Monday, October 31, 2016
Sunday, April 24, 2016
A conducive regulatory environment will help India's services industry become more competitive and the government needs to support exports from the sector through incentives, tax and duty structures, says a report.
"A conducive regulatory environment and infrastructure could enhance India's global competitiveness in services, with increased productivity, quality employment, and increased trade and investment for inclusive growth," said the CII-KPMG report titled 'The Indian services sector: Poised for global Ascendancy'.
With the government increasing focus on services exports, coupled with a reviving economy and a policy-based push to the sector, India is expected to witness a significant jump in the same, translating into growth of the economy.
Highlighting importance of technology and infrastructure for trade and export promotion, the report said government further needs to focus on upgrading technology in the respective sectors, offer financial funding and support for sector development and provide guidance on new markets to enter.
"It is important for the government to also support growth in the existing and potential export markets through conducive policies, incentives and tax and duty structures."
The report released by Commerce and Industry Minister Nirmala Sitharaman at the Global Exhibition on Services (GES) at Greater Noida was presented to President Pranab Mukherjee at the function here.
The report said increased levels of foreign direct investment (FDI) and constant supply of cost-effective and technically skilled workforce can help ensure support of resources for the growth of services sector.
India has created a niche for worldwide exports in software and professional services, the focus now is expected to enhance exports in healthcare, education, banking, and finance sector, the report said.
The emphasis is also likely to be on diversification of export destinations to offer services to emerging markets, in addition to the traditional developed markets of the US and Europe, it added further.
"Policy initiatives, including trade reforms, and liberalisation of industrial and service sectors, may provide the required push to the sectors as well", said the report.
The report included key services sectors such as IT, telecom, tourism, media and entertainment, healthcare, management consulting, logistics and professional services.
According to the report, services sector contributed about 61 per cent to India's Gross Domestic Product in 2014-15 and grew at about 10 per cent per annum, making the country the second fastest growing services economy in the world.
"India's share in global services exports was 3.2 per cent in 2014-15, double that of its merchandise exports in global merchandise exports at 1.7 per cent, placing India in the eighth place currently amongst the top ten exporters of service in the world", it added.
Along with 'Make in India' initiative that is striving to boost the manufacturing sector, Prime Minister Narendra Modi has outlined a vision to represent India as a world-class services hub across sectors. Multiple stakeholders need to work cohesively to help achieve this vision
Source :timesofindia.indiatimes.com
Thursday, November 19, 2009
How to Export: Export Strategy, Tips and Advice
Assessing A Product’s Export Potential
Are you interested in information regarding how to export and export strategy? There are several ways to gauge the overseas market potential of products and services. (For ease of reading, products are mentioned more than services in this guide, but much of the discussion applies to both.) One of the most important ways is to assess the product's success in domestic markets. If a company succeeds at selling in the domestic market, there is a good chance that it will also be successful in markets abroad, wherever similar needs and conditions exist.
In markets that differ significantly from the domestic market, some products may have limited potential. Those differences may be climate and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, lower purchasing power, the availability of foreign exchange (hard currencies like the dollar, the British pound, and the Japanese yen), government import controls, and many other factors. If a product is successful in the domestic market, one strategy for export success may be a careful analysis of why it sells here, followed by a selection of similar markets abroad. In this way, little or no product modification is required.
How to export a product? If a product is not new or unique, low-cost market research may already be available to help assess its overseas market potential. In addition, international trade statistics (available in many local libraries) can give a preliminary indication of overseas markets for a particular product by showing where similar or related products are already being sold in significant quantities.
If a product is unique or has important features that are hard to duplicate abroad, chances are good for finding an export market. For a unique product, competition may be nonexistent or very slight, while demand may be quite high.
Finally, even if domestic sales of a product are now declining, sizable export markets may exist, especially if the product once did well but is now losing market share to more technically advanced products. Countries that are less developed may not need state-of-the-art technology and may be unable to afford the most sophisticated and expensive products. Such markets may instead have a surprisingly healthy demand for products that are older or that are considered obsolete by our market standards.
