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How A Motocross Equipment Company Entered the EU Market

First opened in 1974, the business started as a small distributor of motocross parts and accessories in California. Fast forward a few decades, they're now operating in many parts of world, including Europe, as one of the leading brands of motocross apparel. How did they successfully enter the European market?

The Idea

In 2013, the company made a decision to enter the European market through the Netherlands. Although their products were mostly targeted for the general public, they hoped to enter the region with a Business To Business Model (B2B). The idea was to work with the many distributors in the local EU countries, who would then sell their products to the end consumers.

How did Cornerstone help?

To be able to enter the market smoothly, Cornerstone arranged a local logistics partner who is able to connect and support the business, centralizing their entry into the EU. The Netherlands also acted as a distribution center for the business to distribute their products to countries all over the EU.

Later, the company also decided to set up local entities as they planned on forming a sales team in the EU. For this, Cornerstone looked after the hiring process while ensuring all regulations and compliance were followed in setting up the company.

In 2019, the company also made a decision to move from their initial B2B model to selling directly to the end consumers (B2C). This transition also meant that the company had to be compliant with a new set of EU regulatory requirements including GDPR Compliance, filing and paying taxes in a timely manner (on VAT), ensuring no tax leakages nor lawsuits, as well as protection from liabilities.

The transition from a B2B to a B2C entity was made successful within 6 months.

Additionally, Cornerstone helped with the expansion of its distribution center to one of the southern countries in the region, Spain.

Where are they now?

They now sell in over 15 European Countries with sales over 20 to 100 million Euros

The company now operates in the EU with full compliance to both and Business to Business (B2B) and Business to Customer (B2C) regulations.

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