How to select product to export:
The backbone of your export business is the “Products“, if all documentation, compliance and sales are looked at. If you have a high quality product that foreign consumers are interested in buying, then everything else becomes traditional. You become able to transform yourself from a general business person into an exporter very easily. How to choose the best product to export
As important as knowing what you can export, it is equally important to know what you cannot export. The government has a list of items that you cannot export from India because they are restricted or restricted. The Directorate General of Foreign Trade (DGFT) maintains an updated list of the same on the DGFT website. Besides these products, it is up to you what to export. How to choose the best product to export
Finding or introducing product segment with a good plan shows your desire to become a good export business. If you choose a product that excites you or choose a product that has not yet made its way into the ‘mainstream’. In any case, you can do this by trying to do some preparatory activities. But voluntarily selecting a product and trying to sell it overseas is not really a sign of being a good and sensible businessman.
Because any product can stimulate your entrepreneurial-exporter spirit, but if it is not in demand abroad, it can create a big problem for your export business. How to choose the best product to export
“So what are the factors that can help you select the right product to export? Let’s consider this topic”
Find special or unique products:
How to choose the best product to export
Foremost you need to know about all those special products made in your state/country which can be easily exported abroad. And you also have to find out how much of those products are needed abroad? How to select product to export
And at the same time it has to be known that from which angle are the countries which have been importing these products from us? Or want to do Note down the answers to all such elementary questions at one place. The ones you want to consider. Also collect information about the historical trends and patterns of your state/country so far as to export which countries are looking forward to import on the same basis. You will find most of this information in publicly available databases hosted by DGFT and Ministry of Commerce. You can get a concept by analyzing India’s business data. That we have a tendency to sell well which products easily and which of our products have gained credibility abroad.
Analysis of product demand and consumption in the international market:
Chances are you will already have some niche products once you commit to exporting. But first you need to know a lot about the product and its supply chain. How to select product to export
Like when and how it is made, what are its physical sources, who are its manufacturers, what materials are used to make it, if it is seasonal, in what quantity it is in demand? How to select product to export
If the demand for a product changes frequently as per the requirement. Then how will you be able to meet such demand? If there is no demand for your product in the international market then how will you be able to meet the demand of such product in the international market? You will come across many such questions and many questions may vary from product to product. Foremost it is very important to understand how much demand will be created for the product, in how much time you will be able to supply it if you are planning to meet this demand.
Selecting countries with stable demand for your product: How to select product to export
Foremost you have to make sure whether the product you want to export is in demand in that country or not. Select the countries as per the geographical perspective and focus on the suitable markets where there is a demand for the product you wish to export.
For example, if you export tea from India to a country where it is sometimes preferred, you will have limited success. You should study the economy and political climate of your target market as these factors can have an impact on the expansion and stability of your export business.
Growth prospects:
It is essential for you to analyse the growth prospects of your export business. Maybe you are currently exporting a product to a specific location, but will there be demand elsewhere in the future? Is it possible that the importing country may start domestic production of your product? Can your product reach a wider audience in the importing country or its neighbouring countries? How to select product to export
Stagnant sales can prove to be detrimental to your export business, so you must be sure that your export business is scalable with respect to that product in the future.
Product profitability:
As a business you should choose such products which have the potential to be financially profitable. You must identify the most affordable source of the product and ensure that your target audience is willing to pay a good price for it.
It would also be a good idea to check how the product has performed over the years. Find out if it is at risk of seasonal or periodic trends. Forecast all product related expenses such as product cost, logistics, taxes and duties and calculate your profitability against the selling price.
Business regulations:
Each market is unique when it comes to compliance and business regulations. You should be well aware of the regulations of the country of destination of your product.
Find out if the destination country has tried to ban similar products in the past or imposed heavy taxes and duties on their imports. You should also learn about the trade relations of all the countries which have trade with India.
Competition:
Unless your product and/or offering are unique, it is highly likely that you will face stiff competition from businesses that are already engaged in exporting similar products from your geographic area. In such a case, you should present your product as unique and different from your competitors. The USP of your product may be better quality, cheaper price, better after-sales response, or a combination of these and other factors. A note of caution about competing on prices: Simply lowering your price may work temporarily, but it ultimately affects your own profitability. You may need a completely different long-term USP.
Once you have identified the product you wish to export, you should narrow down the markets where you can ship it, Also find out the various incentives and benefits you can get for trading in that product.