how to identify potential export market

2021/05/21

Festive season is also important factor, for example certain products are more sellable only during Christmas. Below we discuss some of these considerations in greater detail. Seeks to exempt the excisable goods, namely Petrol, Diesel and Aviation Turbine Fuel from Special Additional Excise Duty and Road and Infrastructure Cess when exported from units located in the Special Economic Zones (SEZ). a developing market with rapid growth (e.g. In fact, even if all factors are considered, some will always remain unforeseen. As an exporter, there are several factors that could contribute to your choice of export market: tradition - which countries are, traditionally, our big buyers; demand - which countries or regions are likely to seek your products; geopolitical climate - how favorable is the political environment of your selected market, etc. Special measures are required for transportation of certain products, which may be bulky or fragile or hazardous or perishable. Plan for the tariffs, sanctions, and export/import controls that you may encounter when exporting abroad. Do you want to export your handmade bags? Springer is one of the leading international scientific publishing companies, publishing over 1,200 journals and more than The most common and basic approach to determine export potential is to examine the domestic sales of your products. Identify five to 10large and fast-growing markets for your product or service. A key factor in any export business is clear understanding and detail knowledge of products to be exported. Numbers are not always clinching evidence -- confidence in your product can sometimes be the crucial deciding factor in your choice.. Identify and consider all local costs before finalizing the market, as they will be expenses to be incurred irrespective of where you ship goods. 50/2017-Customs for DEC tablet and S. No. By using this site, you agree to our, Automation Driving Industrial Robot Controller Market [Report], Connect and transact with thousands of top North American companies today, 4 Steps to Expanding Your Industrial Network on LinkedIn, Lead Generation For Manufacturers: 33 Industrial Tips, Tricks, And Ideas, How Manufacturers Can Identify & Use Buyer Intent Signals To Drive Sales. EMCs dedicate their time to performing thorough research and analysis for target export market identification and monitoring and offer insights to guide you through the development of a strong export strategy. Terms and Conditions, 5/2017- Central Tax (Rate), Seeks to amend notification No. While you can conduct export market research and analysis on your own, it can also be helpful to leverage the assistance of an external entity, such as an export management company. Dont forget to consider and finalize logistics firmly before committing to the market. In the early stages, you want to get a general but clear picture of a countrys economic and market viability, while diving into more in-depth details later in the process. Get in touch with their International enterprise team. Start by considering the economic and political forces at play. After analyzing the data, you may decide that you should restrict your marketing efforts to a few countries.

It may end up that the targeted market will still be lucrative in spite of these challenges, but its important to understand these considerations early on to build a competitive edge. Seeks to reduce the Special Additional Excise Duty on production of Petroleum Crude and export of Aviation Turbine Fuel. Believe your firm will have a competitive advantage? of the country whose market you are targeting to ensure that doing business with it doesnt harm your business interests. Calculate the overall consumption of products or services like yours and identify the amount imported. Be sure to conduct your research thoroughly before making your choice, and don't hesitate to pull out if the market becomes too hostile. Together, you and your EMC partner can develop an export approach that positions your company for successful international business opportunities. If your product is a success in your home market, the next step is to identify why it sells so well, keeping in mind that conditions abroad may be somewhere between slightly and significantly different. Let us help assess your potential in specific markets, connect you with qualified contacts, or solve a market access problem. Privacy Statement and Select a market keeping the demand for your export product in mind. To learn more about how crowdsourcing and other forms of market research can benefit your company, consult the Trade Commissioner Services (TCS) Spotlight on Market Research. Apply for financial support, or take part in programs that help innovative or growth-oriented firms, and underrepresented groups. Research potential federal, provincial or foreign government incentives to help you promote the export of your product or service. This is specially applicable for processed food and beverages, drugs and chemicals. Study the competition, both domestic and international. Okhla Industrial Area The scope of the journal comprises International Business, Cross-cultural Management, and Comparative Management. There are products that sell more often than other product in international market. These results lead to the development of a taxonomy of manufactured products with implications for both the theory and practice of export marketing. Seeks to amend notification No. The Netherlands Chamber of Commerce (KVK) has developed the KVK Export New Markets tool, that allows you to set the criteria and their weight, to determine which countries could be of most interest to you. C/o InfodriveIndia Pvt Ltd The product should address the need and requirement of the consumers. Identify any foreign barriers (tariff or non-tariff) for the product or service being imported into the country, as well as any Canadian barriers (such as export controls) affecting exports to the country. The study employs data on 102 manufactured products, 82 nations, and 3 different years. The website of Agriculture and Agri-food Canadas Agri-food Trade Service offers a wealth of market studies and country reports for companies in the agri-food sector. This means learning about obvious things, such as customs, languages, and religious practices, as well as cultural nuances and preferences. Germany, the U.S.)? Registration/Special provision for your products in importing country. Get access to export-related information and join our mailing list. For terms and use, please refer to our Terms and Conditions If you note any problematic concerns in specific countries, removing them at this early stage avoids spending time considering unviable markets. This can be a big advantage if exploited correctly. Timely supply is a key success factor in export business. Find materials, components, equipment, MRO supplies and more. During the initial research phase, a number of factors need to be considered in order to quickly weed out markets with low potential while also compiling a shortlist of high potential opportunities. These agreements reduce or remove barriers that exist in the trade relationship between countries. Also, be aware of cultural differences in trading and product experience.

