Getting Started.
There are many different reasons why a business might choose to expand into the export market – perhaps they want to reduce the exposure to fluctuations in demand in the home economy or perhaps they have identified an opportunity outside of the home market.
Carefully planned and executed the entry into the export market provide benefits,such as:
- Rapid sales growth
- Increased profitability
- Improved productivity
- Providing economies of scale
- Raise the company profile
- Improved aspirations and morale.
An important initial assessment of how suitable your product is for the export market is vital.
- Is there a demand for the product in the export market?
- Which countries offer the best opportunities?
- What are the best sales channels for any product in that market?
- Will the product require technical or design modifications?
- What packaging changes, if any, would be required for international transport and market?
- Will the product be competitive with any like for like product taking into account modification and transport costs have been included?
- Is an export license required?
Having evaluated the export opportunities, have regard to the competition the product or service will face.
- Who is the competition?
- How established are they in the market?
- Which of their products/services compete directly?
- In which way does my product/service differ from those?
- What are my key selling points?
- Are there any specific weaknesses in the competitors’ products/services?
- What channels of distribution do competitors use?
If you have the time, the funds and the proficiency in the language – there are many simple but effective ways of researching the viability of your product on the export market.
- Attend overseas trade fairs and product/regional seminars
- Enquire, investigate and assess while visiting the market and country
- Research trade directories
- Use government information resources
Similarly it is important to thoroughly research the proposed market;
- Get to know the customer
- Gain knowledge of the culture and the infrastructure of the market
- Review actions of agents or distributors to market and sell the product
- Communication lines for problem solving
- Periodic assessment of the competition
- Pay special attention to closing deals for new orders and promoting increased sales or sales of new or modified products
Financing your business for exporting can place a strain on an already difficult situation but it is important to research this area well as international business is different to domestic trading. Market development costs, foreign currency exposure and credit collection all require new skill sets. Never underestimate either the time necessary for researching each market, the establishment of satisfactory long-term trading contracts or the methods of distribution and the consequent expense, that will be involved. The run-up period is much longer starting up in the export market than it is in launching new business in the home market and even allowing for the amount of research and planning required, costs and skill sets must be and are appreciably higher.
BSmart Company offer a complete package to further your business onto the export market. We not only give professional advice on import and export but we locate the international marketplace for your product / service.
BSmart Company does not charge for advice. A commission is charged ( a percentage of the total invoice paid) on any successful transaction on import or export.
Contact BSmart Company direct – initial contact by either email or telephone and one of our consultants would be delighted to discuss your corporate requirements. bsmart@irl353.com