Exporting is an important activity that needs companies to consider several factors which include analysis of the export business location, laws and regulations, logistics, customer perspective, capital and resources, costs, and business insurance. This can contribute to a successful export of goods and services.
Before exporting the product, it is important to investigate the location and its market status. The leading countries favorable to exporters are the United States, China, Germany, Japan, United Kingdom, Asia and Eastern countries. In 2017, the US was the most importing country and the value of imports is around 2.41 trillion dollars. Also, you will be surprised that product exports generate a lot of capital for countries.
Given the export boom, these are the key factors to consider before attempting exporting.
- Significance of place: When exporting products, you should not neglect where you want to export your product. The economic growth rate of the new market, together with the competitiveness in the market to which the product will be exported, should also be considered as an important element in exporting. Organizations need to assess the economic conditions of a country to which they are exporting their products and services to ensure success. Both domestic and export companies should have a plan, as it can help you determine the steps to successfully sell the product in the international market.
- Product Description: Products you want to export to Europe must not be prohibited. Some animals and related products may be endangered species. The European Union has strict laws regarding animal and plant products that fall into the category of extinction. In addition, there are some other products, such as dangerous chemicals, that are strictly prohibited on the European market. If you are one of those looking to export chemicals, it is a good idea to follow the rules and regulations regarding chemicals in the European Union.
- Customer Satisfaction: It is important for any business to lower initial expectations and focus on establishing itself by gaining customer trust. There are several products in Europe that satisfy the same needs and you need to differentiate yourself by maintaining your permanence and demonstrating the value of your product to European citizens.
- Feasible modes of transport: You should also ensure that the most practical routes or logistics options exist to get your product to Europe. In 2018, the highest value of goods exported to Europe was via the sea, which accounted for 55 percent of the total. Another mode of transport that had a fair share of goods exports to Europe is air transport, which accounted for 20 percent of the total value. If the logistics requires a lot of money, it also affects the total cost of the product abroad. If the price is too high, the product cannot reach a large number of customers.
- Demand for products: People exporting their products to Europe should seize opportunities, as demand for any product can contribute to the success of their product. The product can only survive in the European market in the long term if it adapts to changing market requirements.
- Importance of Marketing: Marketing can also play an important role in making your product more attractive to people. In 2018, marketing spending in Europe was approximately $ 154.57 billion. Companies rely on marketing to promote and advertise their products, since a large number of companies operate in the foreign market.
- Product cost: Product cost is important to attract people because cost affects people's decision making. Products you want to export may infringe intellectual property rights and the European Union may restrict your product from the market on this basis.
- Commercial insurance: The company or business must be insured since the product could be destroyed or damaged by natural disasters or for other reasons during a trip abroad. Several suppliers are present abroad and you can contact the suppliers to give you a brief idea of ??market conditions.
- Capital and resource requirements: Exporting to Europe is not an easy task as it requires a lot of capital and resources are not used properly, it might make the exporter lose the opportunity to snatch the market and Establish a place for its product. The product should not violate intellectual property rights because it can lead to the destruction of the imported goods in the foreign markets.