A few years ago, we worked briefly with a Chinese jewelry brand—just two months, to be exact. It wasn’t a long partnership, but the experience left an impression. They weren’t a bad client. In fact, I liked their category. But the issues they ran into weren’t about product quality or competition. The real problem was mindset.

How to Avoid Market Expansion Mistakes

This brand wasn’t new to jewelry. They had built a strong business in China over the years—back when the market was booming and competition was light. They made real money, not from lab-grown diamonds like they’re experimenting with now, but from more traditional, high-volume jewelry. Back then, selling jewelry was easier. Marketing was simpler. Consumers were less informed. And they thrived in that environment.

But time changes everything. So, how can businesses avoid market expansion mistakes when transitioning into more mature markets?

How to Avoid Market Expansion Mistakes in a Maturing Market

Their domestic business had started to slow down. The market matured. Competitors leveled up. So, instead of evolving at home, they decided to “go global.” The U.S. looked like the next gold mine.

That’s where we came in—for a short time. Unfortunately, they weren’t prepared for what the U.S. market had to offer, making it a classic case of how to avoid market expansion mistakes.

The Big Misjudgment: Success Is Not a Passport

The most obvious issue? They assumed past success would naturally translate into new markets. They had no real understanding of the U.S. consumer, the market landscape, or the culture. Yet they believed that because they had “good products” and past experience, the U.S. would welcome them with open arms.

But markets don’t work that way anymore. To avoid market expansion mistakes, it’s crucial to understand the local culture, consumer behavior, and how to adapt your strategies accordingly.

Especially not in a category like jewelry, where emotional connection, lifestyle branding, and trust matter just as much—if not more—than the product itself.

They were trying to promote lab-grown diamonds, which are cheaper than natural diamonds but still expensive enough to demand credibility. It’s not the kind of product consumers buy impulsively. Certifications, trust signals, branding—all of that matters. Yet they weren’t prepared to build those foundations.

And to be honest, I’m not even convinced the product itself was worth betting on. I’m not a fan of lab-grown diamonds. I don’t think the average buyer is sold on them either. Especially not when they could just buy more affordable, stylish jewelry without the uncertainty of whether their “diamond” is considered “real enough.”

Old Habits, Wrong Market

What struck me most was how Chinese their approach still was. That might sound vague, but here’s what I mean:

Instead of studying the new market, talking to local consumers, or understanding digital strategy in the U.S., they tried to solve the problem the same way they always had—by throwing people at it.

They poured money into building a large team full of people they didn’t properly vet. Most had no real marketing experience. They didn’t prioritize branding, storytelling, or even content. They weren’t investing in a website or brand assets in the modern sense. They were just hiring.

In short: they were trying to build an empire before building a strategy. This is one of the key market expansion mistakes—jumping into a market without laying the groundwork first.

The result? They burned through the budget fast.

The team got bloated, the direction got messy, and before any real progress was made, they ran out of money.

Lessons from a Short-Lived Expansion

Our collaboration ended quickly, but the case stuck with me—not because of the diamonds, but because of the mindset.

Here’s what I took away:

• Success is not portable if it’s not adaptable. What works in one market might completely flop in another. Market expansion mistakes happen when you copy-paste an old model without understanding the new environment.
• Pride can be dangerous. When you think your product is “too good to fail,” you stop listening, questioning, and learning. That’s when things fall apart.
• People are not a shortcut to strategy. Hiring a team is not the same as having a plan. You need clarity, not headcount.
• If you don’t know your “why,” your brand will feel empty. They didn’t build the brand from purpose or positioning. They just moved, hoping something would click.

Looking back, I don’t think this was ever about diamonds. It was about a company trying to fast-track success again—like they had fast-tracked diamond growth in a lab. But markets don’t work like chemistry labs. There’s no shortcut to trust, relevance, or staying power.

And in today’s global market? If you don’t slow down to rethink your foundations, you’ll run out of money before you even get started. The key is avoiding market expansion mistakes and building strong, strategic foundations from the start.

Thanks for reading. Here at FS Digital, we care about the long-term success of a brand—not just surface wins. We believe in building momentum with intention, strategy, and heart. If you’re looking to grow with clarity and impact, we’re here to help make that happen.