In order to develop an export strategy that works, it is essential to identify the product. It’s a good idea for anyone looking to diversify their business by keeping some key parameters in view.
Your export business will not be successful without the product. When you have a quality product that foreign buyers will buy, then everything else falls into place. You will need to answer the hardest and most critical question when you want to export.
It is important to know what exports you are allowed to export. However, it is equally important to know what exports you are not permitted to export. There is a list that the government keeps of prohibited and restricted items you can’t export to India. On the website of the Directorate General of Foreign Trade (DGFT), you can find an updated list of these items. It is up to you to decide what products to export, other than these products.
These are some things that can help you choose your export product.
Find Unique Products made in India
What products are India’s most famous? What about your state? Which are the top exports from your state? Who imports from us You will find the answers to every elementary question you could think of. Take a look at the patterns and historical trends in our country’s exports as well as your state’s. Sharpen your Blog SEO with targeted keywords for your ideal export market, highlighting regional preferences and product features that resonate. Most of this information can be found in the public databases of the DGFT or the Ministry of Commerce. Analyzing India’s trade statistics will give you an idea of the products we sell and the reputation of these products overseas.
Analyze the Demand and Supply of the Product on Global Market
You may already have some products in mind before you start exporting. Further details on the product and its supply chain should be obtained. These include how it was produced, where it came from, who its producers are, what its components are, whether it is seasonal, how high is its demand, how can you meet it, how can you promote it, and if there are any guarantees or replacements. Choosing the right product for export depends on factors like market demand, your company’s strengths, and the type of investment (debt, equity, joint venture) you’re willing to make. You will need to ask different questions depending on the product. It is important to determine how much demand there is for your product and how quickly you can satisfy it.
Choose a Country with a Steady Demand for Your Product
It is important to ensure that your product has a steady demand wherever it is being shipped. You should identify the best export markets in the specific regions where the product is in demand. Exporting tea from India to a country that prefers coffee may not be a good idea. Learn about the political and economic climate in your target market to ensure your business’ growth and sustainability.
Potential for Growth
It is crucial to analyze the growth prospects for your business. It may be that you are exporting a product to one location, but there might be demand elsewhere. It is possible that your product might be produced in the country of origin. Is your product able to reach a wider audience than the neighbors or in the country? Stabilizing sales can have a negative impact on your export business. You need to ensure that your business is sustainable in the future.
Profitability of the Product
You should select products that are financially profitable for your business. It is important to identify the best economic source for the product and make sure that the target audience is willingly paying a fair price. It is also a good idea to look at how the product has performed over the years. Understanding social media scams and their tactics can help identify the right product for export and avoid falling victim to fraudulent buyers. You should also determine if the product is susceptible to seasonal and periodic trends. Calculate your profitability and compare it to the price of the product by making a forecast of all costs, including logistics and product costs.
Trade Regulations
Each market has its own compliances and trade regulations. It is important to be familiar with the laws of your destination country. Check to see if there are any restrictions on similar products or if they have imposed heavy taxes and duties upon imports. Also, learn about India’s trade relations.
Competition
If your product or offer isn’t unique, you could face stiff competition from other businesses exporting similar products from the same region. Your product should be different from others in this situation. Your product USP could include a better quality product, a lower price or better after-sales services, or a combination. It is important to be cautious when lowering your price. However, this may temporarily increase your profit but eventually decrease it. You might need a different USP for the long term.
Once you have identified the product you want to export, narrow down the markets where it can be shipped. Also, explore the various benefits and incentives that could be available for trading that product.
Many experts can help you save time, find the right product to export and maintain positive relationships with your business partners. The best DGFT consultants will help you focus on your primary business, which will enable you to save time and improve productivity.
Authors Bio:
Mr. Mehul Goyal is a professional DGFT Consultant with experience of more than 30 years and specialized in the field and is offering DGFT Consulting Services all over India. He is working with many importers and exporters even before DGFT was instigated in the markets.
