Top Tips on Exporting
18-02-2009
International Trade Advisor Bryan Treherne and other specialist speakers gave an in depth review of how to export to other countries.
Although your business may have an established UK market, there's often no reason why it couldn't successfully compete overseas too, growing your revenue and profit. But before you start, you need to have sound knowledge of your would-be markets. You also need to consider whether your products are right for each target market and whether you have the necessary resources to start exporting.
Why Research? Know your market! This was highlighted over and over again. It is imperative to research as much as possible the global market to distinguish which country would best suit your product. Each country is different so it is vital to determine whether your product will sell within their customer base and climate.
What do you need to know?
· General market background
· Assessing market size and trends
· Market structure, business culture and customs
· The competition
· The customer
· Regulations and legislation
General market background – this is the demographics of the country.
Look at time differences, this is very important as you would need to take into consideration how far ahead or behind their business hours are to yours.
Language, again this is important although many countries do speak English if you are doing business away from the Capital of a country you may need to take into consideration that they may not speak English. Especially for Japan you could need an interpreter
Climatic, distance considerations. How far away the country is and what the climate is. Countries in the Southern hemisphere wouldn't necessarily buy into winter weather garments and accessories and vice versa
Economic and political factors. All counties are different; research their economic climate and what is going on politically.
Assessing market size and trends
Industrial statistics
Import/export statistics
Ends users. Who will ultimately buy your product? Will you have distributors or agents?
Trends – historical and predicted. Are trends up, down or stable?
Market structure, business culture and customs
Channels of distribution
Use of agents, franchising, partners
Infrastructure; how easy it is to get around the country. Not all places have developed transport systems so this needs to be taken into consideration
Manufacturing and service providers supply chain
Customs and culture. As stressed every country is different and has different approaches to doing business. Research their customs and culture and you are more likely to get ahead.
The Competition
Who are the competitors? It is healthy to have competitors so don't be afraid to export to countries who already sell your product. This can be a positive point as you at least know there is a customer base to sell to.
What is the market share?
What are the competing products?
Price points
Promotional methods used
The Customer
Who are your potential customers?
Their financial profiles
Company background, key personnel, strategy, strengths and weaknesses
Do they export?
Regulation and Legislation
How developed is the legal and regulatory system
Import/export controls
Taxation
Employment law
Standards and technical regulations
IPR – Intellectual property
Payment terms. Talk to your bank here, you must protect the money you have earned.
Taking into consideration all of these factors this is an excellent starting point if you are thinking about exporting. There are many companies in the UK that are here to help you and provide you with all the information you need when conducting your research.
Where do I get information?
UKTI website
World Factbook
UN
World Bank
Industry information
