How to select markets for Exports

 

Selection of Export Markets

One of the most important decisions in international marketing is market selection. The global market, made up of well over 200 independent nations with their own distinctive characteristics, is very vast. It would be very difficult for a company to operate in all these markets. There are barriers, which make entry to a number of markets impossible or very difficult. There may be markets, which are not profitable or may be very risky due to political or other reasons. Moreover, the company resources may not permit the operation in a large number of countries.

The factors to be taken into account in export market selection process are:

(a) Political Embargo: The countries to which there is a political embargo on exports should be straight away excluded from the list of potential markets. For example, there are restrictions on export of certain items from India to certain countries. Similarly, there are countries, which do not allow import of certain items from certain countries of the world.

(b) Special Requirements: Every market has a special requirement in terms of product specifications, quality and a different price edge. The very fact that a product has found a niche in some market does not necessarily mean that the same niche exists in the other market of the world or that the attitudes affecting buying decisions are similar all over the world.

(c) Product Specification: Product specifications differ from market to market. For example, many countries require electrical goods with 110 voltage current as against 220 voltage in India. An exporter should avoid exporting to such market, where product specification is different from the national ones. This is because the cost of product adaptation may be very high.

(d) Distant Location: Markets which are comparatively at a longer distance and for which regular shipping services are mot available, not only make adherence to delivery schedules more difficult, but also render the goods uncompetitive on account of higher incidence of freight. Hence, while selecting markets, long distance markets should be avoided.

(e) Market Accessibility: Certain markets are comparatively less accessible due to import regulations and quota restrictions. Similarly, Indian products may not receive preferential treatment under the MFN clause or there may be restrictions on remittances and convertibility of currency in some countries. All such markets should be avoided as they render marketing uncompetitive.

(f) Business Community: In several countries, the business community mainly comprises of Indians, Pakistanis, Sri Lankans, Bangla Deshis, etc. Such people are more familiar with the trade practices in India and thereby more receptive to our goods. It also helps in breaking the communication barriers. Hence, it is better to exploit such markets for initial exploration.

(g) Preferential Treatment: While accessibility to certain markets is difficult, there are a few countries which accord preferential treatment to the products from developing countries. For example, EU, Australia, USA, etc., have instituted the scheme of Generalised System of Preferences (GSP) for imports from developing countries. Such markets may be selected for immediate exploitation for export.

 

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

Triangular shipment

Types of Insurance Documents.

 

How to make delay in delivery of Shipment?

How to minimize import cargo clearance time? An open logic proposal to WTO

How to obtain a duplicate BL, if original bill of lading lost.

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

Triangular shipment

Types of Insurance Documents.

How to obtain GSP - Certificate of Origin?

How to obtain Phyto sanitary certificate. What is phytosanitary certification

How to obtain waiver on detention/ demurrage on imported goods/container from Shipping company/CFS

How does a Running bond work?

How does Bill of Lading work in DP payment terms?

How does Bill of Lading work in Sight LC

How does CENVAT Credit work?

 

Why need Certificate of Origin

Why prefer exports?

How many types of imports in India. Types of bills of Entry in India

How many types of shipping bills in export

How to add Line number in Import General Manifest in Custom in India

Import General Manifest (IGM)

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export


Comments


nova: Hello sir, hope this mail finds you in good health, I am Mr.Vijay Nova from Nellore AP. I am very much impressed and mostly become spellbound after coming across the website how to export import. I have worked researched and struggled soo hard to get the knowledge in this business. Now, it's been two years for me starting this business. At present I deal with the products cow dung, goat dung, and dung pelettes, cakes. To find the customer, I took membership in dollars business, but that of almost no use. And mean while I was left alone with this lockdown. I seriously got stucked. I then came across this website and thought it's just God who sent this for me. So immediately I searched this address and thought of txtng you Now, i would like to present my sincere request regarding worry and waiting about getting the knowledge of finding a customer overseas. If you can plz help me about finding the customers and getting good orders. Take my word, I promise, I will definitely show my gratitude to you in a satisfying treat. To be honest, I will definitely want to share my fruits of profits with you.

arun: We can provide you Genuine and actual buyers details with actual shipment records for all types of Products .We can provide you actual shipment data based on Shipping bills & bill of entries including Exporter or Importer names , Overseas Buyers, H.S.Code, Product Description, Quantity, Price, Export FOB Value & Import Duty, Foreign Port & Country etc. We can provide the same for all the major ports details at lowest prices. We assure you that this information will surely be beneficial for your Business Promotions

nawaz: I am Navas here basically from Calicut, Kerala. Planning to start a Merchant Export business. I came to know about you from my web searches. Your articles on the web helped me a lot. I am still in the very initial stage. I'll be glad to know if you're doing any kind of training and finding suitable products and markets.

tanu: I am from Chandigarh and living in Halifax, Nova Scotia, Canada since 2011. I am interested to learn about import export business. I would like to mention that I have friends/connections in various cities in Canada as well as in India (Mumbai, Hyderabad, Kerala, Gujrat, Punjab, Haryana). Also, my father has a background in Commerce, Law and Banking. He is a smart man and I want to start a business with him - he lives in India. I am looking for someone who can help us getting started with the basics, I am sure that we will pick it up fast. Please let me know how can you help me and what kind of services you offer?

inf: We are at the front supply chain of China data. We could provide two kinds of China data: format A and format B. The attached are samples of the two formats provided according to 8 digits HS code. For format A, we could also provide it according to Chinese exporter name. I also attached sample of this kind. For format A data, we have more advantages than most other suppliers: for import, recently, most suppliers couldn't provide, only quite a few could including us; for export, in terms of the field (specification & model), recently, we could provide more complete info on this while most other suppliers have limited characters on this. If you are in need of our China data, please kindly let me know

ketan: We are traders of grains based in Mumbai. We would now want to venture into exports. However, we fell short when we want to communicate with the customers. Could you help us in knowing how should we communicate with the customers and if possible kindly share a sample email for the same. Should we start exporting with Agents/Brokers initially and then move to direct customers? In such a scenario can you share some genuine brokers who can help startup exporters get customers overseas.

rohith: I came to know about you from howtoexportimport website. Sir I wanted to know the following:- 1. Do you give some online training to new exporters? 2. Do you help in arranging export orders for new exporters on some commission basis?

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers