A physical presence in a foreign market allows a born digital firm to establish a more tangible and credible brand presence. Consumers are more likely to trust and be familiar with a brand that has a physical location. This can be particularly important in markets where consumers are unfamiliar with the born digital firm's online presence or where there are cultural or linguistic barriers to online communication.
2. To provide customer support:
A physical presence in a foreign market allows a born digital firm to provide better customer support to its local customers. This can include providing in-person support, handling product exchanges or repairs, and addressing customer inquiries and complaints. This can be particularly important for products that require technical support or that are complex to use.
3. To gain insights into local markets:
A physical presence in a foreign market allows a born digital firm to gain a deeper understanding of the local market. This can include understanding local consumer preferences, market trends, and competitive dynamics. This information can be valuable for developing and adapting products and marketing strategies for the local market.
4. To develop partnerships and collaborations:
A physical presence in a foreign market allows a born digital firm to develop partnerships and collaborations with local businesses, organizations, and government entities. These partnerships can be beneficial for a variety of reasons, such as gaining access to local expertise and resources, expanding distribution networks, and increasing market reach.
5. To comply with local regulations:
A physical presence in a foreign market may be necessary to comply with local regulations and laws. These regulations may include requirements for registering the business, obtaining permits or licenses, and meeting certain safety or environmental standards. Failure to comply with local regulations can result in fines, penalties, or even business closure.
Overall, having a physical presence in foreign markets can provide a number of benefits and opportunities for born digital firms. While it may involve additional costs and logistical challenges, it can ultimately contribute to the firm's long-term success and sustainability in these markets.
