In the era of globalisation, import-export business has become an integral part of commercial life. In order to reach the masses, an entrepreneur must enter into an import-export business. Right product finds its space in the right market. First of all, the entrepreneur needs to decide as to what kind of product he want to export that mostly attracts the clients. He is required to check as to what are people willing to spend upon?
Here are a few things that should be kept in mind:
The success of a venture kneels on the rate of the demand for a product. After deciding a product, the businessman must start searching for the availability of resources that are prevalent in the domestic market. An exporter must be smart enough to deliver the goods which are within the reasonable time.
He should aim for quality and opportunity marketing. High-quality products would definitely appeal to the global market. An exporter should thus ensure adequate production capacity in the country before exporting a product. He should select a product that makes it different from locals, otherwise, there would be nothing unique.
He must talk about the product which he wants to export with everyone, if people respond with the positive sign, then he can go ahead with the product. He is required to keep himself updated with the current trends which would help him to understand the current market position. he must pay value to the laws relating to Trade restrictions like Voluntary Export restrictions, export licenses otherwise he would fall into a pit of legal proceedings. These trade barriers sometimes however create certification issues.
A study shows that over 50 % of small firms are highly affected by the trade barriers. Product adaptability plays a vital role in the exporting business. The selected product must be capable of being an adaptation in another market according to the changing factors like size, taste, and packaging, shipping distance, cultural environment, demographic and physical environment etc.
He is required to analyse the rate of inflation, Gross National Product, foreign currency and the economic growth levels of the country. Read about the scope of market access which is available in that country such as if a legal dispute arises , would that country’s judicial system provide it with an unbiased settlement. He must keep on examining the competitors’ activities that may help him in introducing a product in more enhanced and a productive manner.
Sometimes, exporting country also provides incentives to promote exports. So while selecting a product the businessman must take cognizance of those incentives in order to take advantage of the concessional rates.
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