The study's findings suggest that the two variables are good predictors of export market potential for some types of products, but not for others. Canadian businesses AND TCS working together -When this Vancouver-based company was ready to expand worldwide, they called upon TCS to sell to the US, Africa, Vietnam and beyond. Remember, price isn't the only selling pointother factors such as need, utility, quality, service and consumer taste can make you competitive. Be prepared for additional expenses for market research, product launches and personal visits so you don't miss potential opportunities. Keep in mind special packaging and labeling requirements of perishable products like processed food and dairy products. Research your next target market. Good luck! Why Is Website Quality More Important Than Quantity For Industrial Website Traffic? Several economic factors are important to consider during this process, such as whether or not a countrys financial health has been consistent from year to year. 10+ million models from leading OEMs, compatible with all major CAD software systems.

Especially given the recent international geopolitical climate of protectionism, a countrys openness towards international trade is an important consideration for an exporter. Target three to five of the most promising markets for further study. The price of the exported product should not fluctuate very often - threatening profitability to the export business. There are many ways to study a market, but the more detailed and objective your research, the better. Trade agreements foster reciprocal concessions, allow for special favored treatment for exporters from partner countries, and national allowance of non-tariff restrictions. However, a more promising market situated at a greater distance can sometimes be more lucrative for the exporter. The destination country may have incentives to welcome the inflow of specific items to meet domestic scarcity. The world is a large place and there may be many potential markets for your product in different countries. Thomas uses cookies to ensure that we give you the best experience on our website. Though a major non-tariff barrier (textile quota) has been abolished - there are still other tariff and non-tariff barriers. Copyright 2022 Thomas Publishing Company. The product should be manufactured or sourced with consistent standard quality, comparable to your competitors. After completing your secondary research, collect market information through direct contact with potential customers or other sources. For marketing purposes, become familiar with channels of distribution, cultural differences and business practices. Examine the legal practices, safety and environmental regulations, commercial laws, etc. It is easier to trade with certain countries with whom your country has either a multilateral or bilateral trade agreement. By analysing our target market, we can discover whether the market contains a sufficient amount of potential clients who have/could have an interest in your products. Answer a few short questions to assess your readiness to do business abroad. a developing market with marginal growth (e.g. Or alternatively, through any combination of the two. In general, one or two countries are usually enough to start with. 2/2022- Central Tax (Rate), Seeks to amend notification No. Once youve gathered the general details and compared them across international business landscapes from a birds eye view, you should have a pretty good idea of which markets your product will have the greatest potential for growth. Note; looking for export potential is never a linear process, often you go back in the process, adjust your strategy, consider different markets, or consider market conditions from the start. 1221, 2nd Floor, Building 12 Solitaire Corporate Park, Stay up to date on industry news and trends, product announcements and the latest innovations. Successful export campaigns are built upon robust, agile plans that are consistently monitored and tended to. Thus, for Indian exporters, exporting to Bangladesh and Pakistan may be easy because of the cultural similarity and proximity, but the sheer volume and potential of the Chinese market makes it a more tempting prospect, in spite of being comparatively far. There are several ways to evaluate the export potential of your products in international markets. Export potential = the feasibility of profitably exporting your products and services.

