Every exporter knows that entering a new market requires thorough preparation. The basis for successful exporting is to develop an export plan and decide where we want to export our products. In today’s episode of the I Want to be an Exporter series, which HN is preparing in cooperation with Eximbank, we will discuss why choosing the right market is vital and how to go about choosing it. The traditional Export Club, which will be held in Bratislava at the end of May, may also be an inspiration.
Market profile
For each preferred market, it is recommended to develop a market profile covering several aspects. The first is the demand analysis. In particular, the market potential should be assessed. This means quantifying its size, growth potential, purchasing power of the population, customer segmentation or cultural proximity.
The second point of the market profile concerns competition. Here, each exporter should take into account direct and indirect competitors and their prices. It is essential to compare the parameters and prices of competitors’ products with his own. He should also examine the barriers to entry – tariffs, quotas, certificates, technical requirements or standards for his product. The mode of entry, transportation and logistics are also important. Direct or indirect entry, geographical distance to market or delivery time should be considered. Finally, it is highly recommended to examine the legislation of the market in question, specifically labelling requirements, product safety or licensing.
The importance of marketing
When analysing promising export markets, it is possible to use a free tool – the Export Potential Map. This provides trade information using the ITC’s Export Potential Methodology.
Other welcome sources of information are the statistical offices in the country of destination, the International Trade in Goods database – Comext, or the UN Comtrade database, which contains global trade data.
After selecting a target export market, it’s time for marketing. It is important to develop a marketing plan with a timetable and budget, focusing on the product, its price, distribution and promotion.
First of all, the product needs to be adapted to the target market. This step includes language translation, customisation of packaging, specifics in the composition, etc.
A preliminary export calculation based on competitors’ prices, expected margins and export-related costs, such as transport costs, should also be made. You also need to consider whether you will go for direct sales or prefer a local distributor or e-shop. Promotion includes customisation of the website, participation in trade fairs or exhibitions and various forms of advertising.
Eximbanka, which is organising the traditional Export Club in Bratislava at the end of this month, is helping Slovak exporters to find new interesting markets. “A discussion forum on Southeast Asia will take place on 28 May in the Historical Building of the National Council of the Slovak Republic in Bratislava,” Martina Vráblik Solčányiová, Eximbanka’s marketing and communications director, told HN.
Southeast Asia
Opening speeches will be delivered by the President of the National Council of the Slovak Republic Richard Raši, the European Commissioner for Trade and Economic Security Maroš Šefčovič, the State Secretary of the Ministry of Foreign Affairs Rastislav Chovanec and finally the Director General of Eximbank Rastislav Podhorec. This will be followed by a 40-minute discussion with Maroš Šefčovič. Afterwards, five countries from the Southeast Asian region will be presented, which will compete for the favour of Slovak exporters and investors. Representatives of Vietnam, Malaysia, the Philippines, Indonesia and Thailand will talk about the opportunities offered by these markets.
The next item on the agenda is a panel discussion, which will discuss state instruments to promote exports. This will be followed by a panel discussion on Exporting to Southeast Asia in practice. Finally, the event will conclude with a two-hour B2G meeting.
The Export Club is a club-format event aimed at providing Slovak companies, especially exporters, with valuable information and experience on exporting and expansion opportunities in various territories. Eximbanka supports Slovak entrepreneurs in their export activities to traditional markets, but focuses mainly on export markets outside the European Union and new, promising territories. This includes emerging regions or geographically more distant destinations.
Author Pavel Novotný
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