Staring with export: How to choose an export market?
In our previous blog we talked about the first steps to start an export business. In this blog we’ll help you take the next step to identify profitable export markets for your products or services.
Choosing an export market is more than just pointing an arrow on the map. Many countries are showing great economic growth. Globalization offers endless opportunities for expanding your markets. International transportation and internet are essential for international business. But how do you know which market is right for you?
An essential element to choose a market is your customer. Do you sell to businesses or consumers? If you sell to consumers, market size, demographic factors, purchasing power of the population, etc. are important factors. Market access, rules and regulations in the specific sector play an important role in the decision making process.
Working with a filter can be a useful tool in making country selections. The selection can be narrowed down by adding important market factors to your filter. Macro-economic factors can be useful to start with. Factors such as: distance, competition, market trends, etc. can be used for making a better selection of potential markets.
Narrow your selection as much as possible until you have a handful of countries left. Involve your team to make further selections. Brainstorm about the possibilities and other selective criteria. Involving your team will be a great contribution for your export success.
As soon as you have made the selection it is important to look for more specific market information. For example, in the European Union standards for packaging and product information are high or in the United States regulations may vary in different states. Maybe you need to make changes in your current product, packaging or promotion. Be prepared for that. Import duties are also important. These can vary per country. For more information you can contact the local customs office.
When you have figured out which countries, you need to develop a strategy to enter the foreign market. You can open local branches and sell the product by yourself; you can use the internet or look for a local distributor. A reliable local export partner can be easier and very helpful. In the next blog post we will write about finding the right partner.
If you feel that you are ready for export, please visit our office. We are more than willing to help you. You can also email your questions and comments to email@example.com or write a comment below in the comment box.