What Are The Biggest Challenges For International Companies Doing Business in the United States?

At the Financial Times’ Investing in America Summit in December 2024, I was asked about the challenges that foreign companies encounter when trying to expand their U.S. business.

On stage with Financial Times’ Editor James Fontanella-Kahn and Campari Group’s Chief Marketing Officer Julka Villa

The United States offers foreign companies unmatched opportunities, but success here doesn’t come easily. Expanding into the U.S. demands more than ambition—it requires navigating a vast market, adapting to cultural differences, and building a credible presence in one of the most competitive environments in the world.

The Challenge of Market Dynamics

The U.S. isn’t one market—it’s a collection of diverse regions, each with its own consumer preferences and behaviors. Strategies that work in one area may fall flat in another. Foreign companies often underestimate the effort required to gain trust and win over American consumers, who expect localized products and exceptional customer service.

Take Renson, a Belgian manufacturer of high-end outdoor living products. Despite their global reputation, they faced challenges aligning their offerings with U.S. market demands. To succeed, Renson adapted their approach, emphasizing partnerships with local distributors and tailoring their marketing strategies to meet regional preferences​. Winning in the U.S. means understanding that one size doesn’t fit all. 

Understanding American Culture

Cultural nuances can make or break a company’s U.S. expansion. Americans value individuality, direct communication, and fast decision-making—traits that can feel at odds with practices in

more hierarchical or consensus-driven cultures. Misalignments in management styles or customer engagement strategies often result in frustration and lost opportunities.

Consider Too Good To Go, the Danish food waste app. When entering the U.S., they realized that Americans’ attitudes toward sustainability were tied closely to convenience and cost. By tweaking their messaging and focusing on these priorities, they managed to resonate with their new audience and find success in a market that initially seemed overwhelming​. Adapting to cultural expectations is essential for building strong connections with American consumers.

Building a Market Presence

Gaining visibility and trust in the crowded U.S. marketplace is no small feat. American consumers are brand loyal and expect businesses to prove their value quickly. Establishing partnerships, creating robust distribution networks, and investing in compelling marketing campaigns are non-negotiable.

Too Good To Go also demonstrates the importance of credibility. They worked hard to build local partnerships with businesses committed to sustainability while leveraging targeted marketing to engage consumers. This dual approach helped them gain traction in a competitive environment​. Success requires persistence and a willingness to think locally.

The Bottom Line

Expanding into the U.S. is a challenge, but it’s also a transformative opportunity. To succeed, foreign companies need to be prepared to adapt—whether it’s tailoring their products, embracing cultural differences, or building strong relationships with American partners. Do that, and you’ll be well on your way to making it in America.

This article was originally published in The Financial Times, as Matthew was a speaker at this conference.