Why Most International Brands Fail in the U.S. and How You Can Avoid Their Mistakes

Expanding into the U.S. market is a dream for many international brands, offering access to one of the largest consumer bases in the world. However, the reality is that most brands fail when trying to establish themselves in the U.S. despite their success in their home countries. From misjudging the competitive landscape to underestimating logistical challenges, many brands enter the market without a solid strategy, leading to costly failures.

Understanding why these failures happen is crucial to avoiding the same pitfalls. This article explores the most common reasons international brands fail in the U.S. and provides actionable strategies to succeed.

The common reasons international brands fail in the U.S.

1. Underestimating the complexity of the U.S. retail market

Many brands assume that entering the U.S. is simply about finding a distributor and securing shelf space in major retailers. The reality is far more complex. The U.S. retail landscape is:

  • Highly fragmented: Unlike smaller countries where distribution is centralized, the U.S. has regional retail powerhouses (e.g., Publix in the Southeast, H-E-B in Texas) alongside national giants like Walmart and Kroger.
  • Dominated by wholesalers: Most supermarket chains don’t buy directly from brands; they work through wholesalers who control access to multiple retailers.
  • Aggressively competitive: Retailers prioritize shelf space for high-velocity products, and brands that don’t perform can be quickly replaced.

Brands that fail to understand this structure often waste time and money on strategies that don’t align with how products actually move through the U.S. market.

2. Poor product positioning and brand messaging

What works in one country does not always translate well in the U.S. International brands often:

  • Fail to localize their messaging: Consumers in the U.S. may have different tastes, values, or buying behaviors. A brand that is seen as premium in Europe may not resonate the same way in the U.S. if its branding doesn’t align with local perceptions.
  • Ignore cultural nuances: Something as simple as packaging color or phrasing can impact consumer reception. For example, products labeled “natural” or “organic” might need third-party certification (like USDA Organic) to gain trust.
  • Overlook the importance of storytelling: American consumers respond well to brands with a strong, emotional narrative—why your brand exists, how it’s different, and why they should care.

3. Lack of a strong go-to-market strategy

Many brands enter the U.S. without a structured plan. The most common mistakes include:

  • Trying to go national too quickly: Scaling too fast often leads to cash flow problems, supply chain breakdowns, and a lack of localized brand presence.
  • Failing to secure the right retail partnerships: Without working with a broker who has existing relationships with wholesalers and buyers, brands struggle to gain traction.
  • Neglecting the importance of field execution: Even after securing shelf space, failure to invest in merchandising, promotions, and in-store support can cause products to underperform and get removed from shelves.

4. Mismanagement of pricing and cost structures

Many international brands miscalculate the true cost of doing business in the U.S. Some of the key pricing missteps include:

  • Ignoring distributor and retailer margins: Many brands don’t realize how much of their selling price is eaten up by wholesalers, brokers, slotting fees, and promotions.
  • Not accounting for operational costs: From logistics and warehousing to trade marketing and compliance, operating in the U.S. is expensive.
  • Overpricing or underpricing their products: Entering with the wrong price point can alienate potential buyers or position a brand incorrectly in the market.

5. Weak marketing and brand awareness

The U.S. market moves fast, and brands that fail to generate strong consumer demand risk being replaced by competitors. Mistakes in marketing include:

  • Not investing in digital marketing and influencer partnerships: Traditional advertising alone is not enough—brands need a strong digital presence.
  • Relying too much on retail partnerships: Expecting retailers to market a product for you is a critical mistake. Brands must actively invest in driving traffic and sales.
  • Failing to build brand advocates: U.S. consumers trust peer recommendations and social proof more than direct advertising.

How to avoid these mistakes and build a winning U.S. strategy

Expanding successfully into the U.S. requires meticulous planning and execution. Here’s how brands can avoid common mistakes and set themselves up for long-term success.