Once a company determines it has exportable products, it must still consider other factors, such as the following:
* What does the company want to gain from exporting?
* Is exporting consistent with other company goals?
* What demands will exporting place on the company's key resources - management and personnel, production capacity, and finance -and how will these demands be met?
* Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business?
A more detailed list of questions is shown in below. Answers to these questions can help a company not only decide whether or not to export but also determine what methods of exporting should be initially used.
The Value Of Planning
Many companies begin export activities haphazardly, without carefully screening markets or options for market entry. While these companies may or may not have a measure of success, they may overlook better export opportunities. In the event that early export efforts are unsuccessful because of poor planning, the company may even be misled into abandoning exporting altogether. Formulating an export strategy based on good information and proper assessment increases the chances that the best options will be chosen, that resources will be used effectively, and that efforts will consequently be carried through to completion.
The purposes of the export plan are, first, to assemble facts, constraints, and goals and, second, to create an action statement that takes all of these into account. The statement includes specific objectives; it sets forth time schedules for implementation; and it marks milestones so that the degree of success can be measured and help motivate personnel.
The first draft of the export plan may be quite short and simple, but it should become more detailed and complete as the planners learn more about exporting and their company's competitive position. At least the following ten questions should ultimately be addressed:
* What products are selected for export development? What modifications, if any, must be made to adapt them for overseas markets?
* What countries are targeted for sales development?
* In each country, what is the basic customer profile? What marketing and distribution channels should be used to reach customers?
* What special challenges pertain to each market (competition, cultural differences, import controls, etc.), and what strategy will be used to address them?
* How will the product's export sales price be determined?
* What specific operational steps must be taken and when?
* What will be the time frame for implementing each element of the plan?
* What personnel and company resources will be dedicated to exporting?
* What will be the cost in time and money for each element?
* How will results be evaluated and used to modify the plan?
One key to developing a successful plan is the participation of all personnel who will be involved in the exporting process. All aspects of an export plan should be agreed upon by those who will ultimately execute them.
* Because written plans display their strengths and weaknesses more readily, they are of great help in formulating and polishing an export strategy.
* Written plans are not as easily forgotten, overlooked, or ignored by those charged with executing them. If deviation from the original plan occurs, it is likely to be due to a deliberate choice to do so.
* Written plans are easier to communicate to others and are less likely to be misunderstood.
* Written plans allocate responsibilities and provide for an evaluation of results.
* Written plans can be of help in seeking financing. They indicate to lenders a serious approach to the export venture.
* Written plans give management a clear understanding of what will be required and thus help to ensure a commitment to exporting. In fact, a written plan signals that the decision to export has already been made.
This last advantage is especially noteworthy. Building an international business takes time; it is usually months, sometimes even several years, before an exporting company begins to see a return on its investment of time and money. By committing to the specifics of a written plan, top management can make sure that the firm will finish what it begins and that the hopes that prompted its export efforts will be fulfilled.
A crucial first step in planning is to develop broad consensus among key management on the company's goals, objectives, capabilities, and constraints. Answering the questions listed in table 1-1 is one way to start.
The first time an export plan is developed, it should be kept simple. It need be only a few pages long, since important market data and planning elements may not yet be available. The initial planning effort itself gradually generates more information and insight that can be incorporated into more sophisticated planning documents later.
From the start, the plan should be viewed and written as a management tool, not as a static document. For instance, objectives in the plan should be compared with actual results as a measure of the success of different strategies. Furthermore, the company should not hesitate to modify the plan and make it more specific as new information and experience are gained.
A detailed plan is recommended for companies that intend to export directly. Companies choosing indirect export methods may require much simpler plans. An outline of an export plan is presented in table 1-2.
The way a company chooses to export its products can have a significant effect on its export plan and specific marketing strategies. The basic distinction among approaches to exporting relates to a company's level of involvement in the export process.
