Are you planning to expand your business or locate customers in a new region for boosting your sales? You might be searching for the correct strategies to grow your company.
An import-export business can only achieve success if it is able to attract a good customer base. But, customers will only notice your brand or products when you have a planned and systematic approach. When you know the correct strategies and techniques, it will be easy for you to gain more and more customers, and ensure the smooth flow of your export business.
You must know how to engage with your potential customers to boost the sales of your products and services. Here in this post, we are sharing some valuable tips and tricks that will help you to attract more customers for your export business. We will guide you through the best techniques to identify your target markets and engage with your potential customers in those markets.
How to find customers for selling your products?
The tricks mentioned here are the starting point for identifying your best markets. Determining the best markets for your business is often a challenging task. It includes a lot of things starting from product demand, and market price, to trade barriers and so on.
Selection of the country
You must make a list of the countries where you are willing to export your products. And then, from all these countries, you must select the best markets depending on your market research and the demand for your goods in those particular markets. When you are planning for a foreign trade business, check out the countries which have multilateral and bilateral trade agreements with India. You must be aware of the fact that India has made such agreements with almost 70 countries around the world.
Demand of goods
You must figure out the countries where your goods have major demand. Let us better understand this with an example. Suppose you are an exporter dealing with wheat. So, your responsibility would be to locate the markets where wheat is in major demand.
You must analyze the bigger import market for your export products. Also, you must be sure that the demand for your goods remains consistent in those particular markets and that the market is expanding with time.
Price of the products
The price of your product is a key element that plays a great role in determining the best markets for your export products. As an exporter, you must always keep in mind that the price of your product must be reasonable but competitive.
You will have to consider the demand for the goods and what price the customers are agreeing to pay for them. Also, there are other parameters included which will turn the price of the goods and profitability different from the per unit selling cost. The parameters are logistics, distance, tariffs, volume of sales, etc. In some situations, even the price offered by your competitor will also impact your profitability.
While starting an import-export business, you must first know about the various trade barriers such as legal practices, safety guidelines, commercial laws of your targeted countries, etc. It is essential because there are likely to arise such times when you will have to deal with trade barriers.
Trade barriers might occur in terms of tariff restrictions, bans on entry of some specific goods, requirements of special licensing, labeling, etc.
The business climate of your targeted markets
As an exporter, you need to consider the economic and political stability of the importing countries. Is their climate business-friendly? Find the answers to this question before finalising your targeted markets.
You need to conduct proper research to analyse if there are indications of any unpredictable political or economic scenarios that might put your business in danger.
Is the market profitable?
You must always choose a market that makes you earn more profits. You can place a high price on your product if it is of high quality, specialised packaging, and other added advantages. Also, understand what foreign customers are willing to pay for your products. You should select a market only when it is going to profit your business more and more in the future.
These factors are important to analyse before expanding your business to any foreign country. There are also some other aspects of foreign trade business that you should study before moving on to expanding your business. It includes trade insurance, and government schemes to encourage more Indian exports such as the duty credit scrip. This is an initiative launched by the Government of India which is issued under the Foreign Trade Policy. It aims to provide incentives to exporters so that they are able to maximise the inflow of foreign exchange to the country.