Advantages of Direct Exporting

Posted on 28 April 2023 Category : How to export

Advantages of Direct Exporting:

The following are the advantages of direct exporting:

(a) First-hand Information: Direct exporters are in direct contact with the foreign customers and markets. They get first hand information about their needs and requirements and therefore they can satisfy them effectively.

(b) Direct Control: Direct exporters can exercise a direct control over export packaging, pricing, advertising, promotion, after sales service and other marketing activities.

(c) Export Incentives: Direct exporters get 100% benefit of incentives given by the government. In Case of indirect exports, the benefit of incentives is shared by various marketing intermediaries.

(d) Reputation and Goodwill: Direct exporters may become well-known in the foreign markets by their brand names. This promotes their goodwill and a reputation at the international level.

(e) Profitability: Direct exporters can earn comparatively higher profit margin as (1 be avoided. the profits charged by intermediaries and commission charged by agents can be avoided.

(f) Higher Prices: Direct exporters can charge higher prices in comparison to competitors as they are well aware of the market conditions and can avail the requirements of consumers effectively.

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Material used for testing is eligible for Modvat