There are at least four approaches, which may be used alone or in combination:
These sales are indistinguishable from other domestic sales as far as the original seller is concerned. Someone else has decided that the product in question meets foreign demand. That party takes all the risk and handles all of the exporting details, in some cases without even the awareness of the original seller. (Many companies take a stronger interest in exporting when they discover that their product is already being sold overseas.)
Many domestic and foreign corporations, general contractors, foreign trading companies, foreign government agencies, foreign distributors and retailers, and others purchase for export. These buyers are a large market for a wide variety of goods and services. In this case a company may know its product is being exported, but it is still the buyer who assumes the risk and handles the details of exporting.
With this approach, a company engages the services of an intermediary firm capable of finding foreign markets and buyers for its products. Export management companies (EMCs), export trading companies (ETCs), international trade consultants, and other intermediaries can give the exporter access to well-established expertise and trade contacts. Yet, the exporter can still retain considerable control over the process and can realize some of the other benefits of exporting, such as learning more about foreign competitors, new technologies, and other market opportunities.
This approach is the most ambitious and difficult, since the exporter personally handles every aspect of the exporting process from market research and planning to foreign distribution and collections. Consequently, a significant commitment of management time and attention is required to achieve good results. However, this approach may also be the best way to achieve maximum profits and long-term growth. With appropriate help and guidance from trade offices, freight forwarders, international banks, and other service groups, even small or medium-sized firms, can export directly if they are able to commit enough staff time to the effort. For those who cannot make that commitment, the services of trade consultant, or other qualified intermediary are indispensable.
Approaches number 1 and 2 represent a substantial proportion of total sales, perhaps as much as 30 percent of exports. They do not, however, involve the firm in the export process. Consequently, this guide concentrates on approaches 3 and 4. (There is no single source or special channel for identifying domestic buyers for overseas markets. In general, they may be found through the same means that buyers are found, for example, trade shows, mailing lists, industry directories, and trade associations.)
If the nature of the company's goals and resources makes an indirect method of exporting the best choice, little further planning may be needed. In such a case, the main task is to find a suitable intermediary firm that can then handle most export details. Firms that are new to exporting or are unable to commit staff and funds to more complex export activities may find indirect methods of exporting more appropriate.
An exporter may also choose to gradually increase its level of direct exporting later, after experience has been gained and sales volume appears to justify added investment.
TABLE 1-1.
Management Issues Involved in the Export Decision
Management objectives
Management objectives
What are the company's reasons for pursuing export markets? Are they solid objectives (e.g., increasing sales volume or developing a broader, more stable customer base) or are they frivolous (e.g., the owner wants an excuse to travel)?
How committed is top management to an export effort? Is exporting viewed as a quick fix for a slump in domestic sales? Will the company neglect its export customers if domestic sales pick up?
What are management's expectations for the export effort? How quickly does management expect export operations to become self-sustaining? What level of return on investment is expected from the export program?
Experience
With what countries has business already been conducted, or from what countries have inquiries already been received?
Which product lines are mentioned most often?
Are any domestic customers buying the product for sale or shipment overseas? If so, to what countries?
Is the trend of sales and inquiries up or down?
Who are the main domestic and foreign competitors?
What general and specific lessons have been learned from past export attempts or experiences?
Management and personnel
What in-house international expertise does the firm have (international sales experience, language capabilities, etc.)?
Who will be responsible for the export department's organization and staff?
How much senior management time (a) should be allocated and (b) could be allocated?
What organizational structure is required to ensure that export sales are adequately serviced?
Who will follow through after the planning is done?
To How to Export: Export Strategy, Tips and Advice - Top
Production capacity
How is the present capacity being used?
Will filling export orders hurt domestic sales?
What will be the cost of additional production?
Are there fluctuations in the annual work load? When? Why?
What minimum order quantity is required?
What would be required to design and package products specifically for export?
Financial capacity
What amount of capital can be committed to export production and marketing?
What level of export department operating costs can be supported?
How are the initial expenses of export efforts to be allocated?
What other new development plans are in the works that may compete with export plans?
By what date must an export effort pay for itself?
TABLE 1-2.
