Informed decision-making is the key to success in foreign trade

Exports contribute significantly to a country’s economy. With globalization becoming a reality more organizations both big and small are today exploring growth opportunities beyond their domestic market. Slowly and gradually the division between domestic and international markets have started to blur. With cheaper communication, optimized supply chains and easier access to markets exports are no longer as daunting as it was in yesteryears.

Exports help organisations smoothen their production cycle, improve profit margins while at the same time increasing their brand value. But while global markets seem like a golden opportunity it also calls for investments and informed decision making. Before an organisation embarks on this journey it will be prudent to know the countries in which their product has a strong demand, when the demand peaks, which countries are likely to be more competitive and a variety of similar factors. Stepping into new territory without having adequate information can turn out to be expensive.As the uncle Ben in Spiderman famously said, ‘with great power comes great responsibility.’ So, what are these nuggets of must have information that you must possess before taking the leap? Don’t fret, this is where World Market Analysis (WMA) from EXIMAPS come to the rescue.

WMA and informed decision making

Once you have decided to start exporting the first thing that an organisation needs to do is understand which of their products have a favorable export profile and the countries that need to be targeted. WMA brings to you:

Opportunity Index: An index that shows the size of the world market for your product and India’s share in the same, giving you a sense of the size of the untapped opportunity. The index also measures India’s export potential for the product in the top 10 importing countries as well as the top 10 countries to which India exports and India’s market share in those countries. The index also shows what are the markets with the most potential for your particular product.

Competition Index: Competition Index gives you a sense of the countries from which you can expect to face the most competition while exporting the product.

World Consumption Pattern: This segment shows you the amount of consumption of the product by each country. It also shows you country specific data on who imports from where.

EXIMAPS: This segment gives you insights into where your buyers are situated and their monthly consumption pattern. This helps you figuring out when you should start your outreach activity in major importing markets.

FOCUS MARKETS: This segment helps you get an idea as to which countries you should focus on to gain the most out of exporting your product. It depicts the top destinations from India for this product presently as well as over the last 5 years.

Incentives from the government: Last but not the least may be a cliche, but this is important information. This segment gives you the rewards (MEIS) and the Duty Drawback remission that you can get from the government.

Armed with all this information you are now in a position to take your product abroad and taste sweet success.

10 Killer features of EXIMAPS- Know in brief before taking a dive

Be it an aspiring foreign trade enthusiast, an existing player in the global market or a leading exim company, the one thing that remains constant for everyone is the need of identifying a steady stream of qualified customers. Gaining access to a multi-faceted technology platform that provides details of qualified and verified customer profiles has always been a challenge for Indian manufacturers and exporters. Considering the vast range of product categories involved in foreign trade, the data or information available online is often scattered and misleading. Even for the few who have access, more often than not, access is limited at times by product categories or time limits. To address these issues The Dollar Business has created a one stop solution, carefully designed and crafted to cater to everyone associated with foreign trade in India. It’s called EXIMAPS.

Here are ten killer features of this one-of-a-kind platform called EXIMAPS:

  • A giant library of relevant information!

EXIMAPS gives its users access to millions of buyer and seller company profiles from across 191 countries within seconds, with each buyer’s real physical existence verified by a core team of analysts from time to time.

  • Introducing the ‘Smart Box’

While on one hand we talk about billions of information sets and points, TDB’s engineers have designed a tool using which its license holders can access ‘exact information’ with great ease. We call this tool, the ‘Smart Box’. For a given set of products, you can set up your Smart Box and access only those sets of information that are of direct interest to you and your business.

  • Nexus – Get to understand multiple buyer-seller chains

The Nexus feature of EXIMAPS enables users to view at one go the names of all buyers and suppliers involved in the supply chain of the company that they are interested in. This is the modern business tree that is of huge interest to both exporters and importers.

  • Know everything about potential foreign buyers and competitors of your product

EXIMAPS not only gives access to buyer information related to a product but also enables the user to know what other products the buyer is interested in, who all is he dealing with, which competitors of his are dealing with that buyer parallelly, etc. This helps the user take accurate decisions in time and shapes his strategy and what he needs to mention in his communication with any potential buyer.

