|With Horizons since 2021|
The International Vitamin Corporation (IVC), based in California, USA and Jiangsu, China, was established in 2010. They are one of the largest manufacturers of over-the-counter health supplements in the word.
Over the last 10+ years, IVC has undergone more than 11 cross-border mergers and acquisitions, some of which have been significant (like the 2019 acquisition of American supplement giant GNC’s manufacturing capacity). Through these M&A activities, IVC has consolidated the manufacturing, product R&D, and supply chain management of their business under one umbrella, allowing the company to provide the most value at the least cost to customers worldwide.
These activities have allowed IVC to steadily grow its market share in the nutritional supplements industry and establish more than 10 factories across Asia, North America, and Europe. At present, IVC and its companies have a footprint and market influence in more than 80 countries, and are committed to entering every market as a leading global provider of nutritional and health supplements.
However, with the Covid-19 pandemic situation, their ability to open new markets was challenged—particularly in APAC where they had planned expansions for 2020-2021. During these challenges, they discovered global employer of record (EOR) services.
IVC realized that with EOR support where needed, they would be able to quickly scale their operations in new markets, anywhere in the world, without business trips or company incorporation formalities. EOR would allow them to be flexible to easily start new business in the face of economic uncertainty.
After assessing the EOR marketplace, IVC decided that Horizons would be the best fit for their Australian expansion—the price, ease of communication, and the global & regional reputation of Horizons helped IVC make their decision.
Before Covid-19, as part of its globalization strategy, IVC wanted to change the way they structure their international offices.
Where before the company had international offices that were completely localized with full back office and operations in each country of operation, IVC had an ambitious target to transition these offices into a ‘branch-like’ structure with a central command. If this were achieved, the company would be able to optimize the resources shared between different countries and regions and increase organizational efficiency.
With Horizons EOR, the HR side of this critical mission became easy in countries where EOR is utilized. IVC realized that when it comes to international operations, it’s better to have the best person for the role working the job, no matter where they are located.
For example, IVC has 7 factories globally and the company’s products can be found in over 80 countries worldwide. Does IVC need an entity in all 80 of those countries? They decided not.
Australian market share:
With a valuable and well-documented health and fitness market, it’s no wonder IVC wanted to enter the Australian market.
The faster you enter a new market, the quicker you can learn how to be successful. The fastest way to enter new markets is to partner with a company like Horizons who can ensure local hiring compliance (because as an EOR, Horizons would be legally responsible for such matters).
IVC could have chosen to set up a local entity, but this would have required serious time and financial burdens. IVC would have need to hire a local HR and legal back-office just to employ a small team of salespeople. They decided to go with the smart option and use an EOR.
Compliance burdens when entering new markets are serious. Mistakes can mean delayed company openings, damaged relationships with employees, and massive fines. By partnering with Horizons in Australia, IVC avoided the risks typically associated with new international hirings in unfamiliar jurisdictions.
There is already ramp-up time when hiring new employees—not to mention new offices. When starting in new, unfamiliar markets it can take many months to become efficient (after waiting months to be able to hire). When IVC no longer had to worry about local laws, taxes, or cultural / language issues when handling HR matters, they were able to scale their efficiency much more quickly.
IVC’s internationalization efforts won’t stop here. With a presence in over 80 countries already, and the relatively new (to them) tool of global EOR added to their HR toolbox, it’s only the beginning.
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Companies with Horizons save up to 85% vs. the cost of establishing a local entity.
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