Sample Outline For An Export Plan
Table of Contents
Executive Summary (one or two pages maximum)
Introduction: Why This Company Should Export
Part I - Export Policy Commitment Statement
Part II - Situation/Background Analysis
Product or Service
Operations
Personnel and Export Organization
Resources of the Firm
Industry Structure, Competition, and Demand
Part III - Marketing Component
Identifying, Evaluating, and Selecting Target Markets
Product Selection and Pricing
Distribution Methods
Terms and Conditions
Internal Organization and Procedures
Sales Goals: Profit and Loss Forecasts
Part IV - Tactics: Action Steps
Primary Target Countries
Secondary Target Countries
Indirect Marketing Efforts
Part V - Export Budget
Pro Forma Financial Statements
Part VI - Implementation Schedule
Follow-up
Periodic Operational and Management Review (Measuring Results Against Plan)
Addenda: Background Data on Target Countries and Market
Basic Market Statistics: Historical and Projected
Background Facts
Competitive Environment
Are you interested in information regarding how to export and export strategy? There are several ways to gauge the overseas market potential of products and services. (For ease of reading, products are mentioned more than services in this guide, but much of the discussion applies to both.) One of the most important ways is to assess the product's success in domestic markets. If a company succeeds at selling in the domestic market, there is a good chance that it will also be successful in markets abroad, wherever similar needs and conditions exist.
In markets that differ significantly from the domestic market, some products may have limited potential. Those differences may be climate and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, lower purchasing power, the availability of foreign exchange (hard currencies like the dollar, the British pound, and the Japanese yen), government import controls, and many other factors. If a product is successful in the domestic market, one strategy for export success may be a careful analysis of why it sells here, followed by a selection of similar markets abroad. In this way, little or no product modification is required.
How to export a product? If a product is not new or unique, low-cost market research may already be available to help assess its overseas market potential. In addition, international trade statistics (available in many local libraries) can give a preliminary indication of overseas markets for a particular product by showing where similar or related products are already being sold in significant quantities.
If a product is unique or has important features that are hard to duplicate abroad, chances are good for finding an export market. For a unique product, competition may be nonexistent or very slight, while demand may be quite high.
Finally, even if domestic sales of a product are now declining, sizable export markets may exist, especially if the product once did well but is now losing market share to more technically advanced products. Countries that are less developed may not need state-of-the-art technology and may be unable to afford the most sophisticated and expensive products. Such markets may instead have a surprisingly healthy demand for products that are older or that are considered obsolete by our market standards.
Once a company determines it has exportable products, it must still consider other factors, such as the following:
* What does the company want to gain from exporting?
* Is exporting consistent with other company goals?
* What demands will exporting place on the company's key resources - management and personnel, production capacity, and finance -and how will these demands be met?
* Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business?
A more detailed list of questions is shown in below. Answers to these questions can help a company not only decide whether or not to export but also determine what methods of exporting should be initially used.
The Value Of Planning
Many companies begin export activities haphazardly, without carefully screening markets or options for market entry. While these companies may or may not have a measure of success, they may overlook better export opportunities. In the event that early export efforts are unsuccessful because of poor planning, the company may even be misled into abandoning exporting altogether. Formulating an export strategy based on good information and proper assessment increases the chances that the best options will be chosen, that resources will be used effectively, and that efforts will consequently be carried through to completion.
The purposes of the export plan are, first, to assemble facts, constraints, and goals and, second, to create an action statement that takes all of these into account. The statement includes specific objectives; it sets forth time schedules for implementation; and it marks milestones so that the degree of success can be measured and help motivate personnel.
The first draft of the export plan may be quite short and simple, but it should become more detailed and complete as the planners learn more about exporting and their company's competitive position. At least the following ten questions should ultimately be addressed:
* What products are selected for export development? What modifications, if any, must be made to adapt them for overseas markets?
* What countries are targeted for sales development?
* In each country, what is the basic customer profile? What marketing and distribution channels should be used to reach customers?
* What special challenges pertain to each market (competition, cultural differences, import controls, etc.), and what strategy will be used to address them?
