Foreign trade market news

Exporting can be a great way to grow a company, but it also entails risk. Any entrepreneur looking to expand into foreign markets must first gather information, prepare an export plan, make a series of key decisions and line up the necessary financing. Gathering information It's essential for exporters to have a clear understanding of the culture, customs and economic conditions of the country where they want to do business. To that end, research is needed. An online search is a good place to begin. Canada Business provides information on government and private-sector services, markets and industry sectors, and potential partners. It also offers statistics and trade leads. Likewise, the Canadian Trade Commissioner Service provides easy access to hundreds of market studies and country reports, searchable by country or by industry. Still, nothing takes the place of visiting the target market yourself. On-site, you can talk to potential buyers and learn everything you need to know about the competition, local rules and distribution channels. Attending trade shows and events specific to your industry in that country can also be helpful. While at the shows, take ample notes on products and services, competitors, and packaging and labelling of similar products. For information on upcoming trade conferences and trade shows.Another way of deepening your understanding of a foreign market is to join business and government delegates representing the Canadian government on a trade mission essentially an organized visit. Because they are government sponsored, trade missions give your company added clout and credibility. It's also worth consulting government sources to define buyers for your products. Trade officers at the International Business Opportunities Centre, for example, collect trade leads globally and match them with Canadian businesses. The World Chambers Network (WCN) offers registered companies opportunities and methods for getting in touch with other interested parties. Preparing an export plan Before starting up your export operations, be sure you have an export plan—similar to a business plan but focusing instead on strengths, weaknesses, opportunities and threats your company would face in a foreign market. An export plan should help you define your objectives clearly so that you can use the right tactics to reach your goals, and will give you more credibility with lenders, who will ask you to prove your capacity for exporting. The plan should spell out which countries are you targeting, what opportunities exist there, who your competitors are and how you will market and distribute your products in each location. It should also state whether you will need to adapt your products for the foreign market, how you will determine your export sales price and how much time will be required to meet your objectives. Spell out the staffing levels needed to implement the export initiative, as well as how you will reach your market—through distributors or an on-site sales team—and how you will evaluate results to modify your plan when needed. One key issue to be resolved is how you will enter the foreign market. Some of the most common entry strategies involve using distributors or sales representatives, or selling directly to end users. Sales representatives work on commission and use literature and product samples to reach potential buyers, whereas foreign retailers buy directly from your company, relying mainly on travelling sales representatives who contact foreign retailers directly. The third option, direct sales, involves selling your products or services directly to consumers in foreign countries. You may do this online or act on a lead from a government source. Finally, you can use foreign distributors. These merchants purchase goods from an exporter, often at a substantial discount, and resell them for a profit. This can be a cost-effective strategy for small and medium-sized businesses. Not only do you save costs by forming strategic alliances with local people, but you can also rely on their distribution and marketing knowledge www.exporttrust.com/trade-blog