There are several reasons why reputable international companies fail in the U.S. Dental Market. We breakdown the top reasons why.
It’s no secret that the U.S. is the biggest dental market in the world. The U.S. is the most sought-after market because of its robust economy and the number of dentists. Additionally, there are not a lot of American made products available as it has been dominated by Europea and Asian for decades.
So if the economy is so robust and the majority of dental products are imported, why is it so hard for an international company to introduce themselves successfully to the U.S. market? We dig into some contributions on why it is so hard.
Introducing products to the U.S. dental market can be challenging for international companies due to several factors:
- Cultural Differences: Understanding American consumer preferences, values, and behaviors is essential. Products that resonate well in one country might not appeal to U.S. consumers without adaptation. Many companies focus on the value in their home country and assume the U.S. has the same values. For example, price! Many companies try to sell only on price in the U.S. and fail to gain traction.
- Market Saturation: The U.S. is a highly competitive and mature market, with well-established players across industries. Standing out in such a crowded space is a significant challenge.
- Regulatory Hurdles: The U.S. has stringent laws and regulations related to product safety, labeling, advertising, and imports. Navigating these complexities can be daunting for foreign companies. So much time can be wasted.
- America is BIG: The U.S. is a big country with 50 states that all contain their own personalities and buying styles. Frequently companies view the U.S. as one entity but the reality is very complex. What works in Los Angeles may not work in Atlanta for example.
- Distribution and Supply Chains: Establishing efficient distribution channels and managing logistics across a vast country with diverse regions can be a major hurdle. Companies will have to find good distributors through “Trial and Error” which leads to wasted time and possibly a tarnished reputation.
- Pricing Strategy: Setting competitive prices while accounting for import tariffs, marketing expenses, and distribution costs can be tricky. You are in danger of launching a product too expensive or too cheap, both are not good.
- Customer Service Expectations: American consumers often have high expectations for customer service, including returns, refunds, and after-sales support. Companies may need to adapt their operations to meet these demands. The Amazon mentality has infused itself into nearly every industry.
- Marketing and Communication: Effective advertising requires localization, not just in language but also in tone, humor, and messaging. What works in one culture might not work in another. Americans recognize “tone deaf” marketing immediately and may shy away from experimenting with new products.
- Investment- Many companies are successful in their home countries so there is a arrogance that can seep into their mindset. Some companies don’t feel they should invest into infrastructure in the U.S. because their product is that fantastic. Others feel they are offering a cheaper product so there is no need to invest into the market. Both mindsets are a recipe for failure. If you want your tree to grow you need to water it, simple as that.
- Patience- Developing a plan and executing isn’t easy to do. So often companies start and abandon plans because the process is taking longer than expected. This leads to a frequent change in direction and confusion from the consumer.
The best way to introduce yourself into the U.S. market is to hire a guide to see you through. There are many Consultants who have the knowledge and connections to help you avoid major mistakes that may kill or delay your brand from gaining traction.