* How will the product's export sales price be determined?
* What specific operational steps must be taken and when?
* What will be the time frame for implementing each element of the plan?
* What personnel and company resources will be dedicated to exporting?
* What will be the cost in time and money for each element?
* How will results be evaluated and used to modify the plan?
One key to developing a successful plan is the participation of all personnel who will be involved in the exporting process. All aspects of an export plan should be agreed upon by those who will ultimately execute them.
A clearly written marketing strategy offers six immediate benefits:
* Because written plans display their strengths and weaknesses more readily, they are of great help in formulating and polishing an export strategy.
* Written plans are not as easily forgotten, overlooked, or ignored by those charged with executing them. If deviation from the original plan occurs, it is likely to be due to a deliberate choice to do so.
* Written plans are easier to communicate to others and are less likely to be misunderstood.
* Written plans allocate responsibilities and provide for an evaluation of results.
* Written plans can be of help in seeking financing. They indicate to lenders a serious approach to the export venture.
* Written plans give management a clear understanding of what will be required and thus help to ensure a commitment to exporting. In fact, a written plan signals that the decision to export has already been made.
This last advantage is especially noteworthy. Building an international business takes time; it is usually months, sometimes even several years, before an exporting company begins to see a return on its investment of time and money. By committing to the specifics of a written plan, top management can make sure that the firm will finish what it begins and that the hopes that prompted its export efforts will be fulfilled.
The Planning Process And The Result
A crucial first step in planning is to develop broad consensus among key management on the company's goals, objectives, capabilities, and constraints. Answering the questions listed in table 1-1 is one way to start.
The first time an export plan is developed, it should be kept simple. It need be only a few pages long, since important market data and planning elements may not yet be available. The initial planning effort itself gradually generates more information and insight that can be incorporated into more sophisticated planning documents later.
From the start, the plan should be viewed and written as a management tool, not as a static document. For instance, objectives in the plan should be compared with actual results as a measure of the success of different strategies. Furthermore, the company should not hesitate to modify the plan and make it more specific as new information and experience are gained.
A detailed plan is recommended for companies that intend to export directly. Companies choosing indirect export methods may require much simpler plans. An outline of an export plan is presented in table 1-2.
Approaches To Exporting
The way a company chooses to export its products can have a significant effect on its export plan and specific marketing strategies. The basic distinction among approaches to exporting relates to a company's level of involvement in the export process.
There are at least four approaches, which may be used alone or in combination:
1. Passively filling orders from domestic buyers who then export the product.
These sales are indistinguishable from other domestic sales as far as the original seller is concerned. Someone else has decided that the product in question meets foreign demand. That party takes all the risk and handles all of the exporting details, in some cases without even the awareness of the original seller. (Many companies take a stronger interest in exporting when they discover that their product is already being sold overseas.)
2. Seeking out domestic buyers who represent foreign end users or customers.
Many domestic and foreign corporations, general contractors, foreign trading companies, foreign government agencies, foreign distributors and retailers, and others purchase for export. These buyers are a large market for a wide variety of goods and services. In this case a company may know its product is being exported, but it is still the buyer who assumes the risk and handles the details of exporting.
3. Exporting indirectly through intermediaries.
With this approach, a company engages the services of an intermediary firm capable of finding foreign markets and buyers for its products. Export management companies (EMCs), export trading companies (ETCs), international trade consultants, and other intermediaries can give the exporter access to well-established expertise and trade contacts. Yet, the exporter can still retain considerable control over the process and can realize some of the other benefits of exporting, such as learning more about foreign competitors, new technologies, and other market opportunities.
4. Exporting directly.
This approach is the most ambitious and difficult, since the exporter personally handles every aspect of the exporting process from market research and planning to foreign distribution and collections. Consequently, a significant commitment of management time and attention is required to achieve good results. However, this approach may also be the best way to achieve maximum profits and long-term growth. With appropriate help and guidance from trade offices, freight forwarders, international banks, and other service groups, even small or medium-sized firms, can export directly if they are able to commit enough staff time to the effort. For those who cannot make that commitment, the services of trade consultant, or other qualified intermediary are indispensable.
