From sailor to salesman: lessons from a passionate entrepreneur

What’s the secret to building a globally revered lifestyle brand? For Marc Blees, founder of CODE-ZERO, it’s all about people – hiring fellow entrepreneurs with an “international mindset” to ensure his business grows without limits. In fact, people power is just one of the key principles set out in our new whitepaper, Global Expansion Simplified: A Guide for SMEs. 

As far as brand authenticity goes, CODE-ZERO is hard to beat. Its founder, Marc Blees, enjoyed an accomplished sailing career before progressing to creating high-performance nautical apparel. His extensive experience in the sport informed his vision to create clothing that could withstand competitive sailing's rigors while keeping the values of comfort and style.

Undoubtedly Marc’s background in sailing has played an impressive role in CODE-ZERO’s success, but as any entrepreneur will tell you, passion can only take you so far. A clear strategy is required for growth, so under Marc’s leadership, the brand – which was founded in the Netherlands in 2017 – has become a frequent sponsor of international yacht races and sailing events; even becoming the official clothing provider for a competing team in the highest class of international racing.

Setting sail for global success

Since 2017, CODE-ZERO has expanded rapidly, establishing offices and operations in multiple countries, including Germany, France, Spain, the US, and Hong Kong. The business has benefited from participating in many high-profile global sports events, increasing its brand visibility and consumer reach.

By selling in various markets, the business has avoided the risks usually associated with relying on a single domestic market. This diversification helps ensure a steady revenue flow, even when one market faces economic downturns or other disruptions.

Yet, internationalization is not without its challenges. CODE-ZERO faced numerous logistical and regulatory hurdles along its journey. These challenges require a well-thought-out strategy and reliable partnerships, like the business’ collaboration with DHL Express for logistics. This has ensured efficient and reliable delivery services, which are vital for maintaining customer satisfaction across different regions.

Differences in Markets and Preferences

CODE-ZERO’s journey underlines how important it is to carry out thorough market research before expanding into international markets. For example, they encountered unforeseen challenges with customs regulations and consumer expectations during their expansion into the US – something which comprehensive market research could have helped them anticipate.

Understanding local consumers’ needs is essential. Marc’s deep understanding of the target market helped him identify that American and European consumers have different body size definitions, which required adjustments to CODE-ZERO’s range. By tailoring products this way, SMEs can significantly boost customer satisfaction and brand loyalty.

Market trends also play a crucial role in a business’ international success. CODE-ZERO created a WeChat store especially for their Chinese customers after learning about the platform’s popularity in China. This strategic move allowed CODE-ZERO to tap into a vast and engaged user base via a platform that was familiar and trusted by local consumers.

Economic conditions are another vital aspect of market research. CODE-ZERO faced numerous logistical and regulatory hurdles, such as dealing with high import duties in Australia. Understanding the economic landscape helps in making informed decisions about pricing, supply chain logistics, and overall market entry strategies. It ensures that the business model is viable and sustainable in the long term.

Cultural nuances cannot be overlooked. Marc’s extensive network in the sailing and sports communities was the gateway to CODE-ZERO's entry into various international markets. Understanding cultural nuances means you can craft marketing messages to the local audience, ensuring the brand is perceived positively and authentically.

Human Resources as a strength

CODE-ZERO values employees with a problem-solving mindset – an essential attitude within international operations, where unexpected challenges frequently arise. By empowering young employees and giving them responsibility early on, Marc has nurtured a workforce that’s capable of taking initiatives.

Recruiting internationally and establishing offices in key locations such as Hamburg, Newport, and Hong Kong gives CODE-ZERO a geographically diverse team armed with local insights and expertise. This approach lets the business successfully navigate the nuances of different markets and build strong relationships with local partners and customers.

CODE-ZERO has specialized employees dedicated to the critical aspects of logistics and supply chain management - two individuals in Germany, focused on their logistics partnerships, allowing the business to effectively manage the complexities of international shipping, customs regulations, and delivery timelines. These dedicated roles highlight how crucial human resources is in maintaining operational efficiency and customer satisfaction in international markets.

