Many businesses expand into a new city, state or region assuming that what works at home will work there too. Often it does not. Customers in the new region may use different language, have different habits, face different regulations, prefer different channels or simply trust local competitors more. Businesses that skip research learn these differences expensively.
One of India’s largest newspaper groups offers a striking example of doing it differently. As it expanded across states, it studied each new region in remarkable depth before launching, and built its success on what its leadership describes simply as its relationship with customers. This article draws lessons from that approach and applies them to Australian businesses expanding interstate, into regional areas or into new customer communities, including manufacturers, trades and service businesses.
Solve the customer’s real problem first
Newspapers once printed at a few large centres, and copies travelled hundreds of kilometres by road to reach readers. Customers in distant areas received their papers late, sometimes after the news was already old. The group recognised the problem and progressively built printing centres closer to readers, eventually operating dozens of printing locations across many states, each supported by a local bureau. Readers received fresh news on time.
The lesson: before marketing in a new region, ask whether your offer actually works for customers there. For many businesses, the equivalent questions are:
- Can we deliver on time and at a competitive cost? Freight, travel time and local stock matter.
- Can we provide service and support locally? Customers in regional areas often prefer suppliers who can respond quickly.
- Do we need a local presence, such as a branch, warehouse, service technician or partner?
Research the new region deeply
When the group decided to enter a new state, it conducted research on a scale few businesses would attempt, meeting around 200,000 people who read or could read newspapers. It discovered differences that would have been easy to miss:
- Language: readers in the new state used particular everyday words differently from readers in its home state, so content was adapted to local usage.
- Numerals: readers preferred international numerals to Hindi numerals in print, because that matched their everyday use.
- Reading habits: social customs at the time meant some women read the newspaper folded rather than opened fully. The group responded with a compact women’s magazine designed to be easy to read in those circumstances.
Each discovery shaped the product, and the newspaper launched as something designed for that region rather than an imported version of the home edition.
What to research when expanding in Australia
Differences between Australian regions are smaller than those between Indian states, but they are real and commercially significant:
| Area | Questions to ask |
|---|---|
| Customers and industries | Which industries dominate? Mining, agriculture, defence, tourism, manufacturing? Who are the major buyers? |
| Needs and conditions | Do climate, distances or local practices change what customers need? |
| Regulation | Do state licences, codes, standards, payroll tax or approval processes differ? |
| Buying habits | Do customers prefer local suppliers, particular channels or face-to-face relationships? |
| Competition | Who are the established local suppliers, and why do customers stay with them? |
| Language and culture | Are there communities with particular languages or cultural expectations? |
| Logistics | What are freight times and costs? Where should stock be held? |
| People | Can we recruit the skills we need locally? |
How to research
- Visit, repeatedly. Spend time in the region talking to potential customers, suppliers, industry bodies and local businesses.
- Interview potential customers about their problems, current suppliers and what would make them switch. Aim for dozens of conversations, not a handful.
- Talk to local industry associations, chambers of commerce and regional development organisations.
- Study public information: industry data, major project pipelines and government plans for the region.
- Pilot before committing: serve a few customers in the region from your existing base, or through a partner, before opening premises.
The article on market research on a small business budget covers research techniques in more depth.
Design the offer for the region
Use what you learn to adapt your offer:
- Products: specifications, sizes or materials suited to local conditions, such as corrosion resistance near the coast or dust protection in mining areas.
- Service: response times, local technicians or partnerships with local service providers.
- Pricing and terms: reflecting freight costs, competition and customer expectations.
- Communication: local examples, references and case studies, and language that suits local customers.
- Compliance: meeting state-specific licensing and regulatory requirements before you start.
Respect regional pride
Regional customers often value businesses that show genuine commitment to their community: employing local people, using local suppliers, sponsoring local events and showing up in person rather than only by phone and email. Businesses perceived as visiting only to extract revenue struggle against established local competitors. Visible, long-term commitment, even on a modest scale, builds the trust that research alone cannot.
Never take customers for granted
Winning customers in a new region is only the start. The newspaper group’s leadership emphasised retention as competition intensified and customer behaviour changed:
- Don’t take customers for granted. Customers who feel neglected leave quietly.
- Understand customers’ behaviour continuously, not once.
- Seek feedback regularly, through research agencies, surveys and direct contact.
Think about why you have stopped going to a particular shop: limited choice, poor service, high prices or a better alternative nearby. Your customers can do the same to you. Long-established local businesses lose customers to newcomers with better premises, range or service when they assume loyalty will last forever.
Involve customers in designing the product
The group adopted the philosophy of creating the newspaper “by the people, for the people”: asking readers what they wanted and designing content accordingly. Readers’ letters and emails were read by a dedicated team, and issues raised were resolved.
For other businesses, this might mean:
- Customer advisory groups for new products and services.
- Regular conversations with key customers about their changing needs.
- A process to read, respond to and act on every piece of feedback.
- Pilot programs where customers test changes before wider rollout.
Treat employees as customers too
The group’s thousands of employees were also readers, and their feedback was sought as well. Employees who use, sell or support your products see problems customers may not report. Ask them.