1. Work with a broker to navigate wholesale and retail partnerships

One of the biggest advantages a brand can have is an experienced broker who:

  • Has established relationships with wholesalers and buyers.
  • Understands the regional retail landscape and can strategically place products.
  • Provides ongoing support in negotiations, pricing, and distribution strategies.

Brokers streamline market entry by eliminating barriers that many brands struggle with for years.

2. Develop a market-specific positioning strategy

Instead of assuming that a brand’s existing messaging will work, brands should:

  • Conduct market research to understand U.S. consumer preferences.
  • Adapt packaging and branding to align with local expectations.
  • Ensure product certifications (e.g., Non-GMO, Organic) to build credibility.

3. Scale strategically, not too fast

Rather than attempting to go national immediately, successful brands:

  • Start regionally in key metro areas before expanding.
  • Focus on high-velocity retail channels first to prove demand.
  • Invest in localized execution through merchandising, in-store activations, and promotions.

4. Get pricing and cost structures right

Successful brands conduct a deep cost analysis to:

  • Account for distributor margins, slotting fees, and trade promotions.
  • Optimize logistics and warehousing to reduce unnecessary costs.
  • Price competitively while maintaining profitability.

5. Build brand awareness from day one

Consumer awareness must be a priority, even before retail launches. Brands should:

  • Invest in digital marketing, influencer partnerships, and social proof.
  • Run aggressive promotions to drive trial and initial sales velocity.
  • Ensure in-store presence with merchandising and field sales teams.

Conclusion: succeeding where others fail

Most international brands fail in the U.S. because they underestimate the market’s complexity and don’t invest in the right partnerships. To avoid these mistakes, brands must:

  • Work with a broker to access key retail and wholesale channels.
  • Adapt their product positioning to U.S. consumer expectations.
  • Scale strategically, prioritizing high-impact markets first.
  • Get pricing and cost structures right to maintain long-term profitability.
  • Build brand awareness through digital and retail marketing efforts.

For brands looking to succeed in the highly competitive U.S. market, planning, execution, and the right partnerships make all the difference.

At Group MCC, we specialize in guiding international brands through this process, ensuring they avoid costly mistakes and achieve sustainable growth. Contact us today to learn how we can help your brand thrive in the U.S. market.

The Complete Guide to Entering the U.S. Market: Insights and Steps to Succeed

Expanding into the United States is a major milestone for any consumer packaged goods (CPG) brand, but it comes with significant challenges. The U.S. market is highly competitive, complex, and requires a deep understanding of regulations, distribution channels, and consumer behavior. For brands—especially those in the food and perishable goods sector—having a well-defined strategy is crucial to achieving long-term success.

In this guide, we’ll break down the key insights and steps to help CPG brands successfully enter and scale in the U.S. market. Whether you’re an emerging brand looking for your first retail placement or an established player aiming to expand, these insights will help you navigate the journey strategically.

Understanding the U.S. CPG landscape

Before diving into the specifics of entering the U.S. market, it’s critical to understand the business environment, the role of key stakeholders, and the expectations of buyers.

1. The complexity of the U.S. distribution system

Unlike smaller markets where distribution is more centralized, the U.S. operates through a multi-tiered system involving:

  • Wholesalers: These major players act as gatekeepers, supplying products to supermarket chains, independent retailers, and food service providers.
  • Retailers: Ranging from large national chains (e.g., Walmart, Kroger) to regional grocers and independent stores.
  • Distributors and brokers: Essential intermediaries who help brands get listed, navigate buyer requirements, and manage retail relationships.
  • E-commerce and direct-to-consumer (DTC) channels: Growing rapidly, allowing brands to bypass traditional retail and reach consumers directly.

2. Buyer expectations and competitive pressures

U.S. retailers operate under extreme margin pressures and expect new brands to prove their ability to drive sales. Buyers look for:

  • A strong value proposition: Why should they replace an existing product with yours?
  • Established demand and velocity: Will your product move off shelves quickly?
  • Marketing support: Are you investing in promotions, demos, and advertising?
  • Operational readiness: Can you meet supply chain requirements without disruptions?

