What you need to do today for your export activity
June 25, 2020
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July 28, 2020
The global economy is trembling. The impact of the pandemic is fluctuating, causing uncertainty about the future of the international economy. Are we afraid of discussing expansion in global markets? Is it worth thinking about demand and offering our products and services in other parts of the world when the current economic order is so uncertain at home?
It's worth it ... and more than ever! Crisis and confusion mean "reorganization" and it is the best time to find your place in the network of international commerce. Globalization has become a permanent element of everyone's life, therefore, the best we can do is to carefully intensify our international presence and prepare to deal with different conditions.
A recipe for growth from the domestic market is to go out into the world, with what often requires adaptation of the business model. However, this is not easy and requires thorough preparation. Many of the failures that have occurred in foreign expansion result from changes in the required investments, often undertaken without a well-constructed business plan.
Before you start, consider the investment risks of addressing foreign markets. The risks are always there, but they can be minimized through risk management. It is important to analyze the data needed to make a responsible decision. Between articles in Entrepreneur (1/29/2019) and Forbes (10/8/2013), there are 9 key topics to consider for a well-constructed expansion abroad.
- Research - a key to success in the development of new markets, especially foreign markets, is the promise that the product will be well received. Research needs to be geared to understanding things such as consumer demand, who are the existing competitors, and what are the barriers to entry.
- Learn the culture - Study what you can about the foreign consumers, their culture and values, including education levels. Often, you’ll find the necessity of modifying existing products or even developing new ones appropriate for the foreign market.
- Improve product quality - Quality can be a deciding factor in whether a product will be sold on the international market or not. Although countries around the world have different tolerances for price, product quality must meet local expectations.
- Media promotion - There are many promotional media that can be used to reach international markets. You can start by creating a website in English and then have it professionally translated and localized for your intended markets. You can address omnichannel marketing through Google SEO, apps on social media, etc. Don’t forget to register your online store in international markets through sites like Amazon, Alibaba and Ebay. With advances in technology, this shouldn't be difficult or expensive.
- Pay attention to local government policies - You must obtain legal permission to be able to market products in certain countries. Do your homework so you will have no problems related to the law in the country.
- Seek professional advice - You can get advice from the chamber of commerce, from a consultant, from other foreign businessmen, from exporters and so on. It is important to ask for advice so that you can get more information about the attractiveness of your product and the expectation of market share.
- Develop international skills - obviously, as you go international, you need to recruit and hire people with international skills, in terms of language, negotiation norms and other areas, including marketing. You can make use of people in the country where the product will be marketed or stay with your local team, trained in languages and other international skills.
- Have a business plan - a business plan will be a reference for your company to move forward. Plans can take many forms, from development to marketing to distribution. It should also address after-sales service and other topics such as your plan to add customers and hence, grow sales.
- Look for networking opportunities and don't be afraid to get help from strategic partners. There are programs that advise on internationalization and can help you make interesting contacts and arrange cooperation with potential business partners.
Sources:
www.forbes.com
www.entrepreneur.com