Similarly, EXIMAPS’ competitor analysis capability enables users to monitor the buying and selling behaviours of importers and exporters alongside their recent and seasonal footprints. Now, complete access to their respective or prospective competitors is just a click away.

  • Do it yourself – Anyone can use EXIMAPS

Ease of access and of understanding the data presented is a unique experience with EXIMAPS. EXIMAPS stands out for its clean and simple graphical representation of information and analyses. And for those who are in it for the detail, there are millions of rows of trade-based information for them to interpret and analyse.

  • This is Human and Artificial Intelligence maximized!

Information provided by EXIMAPS is filtered, cleaned and processed to enable users to avoid junk and uncertainty about the as-on-date existence of the respective buyer or seller in the foreign market. EXIMAPS uses both AI and human intervention to clean and parse data for the benefit of its users.

  • Processed and engineered with ‘exactness’

The exactness of EXIMAPS is proven by how you can dig out the ‘exact’ buyer or seller profile by using the ‘Company Profile Search’ feature or simply view country-wise sets of buyers and sellers of a particular product by using the main search feature of EXIMAPS.

  • Seller or Buyer. Any product. Anywhere. Test it!

EXIMAPS is nimble. All you need is a device connected to the Internet and you are ready to go. It does not demand the latest of system configurations or a huge storage space on your laptop or mobile. EXIMAPS does all the heavy lifting for its valued users so that they can have a seamless experience from any location that they care to be at. A user can manage his/her entire import export business from a single window.

  • Learn the export-import potential of your product

If you are interested in the big picture, the World Market Analysis feature of EXIMAPS allows you to study the foreign trade trend of any product or product category.This allows the user to make informed decisions while choosing products and markets to focus on.

  • Knowing the “detail” is “mindblowing”!

If recent ‘export-import shipments’ trend is what interests you, you will find the Trade Analysis feature refreshing. This feature allows you to search and filter products of your interest across a variety of parameters, including but not limited to buyer country, seller country, destination ports, etc.

These are just some features that make EXIMAPS a unique and indispensable tool for the foreign trade fraternity. EXIMAPS is ‘the almost everything’ for exporters and importers around the world.

Five reasons why you should EXPORT

With a scope of immense profits and a colossal expansion in customer base, what’s your excuse for not being on the list of export businesses?

As per Statista,“approximately,$298.83 billion worth of goods were exported from India in 2017.”

The economy has never been in a better shape for India. Being a part of BRICS,the country is recognized as an emerging market leader globally. But are we missing out on a large source of potential revenue. The truth is that there are millions of SMEs in India that are so busy operating and closing their day-to-day sales that they are missing out on the bigger picture of stepping into exports and exploring the complete potential of their business.

Why export?

Here are a few reasons why you should start your company’s export operations sooner than later:

Sales growth

If your production setup is capable of producing more units than it presently does then you are underutilising your resources. An expansion overseas will bring down your cost per unit, and you will eventually have more sales than ever.

Extending product life cycle

Businesses often ignore the fact that their product may have demand in international markets too and usually sell locally or within the domestic market. Consider a scenario where your product is facing obsolescence in your present market. In such a case your product might lose the market share, and your production setup maybe no longer of much use. By getting into exports you can extend the life cycle of your product by finding other markets that still have a demand for it.

Balancing the off-season

If your business sells a seasonal product, getting into exports can be a smart move. Once there is an off-season in one market, you can continue making money by supplying it to other markets. Thus, running your production or trade cycle smoothly all around the year.

Being in competition

Though you may have captured a market share in your own country, your competitors might be leaps and bounds ahead of you.To stay in the competition, you might also have to step in to exports because your competitors are doing it.Your competitors, if supplying to overseas market, will not only lower their production cost but will also use their profits in marketing aggressively in the local market. This can be detrimental to your businesses. Why not start exporting and enjoy the same benefits that your competitors are enjoying.

