Associate Attorney
Korean companies that want to expand the sale of their products and services to the U.S. face significant challenges, but the benefits can often be well worth it. Following specific tips and considerations can give your business the best chance at success in establishing a foothold in the U.S. market.
Understand the U.S. Market
The most crucial step Korean companies can take when expanding to the U.S. includes understanding the country’s unique market. Companies should undertake thorough market research and analysis to identify their target demographics in the U.S. and understand Americans’ consumer behavior. Companies should also identify their American competitors and evaluate current market trends to determine the right time to enter the U.S. market.
Evaluate Applicable Legal and Regulatory Requirements
Korean companies should also evaluate what legal and regulatory requirements or issues they may face when entering the U.S. market. For example, a company may establish a U.S. subsidiary to facilitate its operations. This will require the company to answer questions about what kind of corporate structure the subsidiary should have and in which state it should form its subsidiary.
Companies should also familiarize themselves with unique regulations in the individual states they plan to market to, including state consumer protection laws or statutes regulating the sale of specific products or services.
Learn U.S. Culture for Product and Marketing Localization
Korean companies will likely have to work with U.S. partners, including importers, distributors, retailers, and marketing companies, to facilitate their expansion. Understanding U.S. business culture can help Korean businesses foster effective relationships with their partners and avoid future misunderstandings or disputes.
Companies should also consider whether and how to adapt their products or services for the U.S. market to suit consumer preferences. In addition, they should develop marketing that will allow their products and services to resonate with their intended audience. How a company markets a product or service in Korea and how the product looks and feels to Korean consumers may not always translate to American consumers.
Build a Strong Local Team
Running U.S. operations from Korea can quickly become a near-impossible task. Korean companies expanding into the U.S. must develop a local team or local partnerships in-country to handle day-to-day issues such as distribution, marketing, sales, and customer relations.
Depending on your company’s size, you may set up a wholly-owned U.S. subsidiary. However, smaller businesses may partner with U.S. companies to facilitate their entry into the U.S. market, including suppliers, distributors, and other partners who can handle much of the groundwork.
Your company should choose its U.S. partners carefully since it can’t oversee their actions daily. Your business should look to work with partners with a proven record of successful relationships with other Korean companies, as they will have the experience and insight into the unique challenges of expanding Korean businesses into the U.S.
When your company decides to form a U.S. subsidiary, you must ensure that the staff you hire understands the relevant cultural differences and appreciates and embodies your company’s values.
Leverage Technology and Innovation
Finally, your company can leverage technology to help facilitate your entry into the market, including using digital marketing and e-commerce platforms to reach U.S. customers. A strong, U.S.-focused online presence for your company and its goods and services will help you better connect with American consumers.
Contact an Experienced Business Attorney Today to Learn More About Expanding to the U.S.
Expanding to the U.S. represents a massive growth opportunity for Korean companies. However, inadequate planning and preparation can make this opportunity a significant risk for your business. You need experienced legal advice and guidance to give your company the best chance of success in the U.S. market. Contact Sul Lee Law Firm PLLC today for a consultation with a knowledgeable Texas business attorney to get the help you need to facilitate your business’s expansion into the U.S.