Approaches number 1 and 2 represent a substantial proportion of total sales, perhaps as much as 30 percent of exports. They do not, however, involve the firm in the export process. Consequently, this guide concentrates on approaches 3 and 4. (There is no single source or special channel for identifying domestic buyers for overseas markets. In general, they may be found through the same means that buyers are found, for example, trade shows, mailing lists, industry directories, and trade associations.)
If the nature of the company's goals and resources makes an indirect method of exporting the best choice, little further planning may be needed. In such a case, the main task is to find a suitable intermediary firm that can then handle most export details. Firms that are new to exporting or are unable to commit staff and funds to more complex export activities may find indirect methods of exporting more appropriate.
An exporter may also choose to gradually increase its level of direct exporting later, after experience has been gained and sales volume appears to justify added investment.
TABLE 1-1.
Management Issues Involved in the Export Decision
Management objectives
Management objectives
What are the company's reasons for pursuing export markets? Are they solid objectives (e.g., increasing sales volume or developing a broader, more stable customer base) or are they frivolous (e.g., the owner wants an excuse to travel)?
How committed is top management to an export effort? Is exporting viewed as a quick fix for a slump in domestic sales? Will the company neglect its export customers if domestic sales pick up?
What are management's expectations for the export effort? How quickly does management expect export operations to become self-sustaining? What level of return on investment is expected from the export program?
Experience
With what countries has business already been conducted, or from what countries have inquiries already been received?
Which product lines are mentioned most often?
Are any domestic customers buying the product for sale or shipment overseas? If so, to what countries?
Is the trend of sales and inquiries up or down?
Who are the main domestic and foreign competitors?
What general and specific lessons have been learned from past export attempts or experiences?
Management and personnel
What in-house international expertise does the firm have (international sales experience, language capabilities, etc.)?
Who will be responsible for the export department's organization and staff?
How much senior management time (a) should be allocated and (b) could be allocated?
What organizational structure is required to ensure that export sales are adequately serviced?
Who will follow through after the planning is done?
To How to Export: Export Strategy, Tips and Advice - Top
Production capacity
How is the present capacity being used?
Will filling export orders hurt domestic sales?
What will be the cost of additional production?
Are there fluctuations in the annual work load? When? Why?
What minimum order quantity is required?
What would be required to design and package products specifically for export?
Financial capacity
What amount of capital can be committed to export production and marketing?
What level of export department operating costs can be supported?
How are the initial expenses of export efforts to be allocated?
What other new development plans are in the works that may compete with export plans?
By what date must an export effort pay for itself?
TABLE 1-2.
Sample Outline For An Export Plan
Table of Contents
Executive Summary (one or two pages maximum)
Introduction: Why This Company Should Export
Part I - Export Policy Commitment Statement
Part II - Situation/Background Analysis
Product or Service
Operations
Personnel and Export Organization
Resources of the Firm
Industry Structure, Competition, and Demand
Part III - Marketing Component
Identifying, Evaluating, and Selecting Target Markets
Product Selection and Pricing
Distribution Methods
Terms and Conditions
Internal Organization and Procedures
Sales Goals: Profit and Loss Forecasts
Part IV - Tactics: Action Steps
Primary Target Countries
Secondary Target Countries
Indirect Marketing Efforts
Part V - Export Budget
Pro Forma Financial Statements
Part VI - Implementation Schedule
Follow-up
Periodic Operational and Management Review (Measuring Results Against Plan)
Addenda: Background Data on Target Countries and Market
Basic Market Statistics: Historical and Projected
Background Facts
Competitive Environment
Your Own Import Export Business
If you love trying your voice at other languages, you can't be dragged away from the aisles of import stores, and you live to travel, then exporting could be the business for you. And it's big business. In one recent year, American companies exported $349 billion in merchandise to 226 foreign countries.
Everything from beverages to commodes--and a staggering list of other products you might never imagine as global merchandise--are fair game for the savvy trader and are bought, sold, represented, and distributed somewhere in the world on a daily basis.