3. The importance of local expertise

Navigating the U.S. market without local expertise is risky. This is why working with experienced brokers, distributors, and merchandising teams is not just an option—it’s a necessity. The U.S. is one of the most aggressive retail markets, and if a product does not perform, it is quickly replaced. Success requires constant monitoring, active promotions, and an optimized distribution strategy.

Step-by-step guide to entering the U.S. market

Step 1: Define a strong market entry strategy

A successful U.S. market entry strategy starts with:

  • Identifying your target audience: Understanding U.S. consumer segments, cultural nuances, and purchasing habits.
  • Assessing competitors: What similar products exist? What makes yours different?
  • Selecting the right distribution channels: Wholesale, retail, e-commerce, or a hybrid approach.

For many brands, starting in regional markets like the tri-state area (New York, New Jersey, Connecticut) provides a testing ground before expanding nationally.

Step 2: Work with a broker to accelerate market penetration

As highlighted in Group MCC’s strategic plan, brokers play a crucial role in gaining access to key wholesalers and retail chains. Without a broker, brands often struggle to:

  • Secure meetings with buyers.
  • Understand pricing structures and retailer requirements.
  • Achieve product codification with wholesalers, a step that allows wide-scale distribution.

A broker’s role extends beyond introductions—they provide insights into pricing, placement strategies, and execution. Their relationships open doors that would otherwise take years to develop independently.

Step 3: Prepare for compliance and regulatory hurdles

U.S. food and beverage products must comply with strict regulations from entities like:

  • FDA (Food and Drug Administration): Oversees labeling, ingredient approvals, and safety standards.
  • USDA (United States Department of Agriculture): Regulates meat, dairy, and organic certifications.
  • State and local health departments: Set additional guidelines, especially for perishable products.

Brands must ensure their packaging, nutritional labels, and claims meet all federal and state-specific requirements before launching.

Step 4: Build an aggressive retail execution and merchandising plan

Even after securing shelf space, winning at retail requires constant attention. A common mistake brands make is assuming that getting listed means guaranteed sales. In reality, without proper support, retailers may delist slow-moving products within months.

To prevent this, brands must:

  • Invest in sales and merchandising teams that visit stores regularly to ensure proper stocking, display compliance, and promotional execution.
  • Monitor inventory levels to prevent out-of-stock situations that hurt sales velocity.
  • Run in-store promotions and demos to drive trial and awareness.

Group MCC’s strategic plan emphasizes sales & merchandising as a key component of success, helping brands avoid the risk of being pulled from shelves due to underperformance.

Scaling beyond regional markets: Building a national presence

Once a brand has successfully established itself in regional markets like the East Coast, the next challenge is expanding nationwide without compromising profitability or operational stability. The key is to scale strategically and progressively, ensuring that the brand has the infrastructure, production capacity, and logistical support to sustain its growth.

1. Expanding distribution with a phased strategy

Unlike smaller markets, expanding too quickly in the U.S. can lead to overstocking, high logistical costs, and cash flow constraints. To mitigate these risks, brands should:

  • First consolidate a key region, ensuring strong sell-through and sustained demand before expanding further.
  • Partner with brokers specialized in different regions to tailor market entry strategies for the West Coast, Midwest, and Southern states.
  • Diversify distribution channels, combining traditional retail with specialized distributors and e-commerce strategies.

Larger markets like California, Texas, and Florida are attractive but each has a unique distribution ecosystem. Expanding without the guidance of an experienced broker can result in stock shortages, excessive returns, or lack of in-store visibility—all of which can cripple growth.

2. Securing agreements with national distributors

To expand successfully, brands need to transition from regional wholesalers to national distributors that supply large retail chains. As they scale, they should:

  • Negotiate direct agreements with retailers like Whole Foods, Kroger, Safeway, Costco, and Walmart, which have strict performance and velocity expectations.
  • Optimize pricing and margins to remain competitive at a national level while ensuring profitability.
  • Invest in retail execution teams to maintain presence and visibility across multiple store locations.

