These days, most businesses find it difficult coping in the domestic market so hoping to become a successful exporter can pose an even greater challenge for them. There are some factors that should be considered before you decide to venture into exporting your goods or services to an overseas market.
The initial step is to conduct a thorough research of the market in which you intend to launch your product. This will mean finding out information about your competitors, how successful their products are, their design and pricing structure and if there is need for selling similar products in the market. If your competitors already have branches based locally, it means they already have an advantage as they know the local market and have existing business contacts, an area that might prove difficult to penetrate for any new ventures.
In developing countries especially, there are a number of additional loopholes that need to be overcome before any new business can establish itself. Having the right connections means you can get things get faster and avoid the bureaucracy that new businesses have to contend with. In fact, the launch of any new product, especially by an overseas exporter should be viewed against a backdrop of the economic, political and environmental background of the country where you intend to launch it. In addition to being aware of these factors, the ability to communicate in the local language can be an added advantage to enable business to be done faster and more effectively.
Some products might need modifications before they can be sold in a foreign country. There are different rules and regulations that need to be followed regarding product packaging procedures, branding, warranties, technical or safety requirements. Companies or individuals who have a unique product to sell might stand a much better chance of becoming successful as there will be less competition to contend with but you have to work harder to prove the products worthiness in a new market.
This means having a well planned market strategy on how you intend to launch the new product. Being aware of local media and how it operates is vital as is organising an adequate network of local distribution agents. Setting up a website also gives an indication of how popular your products are and can give you an idea of the statistics of people in a new country interested in buying products that your company sells. Visiting trade shows and exhibitions also opens up a new territory and you can be introduced to trade agents who can give you ideas and information on how best to set up a launch strategy.
The financial aspect of any new venture has also to be considered and this will require a detailed business plan on how any funding will be utilised at every step of the process. Adequate finance should be provided for training additional staff both in the domestic market and in the overseas market, setting up facilities if manufacturing is to be done overseas, setting up new technology and repair facilities, storage facilities, marketing, and adequate transport links for the products to reach their end users safely and promptly. These are only some of the requirements that need to be catered for and will vary for each individual country.
The legalities of exporting any product outside your borders are an important point to consider before any trading can commence. These include customs regulations, customs duties, buyer and seller trade agreements, insurance, obtaining export licences and the right documentation to avoid legal and criminal implications.
It is useful to find out all the information regarding export laws before deciding to sell your product overseas. This will protect your company against any legal repercussions that might come up which can be both expensive and difficult to deal with in foreign countries.