As an exporter, you'll act as a middleperson, selling various domestic goods for American manufacturers or producers to foreign buyers. You might deal with a customer in Turkey one week and another in Guatemala, the next.
Acting on behalf of a manufacturer is the least expensive route to take, but you can also purchase products to resell or import goods from foreign shores to sell on your home turf. The advantages to this business are that you're always doing something different, you meet lots of fascinating people and you get to travel to your heart's content. And one of the really exciting aspects of the export business is that most Indian manufacturers have no idea they can expand their trade exponentially by exporting. Once you show them the light, the possibilities are limitless.
You'll need a good working knowledge of letters of credit and other foreign payment policies, as well as an understanding of shipping terms and methods. You'll also need strong sales and marketing skills--you'll have to convince manufacturers to let you sell their products and then persuade buyers to purchase them.
Good organizational and time-management skills are also a must.
Your customers can be producers or manufacturers of any domestic goods you care to target. It's best to start in an industry you're already experienced in--if you know the grocery field, for instance, you might start by selling upscale convenience foods to French grocery distributors.
First, once you've targeted your market, you'll need to convince manufacturers to let you sell their products. Send letters describing your services and the rewards of exporting, then follow up with phone calls requesting appointments. After you contract with these people, go on to your second step, selling the goods abroad.
Send letters to sales reps or distributors, explaining your products and requesting an appointment to meet or talk by phone. You can also place ads for your products on any of the plethora of free or fee-based Websites that feature trade leads, which are import/export classified advertisements.
Everything from beverages to commodes--and a staggering list of other products you might never imagine as global merchandise--are fair game for the savvy trader and are bought, sold, represented, and distributed somewhere in the world on a daily basis.
As an exporter, you'll act as a middleperson, selling various domestic goods for American manufacturers or producers to foreign buyers. You might deal with a customer in Turkey one week and another in Guatemala, the next.
Acting on behalf of a manufacturer is the least expensive route to take, but you can also purchase products to resell or import goods from foreign shores to sell on your home turf. The advantages to this business are that you're always doing something different, you meet lots of fascinating people and you get to travel to your heart's content. And one of the really exciting aspects of the export business is that most Indian manufacturers have no idea they can expand their trade exponentially by exporting. Once you show them the light, the possibilities are limitless.
You'll need a good working knowledge of letters of credit and other foreign payment policies, as well as an understanding of shipping terms and methods. You'll also need strong sales and marketing skills--you'll have to convince manufacturers to let you sell their products and then persuade buyers to purchase them.
Good organizational and time-management skills are also a must.
The Market
Your customers can be producers or manufacturers of any domestic goods you care to target. It's best to start in an industry you're already experienced in--if you know the grocery field, for instance, you might start by selling upscale convenience foods to French grocery distributors.
You'll work a two-step process here.
First, once you've targeted your market, you'll need to convince manufacturers to let you sell their products. Send letters describing your services and the rewards of exporting, then follow up with phone calls requesting appointments. After you contract with these people, go on to your second step, selling the goods abroad.
Send letters to sales reps or distributors, explaining your products and requesting an appointment to meet or talk by phone. You can also place ads for your products on any of the plethora of free or fee-based Websites that feature trade leads, which are import/export classified advertisements.
Sunday, November 15, 2009
SkySun Import & Export
Your customers can be producers or manufacturers of any domestic goods you care to target. It's best to start in an industry you're already experienced in--if you know the grocery field, for instance, you might start by selling upscale convenience foods to French grocery distributors. You'll work a two-step process here. First, once you've targeted your market, you'll need to convince manufacturers to let you sell their products. Send letters describing your services and the rewards of exporting, then follow up with phone calls requesting appointments. After you contract with these people, go on to your second step, selling the goods abroad. Send letters to sales reps or distributors, explaining your products and requesting an appointment to meet or talk by phone. You can also place ads for your products on any of the plethora of free or fee-based Websites that feature trade leads, which are import/export classified advertisements.
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