National distributors streamline logistics and supply chain management, making it easier to fulfill large-scale orders efficiently. However, they also require strong inventory management, compliance with vendor terms, and a well-structured marketing plan to support sales velocity.

The role of e-commerce and direct-to-consumer (DTC) strategies

While traditional retail remains dominant, e-commerce has reshaped consumer behavior and offers a crucial pathway for brand growth. Many CPG brands use DTC models to validate demand, build consumer loyalty, and create an alternative revenue stream before expanding into national retail.

1. Leveraging DTC to build brand awareness

Direct-to-consumer models allow brands to:

  • Control the customer experience by selling directly through their website.
  • Gather first-party consumer data to refine product positioning and future marketing strategies.
  • Test new product variants before committing to large-scale production.

Platforms like Shopify, Amazon, and subscription-based models provide scalable solutions that enable brands to create direct relationships with consumers.

2. The synergy between retail and e-commerce

A common misconception is that DTC and retail operate separately. In reality, they complement each other, creating a multi-channel ecosystem where online efforts drive in-store demand. Key strategies include:

  • Using digital ads and influencer marketing to generate awareness and encourage in-store purchases.
  • Offering in-store pickup options through partnerships with major retailers.
  • Utilizing social media insights to refine retail merchandising and promotional strategies.

Brands that integrate e-commerce, wholesale, and retail strategies cohesively position themselves for long-term success.

Measuring success and ensuring sustainable growth

Expanding into the U.S. market is not just about getting on shelves—it’s about staying there and growing consistently. To maintain momentum, brands need to track performance and adjust strategies accordingly.

1. Key performance indicators (KPIs) to monitor

Success in the U.S. market requires constant evaluation and optimization. Essential KPIs include:

  • Sell-through rates: Are retailers reordering, or is inventory sitting on shelves?
  • Retail compliance: Are products properly stocked, displayed, and priced?
  • Customer acquisition cost (CAC) vs. lifetime value (LTV): Is the brand building a sustainable customer base?
  • Velocity per store per week (VPSPW): A critical metric retailers use to evaluate whether a product deserves continued shelf space.

2. Adapting strategies based on data

Markets evolve, and so should your strategy. Brands that succeed in the long run:

  • Pivot based on consumer feedback and sales trends to optimize their product mix.
  • Reinvest in high-performing channels while phasing out underperforming strategies.
  • Leverage technology for real-time analytics, ensuring data-driven decision-making.

3. The importance of brand consistency and retailer support

Long-term success depends on consistent brand messaging, strong retail partnerships, and ongoing marketing support. Brands that fail to invest in:

  • Retail activation (promotions, demos, advertising) risk losing their shelf space.
  • Trade relationships (engaging buyers, wholesalers, and brokers) may struggle to secure prime positioning.
  • Sustained consumer engagement (DTC, loyalty programs) lose momentum over time.

In high-competition markets like the tri-state area, a hands-on approach is critical to ensuring continuous growth.

Conclusion: the roadmap to success in the U.S. CPG market

Entering the U.S. market is a high-stakes, high-reward endeavor that requires strategic planning, local expertise, and ongoing execution. The key takeaways for success include:

  • Leveraging brokers and wholesalers to streamline entry into major retailers.
  • Combining retail with e-commerce strategies to maximize brand presence and sales.
  • Continuously tracking performance and adapting based on market feedback.
  • Investing in execution and retail support to secure long-term positioning.

For brands looking to establish themselves and thrive in the U.S. CPG space, a structured, data-driven, and well-supported approach is non-negotiable.

At Group MCC, we specialize in helping brands navigate this complex journey, ensuring they have the right connections, strategies, and execution plans in place. Contact us today to discuss how we can help your brand break into and scale successfully in the U.S. market.