, the human and financial resources, the operational capabilities and the necessary experience to take the step? Do you need some extra support to adjust certain parameters? Or are you postponing the launch to find the right solutions for some weak spots? The adventure can begin once you're ready!

Laurent Mélignon, Corporate Sales Director of Arval, the market leader in full-service car leasing and new mobility solutions, looks ahead to 2025. What does the future hold for the industry and mobility?

Arval is part of the Commercial, Personal Banking & Services division of the BNP Paribas Group. As the market leader, it plays a key role in offering full-service car leasing and new mobility solutions. Laurent Mélignon, Corporate Sales Director of Arval, is thus ideally placed to share his thoughts on what's in store for Arval in 2025.

Arval is the market leader in a sector in flux: how companies and private individuals see and approach mobility has changed significantly. Mélignon sees several reasons for this: "In our country, taxation is the primary driver of many change processes. This taxation is linked to wage costs: many companies see company cars as a tax-friendly alternative for maximising the remuneration they want to pay their staff. Employees, meanwhile, see company cars as a way to be compensated with tangible benefits, without the tax authorities targeting them. In the coming year, the tax framework will continue to evolve in line with this social evolution. The federal mobility budget and the bicycle allowance, for example, or options such as the cafeteria plan or the flex income plan: these are just some of the ways in which companies can use their salary package to motivate their workers."

But Arval's Corporate Sales Director sees even more drivers of change for mobility. Mélignon: "Our entire mobility culture is also changing, a trend that is set to continue in 2025. The younger generation is much less attached to the status that company cars have been associated with for so many years. They are just as happy to hop on a bicycle, take the bus or use car sharing, depending on the company's location, of course. Finally, there are also several macroeconomic factors driving this change. These include the growing traffic crisis many cities are facing, as well as the increasing awareness of people and economic players regarding the energy transition. We are all gradually seeing the need for change and alternative mobility choices. This has been clear for quite some time."

Flexible complexity

The mobility mix will only become stronger in the future. Mélignon: "That is a big part of our mission: to be and remain a one-stop shop, offering companies the opportunity to think in terms of flexible remuneration. A new employee, for example, someone who is single and without a family, has different mobility needs than their colleague, who is married with two children and has their own home in the countryside or in the city. Now that this need is becoming stronger and more established, Arval is the ideal partner to provide companies with knowledge about mobility and take the burden off their hands. We enable employers to offer flexibility by taking care of the complexity associated with it."

Positive mindset

Mélignon expects the transition to electric mobility to continue in 2025: "When I look at corporate customers, I see that 80% of all new orders are electric. This is quite different from the private market, where we barely reach 20%. The electrification of the Belgian fleet is therefore mainly driven by companies. I see that the government has recently made some announcements and initiatives to slightly adjust and refine the federal mobility budget. In the coming months, more and more people may thus give up their company cars and opt for this adjusted budget instead. Arval can also be of service there, with a positive mindset and a lot of know-how, in our role as a 'full mobility provider'."

Tipping point

According to Mélignon, the shift to electric mobility, which the market has been anticipating for so long, will also have consequences for companies. Mélignon: "We expect to see many more affordable models in 2025. Electric vehicles will no longer be just for the lucky few. This benefits the private market, but it also gives companies more opportunities. In addition, I expect the price of cars with combustion engines to rise. We often receive this feedback from manufacturers. As a result of the Corporate Average Fuel Economy (CAFE) standards, which regulate their CO2 emissions, they will soon have to pay huge fines if they fail to meet these standards. It is therefore in their interest to steer the market towards electric cars. They will also adjust their production capacity accordingly: 'made to order' instead of holding large stocks will become the industry standard from next year."

The road ahead

On a final note, Arval expects the market to open up to smaller and medium-sized enterprises and individual clients in the near future. Mélignon: "We believe that the change in the market will mean that many companies, which currently still favour purchasing company cars or financial leasing, will switch to operational leasing. They will outsource the risk related to, for example, residual value to us. And that is where we can make a difference as the market leader: we see this as a scenario for the near future, for which we are already preparing."

“It's not just the elderly who lack digital skills, young people and workers are also affected,” says Linde Verheyden, Director Public Affairs at BNP Paribas Fortis and Chair of DigitAll.

Despite the acceleration in digitalisation, many people are being left behind. In Belgium, 40% of the population between the ages of 16 and 74 are at risk of digital exclusion. Although older people are often seen as the most vulnerable group, younger people are also struggling in the digital age. Among young people aged between 16 and 24, almost a third lack basic digital skills, with a peak of 52% among those with a low educational attainment.

Figures that are surprising to say the least, considering young people grow up surrounded by digital tools.

"People often assume that young people are digital natives because they are adept at using social media. But making a TikTok video or scrolling through your Instagram feed doesn't necessarily mean you know how to carry out online banking transactions or complete an application form.

Does poverty play a significant role in the digital divide?

"Absolutely. For 25% of people living in poverty, a smartphone is their only digital device. Although they provide a basic form of access, smartphones are often inadequate for important tasks such as preparing a CV or filing a tax return. Without a computer or a stable internet connection, many digital opportunities remain out of reach for those who don't have access to these tools.

What are the other reasons for this digital divide?

"People often lack the necessary basic digital skills because they never learned them. They may not know how to use a search engine, attach a file to an e-mail, or download an app. Without this knowledge, the digital world becomes inaccessible. Furthermore, there is also the issue of digital stress. Many people worry about making mistakes, being hacked, or their privacy. Some people deliberately choose not to use digital services even though they have the skills. Technology instils a sense of distrust and unrest in them, creating a significant barrier.”

How can companies help close this gap?

"Companies can play a key role on several levels. In addition to being a social problem, digital exclusion is also an economic challenge. Today, less digitally adept individuals are both customers and potential employees. Being aware of this as a company is the most important first step. But it’s also essential to provide support to your staff. For example, employees at the municipal parks and greenery service in Ghent received training on how to file their tax returns online. These kinds of initiatives give people practical skills and confidence. In addition, companies need to do a digital check. To measure is to know. Just because someone uses a laptop daily, it doesn’t mean they have digital skills."

What does BNP Paribas Fortis do specifically to promote digital inclusion?

"We have launched several initiatives. In 2020, we established DigitAll, a platform for sharing knowledge and best practices around digital inclusion. Today, we bring together more than 130 organisations. DigitAll has developed a range of tools, including a checklist that companies can use to test how accessible their apps and websites are. A simple interface can make the difference between joining or dropping out for people who are less digitally adept. Since 2021, the bank has also supported a chair at the VUB that investigates the link between digital inclusion and human rights."

How important are tools in bridging the digital divide?

"User-friendly tools are a must. We have partnered with Emporia, a manufacturer of user-friendly smartphones for the less digitally adept. We pre-install our app for customers who buy one of their smartphones."

We mentioned digital stress earlier. How can you mitigate this?

"With awareness campaigns. We want our customers to use our tools with confidence. The bank also takes its less digitally adept customers into account. Thanks to our partnership with bpost, all our customers can go to their local post office for all basic banking transactions."

Do companies stand to benefit from promoting digital inclusion?

"They do. Digital inclusion requires a sustained effort from all stakeholders, including governments and educational institutions. No one should be left behind. Companies that act now can contribute to a more inclusive society while also securing their own future in an increasingly digital world.”

“Without key digital skills, many digital opportunities remain out of reach.”
“A simple interface can make the difference between joining or dropping out for people who are less digitally adept.”
“Limited digital skills remain an obstacle to closing the digital divide.”

Linde Verheyden, Director Public Affairs at BNP Paribas Fortis and Chairman of DigitAll