Top 12 Things to Keep in Mind While Exporting to a Foreign Country
Exporting is a major activity, which requires the organisations to consider various factors. This should include analysing the place, laws and regulations, logistics, customer perspective, capital and resources, cost, and insurance of business. This can help in successful exporting of goods and services.
Researching the place and its market status is vital before exporting the product. The leading countries which are favourable for the exporters are USA, China, Germany, Japan, UK, Asian and Eastern countries. In 2017, the country which had the highest number of imports is USA and the import value is about 2.41 trillion dollars. In addition to this, you will be surprised to notice that the trading of products generates a large amount of capital for the countries. The world had a total export of 20,834,690,355.83 US dollars from 2004 to 2018.
Keeping the booming status of export in consideration mentioned are the key factors one need to look after before engaging export.
## Importance of Place
While exporting of products, one thing that should not be neglected at all is the place where you want to export your product. The economic growth rate of the new market should also be considered as a vital factor while exporting, along with the competitiveness in the market where the product is to be exported. The organisations must evaluate the economic conditions of a country in which they are exporting their products and services in order to ensure success.
*Figure: Leading import countries worldwide in 2017*
- In domestic business as well as in export business, a plan should be formulated because it can help you to determine the steps involved in selling the product successfully in the international market. According to a research conducted by Brinckmann, Grichnik, and Kapsa in 2010 on the business growth of 1146 companies, it was found that planning helps in improving the companies to grow thirty per cent faster than their usual pace.
- If you think one can simply start exporting the products after researching about the market then you are wrong. It is important to understand the export and import regulations in all the countries where you want to export your products. In case you violate any of the rules and regulations then your product can be banned from the market.
- In Europe, the import of some products is only possible through an import licence. In order to monitor the trade laws and safeguard measures, the EU authorities make use of licences. For example, all the imports of iron and steel are checked and verified by the European Union surveillance teams and the importers are informed to provide the EU surveillance documents in case the weight of the imports exceeds by kilograms.
## Description of Product
The products that you want to export to Europe should not be prohibited. Some animals and plant-related products may be a part of the endangered species. The European Union does have strict laws related to the animal and plants products that are in the endangered category. Additionally, there are some other products such as dangerous chemicals which are strictly banned from the European market. If you are one of those who want to export chemicals then you should go through the rules and regulations related to chemicals by the European Union.
## Customer Satisfaction
It is important for any business to reduce the initial expectations and focus on establishing itself by gaining the confidence and trust of customers. In Europe, there are several products serving the same needs and you need to stand apart by maintaining your consistency and by proving the value of your product to the European people.
## Feasible Transport Modes
You will also need to ensure that which are the most feasible ways or logistics’ to export your product into Europe. In 2018, the highest value of goods exported to Europe was through the sea, which amounted to 55 per cent of the total value. Another mode of transport that had a fair share in the export of goods to Europe is air, which amounted to 20 per cent of the total value. If the logistics will take up a large amount of money, it will also impact the overall cost of the product in the foreign country. If the price is too high, then the product will not be able to reach a large number of customers.
## Product Demand
Opportunities must be grabbed by the people when exporting their products to Europe because the demand for any product can help in making your product successful. The product can only survive in the European market for a long period of time if it adjusts to the changing market demands.
## Importance of Marketing
Marketing can also play a vital role in making the product more attractive to people. In 2018, the spending on marketing in Europe was around 154570 million US dollars. Companies rely on marketing to advertise and promote their products, as there are a large number of companies operating in the foreign market.
## Product’s Cost
Cost of the product is important in attracting the people as cost influences the decision making of the people. The products that you want to export might violate some intellectual property right and the European Union can restrict your product from the market on this base.
## Insurance of business
One should get the firm or business insured because the product might get destroyed or damaged during its journey to the foreign country due to natural calamity or any other reason. There are various suppliers present in the foreign country and you can contact the suppliers so that they can give you a brief idea about the market conditions.
## Capital and Resource Requirement
Exporting to Europe is not an easy task because it involves a lot of capital and it the utilisation of resources it not done properly then it might snatch the opportunity to establish your product in the foreign market. The product should not violate intellectual property rights because it can lead to the destruction of the imported goods in the foreign markets.
## Final Words
An ample number of things should be kept in mind while exporting products and services to a foreign country. Product, cost, capital, resources, transportation are among the significant factors that must be given utmost attention while exporting to a foreign country.
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