Selection of Product
There are several ways to identify a product for exporting to overseas market. While selecting a product following points should be considered. The strength of the product should be identified; it can be a Unique Characteristic which is hard to match or find in the market where you want to export e.g Halloumi Cheese is meant to be Cyprus Origin, Basmati is meant to be Pakistan and India Origin, or it can be a competitive price. You must identify your product strength and then accordingly you will move ahead.
Identifying Potential Market
To identify potential markets you need to study;
- Export Statistics of your country. (for the product you have selected)
- World import statistics (for the product you have selected)
- Through statistics once you have identified the target country market, it is also recommended that you analyze that country’s import statistics, to analyze prices and to compare your product with your competitors in the target market.
Export Import Regulations
Unless there is a shortage in local markets, usually exports are always encouraged by the governments, as it helps in the economic development and in increasing foreign reserve. In any hindrance, or problem it is highly recommended that government export authorities should be consulted.
The country you are exporting a good, may require some formalities which should fulfilled by exporter. In some cases, importing country imposes import duty on importation of a particular product, to safeguard local industry. The importing country can also require, chamber of Commerce Certificate, Health certificate etc from the exporter.
Once you have identified the potential markets, the next step should be approaching to potential clients in that country. It can be done in following ways.
1. Personal visit by Export Marketing Manager.
2. Collect information and directories of foreign buyers and sending them offers by emails, fax or by postal mail.
3. Participation in Expo and Trade fairs where buyers and sellers meet to develop contacts.
While you are sending offers in a particular country, shipping companies should be contacted to get latest shipping rates as it varies from time to time. Different shipping lines can offer you different rates due to various reasons. It is necessary that you get the lowest offer to make the cost of your product cheaper. We will be uploading directories of shipping agencies (Country wise) shortly which can be helpful of sourcing shipping line of your need.
Offer to target customer should be made after the market research is complete and when you are sure that you know the market prices very well.
Quotation should clearly indicate Origin of the product, FOB / CIF Price, Payment terms etc.
Terms & Conditions.
There are different kinds of payment terms and are often negotiated between exporter and importer.
1. Cash in advance
2 Letter of Credit
- Confirmed L.C
- Unconfirmed L.C
- Documentary L.C
- Revocable letter of credit
- Irrevocable letter of credit
3. Documentary collection or draft: