Export Tips

Exports can be a source of profits for your firm. The international market is more than four times larger than the U.S. market, which is the largest single market. Growth rates in many Asian markets are among the highest in the world. Exporting also prods your company to innovate and hone your competitive skills. Meeting and beating innovative competitors abroad can help companies keep the edge they need to dominate their home markets. It also can give them a place to test market products and to research and learn about new products, marketing techniques, etc.

There are also real costs – time, money, opportunity costs, etc. and considerable risks associated with exporting. It is up to each company to weigh the necessary commitment against the potential benefit.

There are important recommendations for successful exporting should be kept in mind:
 

Develop a master international marketing plan and utilize qualified export counseling before starting exporting. The plan should clearly define goals, objectives, potential costs, and problems encountered.

Secure a commitment from top management to a long-term view of this new program and a commitment to overcome the initial difficulties and financial requirements of exporting. Although the early delays and costs involved in exporting may seem difficult to justify in comparison with established domestic sales, exporting offers substantial benefits in the long run, which must be considered.

Take the time to do your due-diligence in selecting your overseas distributors. The complications involved in overseas communications and transportation require international distributors to act more independently than their domestic counterparts. You therefore will be required to trust your overseas distributor with many requirements and need to fully understand them and their approach to work. 

Establish a basis for profitable operations and orderly growth. Although no overseas inquiry should be ignored, the firm that acts mainly in response to unsolicited trade leads is trusting success to the element of chance. Keep in mind that there are lots of people who can waste your time and focus. Although the internet can be a great source of information, much of the contacts you will get via the internet need to be pre-qualified and researched carefully.

Devote continuing attention to export business when your home market booms. Too many companies turn to exporting when business falls off in their home market. When domestic business starts to boom again, they neglect their export trade or relegate it to a secondary position. Export should be a separate track that gets proper attention in both the good and bad times.

Treat international distributors on an equal basis with domestic counterparts. Companies often carry out institutional advertising campaigns, special discount offers, sales incentive programs, special credit term programs, warranty offers, and so on in their home market but fail to make similar offers to their international distributors. Company export personnel need to keep up on company domestic programs and vice-versa to ensure that a companies programs are balanced and utilize the lessons learned in other sectors. 

Do not assume that a given market technique and product will automatically be successful in all countries. What works in Japan may fall flat in Saudi Arabia. Markets are often at different stages of development. Each market has to be studied closely and treated separately to ensure maximum success.

Be willing to modify products to meet regulations or cultural preferences of other countries. Also be ready to drop product lines or product items if they do not seem appropriate given current market conditions in a country. Local safety, security codes as well as import restrictions can not be ignored by foreign distributors and should be addressed early in the exporting process. 

Be aware of the importance of local language to your marketing efforts. Print all advertising, product description, service, sale, and warranty messages in locally understood languages. Although a distributor’s top management may speak English, it is unlikely that all sales and service personnel have this capability and this must be factored into your efforts.

Build a professional website that advertises your product and that provides information twenty-four hours a day, seven days a week, 365 days a year about your company and your services. Also as your market develops look at putting more and more of the information on the website into the local language to help promote your company. 

Just as exporting is a long-term effort, building product name and a reputation for reliability also takes time. Keep in mind the importance of servicing in winning your product a reputation for quality. Arrange in advance for readily available servicing for the product. A product without the necessary service support can acquire a bad reputation quickly.

Plan for and be willing to make the sacrifice in travel, night telephone calls and other disturbances that the time difference with Asia will probably create for both you and your distributor. Travel may sound glamorous until you start doing a lot of it. Travel is, however, essential to building trust, clearing up misunderstandings and in building personal relationships. Be aware that you may need to do a lot more of it than you might like to keep your export plans growing.

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