The world is evolving at a fast pace and modern technology is converting it into a global village. We’ve reached a stage where someone sitting in the United States of America can enjoy the goodness of an Indian cup of masala chai, all because of the beauty of exporting. With imports and exports taking place over the global trade market, it has become easier to acquire items from around the world at only the click of a button. While this sounds extremely tempting to consider taking your product international, there are a number of factors you should consider before making the foreign trade leap.
Going international with your product isn’t always as tempting as it sounds. There are times when traders fail to deliver the buyer’s requirements. This leads to a sour experience for both the parties. Thorough research of the market along with your business capability are needed to determine whether it is the right time for you to go global or not.
While Indian exports have seen substantial growth over the years, it is crucial for you to research the market before you decide to venture into foreign trade. India has shipped around $261 billion worth of goods around the globe in 2016. This has gone up by 47.7% since 2009 when the Great Recession kicked in. However, the figures have gone down by -1.3% when compared with 2015-2016.
Indian exports have seen the rise and fall over the years, but it is very important for you to judge where your product stands in the list of top Indian exports. This is required to understand how well it will perform in the global market. Here’s a look at the products that made it to the top 10 Indian exports list for the year 2016. With the help of this chart, you can understand which category your product falls under, and how well it would fare in the trade word.
Once you are positive that your product is ready to go international, there are a few factors you need to consider before you actually begin the procedure of international trading. It is important to know how ready your business is before you take the call. Here are five factors that every trader should take into consideration before setting out into the world of foreign trade:
When you run a business, you do not run it alone. You are generally accompanied by a resource of manpower that helps you nurture and grow this business. Therefore, when you take a decision as big as entering exports, it is extremely important to ensure that you have the commitment of your entire staff on board. When you venture in to foreign trade, the work load rises and so does the need for manpower. In a scenario like this, it is crucial to have all hands-on deck so that you can prepare your export production strategy accordingly. In case a staff member is unable to commit to the business requirements of export, knowing beforehand would help you to not only plan for the deficit, but it will also let you hire in case of a shortage.
A business already requires your complete time and attention, but an export business requires much more than that. When you’re considering venturing into the exporting world, you need to be mentally prepared to not just invest your time and energy into the business but it also requires a lot of monetary investment in order to meet all the requirements of the trade. Therefore, before you consider the exporting world, you need to chalk out your current expenses. By doing so, the investments required in the subsequent days, the amount of time you would need to dedicate to your business will all fall into place. Once you can understand the required investments and arrange for them, you’ll be ready to take on the export world.
You’ve got the product, you’ve got the staff, you’ve got the funds, but have you got the target audience? Expanding your business will mean nothing if you haven’t studied the international market and extracted the right kind of market research to give you valuable insights. Having information about your target market is a crucial step in the implementation of an export strategy. Once you have the right kind of research and reports in hand, you will be able to determine which markets to target and which ones will lead to efficient expansion of your business. Besides, you can also ensure that your export strategy is implemented correctly.
Once you have set everything else in place and your product is ready to hit the international market, the biggest dilemma kicks in: how to go about pricing? Now obviously, you cannot price the product the same as you would sell it in the national market. This is because you would have to take into consideration costs like transportation, packaging, overseas arrangements etc. So, in this case, you need to be prepared for testing different price ranges, and depending on the reactions you get from your buyers, you can negotiate or improve on your pricing strategy with time. Once you’ve had enough experience, you will be able to price your product perfectly for the international market and would no longer have to work with the trial and error method.
You may have all documents ready to go for your existing export plans, but if you’re about to expand your export reach to a bigger international market, then you need to ensure your documents are compliant with all the new requirements. In case you don’t have detailed knowledge on how to go about these documents, or you find it very time consuming to research on the web, you can always hire a freight forwarder on the spot and get your answers from him. Ask as many questions as possible to ensure you’re receiving all the answers. Make sure you are using their expertise to your benefit, so that you can have all the right paperwork filled in. Once all your documents are updated, you can export to your target market without issues.
Now that you have a fair idea of which factors to consider when looking at export expansion, you will be able to make more informed decisions. This approach will introduce you to the right kind of channels that could help you it big in the foreign trade world. The Dollar Business is one such channel that can help your business with its unique Membership Programmes that are tailor-made to suite your business needs to the tee. They are designed in a way to help your trade flourish like never before!