| What to export ? What sells well in international
market ? How to select products for export ? These are questions
uppermost in the mind of every budding exporter. Let us examine
various options and a practical way of selecting a product basket.
There are products that sell more than others in international market
and it's not very dificult to find them from various market research
tools. However, such products will invariably have more sellers
and consequently more competition and less margin. On the other
hand - a niche product may have less competition and higher margin
- but there will be far less buyers.
A Practical Approach in Product Selection
Fact of the matter is - all products sell, though
in varying degrees and there are positive as well as flip sides
in whatever decision you take - popular or niche product.
So, instead of approaching the product selection process from demand
side - it is far more practical to look at supply side. Ask yourself
- what can you supply. What are your strengths ? How close are you
to supply sources. Once you take a stock of your capabilities -
evaluate and prioritize available options.
Key Factors in Product Selection
- The product should be manufactured or sourced with consistent
standard quality, comparable to your competitors. ISO or equivalent
certification helps
- It should be available in sufficient quantity. If possible,
avoid products which are monopoly of one or few suppliers. If
you are the manufacturer - make sure sufficient capacity is available
in-house or you have the wherewithal to outsource it at short
notice. Timely supply is a key success factor in export business
- It is competitively priced. The price should not fluctuate
often - threatening profitability of your export venture.
- Regulatory aspect of export. Check Govt poilicy - if there
is any restriction in its export. Though there are very few restrictions
in export - it is better to check regulatory status of your selected
product. Please visit VANIK.COM
for Export Import Policy and handbook of Procedures.
- Status of various Govt incentives - Duty Drawback, DEPB etc.
Again, please visit VANIK.COM
- Import regulation in overseas markets, specially tariff and
non-tariff barriers. Though a major non-tariff barrier (textile
quota) has been abolished - there are still other tariff and non-tariff
barriers. If your product attracts higher duty in target country
- demand obviously falls.
- Registration/Special provision for your products in importing
country. This is specially applicable for processed food and beverages,
drugs and chemicals.
- Seasonal vagaries of selected products. Some products sell
in Summar, others in Winter. Some products may sell only during
Christmas. Keep in mind seasonal aspect of your product, if there
is any, and lead time required to reach target market.
- After Sales Service. If exported product needs after-sales
service, you should open service centre beforehand or arrange
distributor/agent who can provide servicing facility. It is not
advisable to export a product that requires after sales service,
in case you lack the technical and financial ability to provide
it.
- Packaging and labeling requirements. Keep in mind special requirements
of perishable products like processed food
- Mode of transport, logistics requirements. Special care is
required for certain products which may be bulky or fragile or
hazardous or perishable or of some such feature
Happy and Productive Surfing
Dr. Amit K Chatterjee
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