Companies exporting to these markets face the enormous challenge of not having reliable data. Exporting to these markets requires companies to be alert and aware of the market’s competitive environment. They must also search for new markets or opportunities to diversify or expand their product lines. All importers around the world are trying to maximize the benefits of preferential trade agreements. They want to improve the efficiency of their supply. Because there is always a new supply country that is more competitive, this is possible. Jorge Zuñiga Blanco is a Costa Rican business expert who discusses how entrepreneurs can find new markets to expand their businesses.
Companies can use market analysis tools to analyze statistical data about imports and exports to more than 220 countries. They can also track demand and supply trends for 5,300 items that are sold on international markets. These tools are an exceptional service, especially for less developed and developing countries.
Zuñiga states, “With these market analytics tools, companies get data about the volume, growth and unit values of the market, as well the market shares and trade performance of supplying countries competing with us over time. Markets are subject to customs duties, which include preferential tariffs rates if there are regional trade agreements.
To develop and provide information that will drive the commercial management decision-making process, it is important to first research international markets and then analyze these to determine the best way to export. This process allows us to “look before you leap” as potential markets are identified, analyzed, and then selected to increase sales, lower costs, and raise profits.
There are many types of data sources. Secondary sources (or desktop) are information that has already been developed and is readily available to researchers. Specific information, or primary relay, can be used to address specific issues. Contacts are made to the residents of the market for analytics.
Following market recognition and market selection, it is mandatory to visit the target market during a business trip. This allows us to verify the accuracy of our strategies, conclusions, or results. Before you start market research or go on a business trip, it is advisable to prospect with the company. This will give you a good overview of possible business opportunities.
It is important to research the market. This section contains information about the country to be reviewed, including its structure, nature, indicators, economic policies, plans for development, distribution and communication facilities, and its characteristics in foreign trade.
It is important to identify the market access characteristics. This includes import licenses, tariffs, tariff systems (levies) and import policy. You should also investigate the customs system, as well as any other regulations that could affect international trade.
We then analyze the consumption patterns of the consumers and any logistical factors that impact marketing channels, collection and payment movement, physical distribution logistics, methods of promotion and the fairs, exhibitions and exhibitions that were in the destination countries.
In order to make a decision, you cannot look at each of these items individually. It should be a comprehensive study. Zuñiga adds, “The sign or result international trade operations management and its success will depend upon the skills of the people responsible for analyzing, comparing, weighting and applying these data decisions.”