Selection of Product for Export
Selection of Product for Export
Think of getting into Exports?
So, the first step is finalizing a product. Out of so many resources and opportunities around us, we just narrow down to one or two products initially. While starting with a new Export Import venture, or planning to expand your current business, internationally, it is advisable that start from a product range of same category. Say for example Agri products â€“ if you already have a supplier for fruits, you can look for options in grains or vegetables or spices etc. This will help you look for more relevant buyers. Moreover, with multiple products of same category, the buyer is ought to have requirement for one product or the other.
While selecting a product you can consider these points:
1. Your area of interest
You may have experience of marketing specific products domestically, or you have family business, manufacturing or distribution business or come from a farming background. You can use this platform and experience and export the product of your interest or expertise.
2. Trends in Exports
- Study the trends of exports from a number of statistics available on Ministry of Commerce websites â€“ country-wise or commodity-wise.
- This study can be more effective if you can evaluate the trends of last 5 years
- While studying these statistics, you can shortlist the products of your interest according to their ranking in exports and their growth percentage of their share in total exports.
- You can also get shipping details from the websites of our ports. Here you will get details as to which product was exported to which destination port, its quantity, also its invoice value. You may not get to access exporterâ€™s and importerâ€™s details for free, but rest of the info is definitely available for all.
3. Demand of product
Selection of product broadly depends on your target country. If you are thinking of selecting a product according to a target country, or if you thinking of targeting a specific country according to a product, you can go through the following points:
- Size of population, specifically population of the targeted age as per your product.
- Climate or weather conditions of target country all round the year â€“ so as to suit your product, to maintain demand in the market.
- Shipping distance from your port, or from the port nearby your supplier, lesser shipping distance â€“ less expenses, more shipping distance â€“ more expenses.
- Nature of transport required according to your product â€“ highly perishable products like flowers are transported only by air cargo, wherever in the world. Infrastructure and local distribution network in the target country.
- Government involvement in the conduct of private business, to ensure safety of you products as well as your monetary transactions.
- Government attitude towards imports in the target country. More the government promotes imports, more facilities and infrastructure is available.
- Legal aspect, tax laws of target country according to your product and country of origin of your product.
- Special documentation or permissions or lab testing certificates required for your product.
In exports, along with the handsome amounts of profit, you also earn incentives from the government. These incentives are categorized product-wise. You get higher incentives on products which are on the focus list of government or higher incentives according to target countries. You can also avail benefits of Free Trade Agreements that we have with certain focus countries.
5. Availability of Product
- Ensure adequate production capacity of your product in your country.
- If you are a trade exporter, you should have at least 3-4 suppliers of your product, in order to facilitate to requirements effectively.
6. Nearest Port / ICD
In order to minimize transportation cost further, it is better if you can look for an Inland Container Depot (ICD) nearby your supplier or your manufacturing unit, if not a port.
For finalizing one or two products, jot down 10 products of your interest and scrutinize the list keeping in mind the above points.
For more details on Export Import Business, watch this motivational video https://youtu.be/m11OCXktqRA
Get complete practical training in Export Import Business on www.importexporteducation.com