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Last updated: 27 Sep, 2014  

Exports.9.Thmb.jpg Business strategy must for first-time exporters

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Bikky Khosla | 26 Apr, 2011
There is no doubt that in today's increasingly globalised world, exporting is crucial for the growth of a business and its competitiveness. We are all aware that global trade barriers are coming down these days, and, as a result, opportunities to succeed in the export business are increasing by each passing day. Having said that, while export business can be financially rewarding, it is is full of challenges and risks. I have seen several businesses which have entered the export business, but have failed to make any impact, in terms of monetary gains.

These companies failed to succeed owing to the fact that they lacked proper strategy and preparation needed for exporting their products to global markets. They also failed because they were unable to address the key issues that must be addressed if they want to be successful exporters. Without doubt, to successfully develop a export market, companies must first understand what is needed to succeed in global markets. Here, I would totally agree with marketing gurus who have just one simple mantra for first-time exporters - that, they must be 'export ready' rather than just 'export willing'. They would also say that, 'Export development is a process and not an event.'

It is sad that most first-time exporters try their hand in exporting because they want to merely dispose off surplus production and thus to keep their cash flow intact during weak domestic market situations. I strongly believe that companies should shun such myopic approach and should plan long-term export strategies if they want to be successful and make a mark in the global arena.

Moreover, any first-time exporter should understand that they need proper skills, resources, commitment and information to support sustained exports. They should also understand that exporting involves more time, money and resources to establish one's business in an overseas market. Once the target export market has been identified, it is imperative that a thorough research on the market dynamics vis-a-vis the demand for your products is done.

One should also analyze the products' competitiveness and the advantages of these products over other products already available in the target market in terms of quality, price and uniqueness. And most importantly, know the risks involved in exporting to the target markets of your choice. It is always wise to hope for the best, but prepare for the worst.

I would highly recommend first-time exporters to ask themselves two questions: 'Am I ready to export?' and 'Are my products ready for export?' If you are able to get positive answers to these questions, then go ahead. All I would say is that, plan carefully before keeping your first step in the world of exports if you really want to succeed.
 
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How to start Import-Export Business ?
Maulik | Wed May 4 13:27:21 2011
I need information on import-export business


Your editorial
Akkan Ddsouza | Fri Apr 29 00:53:41 2011
Care and still more care. To deliver on time assured. nice editorial. thanks


exporting garments
kh | Wed Apr 27 14:00:32 2011
I think there should be some kind of quality control for exporters. I recently ordered ready made garments from a company in Jaipur. I never received what I ordered and the articles that were sent instead (very delayed) were of very bad quality, unfinished, stained and some with holes in. I lost a lot of money due to this and spent much of my own time finishing the garments that I hadn't ordered on my own sewing machine! Many of the garments I won't be able to sell due to the holes and stains. Companies like this give a very bad reputation to the Indian textile industry.


Tips for First time Exporters
Milan Mehta | Wed Apr 27 12:20:28 2011

Dear Bikky, excellent topic you selected.

With world becoming such a small place, more global trade shall take place and there shall be many new entrants in export field. Besides the important points you raised, I would also like to stress that the " MIND SET " required for exporting is very different from marketing locally. Many failed because they operated the same way as they were doing local sales. Right from preparing a export oriented website / Catalogue to the final stage of getting payment through official channels requires in-depth knowledge. IIFT, World Trade Centre, Indian Merchants Chamber, Indo-German Chamber, Indo-American Society, etc.. have export courses which gives a new entrant those critical insights. Etiquette, Letter writing skills, presentation, Negotiation, etc..have a different approach here in International Trade. I have the experience myself, graduating from a semi-Govt. employee to a full fledged exporter.


  Re: Tips for First time Exporters
Miral Shah | Wed May 4 07:07:50 2011
Can any one tell me what is benefit available to MSME or NSIC units because these unit face very brutal competition from SEZ units. That Why Smaller Become Smaller Day By Day. I really hate such policy of governments. Thanking you, Miral Shah 


Exporters thinking in India
Shahid Mahmood | Wed Apr 27 10:31:42 2011
I am an importer in Saudi Arabia. I contact many exporters of different type product. But I feel that they were think that the export have too much profit. So they increase the rates as they sale in local market. But the reality is different. the local market in Saudia is to competitive. I think that China's exporters are very trained and professional. I suggest the Indian exporters that they follow "LOW PROFIT MORE CIRCULATION". If they want to increase Indian exports like China.


Supply Chain Management
Pegally trading | Wed Apr 27 07:28:52 2011
I found the information in the aforementioned article to be concise and very useful. It looked at challenges that our own business is facing. Thank you for such an Article!


Suggestions needed
Axay | Wed Apr 27 04:12:29 2011
Firstly I would like to thank you for this article. It is very helpful for starters like me. I am starting an export firm and have already progressed my work. I mean I have established my target market and I have also started sampling my product to the interested clients. However, I am still not aware of risk involved in my target market. Apart from payment risk what other risk are associated with the export business? Could you please guide me how to find out the answers of my questions? Also how do I know I am export ready? I would appreciate any guidance in regards to my problem. Thanking you in advance. Best Regards,


 
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