Scaling Globally: The Challenges Myroomy Faced Launching into the UK and UAE Markets
Myroomy, multi-brand e-commerce furniture, and home goods marketplace has made a strategic decision to expand its presence into the UK and UAE markets. As an online-focused company from its inception, Myroomy's business model and development strategy have always aimed at gradually scaling into new markets and regions. In addition to recently launching in the UK and UAE, we continue to work, test, and develop new markets in the MENA region, Europe, and beyond.
Understanding of the potential demand for our unique offerings
Our decision to expand into the UK and UAE markets stems from an understanding of the potential demand for our unique offerings. Our research indicates a strong interest in our business model and product range within these regions. We recognize the discerning taste and preference for quality among consumers in both the UK and the UAE, particularly among the and high-middle-class segments. By catering to their desires for stylish and comfortable home furniture and decor, we aim to provide a tailored shopping experience that meets their expectations.
The global business landscape is constantly evolving, presenting us with new opportunities to tap into previously undiscovered market niches.
In recent years, the UAE has had a remarkable increase in its expatriate population. Since 2022, there has been a huge number of expats settling in the region, presenting a significant market potential. However, while several industries have experienced substantial growth, the online furniture market remains relatively untapped. This untapped potential creates a unique opportunity for businesses looking to establish a strong presence and cater to the growing demand for online furniture shopping in the UAE.
On the other hand, the UK market offers a different set of advantages. We have observed a remarkable gap in the online marketplace, where our platform stands out by offering an extensive and diverse range of products that are potentially unmatched by any of our online competitors. This strategic advantage positions us to capture a significant share of the UK market, catering to the evolving preferences and demands of customers seeking convenience and variety in their online shopping experiences and also we have developed in UK citizens a keen sense of valuing simplicity and minimalistic aesthetics in home decor. The desire to create a serene and clutter-free living space has become paramount, as it contributes to an overall sense of well-being and harmony. From decluttering techniques to embracing clean lines and neutral color palettes, individuals are actively seeking ways to cultivate a calm and inviting environment within their homes.
Understanding that each market has its own cultural nuances and design aesthetics, Myroomy takes a localized approach when curating our product assortment. Expanding into new markets poses a myriad of challenges, to be honest, particularly when it comes to customizing warranty terms, return policies, and delivery methods to align with the unique characteristics of each market. The intricacies and variations between markets present businesses with the task of adapting their strategies to meet the specific needs and expectations of local customers.
But we have got you covered!
What challenges and difficulties arose when entering these markets?
Entering any new market, even for a digital business, always presents a set of challenges that can be broadly categorized into three key areas:
Logistics:
Within our business, it is crucial to plan not only the supply chain from our global suppliers and the storage of goods (logistical routes and the establishment of our own or joint partner warehouses, including wholesale regional and local "dark stores") but also to streamline the entire "last mile" process.
This involves delivering the products to the end customer and managing interactions with them, including returns and warranty services. These processes vary significantly not only across different regions but even in countries within the same region, as they are influenced not only by global logistics flows but also by regional consumer protection regulations. Ensuring compliance with local requirements for the use and storage of users' personal data is an additional challenge for any international business, as regulations differ across countries.
Across the globe, the regulation of data privacy and protection varies significantly. In Europe, the General Data Protection Regulation (GDPR) sets forth stringent guidelines to safeguard individuals' personal information. Meanwhile, the United States adopts a sector-specific approach, with various industries governed by specific regulations. Additionally, different countries have their own unique local laws addressing data privacy concerns. Navigating this intricate web of regulatory frameworks poses a challenge for businesses operating internationally, requiring them to stay informed and compliant with the diverse legal landscapes to ensure the protection of user data.
Therefore, when planning market expansion into new regions, we place significant emphasis on addressing these logistical and legal aspects and more.
Partnerships:
There are several different models for entering new markets, such as establishing our own online brand presence or providing products through existing local players, including online aggregators and offline resellers.
We also consider various hybrid formats based on the market analysis, taking into account local regulations, the strength of local brands, market maturity, competition, and other criteria, such as the habits and behaviors of local users.
Moreover, each new market requires forging additional partnerships and new technical integrations to meet the demands of the local audience. For example, this may involve collaborating with buy-now-pay-later (BNPL) partners, with Klarna being one of the most well-known global providers. It may also include finding and integrating with credit partners, banks, or payment services for payment acceptance, as well as integrating with local delivery providers to ensure efficient product delivery to consumers.