warne sandra adviser trade meet international This item is part of a JSTOR Collection. You will likely have existing players selling the same product in the market, or emerging suppliers developing the export product domestically. Seeks to amend notification No. However, such products will invariably have more sellers and consequently more competition and fewer margins. During this part of the process, the goal is to garner a comprehensive understanding of a countrys economics, politics, cultural influences, and day-to-day consumer factors. Demand certainty is a precondition for the growth and sustainability of your export business, as it guarantees continued purchases of your exports. MIR: Management International Review Hence, it is important to find out the market share of your competitors and their global presence, to gauge precisely what you are up against. By studying the competition and seeing how they perform in your targeted market, you can get an idea of how youll measure up as well as develop strategies for outperforming them. with and for the purposes set out in our Many of these are available online, as well as from chambers of commerce, economic development organizations, industry and trade associations, and Canadian companies that are already doing business in your target market. Start by gathering information on the day-to-day export world in these countries, looking specifically at things like regulations, tariffs, and logistics, all of which can present challenges in a targeted market. 1991 Springer Start small with a couple of markets, and work your way up to geographical expansion from there. Common sense would dictate that large conventional developed markets like the US or Europe would be safe bets for early-stage exporters; however, there may be more lucrative profits in store in slightly less-crowded but riskier markets. Some companies conduct market research projects entirely online through the inexpensive collection format known as crowdsourcing. To stay on top of things, list criteria to select the most favourable foreign markets. Ask other entrepreneurs for advice on Higherlevel.nl, Select favourable markets for your product, Corporate social responsibility and export, Find more information on our contact page. The information presented on the site is believed to be accurate. 7 Ways To Increase Sales For Your Manufacturing Business This Year, What to Do When Competitors Undercut Your Prices, How to Optimize OEM Aftermarket Revenue & Profits Without Alienating Your Customers, Why Designing for Serviceability Is Critical When Developing New Machine Products, Optimize OEM Aftermarket Revenue by Clearly Categorizing Your Available Parts, Why Improving Product Quality & Reliability Depends on Effective Service Feedback, Dealing With Food Waste in the Supply Chain, Maintenance-free, No-adjustment Motor Brakes Help to Alleviate Worker Shortages, Molded Products Manufacturer Announces $5 Million Expansion, From Alpaca to Crocodile, This Startup is Serving Up the Next Big Thing in Lab-grown Meat, Apple's New Software Lets You Buy Gas from the Comfort of Your Car, Confirming that an opportunity exists within your targeted market, Assessing global market opportunities and viability, Understanding the needs of your potential overseas buyers, especially what influences their purchasing decisions. Partnering up with an EMC can help smooth the process. If your product attracts higher duty in target country - demand obviously falls. Choosing the right market for your products will determine the volume of shipments you can make and the subsequent revenue you will earn. It can confirm that an opportunity actually exists, provide you with insight into how a new market can be developed, or help you discover what's important to your potential customers. Exchange rate Notification No.64/2022-Cus (NT) dated 21.07.2022-reg. Indeed, potential is worthless unless it will be realized. This will help you get a clear understanding of how much product you can send to a particular market, at what price, and thus your likely earnings from the market. Apply the same research questions to select smaller emerging markets that may not have as many competitors as an established market. See Here's a checklist to help you summarize what you can learn about a possible market. When you are selling your product to a particular export market, you must consider the price consumers are willing to pay, and the demand for the product.

