International Market Research: The Step-by-Step Guide You Need in 2025

Expanding a business into foreign markets represents a powerful growth strategy, yet it also involves significant risks. International sales efforts consume valuable human and financial resources. Therefore, before venturing abroad, we need to develop a solid market study for a company to validate whether there is a real opportunity for our products. The different market study phases allow us to identify that the same product can have different meanings or levels of acceptance depending on the country.  

Following the pandemic, many trade events have shifted to virtual or hybrid formats, reducing participation costs and facilitating international connections. Additionally, tools like Google Trends, Statista, and ITC Trade Map have become essential for learning how to conduct a thorough market study.

Evaluating Product Adaptability for International Markets

Before launching a product abroad, assessing its adaptability is a critical phase in any international market study. Experts note that the same product can have different meanings, uses, or levels of acceptance depending on the country where it is marketed, making this stage a decisive filter to avoid commercial failures.  

Cultural Analysis of Product Usage

Culture acts as a powerful filter that determines how consumers perceive, use, and value products. In the market study phases, this analysis must go beyond simple translations of promotional materials. For example, in Japan, where social ceremonies and conventions carry great weight, even the business greeting (a bow instead of a Western handshake) reflects deep cultural differences that affect negotiations.  

When conducting a market study for a company, we must consider aspects such as:  

• The specific needs of local consumers  
• Regional consumption habits  
• The culture of product usage in that context  
• Colors and symbols with different cultural meanings  
• Levels of formality in business communication  

A product may be technically viable but culturally rejected. Therefore, the adaptation strategy involves modifying product aspects to meet the specific needs and conditions of each market. This adaptability primarily responds to three principles: cultural patterns, consumption trends, and market dynamics.  

During the analysis, it’s essential to answer questions about potential consumers and the environmental conditions where the product will be used. On the other hand, Hofstede’s cultural dimensions model is particularly useful for understanding how each country makes business decisions, identifying factors such as power distance, individualism-collectivism, and uncertainty avoidance.  

Technical and Sanitary Regulations by Country

In addition to cultural analysis, a thorough market study must examine the technical and sanitary regulations of the target country. These regulations can become significant trade barriers if not properly studied.  

For animal-origin products, for example, exporting generally requires presenting a specific veterinary certificate to the importing country’s authorities. Likewise, plant-origin products must comply with international phytosanitary standards established by the International Plant Protection Convention (IPPC).  

In the case of the European Union, Regulation (EU) 2016/2031 establishes protective measures against plant pests, while Regulation (EU) 2017/625 regulates official controls to ensure compliance with food, animal, and plant health legislation.  

These regulations vary considerably between countries and regions. Consequently, many exporters opt for specific certification of their facilities or processes to facilitate access to certain markets. The current trend shows increasing complexity in these requirements, with self-control systems subject to documentary or physical audits by accredited entities.  

Labeling and Packaging Requirements

The final pillar in evaluating product adaptability is compliance with labeling and packaging requirements. These regulations aim to ensure the safety, quality, and sustainability of products during international transport.  

In the European Union, the Packaging and Packaging Waste Directive states that all packaging must meet eco-design requirements and be recyclable, setting recycling targets of 55% by 2025 and 65% by 2035. Meanwhile, international shipments require specific labels:  

• Address label with complete details  
• Special handling labels (fragility, hazardous materials)  
• Weight and content information  
• Regulatory information based on product type  

The CE marking is mandatory for products marketed in the EU, indicating compliance with established safety and health requirements. Similarly, to prevent pest spread, many countries require wood packaging to comply with ISPM 15 standards, requiring heat treatment or fumigation, along with a certification seal.  

For specific products like food, cosmetics, or textiles, labels must include detailed information about ingredients, expiration date, usage instructions, and specific precautions in the destination country’s language. A complete market study must verify these requirements to avoid customs rejections.  

In short, a product’s adaptability to international markets depends on both cultural factors and technical regulations and logistical requirements. Therefore, companies aspiring to export successfully must integrate these three dimensions into their internationalization strategies, recognizing that this analysis is an indispensable phase as part of a rigorous market study.  

