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As the world becomes more connected than ever, brands are considering their global marketing strategies. But entering new global markets is far easier said than done.
Not only are people more connected—TikTok, for example, has 1 billion monthly active global users—consumers are far more exposed to brands that even 20 years ago would’ve been unreachable.
According to the Harvard Business School, the US alone has more than 268 million digital buyers accessing a variety of products largely unencumbered by “traditional” trade. Epsilon can reach more than 200+ million online U.S. consumers in our platforms. Against incredible odds, the global consumer class continues to rise. According to the World Data Lab, despite the COVID-19 pandemic and international economic pressures, including inflation and war, the global consumer class reached 4 billion people in 2023 and is estimated to grow to a staggering 5 billion by 2031.
But reaching new audiences across international lines requires more than just desire. A survey of 2,000 businesses globally found that in the US, 73% of business leaders consider identifying and entering new markets to be challenging.
To successfully launch in a new market, brands need the right strategy powered by data and technology.
“Brands need to start with an intentional strategy that includes data,” said Kate Sirkin, EVP of Global Data Partnerships at Epsilon. “Understanding current customers and category consumers using available consumer data and filling in gaps with market research will set them up for future success.”
Brand expansion offers companies—especially start-ups hungry for diversified revenue—a chance to compete on a global scale. In the past several years, bourgeoning US direct-to-consumer brands like Billie, a razor company, and Glossier, a makeup brand, have used international expansion as a key growth area for acquisition.
Billie co-founder Georgina Gooley said the company’s 2024 entry into Canada was part of a broader expansion strategy that included increased product offerings and in-store partnerships. They’re not alone: US-based brands commonly look to Canada as a testing ground because of its proximity geographically and culturally.
But not all brands find success abroad. In 2020, Walmart sold its majority stake in Japanese supermarket group Seiyu after failing to capture consumers. British beverage giant Diageo sold its shareholding in Guinness Nigeria in 2024 due to economic conditions in the country.
Often, a data strategy is the difference between a brand that succeeds on a global scale versus one that doesn’t—specifically, a data strategy that encompasses collection and enhancement.
“Success hinges on a brand's ability to understand and engage new consumers effectively,” said Rob Odd, Regional Managing Director of Asia, Pacific and Japan for Epsilon. “The challenges of navigating diverse markets, regulatory landscapes, and evolving consumer behaviors can be daunting— but with the right data and technology strategy, brands can turn these challenges into opportunities.”
Odd has identified four common pitfalls that brands often encounter:
Having robust and accurate first-party data, coupled with third-party customer behavior data, transaction trends, market potential and overall consumer research, creates a harmonized view of individuals and audiences.
A localized first-party data strategy, aligned with region-specific regulatory stipulations, should also prioritize proper collection and analysis for real-time insights. This includes using the right tools to collect, clean and enhance data through identity resolution to create a single source of data.
“A fragmented approach to data can lead to missed opportunities, inefficiencies, and wasted marketing spend,” he said. “Regardless of the region, brands need a unified data infrastructure.”
While consumers differ from region to region, one thing unites them: their desire for personalized messages.
Joshua Conrad Jackson, an Assistant Professor of Behavioral Science at the University of Chicago’s Booth School of Business, said that despite economic globalization, the unique cultural qualities of foreign markets are often where brands fail.
“The organizations that thrive when they expand across borders in the years ahead will be those that maintain their core identity while integrating partners, personnel, values and regulatory guidelines from their host culture,” he wrote in the Harvard Business Review.
Personalization requires brands to have deep knowledge supported by data and the right tech to make insights actionable. In a 2024 article examining why some US-based businesses struggle to expand globally, Pamela Ghosal, Director of Brand & Communications at Phrase, a translation tech start-up, said the inability to thoughtfully address cultural, behavioral and legal nuances of new markets holds brands back.
“Modern localization practices are increasingly sophisticated, leveraging cutting-edge advancements in artificial intelligence, large language models, and advanced machine translation,” Ghosal writes. “These technologies, when integrated with automated quality assessment frameworks, significantly diminish the risks commonly linked with expansion.
Elie Carrier-Walker, VP of Client Services at Epsilon in EMEA, said cultural complexities can be a make-it-or-break-it for brands hoping to leave their mark. Adaptability requires a holistic understanding of consumers, even from country to country within a greater region, and the ability to develop and deliver relevant messages on the right channels.
“Brands will come to us and say, ‘We’re doing the same thing in Germany that we’re doing in Spain, and we’re not getting the results we want.’ And the problem is they don’t realize they need to adapt their strategy,” Carrier-Walker said. “It’s not one-size-fits-all.”
She used the example of a major brand expanding its loyalty program from one European market to another. After Epsilon analyzed its data compared to the market analysis of the new region, the brand was able to identify regional-specific gaps and adjust its program. This included expanding communication channels and developing a dynamic journey that made program participation more achievable for the everyday consumer.
“We want to be able to drive behaviors that are specific to the real people living in that market,” she said. “And we want the offerings for those people to match what they’re actually interested in.”
Brands looking to expand need to be intentional about their data strategy, including the one in their country of origin.
“What you’re able to do with your tech, data and identity is going to vary by each country,” Sirkin said. “Brands need to understand what’s available to them and how it can be useful. Knowing what’s successful in their current and potential markets allows them to make informed hypotheses.”
Epsilon experts say brands can focus on a few key areas:
Prioritizing data collection, identity resolution and activation allows for more cohesion, Odd said. Stronger data begets stronger insights, which leads to stronger measurement, more seamless customer experiences across channels and strategies that build off proven effectiveness.
Both Sirkin and Odd said brands looking to expand should start small. A trusted partner can help vet market readiness and launch pilot campaigns to determine effectiveness before expanding full-scale. This gives brands a foundational jumping-off point: What tech do I have? What tech do I need? What strategies can bridge my gaps?
Epsilon is a global technology provider with industry-leading, person-first identity. Our solutions are built with privacy by design on a solid data foundation. And, coupled with AI and machine learning, Epsilon can produce personalized marketing at scale.
“At Epsilon, we believe that data isn’t just a tool—it’s the foundation for every successful global expansion strategy,” Odd said. “By combining advanced identity resolution, AI-driven personalization, and a privacy-first approach, we help brands scale smarter, engage deeper, and grow faster in new markets.”