04/2022-Central Excise, dated the 30th June, 2022, to reduce the Special Additional Excise Duty on exports of Petrol and Diesel. Before making any selection, one should also consider the various government policies associated with the export of a particular product. Identifying Export Product for Marketing. Depending on your product and growth plans, be sure to consider the balance between prospect and proximity before choosing a market. What presents itself as a successful market right now may not be a smart move in the future. Now, lets consider any factors that might drastically improve or decline your export prospects. Issues such as financial collapse, corrupt government regimes, social unrest, political violence, and human rights violations can create a chaotic ecosystem that results in a huge loss on investment. That's not necessarily true. Once youve identified target export markets that feature market viability as well as economic and political stability, its time to closely analyze them, taking into account a wide range of micro scale details. If possible, avoid products which are monopoly of one or few suppliers. Look at each competitor's Canadian and foreign market shares. Get introduced to the right people, and connect with potential business partners and clients by participating in a trade mission or event. Firstly, to determine demand, choose a target market and, subsequently analyse your target market. The EU Access2Markets database provides information on local customs and traditions. Netherlands Chamber of Commerce, KVK | Netherlands Enterprise Agency RVO. MY TCSprovides access to hundreds of market reports, export publications and guides as well as upcoming trade events, webinars, podcasts and videos. Has market growth been consistent year over year? One of the services provided by Export Partners. There aremore than 190countries in the world and you want to target the right one(s) for your product or service. Request Permissions. California Do Not Track Notice. India also offers promotional schemes on specific products and services via the Merchandise Exports from India Scheme to incentivize key exports to certain markets. Unpredictable political scenarios, confusing ideologies, and economic stress can harm your export business in a particular country in the long run. Find and evaluate OEMs, Custom Manufacturers, Service Companies and Distributors. added targets intergration regional value To do this, you need information that will provide a clear picture of the political, economic and cultural factors affecting your operations in a given market. Take the example of another country with a comparatively smaller, but exponentially growing, market. Seeks to amend notification No. Thomas Regional are part of Thomasnet.com. If you are the manufacturer - make sure sufficient capacity is available in-house or you have the wherewithal to outsource it at short notice. For example, as seen in the image above, the USA is Indias largest customer, and in 2017, 45-50% of our exports to them consisted of precious metals and stones, pharmaceutical items, heavy machinery, textiles, and fish. many African nations)? This is where bilateral or multilateral agreements are important, as countries can agree to make trade easier through measures like mutua infrastructural development and regulatory relaxations.

Identifying target export markets and constantly staying on top of the vast amount of factors that can impact your company can be an arduous and frustrating task, especially when you also have to focus on the domestic side of your business and the sheer volume of information and data can be overwhelming. Also Read: How To Open A Current Account For Exports. Image Credit: ArtisticPhoto / Shutterstock, Select From Over 500,000 Industrial Suppliers. Though there are very few restrictions in export - it is better to check regulatory status of your selected product. Market research is the key to understanding your opportunities. Thomasnet Is A Registered Trademark Of Thomas Publishing ISO or equivalent certification helps in selling the product in the international market. Business.gov.nl is the Dutch Point of Single Contact for entrepreneurs. There are 195 countries in the world for you to choose as buyers, but dealing with each of them is a different ballgame entirely. Is there sufficient demand for your products? However, to accurately determine export potential we must determine whether there is sufficient demand, whether your company has a competitive advantage, while taking into account all external conditions. Having a thorough understanding of climate details will help you draft contract terms, get the right protection against damage or loss, and even invest in sustainability initiatives. And, because distribution can be heavily impacted by weather and natural disasters, youll also want to look into a countrys environment and climate. Sources like government websites for export/import data, market research statistics and analysis, case studies, news reports, focus groups studies, and trade reports often publish the information youre looking for.