International expansion looks simple on paper, but the reality tells a different story. Retail brands face countless pitfalls when crossing borders, from cultural misunderstandings to operational nightmares. Rich McMahon knows this challenge intimately, having spent over three decades helping consumer and retail businesses scale successfully, including 17 years at Bed Bath & Beyond leading strategy and international expansion. As Founder and CEO of cda Ventures, he’s developed a systematic approach to getting international growth right. Here’s Rich’s approach to expanding U.S. retail brands into international markets, and what it really takes to get it right.
Market Prioritization and Risk Management
Not every market is worth your time. Rich’s blunt about this reality: “Prioritize markets based on demand, economic stability, and competitive landscape.” Sounds obvious, but most brands skip this step and jump into markets that look appealing on paper. His rule is simple but brutal. “For me, if your brand cannot grab the 1, 2 or 3rd spot in the market, prioritize another market unless there are overwhelming reasons otherwise,” Rich explains. Why waste money fighting for scraps when you could dominate somewhere else? Plus, spreading across multiple markets helps when one economy tanks. Smart money doesn’t put all eggs in one basket.
Understand the Consumer, Not Just the Category
This is where most brands mess up. They assume what works in Ohio will work in Brazil. Rich’s team spends serious time studying local behavior before making any moves. “Success abroad starts with understanding consumer behavior,” he points out. “It’s not enough to assume your product will translate.” The questions get specific fast. “We analyze key trends, cultural drivers, technology use, and demographic shifts to uncover where real opportunity lies,” Rich says. Sometimes it’s about brand perception. “For example, how important are brands to consumers in this market? If they are US based brands, does the English version carry more value to the customer?” These details separate winners from expensive mistakes.
Differentiate Beyond Product
Here’s what Rich tells every client: “Many brands think their product alone is the differentiator. It’s not.” Harsh but true. Every market has products. What they don’t have is your specific combination of values, service, and experience. Rich works with brands to figure out what actually makes them different. “We help brands clarify what truly sets them apart, be it their values, experience, service model, or community,” he explains. “That clarity is what makes a brand relatable and scalable across borders.” But it goes deeper than marketing speak. “For example, expanding into Latin America, your training efforts with associates may be approached differently. Given socio-economic differences, associates and customers may not engage the same as they do in the US.”
Be Strategically Tactical
Big ideas crash when they hit operational reality, Rich has seen this movie too many times. “Define bold strategies but execute with discipline and detail,” he advises. You need both the vision and the nuts-and-bolts planning that makes it happen. The planning gets granular quickly. “Develop a detailed international expansion strategy: set clear goals, select entry methods (partnership, franchise, wholly-owned), and operational plans,” Rich outlines. Every choice teaches you something. “What are the benefits and pitfalls to each entry model? What learnings can this market provide and benefit your overall expansion plans?”
Align Structure with Strategy
International expansion breaks companies that treat it like a side project. Rich’s direct about this: “International growth isn’t just a sales play, it requires rethinking your organization.” Your current setup probably won’t work in new markets. Rich’s team helps companies overhaul their operations. “We work with clients to align their teams, data, supply chains and digital tools to support the growth plan,” he explains. The logistics alone can kill you if you don’t plan right. Companies need to “evaluate logistics, local sourcing, warehousing, and distribution networks” and “choose reliable fulfillment partners and third-party logistics (3PL) providers to streamline operations.”
Leverage Technology and Digital Platforms
Smart brands test before they invest big. Rich pushes clients to use digital tools for market validation. “Use technology to optimize inventory, automate processes, and enhance customer experience,” he suggests. Local digital marketing requires its own strategy too. Testing through existing platforms makes sense. “Potentially test demand using digital marketplaces (e.g., Amazon) before large-scale investment. Or even your own DTC capabilities,” Rich explains. Why build a store in São Paulo when you can test demand through Amazon first?
International expansion sounds exciting until you’re dealing with customs delays and cultural misunderstandings. Rich’s realistic about the challenge: “Expanding internationally is one of the most rewarding but complex moves a brand can make.” His approach at cda Ventures focuses on turning expansion dreams into working businesses. For brands serious about growing beyond their home turf, having someone who’s made these mistakes before can save millions.
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