Many people find export markets through chance encounters or personal connections. But there’s much more to it than that. Before jumping onto the first opportunity that comes your way, it’s important to do your research. Take the time to compare markets, check market access and do a competitor analysis. This will help you select markets where you have a greater chance of success. Here are some ways in which you can find the right export markets for you, followed by where you can look for them.
Research about profitability
Another important factor while deciding the country or countries to export to, is to find the right price for the product in the country. It needs to be reasonable, yet competitive. Exporters need to consider the demand for the product and the price consumers are willing to pay. They have to also keep in mind that many other parameters will make up the product price and profitability apart from the per-unit selling price. These include the volume of sales, distance, logistics, tariffs, loading and so on. The pricing will help exporters get a clear understanding of the amount of product they can export and its earnings from the market.
How is the demand?
All industries must focus on the statistics from countries where the exported material would be used. For instance, for a business that exports raw material for steel, it is important that the focus is on the statistics of the countries that are developing new steel plants or have mega operational steel plants and the need for raw materials. The right market to export is one that offers higher margins and seamless connectivity. Additionally, it is important that the export destinations have enough foreign exchange reserves.
Trade barriers and access
There might be strong demand for products or services like yours in a particular market, but you need to find out if you can access it. Checking market access and seeing how easy or difficult it will be to do business in that market is crucial. If you have never exported before, consider tackling an easier market first. That way you can learn the ropes before venturing into more complex markets. Another important factor to note while choosing a country is the trade barrier. Exporters need to thoroughly study the legal practices, environment and safety regulations, and commercial laws of the target country in order to ensure that the trade does not harm your business interests. In the long run, unprecedented political scenarios and complex ideologies can easily affect your business in a particular country.
Where can you find export markets?
Here are some links through which you can do your research and check for potential export markets.
There are a lot of variables that you will need to think about as an entrepreneur when considering export markets. However, with the right research and contacts, penetrating a market that will protect your business interests is entirely possible.