Exporting companies face the huge challenge of not having reliable market data. Companies exporting to these markets need to be aware and alert to the competitive environment in their markets. They also need to search for new or emerging markets to expand their product lines or diversify their production. Importers all over the globe are striving to maximize the opportunities they offer by preferential trade agreements. They also want to increase the efficiency of their supply. This is possible because there are always new, more competitive supply countries. JD Duarte, a business expert from Costa Rica, discusses how entrepreneurs can explore new markets for their businesses.
Market analysis tools are available to companies to analyze statistical data on imports and exports from more than 220 territories. They can also learn about demand and supply trends for 5,300 products that are sold on the international markets. These tools offer exceptional service, especially for developing and less developed countries.
Duarte says, “With these market analysis tools, companies get data on the volume, growth, and unit values of markets, as well as the market shares of supplying nations competing with us, and their trade performance over time. Customs duties are also applied to markets, including preferential tariffs rates where there are regional trade agreements between the countries.”
The systematic and objective approach to developing and providing information that will fuel the commercial management decision-making process is to research the international markets and then analyze them in order to produce exports. This is a process that gives us the ability to “look before we leap” as potential markets are identified and selected in order to increase sales, lower commercial costs, and raise profits.
There are several types of data sources. Secondary sources, or desktops, are information that has been pre-developed and is available to researchers. Information that is specific or primary relay can be used to address particular issues. Contacts are made with the residents of the analytics market.
After the market selection and recognition, a personal visit to the target market on a business trip is mandatory. This allows us to verify that the strategies, conclusions, and results we have created are correct. It is recommended to prospect from the company before you hire expensive market research personnel or start a business trip. This will allow you to get a first overview of potential business scenarios.
It is necessary to explore the market. This section provides information about the country being reviewed, its form and nature, indicators and economic policies, current structure and plans for development; communication facilities and distribution; and the characteristics of its Foreign Trade.
It is crucial to determine the characteristics of market access. This includes import licenses, tariffs and tariff system (levies), as well as the import policy. It is also necessary to investigate the customs system and any other regulations that may affect international trade.
Finally, we analyze consumers with the most relevant consumption variants, consumer behavior, and all logistical factors that affect marketing channels, the movement of letters, collections and payments, logistics of physical distribution, methods of promotion, as well as the fairs, exhibitions, and exhibitions that were present in the destination country.
You cannot examine all of these items separately in decision-making. It should be an integrated study. Duarte concludes, “It is appropriate to say that the sign or result of international trade operations management and success will depend on the skills of those responsible for analyzing, comparing, weighting and applying this data decision.”