These partnerships and integrations are essential to each business. In addition to business integrations, establishing seamless interactions with local regulators, tax authorities, and other relevant entities is crucial. This includes adhering to tax requirements, understanding and fulfilling reporting obligations, and actively engaging with regulatory agencies to maintain a transparent and compliant business environment. Building strong relationships with these stakeholders not only facilitates smooth operations but also fosters trust and credibility within the local market.
Marketing:
Each of the previous points already included an extensive marketing component, involving research on consumer habits and needs, competitive landscape analysis, and exploration of potential partnerships, services, and regulations in each new market. However, in addition to that, it is important for us to inform the local customers that a new player is entering the market, highlight what sets us apart from existing options, and promote what we have to offer. To achieve this, we employ both proven marketing techniques and test new ones, as user preferences and habits across different markets. We have encountered situations where marketing strategies effective for one of our markets turned out to be completely ineffective for another, especially during the initial stages. By the way, make sure to visit our Social Media pages and website to get familiar with our offerings!
In marketing, it is crucial for our team to pay attention to every element to meet the needs of customers in different markets. We continuously work on refining the front-end interfaces of our websites, updating points of contact and communications, and meticulously evaluating the entire process from advertising to customer satisfaction. Currently, we are creating a new life-cycle email campaign for the new markets to retain and engage all our valued users.
Our goal is to create a seamless and satisfying experience for our customers, with the aim of encouraging them to return to us again and again.
The marketing advisor of Myroomy shares the following considerations regarding the marketing strategy:
“We strive to stay on top of global trends. For example, considering several emerging markets, we plan to offer alternative payment methods beyond traditional financial systems, such as cryptocurrency payments. However, the varying regulations and stages of cryptocurrency services development in different countries pose challenges for our business team, as well as colleagues involved in compliance and legal support. We aim to keep our finger on the pulse of these developments and adapt our strategies accordingly".
It is also important for us to demonstrate to potential customers that we not only understand global trends but also recognize the specific characteristics of each market.
Here are some of the partners who supported us at the beginning of our journey into new markets:
We are thrilled to collaborate with renowned companies like Stripe and Cloudflare, offering our partners a comprehensive range of services. Stripe provides online payment processing and commerce solutions through their powerful APIs, catering to businesses of all sizes. Meanwhile, Cloudflare specializes in optimizing Internet functionality with CDN, DNS, DDoS protection, and security features. Together, these collaborations allow us to understand global trends, recognize market-specific characteristics, and provide tailored solutions to meet the diverse needs of our customers.
Expanding into new markets comes with its own set of challenges and exciting opportunities, especially when it comes to partnering with Buy Now Pay Later (BNPL) service providers. Let me share a real-life example to illustrate this.
Myroomy collaborates with Klarna on several markets, enabling our customers to enjoy the convenience of purchasing products with installment plans and minimal upfront payments. However, when Myroomy decided to enter the Emirates market, we faced a challenge: Klarna wasn't available there. But it didn't let that stop us.
Instead, we carefully selected Tabby as their partner for the Emirates market.
This case perfectly highlights the challenges that companies encounter when expanding into new markets. Finding the right partners, engaging in lengthy discussions to negotiate collaboration terms, and making necessary enhancements and integrations are all part of the journey.
In the end, Myroomy's experience exemplifies the importance of flexibility and persistence when navigating new markets. It's a testament to the exciting possibilities that emerge when companies are willing to adapt, collaborate, and embrace the demands of a new market.
We are excited about the opportunities ahead!
Expanding Horizons: Perspectives and Future Plans for International Market Development
“We are constantly expanding our horizons and testing new markets, never resting on our laurels. For instance, we are currently testing sales launches in the United States, Spain, Saudi Arabia, as well as several Asian countries. Our goal is to carve out a niche for ourselves in our segment across different markets that pique our interest”. - says Myroomy’s CEO Andrey Gamco.
On one hand, every new market presents unique challenges, but on the other hand, there are overarching trends in terms of style, user habits, and behaviors. This makes it incredibly exciting for us to explore and evaluate the effectiveness of our business model in new regions. Being a digital business, Myroomy fully leverages the advantages that the evolving global economy offers, despite its complexities, enabling us to seize additional opportunities.
Along with the company's philosophy, we focus on adapting its products and services to meet the specific demands and preferences of local consumers. This involves considering factors we mentioned above such as regional aesthetics, functional requirements, and cultural sensitivities to ensure the offerings resonate with the target market.