Marc tries to foster a supportive and accountability-driven company culture. To him, making a mistake is acceptable if it leads to a learning opportunity. By having an environment where employees are encouraged to take responsibility and learn from their experiences, CODE-ZERO’s workforce can stay agile and ready to meet the challenges of internationalization.

Marc also puts a big emphasis on having personal relationships within the logistics framework. A personal rapport with couriers and account managers significantly contributes to the operation’s success, so choosing the right people who can maintain these strong external relationships is equally critical.

Networking and Partnerships

CODE-ZERO’s extensive network within the sailing and sports communities has clearly contributed to their growth. By leveraging these connections, they were able to secure influential partnerships and sponsorships – enhancing the brand’s visibility and providing them with valuable market insights and business opportunities.

Participating in international events, like sailing competitions, means CODE-ZERO can showcase their products to a targeted audience whilst also facilitating face-to-face interactions with potential customers and partners – invaluable for building trust and understanding market needs. Marc's strategic presence at these events helped establish CODE-ZERO as a credible and prominent brand in the international sailing community.

What’s more, Marc's connections with influential figures in the sports and business world provided entry points into markets that might have otherwise been challenging to penetrate.

Finding the right path to internationalization

CODE-ZERO initially leveraged exporting as a primary entry mode, focusing mainly on online sales. This strategy allowed the company to reach a global audience without substantial investment in physical infrastructure abroad. Furthermore, an online presence removed the risks associated with high upfront costs and the regulation minefield of foreign markets.

As the company grew, Marc recognized the need for more direct involvement in key markets. This led to them setting up foreign offices in strategic locations, a form of foreign direct investment (FDI), which allowed CODE-ZERO to have greater control over operations and better serve local markets. FDI enabled the business to build stronger relationships with local stakeholders, understand market nuances more deeply, and ensure faster and more reliable delivery of products. Marc’s decision to invest in these foreign offices was driven by the need to be closer to the customers and provide a seamless brand experience.

International Law & Regulations

Marc’s experiences show the significant challenges and risks that need to be overcome in different countries. They also emphasize just how complex custom regulations can be across markets. For example, when CODE-ZERO ships to the United States, the company must carefully follow specific customs procedures and requirements. By adapting their processes to these regulations, CODE-ZERO reduces the risk of delays and additional scrutiny, leading to smoother operations and maintaining customer satisfaction.

In the European Union, Marc highlighted the challenges posed by changing VAT regulations. CODE-ZERO had to hire additional employees to manage these regulatory changes and ensure compliance, illustrating the impact they can have on business operations and why SMEs need to be agile and responsive.

Elsewhere, countries like Australia and Brazil have complex customs procedures and high import duties – the latter of which can substantially increase business costs. By understanding this in advance, CODE-ZERO was able to make informed decisions about market entry and pricing strategies, ensuring they remained competitive while complying with local laws.

Supply Chain Management

Efficient supply chain management is crucial to maintain competitiveness. One of the strategic decisions Marc made was to partner with DHL. By leveraging the logistics leader’s established infrastructure and expertise, CODE-ZERO can offer reliable, timely delivery and high service levels to its international customers. This collaboration underlines the value of having a great partnership and how it can enhance operational efficiency.

A strong logistics partnership can also help a company to scale up. As CODE-ZERO expanded its market presence, DHL’s global network facilitated smooth and timely deliveries, which is essential for maintaining customer satisfaction and brand reputation in international markets. Such a partnership is crucial for SMEs looking to grow their international footprint without the need to invest heavily in building their own logistics infrastructure.

While Marc acknowledges the benefits of partnering with 3PLs, he also recognizes the value of maintaining some control over the supply chain. For example, CODE-ZERO opted to manage certain logistical operations in-house, such as using their own trucks for deliveries in specific countries. This hybrid approach allows them to be flexible and retain control over critical aspects of the supply chain while leveraging the strengths of a 3PL partnership.

Learning from mistakes

Marc's approach to building CODE-ZERO emphasizes the importance of experimenting and adapting. From the beginning, he demonstrated a willingness to try different market entry and growth strategies, whilst committing to continuous learning and adjustment. Marc's experience shows the value of balancing strategic planning with operational flexibility. By investing in foreign offices, he shows his commitment to international growth, while at the same time ensuring this sailing apparel brand has the flexibility to stay on course.