Asian Crafts
Learn Export Import Business
With the introduction of
globalization and increase in Trade relations between nations, there has
been an increase in import and export of goods between countries. This
serves as a great way to expand businesses and open new markets for
companies with an eye for opportunities. Globalization allows them to
acquire market share in the global economy. It also serves as a catalyst for
faster growth and brand building.
In this competitive world, advertising is critical. With globalization in
place, you need to be more aggressive in your advertising as you are not
only competing with local businesses but businesses across the world. This
is nature of the import and export business. Those who are able to build a
good global brand name will eventually become the market leader.
When discussing about import and export, let’s understand what it actually
means. An import is any good or service brought into a country from another
country in a fair and acceptable fashion, typically for use in trade.
Imported goods or services introduce domestic consumers to newer things by
foreign producers. In general, there are two basic types of imports:
Industrial goods and consumer goods.
Companies usually import goods and services to supply to the domestic market
at a cheaper price and provide goods that are superior compared to goods
manufactured in the domestic market. But in total, there are 3 types of
importers. First, there are those who import and sell products to the rest
of the world. Second, there are those who import from foreign sources at low
prices, and they sell to the domestic market only. And then there are those
who import and sell products both to the foreign and domestic market.
An export is any specialized product, commodity or technology, shipped from
one country to another country, typically for use in its domestic market.
For example, India exports Darjeeling Tea to many other nations. Export of
commercial goods normally requires trade agreements between two nations.
All businesses require B2B websites in order to advertise their products to
the global market. These websites are used by businesses for capturing and
following up on buy sell requests from companies in foreign countries. There
are various kinds of leads portals where a company requiring some goods or
services can post its requirements. Usually, posting an advertisement on a
B2B website only requires a small posting fee.
Companies operating in different nations can choose to join B2B web
directories. Such activities automatically generate import and export
business for all members of the directories. International buyers and
sellers can post their contact information to facilitate buying and selling.
As the B2B directories continue to grow, companies find that they can import
and export a wide range of products and services. Product categories include
for Automobiles, Garments, Furniture, and Electronics etc. Services may
include Education, Healthcare, Architecture, BPO etc.
Of course, the primary goal of the company is to attain the best possible
Return on Investment (ROI). This can be achieved by taking advantage of
online tools such as B2B portals that will allow them to conduct
International trade with ease.
By: FastSubmitArticles.com
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10 Steps to Successful Exporting
Anyone with a product or service can export, or at least attempt to export.
But success is far from guaranteed. At the best of times exporting can be a
complex and challenging process. Yet, when it is approached with careful
deliberation, exporting can be a rewarding growth strategy for any business.
Here are ten key steps to take your export efforts from start to success:
1. Make a
commitment to exporting.
Whether you own a sole proprietorship offering consulting services or manage a
1500-person manufacturing facility, exporting offers you opportunities for
growth, increased sales and diversified markets. But a marketable product or
service is only the beginning.
Exporting takes time and effort. It also takes resources and a strong commitment
to compete beyond your current borders. If you are focused and have assessed
your readiness to enter the global marketplace, you are ready for the next step.
The Export Diagnostic from Team Canada Inc. (available online) is designed to
help exporters assess their strengths, weaknesses, objectives and possible
strategies as they explore opportunities in foreign markets. It also helps
exporters identify their priorities as they prepare to export.
2. Plan, plan,
plan.
The secret to export success is preparation and a carefully researched export
plan. This is your source of direction as you embark on your journey into
foreign markets. An export plan helps you to act – rather than react – to the
challenges and risks encountered in international business. And in addition to
helping you implement your export strategy, it can help you obtain financial
assistance, investors or other strategic partners required to make your export
venture a success.
An export plan comprises many elements – a description of your company, its
market and industry, and your business objectives; information on your products
or services; an analysis of the target market and industry, including trends and
forecasts; an examination of the competition and their strengths and weaknesses
in contrast to your own; international marketing strategies, including customer
profiling and the development of sales and distribution channels; employment and
training issues; financial requirements and forecasts; and much more.
3. Conduct
research to find the right market.
Thorough market research helps you make sound export marketing decisions by
giving you a clear picture of the economic, political and cultural factors that
affect your ability to sell your product or service. Ultimately, market research
saves you time, money and effort by reducing your exposure to unknowns.
There are two main types of market research. Secondary market research consists
of information collection from published sources (books, newspapers, market
reports, studies, and periodicals) and the Internet. For example, ExportSource
is one of the best sources of secondary information for exporters. It serves as
a one-stop shop, linking to all major Canadian market information web sites.
Researchers will find trade statistics, market and industry information, even
potential partners and trade leads. Secondary research helps you fine-tune your
information needs.
Primary market research helps you fill in the critical gaps through direct
contact with key experts, customers or other sources of information. Primary
research frequently involves personal contact techniques such as interviews and
consultations and is best attempted after you have familiarized yourself with
the potential market through your secondary research efforts. Contacting a
Canadian Trade Commissioner at an embassy or consulate is an example of
effective primary research.
4. Devise
marketing strategies for your target market.