How to Conduct a Market Study Step by Step

International market research represents a systematic process that determines the success or failure of any export strategy. To develop an effective market study, it’s essential to follow a structured methodology combining primary and secondary sources of information.  

Using Google Trends and Statista to Detect Demand

Google Trends has become an indispensable tool for analyzing consumer interest in real time. Unlike other platforms, it allows visualizing search trends from 2004 to the last 24 hours, revealing seasonal patterns and emerging trends. For example, if we sell hair care products, we could identify which countries show comparative demand to plan our expansion.  

To use Google Trends effectively:  

1. Explore current trends on the homepage  
2. Search for keywords related to your business  
3. Identify key seasons of higher interest  
4. Compare terms to determine relative popularity  
5. Analyze local context by filtering by region  

Similarly, Statista provides access to valuable information on markets, industries, and consumer behavior in over 150 countries. Its detailed reports offer growth projections and sector analyses through charts and infographics that simplify complex data comprehension.  

ITC Trade Map to Identify Buyer Countries

Trade Map is an essential database covering trade flows of over 220 countries and 5,300 Harmonized System products. This International Trade Centre (ITC) tool allows users to:  

• Analyze export performance indicators  
• Evaluate international demand for specific products  
• Identify alternative markets with potential  
• Study competitors’ roles by product and country  

To leverage Trade Map, first define the type of operation (import/export), your product’s tariff classification, and the country of origin. Results will show buyer destinations with annual data, allowing you to identify specific market niches. For example, you might discover that a country imports large quantities of your product, indicating significant demand.  

Additionally, Trade Map provides business information, facilitating contact with potential suppliers and buyers. As Mahmoud El Awady noted: "I can now use this sector data to help companies identify new markets."  

Surveys and Interviews as Primary Sources

While secondary sources provide a broad overview, primary research is crucial for obtaining specific, up-to-date information. These techniques directly explore how users would react to our product and what problems they perceive.  

Among the most common methods for primary research are:  

• Custom surveys: Allow structured opinion gathering  
• Individual interviews: Delve into motivations and needs  
• Focus groups: Generate dynamic discussions about the product  
• Direct observations: Evaluate real user behaviors  

To design effective surveys, first clearly establish the research topic, then define your target audience, and finally draft specific questions for your audience. Remember that good primary research always starts with predefined objectives to formulate questions that yield necessary information.  

The advantages of primary studies include greater control over the topic, specificity for hard-to-define market niches, and higher data accuracy. On the other hand, secondary sources, though less specific, offer faster and more economical results, serving as valuable preparation for later phases.  

By combining both approaches, your market study will provide a comprehensive vision that minimizes risks and maximizes opportunities in international expansion.  

Financial Analysis for Successful Exporting

Financial analysis is one of the foundational pillars of any international market study. During the market study phases, this evaluation determines whether the export project will be truly profitable in today’s global trade uncertainty.  

Logistical and Tariff Costs

International cost structures go far beyond the product’s simple price. Maritime transport, which handles 90% of global trade, involves a series of expenses that must be meticulously calculated to avoid affecting competitiveness. Key elements to consider include:  

• Import tariffs: Calculated as a percentage of the product’s CIF value (cost + insurance + freight). For example, if our shipment’s CIF value is €100,000 and the applicable tariff is 6.5%, we must add €6,500 to the cost.  
• Port fees: Include the T3 (facility usage) and THC (container handling), applied at both origin and destination.  
• Import taxes: The import VAT (usually 21%) is calculated on the CIF value + tariffs + port fees.  
• Customs fees: Correspond to administrative procedures for clearance, though their cost is lower; an inspection can generate significant overcosts.  

Additionally, the global tariff landscape presents high uncertainty, especially with new U.S.-China tariffs, which have led to revisions in growth and inflation projections for both countries. This situation could affect trade with the European Union, posing a risk to European exports.  

