A key success factor in any export business
is clear understanding and detail knowledge of products to be exported.
Before starting marketing effort and contacting prospective buyers,
one must be ready with a detail sourcing guide that documents all
necessary information about your product basket. We shall identify
key elements of a sourcing plan and how to document them in this
Preparing Product Portfolio
Once you have zeroed in to a set of products - next
step is to prepare a profile or dossier for each selected product.
The dossier should contain all information about the product - its
sourcing, packaging, pricing, selling etc. Together, these dossiers
will comprise your product portfolio.
It is strongly advised that you complete above homework before starting your marketing effort. Even if you are an experienced hand and know all these well - there is no harm in putting this knowledge on a piece of paper. You can improve a lot by introspecting and re-writing your thoughts. Remember, God is in detail - success of your plan depends a great deal on how much care you take on small details.
Do not be a Jumping Joe
I have seen many new entrants who either completely overlooked these preparations or planned to do so after securing first order and jumped headlong into marketing only to suffer later. What they do not understand is that even for negotiation - you need detail product knowledge. If your buyer asks for a smaller volume what will be your price ? Your negotiation is bound to fail if your buyer does not get precise and fast response and gets dissatisfied with your answer.
Be Nearest to your Supplier
Success depends a great deal on what price you can offer to your buyer. As your selling price depends on sourcing price, try to avoid unnecessary middlemen who only add cost but no value. By avoiding middlemen and sourcing directly from supplier - you not only cut transaction cost but also get greater control over product quality and timely shipment.
Identify Competitive Sources
One can source almost everything from major cities
like Delhi or Mumbai. However, in most cases, these products reach
cities from hinterland through layers of middlemen, each of whom
add a transaction cost.
Happy and Productive Surfing
Dr. Amit K Chatterjee
- Newsletter on Business Opportunties from India and Abroad
Vol: 6, Issue 4
; July 22' 2005