International marketing is not the same as domestic marketing. Those who ignore
this fact do so at their own peril. As successful as you may be at reaching your
Canadian customers or clients, you must be aware that your international
audience will frequently have different tastes, needs and customs. Good
marketing strategies help the exporter understand and address these potential
differences.
These strategies are captured in the international marketing plan, a flexible
document that will likely be reviewed, revised and modified throughout your
exporting activities. Marketing is a continuous activity and so is marketing
planning because you can never know enough about your customers and how to meet
their needs. The basic marketing formula – the four “P’s” of product, price,
promotion and place – is just the beginning when it comes to international
marketing. Your plan will need to address many other factors, such as payment
(international transactions and currency exchanges), paperwork (increased
documentation), practices (different cultural, social and business styles),
partnerships (strategic alliances to strengthen your market presence) and
protection (increased risks relating to payment, intellectual property or
travel) and many more. Understanding all these facets of international business
will transform your marketing plan into marketing action.
5. Enter the
market.
The research is complete and the export and marketing plans have been devised.
You feel ready to enter the market and are seeking the best strategy to reach
potential customers. There are as many market entry strategies as there are
markets; however, these strategies can be loosely grouped into three categories.
Direct exports, as the name implies, involve direct marketing and selling to the
client. In a reasonably accessible market such as the United States, direct
exporting of products or services may be a viable option. But in less familiar
markets, with different legal and regulatory environments, business practices,
customs and preferences, direct exporting may not be an option. A local partner,
for example, may be better able to manage these complexities and serve your
potential clients better.
Indirect exporting is frequently used to enter new markets. Businesses selling
products enter into an agreement with an agent, distributor or a trading house
for the purpose of selling (or marketing and selling) the products in the target
market. Due diligence is critical when selecting an agent or distributor for
indirect exporting. Western Economic Diversification Canada has published a
valuable checklist on selecting a foreign agent or distributor in its
publication Ready for Export: Building a Foundation for a Successful Export
Program. An adaptation of this checklist is found in Team Canada Inc’s A
Step-by-Step Guide to Exporting (see below for more information).
The third market entry strategy involves strategic partnerships with other
companies or individuals with complementary skills and capabilities. A partner
can often provide the insight, contacts and expertise that fills the gap in your
export readiness. A strategic alliance with a company selling a complementary
product or service can provide more effective market access, resulting in more
foreign sales in less time. As with indirect exporting relationships,
contractual agreements with partners must be stated in clear terms and, whenever
possible, refer to Canadian laws for the protection of the Canadian company.
6. Get your product or service to market.
Every market has its own set of rules and regulations covering safety, health,
security, packaging and labeling, customs and duties among other things.
Additionally, these rules and regulations may vary depending on the product or
service you are exporting. It is critical that you understand the rules and
regulations that apply to you before you ship your goods or open your foreign
business location. Product-based businesses with shipping requirements will
benefit from developing a relationship with a freight forwarding company and a
customs broker. Whether you are shipping by truck, rail, sea or air, the
documentation will likely be extensive and potentially confusing. The services
provided by these businesses will assist you in determining the most efficient
and least risky options for shipping your goods across borders.
7. Explore financing options.
While there are overnight export success stories, most companies must be
prepared to invest both time and financial resources to see the return on their
investment and the subsequent success. Consequently, financial stability and a
secure cash flow are important during this period. In some cases, businesses can
rely on their domestic sales to sustain their early export efforts. If this is
not possible, it is a good idea to know what financing options are available.
Exporters must develop a financial plan to understand and address the diverse
costs associated with exporting, complete with a two- to three-year cash budget
to cover expenses and a capital budget. A capital budget is a cost-benefit
assessment of your export objectives and serves as your operating plan for
measuring expenditures and revenues.
8. Understand the legal and regulatory issues.
Exporting exposes Canadian businesses to unfamiliar laws and regulations. There
are numerous international conventions, treaties and national, regional and
municipal rules that can affect your ability to operate successfully in foreign
markets. Exporters may also encounter disputes with agents or distributors,
clients or creditors. It is important to understand your rights and obligations
when resolving disputes, selling goods or services and protecting intellectual
property.
9. Put it into practice.
You have committed yourself to exporting. You have the skills and the resources
to undertake the challenge. You have researched the market and prepared your
export plan, international marketing plan and financial plan. Your market entry
strategy is clear and the support system (i.e. freight forwarder, customs
broker, financial lenders, legal advisors) is in place. You have gone through
the export process step-by-step and feel confident that you have covered all the
bases. Now, it is time to put all this skill and knowledge to use. The world is
waiting for your product or service!
10. Let Team Canada Inc (TCI) help you along the way.
TCI is committed to helping businesses across the country thrive in global
markets by offering comprehensive export information and services. These tools
are designed to help both experienced exporters and potential exporters plan and
implement their international business ventures from start to success.
This information is drawn from the Team Canada Inc. guide, A Step-by-Step Guide
to Exporting. To obtain a copy online, visit exportsource.ca/stepbystep. For
additional information on exporting, call the Team Canada Inc Export Information
Service at 1-888-811-1119 (toll-free).
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