Calculating Expected Commercial Margin

The commercial margin must account for additional export-specific costs. To calculate it correctly, we should consider the basic formula:  

Commercial Margin = Selling Price - Product Cost  

Though simple, exporting requires analyzing two approaches:  

1. Origin-to-destination calculation: Starting from manufacturing costs and the desired margin, we determine a price competitive in the target market.  
2. Destination-to-origin calculation: We analyze the market price at the destination and work backward to determine if the resulting margin is acceptable.  

The optimal margin varies by sector. For trade, 15%–20% is ideal, while for industry, it’s 8%–12%. However, this margin will differ for each country-market, adjusting to specific characteristics.  

Financial Scenarios: Optimistic, Realistic, and Pessimistic

Given international trade uncertainty, creating multiple financial scenarios is essential. The classic model includes three variants:  

1. Optimistic scenario: Assumes not only meeting but significantly exceeding sales targets. It also considers a major reduction in cash outflow. This scenario could arise from unexpectedly high demand, successful market entry, or effective marketing.  
2. Realistic scenario: Based on conservative projections considering the company’s historical performance and current market conditions. It assumes moderate growth without major surprises. This scenario should remain the primary reference point.  
3. Pessimistic scenario: Envisions a drastic sales decline, cost increases, or even operational disruptions. It could respond to geopolitical events, legislative changes, or financial market fluctuations.  

These scenarios’ importance lies in allowing us to anticipate potential obstacles and make informed decisions. For example, Kodak was unprepared for a scenario where photographic film became obsolete, leading to a sales collapse. Preparing for multiple scenarios helps develop contingency plans and rapid-response strategies.  

Consequently, a good financial analysis for exporting must integrate both international trade-specific costs and forecasts of various economic scenarios, enabling stronger decisions in high-uncertainty environments.  

Company Market Study vs. Local Competition

Entering an international market without thoroughly understanding local competition is like sailing without a compass. A competitive market study is the cornerstone of any successful internationalization strategy, allowing us to discover opportunities and threats others have overlooked.  

Identifying Leading Brands in the Target Country

First, we must conduct an exhaustive analysis of direct competitors (companies with similar products) and indirect competitors (those meeting the same need with different solutions). To effectively identify competition, we can use various methods:  

• Local market study: Essential before any prospecting, as our international competitors already have experience in that market.  
• Comparative SWOT analysis: Lets us clearly visualize each competitor’s strengths and weaknesses relative to our company.  
• Digital tools: Platforms like Market Explorer automatically generate lists of key players in our commercial space, visualizing their market share, audience size, and growth rate.  

The "Growth Quadrant" is particularly useful for classifying competitors into four categories: niche players (small with low growth), game changers (emerging with rapid growth), established players (large with steady growth), and leaders (large with rapid growth).  

For brands like Grupo Barceló, this phase has been critical in their expansion, with over 80% of their EBITDA coming from abroad.  

Distribution Channels Used by Competitors

Distribution channels are the pathways through which products move from manufacturer to end consumer. Analyzing competitors’ channels helps us better understand their commercial strategies.  

These channels are primarily classified as:  

• Direct channel: The producer sells directly to foreign customers without intermediaries. It provides greater control over sales strategy but requires higher logistical investment. Apple exemplifies this strategy, offering qualified staff, extended warranties, and technical service in all operating countries.  
• Indirect channel: Intermediaries participate in the commercialization process. Based on the number of intermediaries, they can be:  
  • Short channels: The company distributes only through a retailer.  
  • Long channels: Wholesalers and retailers are involved.  
  • Dual channels: Franchisees or allied companies participate.  

Flagship stores, though costly, represent an excellent opportunity to showcase products and strengthen brand identity, especially for luxury or high-value items.  

Additionally, analyzing competitors’ distribution strategies helps us decide whether to focus on direct export, indirect export, strategic alliances, or direct investment in the target market.  