Answering your inquisitiveness

Majority of businesses will choose one of the above reasons to get into exports, but there are still a percentage of people who would like to know how business works out overseas.This inquisitiveness can be the biggest reason for you to step into the export business. If you wish to explore different markets and cultures and love interacting with people globally, export can be one excellent opportunity for you.

EXIMAPS: A one-stop solution for export analysis

Still indecisive about what would happen and how you will manage? Let’s talk about a solution that can do away with every nightmare that you have had regarding exports. Eximaps, a competitor analysis tool, offers a rewarding and nimble solution to anyone who wants to grow, connect and eventually conquer the export sector in a short time span.

Powered by Artificial Intelligence, the tool gives businesses valuable insights by conducting a precision search in big data. Whether it comes to balancing an off-season, extending the product life-cycle or staying in the competition, the very first challenge is to find the market that’s most suitable and a buyer who is genuinely interested in your product. And EXIMAPS does just that.

Eximaps is just the tool you need when it comes to transforming your business. Conducting transactional analysis for exact market prospects, period wise information, providing the list of active foreign buyers with contact details, and doing a trend analysis are some of the outstanding benefits a business can get by using Eximaps.

The final say

So, what are you waiting for?It is time to sign up for advanced export solutions with EXIMAPS and make your business stand out among millions.

GST IN A NUTSHELL – PART 1

Of late, there has been a swirling wind around goods and service tax (GST) that is debuting its hold on the Indian economy. It has been a long-winded path for GST to finally pass out ceremoniously. The Indian government has reformed the tax system by adopting a dual GST model. The model has conveniently replaced the various multiple cascading taxes that are levied by both the State and Central Governments. It unifies all these taxes under one umbrella as a unified indirect tax, resulting in ‘one nation, one tax’.

Let us understand the broad classification of GST.

Array of taxes levied by GST are:

 

CGST: Central GST is applicable for supplies within the State and the tax revenue collected will be shared to the Centre.

SGST: State GST is applicable for supplies within the State and the tax revenue  collected will be shared to the State.

IGST: Integrated GST is applicable for inter-state and import transactions. The tax revenue collected is shared between the Central and State Governments.

Taxes subsumed by GST

GST aims at unifying the market by bringing uniformity in tax rates across the country to make compliance easier.

It facilitates seamless movement of goods among states and reduces the cost of goods and services manufactured locally. Thus, it is a boost to Indian exports.

 
Crucial compliance requirement after GST implementation

Amidst all the other factors, compliance is a cause of concern for SMEs (Small and Medium enterprises).

 From registrations to billing, paying taxes and gaining refunds; post GST, SMEs must opt for the electronic system.

 

Benefits of GST:

  • Elimination of cascading impact of taxes
  • Reduction of prices of goods manufactured locally
  • Single unified indirect tax system
  • Increase in tax collections
  • Improvement in economic efficiency
  • Simpler filing process
  • SEZ benefit status of EOU
IGST collection from imports rises about 60% in just one month of GST

Conclusion: GST onboard

After the complete consensus of GST, compliance is expected to be streamlined with the convergence of multiple taxes into one tax law. The cumulative effect of carefully handling grievances has already led to a positive impact. Moreover, while the thesaurus of interpretations is still making its way through its twists and turns, the Indian economy has entered the era of a unified taxation under one umbrella called the GST.

5 Careful Steps to Facilitate Smooth Imports from China

In the 1970s, the modernization drive reversed the Maoist economic development strategy in China. It opened up the clouds for the dragons as they committed themselves to the world outside. A legal framework integrated China into the world economy.

The Golden Road had been established and China gained world dominance for trading. It surpassed the expectations with the highest recorded exports in 2013 and has been on the rise ever since.

5 Things to Consider While imprting from china

China has impacted the whole world. “Fluctuations in capital markets, interest rates, currencies and commodities are routinely credited to — or blamed on — economic developments in China,” says Scott Clemons, the chief investment strategist for Brown Brothers Harriman in New York.

