Social networks, the hottest media

Social media have been the hottest marketing channel for more than a decade. There are several reasons for that such as: they’re not expensive, they allow human 1-to-1 interactions and they’re instantly measurable.

Although social media are all over the world, companies are still shy about using them to help their internationalization.
According to Eurostat, in 2013 the EU-28’s business economy was made up of around 26 million active enterprises, with the largest active enterprise population in Italy (3.9 million), France (3.18 million) and Germany (2.97 million). When it comes to export, the differences are astonishing with Germany counting 360,000 exporting companies (12%), Italy 240,000 (6%), and France only 125,000 (4%)!

Let’s now compare these numbers with Eurostat figures on social media use by enterprises: in France 67% of companies have a website and 28% use social media; in Italy 71% of companies have a website and 35% use social media; in Germany 87% of companies have a website and 33% use social media.
German and Italian enterprises are using social media and exporting much more than French companies.

It is still hard to draw a direct correlation between social media and export, especially because of great differences in the structure of the economy between these three countries, but it is undeniable that social media do have a positive impact on international business.

So, if social media have such a positive impact on export, why aren’t companies more “active” when it comes to using social media for their internationalization?

Looking at this more carefully, we think it is not just a question of time but instead the result of two common mistakes:

• Companies at first join as many social networks as possible without considering the resources needed to manage them or where customers are. They are soon overwhelmed and unable to manage them.
• Marketers think English is good for social media anywhere in the world because English is the most used Internet language. They are quickly disappointed by the poor audience they get, and they abandon the networks abroad.

Going global is going local
There were more than 4.3 billion Internet users and 3.4 billion active social media users in the world in January 2019.
As these numbers grow, business exposure grows too, making the potential value of this trend huge for any business.

The use of social media in multiple countries will consequently multiply that potential and help companies:

• Scale business faster
• Interact with larger and global audiences
• Increase brand awareness and build B2B/B2C brand abroad
• Strengthen relationships with foreign customers and influencers
• Generate sales in new markets
• Be different from and do better than competitors

So good and active use of social media can make a business popular, especially when they are used globally. However, social media are not global! Using social media globally means using them locally in many countries at the same time. It requires a good understanding of the specifics in each target market and of what can make a foreign business part of it.

The goal therefore isn’t to be good at social media. It’s to be good at business because of social media, locally and globally!

1977: “Le Relais Occitane”, the company’s first store, opens in Manosque. Forty years later, L’Occitane en Provence, which today has more than 2,300 stores in 90 countries, shows us how selling on several channels in several countries is a growth driver that is also possible for SMEs and very small companies.

Markets and channels selection: the “where” and the “how” are the keys for international multichannel growth

It is in the 1990s with the arrival of Reinold Geiger, President and majority shareholder of L’Occitane since 1996, that an international multichannel strategy takes shape. It was based on two axes: sales and marketing.
The company then decides to deploy its distribution across multiple channels – B2C, B2B2C, B2B, digital – and across multiple countries opening three stores overseas in 1996 – first in New York, then Hong Kong and Tokyo.

At the same time, “en Provence” is added to “L’Occitane” to emphasize its origins. This new brand is successfully deployed in France and internationally. In ten years the company grows from 8 to 416€ million in sales, from 10 to 2,000 stores and is exporting 86% of its production.

By adopting a local approach in each market, a brand anchors in the country landscape and can take off internationally.

L’Occitane en Provence has also been innovating with the digital marketing. With a 360° customer database, all purchasing information is managed in such a way as to maintain a perfect knowledge of the customer profile. With this database the company can promote some of its products with a personalized approach, for example through dedicated mailings, relational campaigns and alerts before the end of a product.

On the store side, vendors are equipped with tablets that help them get additional data via the web platform and provide tailored answers directly to customers.

Finally, on social media, L’Occitane en Provence uses beautiful images associated with its brand to expand its Instagram and Facebook communities, combined with a transgenerational strategy powered by partnerships with influencers and youtubers.