Serve different customer groups differently
The group found that digital readers behaved differently from print readers. Print readers read seriously and thoroughly, while many digital readers also sought lighter content and entertainment alongside the news. It served each group with suitable content and hired younger staff who understood digital audiences.
The same principle applies to most businesses expanding into new segments: customers who buy online behave differently from those who buy through distributors, and large corporate customers differ from small local ones. Research each segment and design accordingly, rather than assuming one approach suits all.
Invest in the future
The group committed significant annual investment to digital, training its print journalists to work across print and digital and launching new formats such as mobile apps where readers could read, listen to and watch news. Expanding businesses should likewise invest in the channels customers are moving towards, not only those that worked in the past.
Choosing partners in a new region
Many businesses enter new regions through partners: distributors, agents, resellers, installers or service providers. Good partners bring local relationships, knowledge and presence. Poor ones damage your reputation in a market where customers do not yet know you.
When choosing partners:
- Check their reputation with local customers, not just their own claims.
- Understand their other products and priorities: will your products get attention, or sit at the bottom of a long catalogue?
- Assess their capability: technical knowledge, service capacity, stock-holding and coverage.
- Agree clear terms: territory, exclusivity, targets, pricing, margins, service standards, training, marketing support and how the arrangement can end.
- Start with a trial period, with measurable expectations, before granting long-term exclusivity.
- Stay close to end customers: visit with the partner, collect feedback directly and make sure you would know if service problems arose.
Many expansions fail not because the product is wrong for the region but because the partner is wrong for the product.
Measuring the expansion
Set clear measures before entering, and review them monthly:
| Measure | Why it matters |
|---|---|
| Enquiries and quotes from the region | Early signal of awareness and interest |
| Win rate on quotes | Whether the offer is competitive locally |
| Revenue and margin by region | Whether the expansion is profitable after extra costs |
| Delivery and service response times | Whether you are meeting local expectations |
| Complaints and repeat purchases | Whether customers are satisfied enough to stay |
| Cost to serve | Freight, travel and partner costs per customer |
Agree in advance what results would justify further investment, and what results would prompt a rethink. Expansion decisions are easier to make objectively before money and pride are committed.
A checklist before entering a new region
- Have we spoken with enough potential customers to see clear patterns?
- Do we understand local competitors and why customers use them?
- Can we deliver and provide service to local expectations?
- Have we checked state or local licences, standards and taxes?
- Have we adapted products, communication and terms where needed?
- Do we have the right people or partners in place?
- Have we set measures and review points?
- Are our existing customers protected while we expand?
A worked example
A Melbourne manufacturer of commercial kitchen equipment wants to expand into Queensland. Its first instinct is to appoint a Brisbane distributor and send the existing catalogue.
Instead, the sales manager spends three weeks in Queensland over two trips, meeting 40 restaurant owners, chefs, hospitality groups, fit-out contractors and service technicians. The research reveals that:
- Coastal humidity and salt air cause corrosion problems with one popular product line.
- Customers value fast service above all, and complain about interstate suppliers whose technicians take days to arrive.
- Many hospitality groups in tourist areas have seasonal peaks requiring rapid equipment replacement.
- Fit-out contractors strongly influence equipment choices.
The business adapts. It offers an upgraded corrosion-resistant finish for coastal customers, partners with a Brisbane-based service company guaranteeing next-day response, holds stock of fast-moving items in a Brisbane warehouse before peak season and builds relationships with fit-out contractors through product demonstrations.
It also sets up a quarterly customer panel in Queensland and asks its service partner to report every recurring fault. Within two years, Queensland accounts for 20 per cent of sales, with a lower complaint rate than the home market.
Common mistakes
- Assuming the new region is the same as home.
- Relying on a few conversations instead of broad research.
- Underestimating service and logistics requirements.
- Ignoring state-specific regulations and licences.
- Neglecting existing customers while chasing new regions.
- Treating all customer segments the same.
Frequently asked questions
Should we open premises in a new region straight away? Usually not. Serve the region from your existing base or through partners first, prove demand and learn, then invest in local premises when the volume justifies it.
How much research is enough? Enough that clear patterns emerge and further conversations mostly confirm what you have heard. For a significant expansion, dozens of conversations across customers, partners and industry bodies is a sensible minimum.
Should we hire locally or send existing staff? Often both. Experienced staff carry your culture, standards and product knowledge into the new region, while local hires bring relationships, credibility and an understanding of local customers. A common approach is to send a trusted person for the launch period while recruiting and training local staff who will lead in the long term.
How do we compete with established local suppliers? Understand why customers choose them, often relationships, responsiveness and local knowledge, and match those strengths while offering something better, such as product range, quality or expertise.
Summary
Successful regional expansion starts with solving customers’ real problems where they are, including timely delivery and local service. Research the new region deeply, through extensive conversations and visits, covering customers, industries, regulation, competition, culture, logistics and people. Design your offer for the region rather than exporting your home offer unchanged. After you arrive, never take customers for granted: seek feedback continuously, involve customers in designing products, listen to employees, serve different segments differently and invest in the channels customers are moving towards.
Sources: small-business training notes on the importance of customer relationships, drawn from the experience of a large Indian newspaper group, together with general market expansion practice. Examples are illustrations.