The Sino-India trade angle seems to defy the political gravity. China is India’s largest trading partner with bilateral trade set. Both the countries have signed the Double Taxation Avoidance Agreement (DTAA) and entered into the Bangkok agreement in which China and India provide concessions for few products exported to each other.

The level of demand for Chinese products in Indian markets reflect the vast opportunity China unfolds. The e-commerce industry in China has generated ¥5.16 trillion in 2016. The historical boom in the economy of China denotes the existence of large markets and the reason why many Indian businessmen have aligned their business with China.

The mark of distinction for importing from China is the large profit margins it offers when compared to importing from other countries or buying from home country. The profits measure up even after levying the costs of transport and import duties. The competitive pricing is a result of its cheap labour and low currency value. China creates an ideal environment for its importers by providing ease of doing business and better response times.

However, in order to facilitate smooth imports from China, the Indian exporter needs to bear the following in mind. These are precautions that prevent deals from going sour.

So being forewarned is forearmed:

Supplier Kingpins: There have been many instances where the aspirations of many Indian businessmen have been dashed as they did not find the right suppliers. Scurrying around China to procure materials that offer the best value for money has also not helped. However, identifying the right supplier is a critical aspect for successful import. That is why engaging in business transactions with suppliers has to be handled with precaution. So, how to find the right supplier?

Googling your way through various search engines or B2B sourcing platforms could kick-start the process. Before you pass the verdict, carry out a factory audit or consult business service companies where the real physical existence of every supplier is verified by a core team of analysts and a report is submitted.

A checklist of key parameters to be careful about:

  • Credibility of the sellers
  • Business licences
  • References
  • Financial health

Quality Measures: Mass-manufacturing affordable products has been the unique selling point for China. It is a haven of products with different qualities. So, it’s the buyer who must play the lead role in carefully evaluating the different parameters.

Don’t fall prey to favourable negotiation terms. Test the specifications by asking for samples. Before you wire the deposits, ensure you have a detailed written specification on products like:

  • Product labelling
  • Product characteristics
  • Product testing specifications
  • Packaging concerns
  • Safety standards

Scale up gradually after reassurance of the product quality.

# Crackdown scams:  There have been trade related issues where Indian businessmen have not received the same products, upon delivery of the consignment, as compared with the samples provided initially. Imagine the fury of an Indian businessman who receives mud and stones instead of chemicals like silicon carbide and zinc ingots.

The Indian diplomatic missions have derived a list of risks that are registered periodically by the Indian traders:

  • Quantity disputes
  • Quality disputes
  • Refusal to send consignments on receipt of payment
  • Non-release of Pre-Shipment Inspection Reports/Certificates in due time
  • Diversion of payments by the third party fraudulent company

 # Combat kickback:  The ‘kickback’ culture prevailing in China is yet another deterrent faced by the Indian traders. There have been prevailing issues where quality check firms in China approve of defective products by accepting bribes.

The trade brokers, local employees and distributors in China use their positions to multiply their income by providing inflated invoices or choosing illegal suppliers.

So, be prepared to combat the bribery transgressions by being vigilant. Business transparency should be the global imperative.

#Restrictions apparatus: Delays are roadblocks to deadlines. Avoid import barriers with China by ensuring compliance with the rules and regulations.

Importing few goods from China have been banned by the government of India on April 25,2016.The list includes steel products, electronic items, mobile phones and many more.

Being legitimate should be your trade mantra. Classify your import products before taking up the import decision based on the investment catalogue as follows:

–       Encouraged

–       Restricted

–       Forbidden

–       Permitted

Make sure you have supporting formal documents for every step. They reinforce the authenticity of the import transaction and call for a hassle-free profitable experience.

Thus, in short, by avoiding these pitfalls, you can tap the most while importing from China. After all being forewarned is being forearmed.

Happy Importing!

 

The Top 5 Make/Break Aspects of Export Pricing

So, you thought determining the price of your product was simply putting a desirable price tag to it?

