How to choose a product export from india
Selecting the right product to export to the chosen country may be the determinant to a successful export operation from India.
India has a vast pool of products that a company can satisfy its need, but the greatest challenge lies in making the right decision that will make the export business sustainable in the long run. No matter if it’s a first attempt at marketing or a further expansion, the product will influence the range of your targeted market, profits, and company’s growth.
To guide you through the right product to choose for export, follow the following steps in making things simple and clear.
Analyse the Demand of the Global Market
The first thing that one has to do before selecting a product to develop and sell is to identify what is trending in the international market.
The choice should be such that the target population in other countries require or desire it. One of the smart ways by which this can be done is by conducting some research with regards to the prevailing trends and market needs.
For instance, if the global consumption of the organic products is on the rise, you can opt to export organic spices, fruits or textiles among others.
It doesn’t matter if you do not know how to collect market research data; resources such as a Meximport, an import-export data service, can assist you. They offer trade data, which assist one to know what kind of products are popular in a specific country. This can help you to have better chance of identifying a product that is likely to be in high demand although the competition in that area is low.
Choose a Product that India is famous for
India has a large number of resources engaged in the production of apparels & textile, spices, tea, leather products and jewels etc. It is advisable to stay with the products that India is well knows for, since the tastes of the people do not change easily.
For instance, India holds the largest market share in export of basmati rice. That is why, if you decide to choose rice for its production, you already have a predisposed consumer who trusts Indian rice. In the same way, India is famous for spices, thus sending out turmeric, pepper, or cardamom makes good decisions also.
That is why when dealing with a new product, it would be easier to penetrate the international market by choosing a product in which India has had previous experience in manufacturing. There are high chances that the countries importing Indian products also have certain level of quality that they are expecting to receive, which will be helpful to you.
Look at Your Strengths
Knowing about a particular category or being a fan of the product can put you in better place. If you are from such a background you can easily export garments or fabrics for that matter because the family has been used to textile manufacturing.
Hence, it is important to have some previous knowledge on the product you are exporting in order to avoid time wastage, cost and efforts. It also assists when one is sourcing for the items from the suppliers or when dealing with any issues arising.
Thus, let’s start with what do you already know about this topic? Do you come from an area that grows a lot of of certain crops? For instance, do you have family members or friends who can source specific product to you at reasonable price? More often than not, the most suitable product to export is already is within your fingertips.
Quality Not Quantity
There are always tendencies of getting products that are easy to manufacture and which are cheaper to produce in bulk. Instead, deciding on the quality of the products rather than their quantity can put you in a rather favorable position. Customers operating in the international markets are more motivated by quality as compared to price. For instance, instead of selling low cost leather shoes for export, could you consider selling high quality leather that presents higher prices and a reputation for your brand?
Generally, products that have a reputation in the market, those products that look superior in quality, are likely to sell to already existing clients, which is very important in export business ventures. . You may not be selling very many of them at first but because of the position that you are in to be able to charge a better price for your high quality goods then you will be able to make a substantial profit in the long run.
Check the Government Regulations and Policies
Before launching your product into the market, one should consider learning of regulatory measures provided by the government. Some products can be restricted for export while others may be subjected to high taxes thus making them less good for business. For instance, some of the agricultural produce need permits or endorsements before they are exported.
Find out the regulations that have been set down concerning the exportation of the selected product. If a client has no time to look for necessary export information such as customs regulations and tariffs of different countries Siomex can help.
With using affiliate marketing as a way of promoting ones product, one should Start Small, Test the Market.
Once you choose your product start small to gauge the market and test the waters to see the reception that it will receive. Selling large volumes right from the start will seem like the most appropriate way to make good profits, but actually, it can lead to massive losses, on condition that the product does not satisfy the consumers.
However, in looking for international markets, perhaps one should start with exporting a limited number of products at first. This is critical because it enables the US firm to assess the response they get from the foreign market on their product and also provides ample time to correct wrong perceptions on supply, shipment or lack of demand for the product.
For instance, you may plan to export organic cotton, and you could begin by selling one or two of the merchandises to several buyers with a potential for making large orders. Where the users provide positive feedbacks, you can expand your operations.
As all the strategies explained above identify the utilization of data all through the process: collection, preparation, analysis, and application, it is important to note that the use of data helps make informed decisions.
He noted that the most successful exporters are those organizations who use data to make proper decisions. In this case you can therefore use data to determine which products are popular, what countries are importing and at what price the products are being sold at. Some of these services such as Siomex provide statistics of imports and exports which can assist you to identify the export worthy products of India.
The key aspect of data analysis is the identification of trends for the products as well as markets that are potentials, and competitors’ performance. This makes you to act wisely rather than just assuming something to be right or not right in the business.
Consider Long-Term Trends
Although you do have to be aware of the current trends, you also have to think of long-term patterns. While some products may enjoy a certain degree of demand today this can change in the near future. And it would be desirable to select a product with stable or rising popularity among consumers.
For instance, recently, toys such as fidget spinners had a lot of attention from the general public but are no longer in trend. While tyre sale is more of a one-time sales event, products like health supplement, organic food or even ecology-friendly clothings are part of the long term consumer behavioural change.
Choosing an item that is most likely to be consumed in future can also make a business to be a going concern in future.
It is good to have good relations with your suppliers.
It is as important for yourself to select affecting suppliers as it is to select a certain type of product. A good supply chain helps you having the right stocks of goods to supply the market while a bad one can lead to a shortage of stocks or bad quality of the goods.
It is important that you are able to have good business relations with your suppliers which you can develop from the initial stage. In this manner, there will be a way to prove the quality of your products to be exported under the international standards of quality and to ensure that the products be delivered on time.
In addition, genuine business relationships with the supplier can allow you to bargain for better prices hence enjoying a competitive edge when it comes to the exportation of your products.
Conclusion
Selection of export product from India must be well planned, analyzed and strategized to enable an exporter to select the most appropriate product.
This way, you will decide which country’s needs to satisfy, emphasize on quality, and use import export data from providers such as Siomex to increase your probabilities of success. Do not hurry, try to learn more about the market and choose a product that will be relevant today and at the same time will be further developed.