Differentiation by Quality, Price, or Sustainability

To stand out against local competition, three main differentiation strategies exist:  

1. Cost leadership: Price becomes the decisive factor in the purchasing process. Companies like Walmart, Amazon, or ManoMano apply this strategy by selling branded items at low cost.  
2. Differentiation or unique offerings: Finding that "extra something" that makes us special. We must clearly communicate what sets us apart from international competitors.  
3. Exceptional customer service: One of the hardest strategies to implement abroad, as it requires adaptation to each local culture. It involves deeply understanding customers’ needs and pain points.  

Sustainability has also become a powerful competitive advantage. According to a Nielsen study, 66% of global consumers are willing to pay more for products from companies committed to social and environmental impact—a percentage even higher among millennials and Gen Z.  

Companies integrating sustainability into their strategy not only contribute positively to the planet but also position themselves more solidly in a competitive environment. This differentiation goes beyond mere marketing, building stronger, longer-lasting relationships with like-minded customers.  

Tunisian brand Terra Delyssa is a notable example. In a competitive market like Spanish olive oil, it carved a niche through strategic marketing and smart distribution, positioning itself as an accessible yet high-quality brand emphasizing traceability.  

Product Validation with Pilot Tests

Once preliminary analyses are complete, pilot tests represent the practical phase within the market study, validating our hypotheses with real-world data. These tests significantly reduce international investment risk by providing firsthand information about product acceptance.  

Controlled Launches in Key Cities

Pilot tests in strategically selected cities allow us to evaluate product viability before committing major resources. An example is the first export of boneless beef from Santiago del Estero to Europe via air freight—a pilot test involving just 22 kilograms out of 12 available tons. Such experiences help:  

• Evaluate the international logistics chain without disruptions  
• Identify unforeseen regulatory obstacles  
• Adjust product aspects based on local feedback  

Chosen cities should adequately represent the target market, with demographic and cultural characteristics similar to the rest of the country.  

Using Marketplaces Like Amazon Global

Marketplaces are an ideal low-risk testing strategy. Currently, 98% of online shoppers use marketplaces, with Amazon leading, followed by AliExpress. This platform allows:  

• Quick access to international consumers  
• Analytical data on purchasing behavior  
• Product testing without proprietary infrastructure  

Companies like Vodafone have adopted this approach, running pilot tests with over 100 suppliers before launching their own marketplace. This way, the operator aims to capture part of eCommerce growth, adapting to changing customer needs and offering a wider product variety.  

Measuring Repurchase Rates and Feedback

Finally, product validation requires objective measurements. During the market study phases, we should collect:  

• Direct feedback from real consumers  
• Repurchase rate data (a key satisfaction indicator)  
• Information on unforeseen barriers  

Pilot tests allow adjusting prices and promotional messages before the full launch. Similarly, channels like Amazon Global, B2B marketplaces like Alibaba, or agreements with local distributors can serve as excellent testing grounds.  

Consequently, pilot validation represents a smart investment that can determine the success or failure of our internationalization strategy.  

Conclusion: Navigating International Markets Successfully

The international expansion process undoubtedly requires a meticulous and systematic market study. Throughout this article, we’ve analyzed the fundamental stages every business must consider before venturing beyond its borders. First, product cultural adaptability emerges as a critical element, as the same goods can be interpreted radically differently across cultural contexts.  

Similarly, tools like Google Trends, Statista, and ITC Trade Map become indispensable allies during research phases, providing objective data on consumption trends and market behaviors. These platforms, combined with direct surveys and interviews, offer a comprehensive view of the international commercial landscape.  

Financial analysis, on the other hand, represents an essential pillar determining the project’s real viability. Logistical costs, tariffs, and projections of different economic scenarios must be calculated meticulously to avoid unpleasant surprises.  

Consequently, studying local competition reveals differentiation opportunities that can make or break success. Strategies based on quality, price, or sustainability must be specifically adapted to each target market.  

Pilot tests also constitute a crucial phase to validate all our hypotheses with real data. Through controlled launches or global marketplaces, we can obtain valuable feedback before committing major resources.  

The path to international expansion may seem complex, but by following this step-by-step guide, any company will be better prepared to tackle challenges and seize opportunities global markets offer in 2025.  

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