 Think again! It can’t be merely wishful. Can it? On the other hand, adventurous manufacturers like Apple have always sought, fought and got the price they wanted. Thus, the question is, how do you choose a price that will leverage your ROI and maximise your sales?

Actually, it turns out that the process of determining the price of your product is just as complicated as the various processes involved in its manufacture. Pricing is never a random affair. It takes strategizing, processing of various ideas, lot of number crunching, and considering the financial and political climate of the country you want to export to as well. These will help you to arrive at the perfect price for your product. If you aim too high, there are chances your product may not sell as much, and if you aim too low, your profit margins will take a big hit. During times of such confusion, when you need to arrive at a conclusive pricing decision, here are five essential factors to consider before giving your product a price tag

1) Cost of the Product

The most crucial factor to take into account when developing a pricing strategy is considering the actual cost that went into making of the product. These costs are generally divided into two main sectors: Direct Costs and Indirect Costs.

  • Direct Costs are usually the costs you incur for actions like acquiring raw material, paying labour charges to the workers and other direct expenditure involved while assembling the actual product.
  • Indirect Costs are the ones that pertain to the manufacturing office and administrative costs. These are in addition to the costs incurred for selling and distribution of the product.

2) Competition

The export market is full of competitors who are willing to one up on you in terms of pricing. In such scenarios, where competitors take the cake, there are two viable options to decide an effective price for your product. You can either charge a reasonable price for your product and enjoy the benefits of bulk exports; or you can charge a higher amount by ensuring that your product is top-of-the-line and far more superior in quality when compared to any of your competitors.

3) Supply vs. Demand

The pricing of your product is also dependant on the demand of your product versus the available supply of it. If the supply of your product is more than the demand, it is obvious that the price range of your product will have to be on the lower side. Now, when the demand is high and the supply of your product is scarce, the pricing can be strategized in a manner that allows you to reap optimum profits.

4) Government Offered Incentives

The governments of developing countries, such as India, are offering their exporters various incentives regarding their trades. It becomes easier for exporters to attach beneficial prices to their products. Exporters of developing countries receive various financial benefits like tax exemptions, customs and excise duty exemptions and trade agreements. These make it easier for exporters to charge their consumers a reasonable amount.

5) Branding and Reputation

Brands have the advantage of pricing their products on a higher and more evolved pricing scale. This is based on the reputation and quality measures they have established for themselves in the market. As an established brand name, pricing becomes easier because the consumer trusts your product more and is willing to pay for the quality benchmark set. In this case, exporters working on a smaller scale can realign their prices to a lower cost, in order to target the consumers who are keen on opting for a more reasonable option.

Each one of the above is instrumental in determining the export price of your product, which can make/break a deal after hours of deliberating with a potential client. Therefore, now that you have a fair idea on how to select the best price range for your product, you can gear up and start exporting to the right consumers. Hop on!

 

 

3 Reasons Why You Should Market Your Export Products

So, you’ve got all your products queued up, all ready to export; but have you considered how to take on the world of foreign trade effectively?

Exporting involves only the best of goods for trade. Yes, to ensure quality, only the best products are procured from places that specialize in manufacturing them. These are then shipped overseas and find a place in the international marketplace.

While exporting is a lucrative option that allows its patrons to enjoy top quality products at the best of prices, it offers immense scope to the merchants to broaden the horizons of their businesses. Manufacturing products in bulk and shipping them overseas may sound simple enough for exporting. However, a meticulous scrutiny, a probe into the EXIM world reveals the complex labyrinth through which the logistics and financial transactions breathe, raking in profit for the merchants. Now, how much do they profit is subject to how well they market their products.

Besides, exporting not only helps you introduce your goods to the world but also helps you to contribute positively to the GDP of your country. Here are a few tips on how marketing can help you expand your export reach:

  • Spot the trend!

Remember, hope isn’t a catalyst for making sales. Research and marketing are! You should never invest in goods by just being under the impression that they will sell. The first step towards successful exporting is researching what your target audience wants. Next, it is important to identify the right platforms where there is a potential demand for your goods to sell or where you can create the demand easily.  Thus, marketing your goods in the right manner can not only help catch the buyer’s eye but also aid in creating a need for your product in the market.

