There is adequate statistical data to substantiate the massive opportunity for businesses to tap into international export markets. Borders no longer define the marketplace in which one can sell. Customers across the globe are open to sourcing from buyers beyond their geography for authentic products and a wider range of options. The explosion of e-commerce around the world has provided a further motivation for sellers to spread their net far and wide.
However, while there is enough room for businesses to compete in the global arena, cross- border trade can become overwhelming to entrepreneurs. The process of exporting is viewed as an overly complex affair most of the time, and some businesses may invest a significant effort in figuring out how to navigate through it, while others may never attemptTherefore, it is vital to be acquainted with and mindful of certain guidelines that can make the process hassle free. Because of reforms, much has changed and is constantly changing in the export ecosystem, but exporters can now smoothly explore through the system by following a simple set of dos and don’ts. Here we outline a few..
DO study cultural differences in Export Markets
Companies need to be aware of local customs and business etiquette when choosing a market, as almost every country will be different. Modesty, cultural awareness, international negotiating abilities, and open-mindedness are all important factors to consider. It can be worthwhile to visit the country you’re targeting to learn more about culture and practices,but it is important to check the country’s travel advisory status prior..
DON’T overlook import controls and related factors Export Markets
Do not overlook import controls that might exist in markets that you are shipping your products to. Failure to do so will lead to denial of entry into the destination market, resulting in the shipment being seized or even subjected to financial penalties. While you may be acquainted with domestic regulations, regulations pertaining to exports are varied due to multiple factors. Shipping internationally makes it mandatory to comply with these requirements. Steer clear from attempting to evade or circumvent them to avoid the possibility of the shipment being withheld or penalized.
DO develop situational and SWOT analyses
This will most likely be the lengthiest section of the export marketing plan, but it is important that you perform a thorough overview of your company, how it will fit in the foreign market, and how the market will receive your brand. A situational analysis will focus on factors like your company’s strengths and value proposition, social and cultural factors, legal factors in the foreign country, international market analysis, competitive industry analysis, and demographic and technological trends.
A SWOT analysis is a standard management exercise that assesses your company in the context of its internal and external environments and should be undertaken by all firms when planning export business activities. The analysis will identify your strengths, weaknesses, opportunities, and threats in the country you are planning to export to, providing an intelligent and analytical view of what your intentions should be as you move forward with the plan.
DON’T complicate matters or fall short on consistency
While customers are open to making purchases from across the border, they expect a seamless purchase and delivery experience. Do not pull them into the complexities of the export ecosystem.
Do not assure your customers of unrealistic timelines in shipment deliveries. Customers do not have an overview of the entire process. It is best advised to keep them updated during the course of the shipping process through real time tracking so that they are clear about their shipment’s status.
These are some of the basic, yet most important factors that you should consider when approaching export markets.
Go for it!!
Picture courtesy of Andy Li.
Visit our blog for more helpful tips and tricks for your business.