L’Occitane en Provence’s digital strategy aims to make every customer feels closer to the brand, in any country at any distance from its headquarters.

Conclusion: international multichannel, vs. global omnichannel, is a strategic growth catalyst

A global omnichannel strategy requires the presence of a brand in all distribution and communication channels. A presence that must be optimized in all countries at the same time. This strategy is a cumbersome and expensive approach for many companies, and almost unachievable for SMEs and startups.

On the contrary, L’Occitane en Provence shows that international multichannel is within the reach of companies of any size, through a gradual expansion, country by country, combined with the implementation of marketing tools to guide and retain consumers in every market and channel.

The Click & Boat case

The high operating cost of boats for a very low rate of use was the key problem that brought Click & Boat to life.

Created in France in 2014, the Click & Boat platform connects private boat owners and renters. It offers 8000 vessels in 362 ports in 22 countries from Croatia to Italy, Spain and Greenland. In less than three years already 40% of boat owners using Click & Boat are from abroad.
And from the renters’ side, the startup has even more international traction with reservations coming from South American or U.S. clients.

Click & Boat’s founders went further by acquiring Sailsharing, the sector leader created just one year earlier in 2013. They invested deeper in this international growth by raising one million euros in capital, which makes Click & Boat the best financed european start-up in the sector.

After opening Click & Yacht for luxury reservations, Click & Boat plans to launch new platforms for other segments. Clearly the start-up’s ambition focuses on international growth for achieving leadership in its sector.

Adjusting the internationalisation strategy to the business situation

Any enterprise, even start-ups, has several internationalisation options, depending on its competitive positioning and its development level. Click & Boat shows some examples:

• Acquisition: Click & Boat buys out its competitors by acquiring Sailsharing, the market leader.
• Strategic business units: Click & Boat creates Click & Yacht to be closer to customers in a new market segment.
• Pure-player strategy: Click & Boat applies a model that is 100% digital, which allows it to optimize localisation and product/service availability anywhere in the world.

SMEs and startups need exports to grow faster

Domestic markets are not enough for a development pace comparable to that of Chinese or U.S. companies.
However, the further the markets where SMEs and startups internationalize, the higher the risks and costs. On the opposite, digital & cross-border exports allow to achieve new business in nearer markets first and through digital models such as e-commerce or parketplaces, either B2C or B2B.

This is the best export strategy for SMEs and startups in terms of costs and risks. The challenge then is to accelerate this strategy at the right pace in order to benefit from the great business growth and competitive power that export brings. 

In 2016, Nokia acquired Withings for 170 million euros.

The Finnish company considered that it and Withings had the same ambition: improve people’s health through everyday things.

This is the start of a new phase for the French company: founded in 2008 in Issy-les-Moulineaux and among La FrenchTech’s pioneers, Withings is specialized in connected devices and smart lifestyle products for health and well-being.

Exporting: a growth and competitiveness accelerator

Export-oriented since its start, Withings has succeeded in becoming a global leader in its sector. In 2014 the company reported that 90% of its sales were made outside France, and mainly through the internet: Amazon and its own e-commerce site withings.com/store.

In just 6 years, Withings boosted its international business, with a strategy that almost entirely self-financed its export. When in July 2014 the company raised 23.5 M euros from Bpifrance, Idinvest Partners, 360 Capital Partners and Ventech, it was in a position to speed up its competitiveness and growth in the global market.

The keys for an SME to start and succeed at its internationalization

The first key is the willingness to move beyond the domestic market, which often is too small. “Think local, act global” is the basis for any business looking to expand internationally.

A second key is cross-border trade. It is about selling products or services in bordering foreign countries thereby minimizing risk and costs associated with export.

A third key is the digital strategy for export. This requires checking the technology features and the digital habits in each export market. The company must make a choice between the homogenization of its digital communication channels, or its adaptation to local needs.

SMEs can also succeed by focusing on digital and international development

By concentrating 90% of its export sales through e-commerce during the first years, Withings ensured solid growth. And the acquisition in 2016 by the Finnish giant confirmed Withings’ success in its multichannel international strategy.