Professionally Speaking » Going Global

Country music isn’t the only global brand to come out of Nashville.

The Nashville Business Journal reports that Snappy Solutions, an eBay drop-off store, is planning to expand internationally. They have spotted a business opportunity to re-sell overseas the obsolete equipment no longer needed by US companies – where it would be put to good use.

Indeed, as American’s keep their economic engine turning over by throwing away more and more stuff each year, there’s a huge potential for our junk to become someone else’s treasure. This theme was explored in depth in Pietra Rivoli’s fascinating book, which notes there is a market

“…for almost all of the textile articles thrown away by Americans. The high-end items with quirky appeal will be sold to vintage clothing shops all over Europe and North America, and the Japanese will get most of the Levi’s. Winter coats will go to Eastern Europe, and old cotton sweaters will go to Pakistan to be turned into new sweaters…The heart of the business, though, is the trade with Africa, where the exploding supply of castoffs from the rich meets the incessant demand for clothing from the poor.”

However, as Snappy Auctions plans it’s assault on the world auction market, experts warn that franchising American businesses globally is not without problems:

Jim Amos, managing partner of Franklin-based Eagle Alliance, a private equity firm, has set up nearly 3,000 franchises outside of the United States while working for I Can’t Believe It’s Yogurt and Mail Boxes Etc. He says the international markets are “littered with companies trying to approach (them) inappropriately, not willing to accommodate for cultural difference.”

“The most important consideration is to choose the right partner,” Amos says. “You can shorten your learning curve and not have to know all the differences in culture and politics in order to develop.”

As businesses go global it is sound advice to always check the nuances of your business model with partners who know the local culture. Start with your company name. The well known disasters of Chevrolet trying to sell the ‘No-Va’ in Mexico and Rolls Royce’s plans to introduce the ‘Silver Mist’ in Germany (let alone the eyebrows that Canadian-based Roots still raises among Australians) shows that names that are legit in the USA can cause embarrassment or worse overseas (as more than one eager American must have found when introducing himself to young ladies in England by looking them in the eye and saying “Hi, I’m Randy!”)

So here’s wishing Snappy Solutions success.

Going Global

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