  • Making a Sale vs. Supporting a Buy!

People don’t buy what you are selling. They only buy what they want to buy. When investing in a product to export, always remember that investing in something the buyer wants to buy is far more superior than investing in what you want to sell. You must be prepared to customize your product as per the buyer’s requirements in order to ensure your sales numbers are always on the rise.

  • Step into the Shoes of your Potential Buyer!

To understand what a buyer needs, you must step into the shoes of the buyer. Ask yourself questions faced by them. For instance, what are the problems most frequently encountered by your potential buyers? How can your product solve these problems? Who is selling or trying to sell similar products to them? In other words, who are your competitors in the market? What channels are these sellers using to reach your potential buyers? Once you have answers to these questions, marketing strategies will become much simpler to develop.

Basically, at the crux of the matter, the ROI depends on how well you market your product and not just pay attention to its making, which is also of paramount importance. Money begets money. Likewise, customers also beget customers through word of mouth. Apart from referrals, there are umpteen number of ways that need to be explored to grow your audience base, which targets new buyers. This is where marketing strategies come into play and can help you grow your business in leaps and bounds.

How to Get Your Business Export-Ready?

True, the world of export-import offers an abundance of opportunities. It enables you to scale up your business and grow it in leaps and bounds. The exim world is indeed very thrilling and its revenue-generating strategies can multiply your fortunes overnight.
However, while it is great to foray into this export import zone, have you considered the following to make your move fool-proof?
Here are some essential elements you need to undertake before you can set sail on a successful export import expedition:
1>  Export-Import Market Research
Based on your product, research the most prospective target countries, their economies, and the corresponding markets. The approach is aimed to find you the number of potential clients in those countries. This is a precursor to establishing financial targets and understanding the ROI in international growth. In addition, it is also important to be in the know-how of the demography, political environment, industry legislation, the culture, the local and global competitors in the region, the customers’ behavior, the networking among the suppliers, distributers and the infrastructure in general. The above research is much needed to ascertain how best your product or services can cater to the needs of the clients in the respective markets and give you the competitive edge.

2> Realistic Target Setting
Once done with the research, you know exactly how many clients you have abroad. Now, you will need to set a price for your products so that you can make a realistic estimation of the market share that you will subsequently rake in. So how do you calculate the price? One of the main strategies for calculating the export price is as follows:
Given all components in place, Price * the number of products * the share of clients that you target = Your target, which you will compare with projected costs of international expansion needed to calculate ROI.

3> The 4-Step Game Plan

(a) SALES PLAN: There are standard ratios of sales planning that are applicable to both domestic and international sales, regardless of B2B or B2C sales. Calls (via ads, emails, visitors) that lead to appointments and appointments, which convert to sales, account for the growing domestic sales statistics. Additionally, as selling of your product overseas involves knowledge of foreign languor, culture and behavior, the sales plan must necessarily reflect a learning curve.

(b) PRODUCTION PLAN: Based on how many products you intend to sell, you will know how many you have to produce. This includes the inventory as well. Having sorted this, you now need to figure how much manpower and what kind of equipment you will need to manufacture the products. For the services industry, a similar approach based on the number of hours need to be worked out.

(c) MARKETING PLAN: With all the learning garnered from the export-import market research – now formulate the marketing strategy. There are often state specific requirements for the product. These include labelling, packaging and different compliance requirements. Besides, you will need to identify the best marketing and sales channels for each of the markets.

(d) ACTION PLAN: Once the meticulous research and market scrutiny is done, the work has been well planned. Thus, at first, we plan the work and now it is time to work on the plan. Start planning activities that involve finding partners, buyers etc. Attend different trade shows to gain exposure. Develop goals to attain your long-term export goal. To achieve this, your performance indicators become your targets that keep you on track and ensure that you are correctly toeing the blueprint of success that you have strategized.

So, do you think your business is export-ready?