The Top Five Mistakes International Manufacturers Make When Entering the U.S. Vet Market
The U.S. veterinary market represents a massive opportunity for international manufacturers, with its advanced infrastructure, high pet ownership rates, and growing demand for cutting-edge technology.
But breaking into this lucrative market is not as simple as translating marketing materials or hiring a local distributor.
The U.S. veterinary industry has unique dynamics, and failing to account for them can result in costly missteps.
Based on my experience navigating the complexities of the veterinary market, here are the top five mistakes I see—and how to avoid them.
Mistake #1: Underestimating the Importance of Localization
One of the most common missteps is treating the U.S. market as an extension of a manufacturer’s home market. While it’s tempting to reuse what worked in Europe, Asia, or South America, the U.S. market operates under its own set of rules, preferences, and cultural nuances.
Why It Happens: Manufacturers often assume that the U.S. market will automatically embrace innovative products because of their success elsewhere and underestimate the importance of tailoring not just the product, but also messaging, branding, and support systems to U.S. expectations
Examples of Localization Challenges:
Terminology Differences: Words like “ward” and “operating theatre” are examples of words usually reserved for human medicine terminology. When used improperly, something as simple as a word can confuse U.S. veterinarians and create fear, uncertainty, and doubt about your product.
Regulatory Requirements: Federal, State, and Local regulations often require time and resources to comprehend the multiple layers of necessary approvals. Distributors also may have their own separate product requirements that must be met in order to list your product as available for sale.
Marketing Material Misalignment: Graphics, grammatical syntax, and cultural references that resonate abroad may fall flat in the U.S. and will fail to connect with your target audience.
3 Ways to Avoid Localization Mistakes:
• Hire a U.S. based master distributor or teams familiar with the veterinary industry.
• Use a marketing agency or invest in high-quality translations and cultural adaptation of your marketing materials.
• Test your messaging with focus groups of U.S. veterinarians before launching campaigns
Mistake #2. Choosing the Wrong Distribution Strategy
Many manufacturers rush into partnerships with distributors, assuming that any distributor is a good fit. Without careful vetting, these partnerships can lead to poor sales performance, misalignment, and wasted resources.
Why It Happens: Manufacturers are eager to get their product to market quickly and view large distributors as one-size-fits-all solutions. They fail to assess whether the distributor’s focus aligns with their product’s unique needs.
Common Pitfalls:
• Over-Reliance on a Single Distributor: Depending too heavily on one distributor leaves manufacturers vulnerable if the partnership underperforms.
• Poor Fit: Distributors focused on high-volume, low-cost products may not prioritize niche or premium solutions.
• Insufficient Training: Distributor reps often lack the in-depth product knowledge needed to sell complex or innovative technologies effectively.
3 Ways to Avoid Distribution Strategy Mistakes:
• Research distributors thoroughly to ensure alignment with your product and market goals.
• Develop comprehensive training programs for distributor reps to communicate your product’s value.
• Supplement distribution with alternative sales channels, such as independent reps or direct-to-clinic sales.
Mistake #3. Overemphasizing Price as a Differentiator
While competitive pricing can attract attention, relying solely on price to compete often backfires in the U.S. veterinary market. Buyers frequently associate low-cost products with lower quality and unreliable support.
Why It Happens: Manufacturers, eager to gain market share, believe that undercutting competitors on price is the fastest route to success. This approach ignores the long-term value U.S. buyers seek.
The Hidden Costs of Price Wars:
• Damaged Perception of Quality: Buyers often equate low prices with inferior products, undermining trust.
• Eroded Margins: Aggressive pricing reduces profitability, leaving little room for marketing or reinvestment.
• Difficulty Repositioning: Once perceived as a budget option, it’s challenging to transition to a premium market position.
How to Avoid This Mistake:
• Focus on delivering value through product differentiation, such as innovative features or superior support.
• Highlight the long-term cost savings your product offers compared to competitors.
• Educate buyers about the total cost of ownership, emphasizing durability, reliability, and support.
Mistake #4. Insufficient Post-Sale Customer Support
Securing a sale is only the beginning. Failing to provide robust post-sale support can lead to dissatisfied customers, high return rates, and damage to your reputation.
Why It Happens: International manufacturers often lack a local support infrastructure. This results in delays, miscommunications, and unmet customer expectations.
Consequences of Poor Support:
• Increased Returns: Products that lack adequate support are more likely to be returned or abandoned.
• Negative Reputation: Veterinarians share their experiences, and poor support stories travel fast.
• Distributor Frustration: If distributors must address support issues without sufficient resources, they may deprioritize your product.
How to Avoid This Mistake:
• Establish a U.S.-based support team to address customer needs promptly.
• Provide comprehensive resources like video tutorials, troubleshooting guides, and FAQs.
• Offer ongoing training and direct support lines for distributor reps and clinics.
Mistake #5. Misreading the Competitive Landscape
Failing to understand the U.S. veterinary market’s competitive dynamics can result in poor positioning and missed opportunities. Manufacturers who underestimate their competition risk losing ground before they even begin.
Why It Happens: Manufacturers focus on their product’s features without evaluating how those features compare to existing solutions. This results in a lack of clear differentiation.
Common Oversights:
• Ignoring Established Brands: Loyal customers may hesitate to switch from well-known competitors without a good reason to.
• Overlooking Niche Opportunities: Products designed for general use may miss chances to dominate a specific segment.
• Failure to Address Weaknesses: Avoiding conversations about your product’s limitations can undermine credibility.
How to Avoid This Mistake:
• Conduct a detailed competitive analysis to understand your product’s strengths and weaknesses.
• Develop messaging that clearly differentiates your product from competitors.
• Use case studies, testimonials, and data to demonstrate your product’s superiority.
Conclusion: A Blueprint for Success
The U.S. veterinary market is vast, complex, and filled with potential for international manufacturers who approach it strategically.
By avoiding these five common mistakes—focusing on localization, choosing the right distribution strategy, emphasizing value over price, investing in post-sale support, and understanding the competitive landscape—you can position your product for long-term success.
If you’re ready to break into the U.S. veterinary market and want to ensure a smooth, successful launch, let’s talk. VistaVet Global Partners specializes in helping international manufacturers navigate the complexities of this market. Reach out today to start building your path to success.