FIND A MARKET THAT IS THE RIGHT SIZE

                                                Find a market that is the right size
        Exporting is without doubt one of the most effective ways of developing business, securing a long term future for the business,riding out recessions,reducing costs and of course increasing profits. It is not however without risks and frustrations. Finding the right markets for your products may seem a daunting prospect,but by following  a few basic guidelines, the amount of work involved can be minimised and the potential results be maximised. Thorough preparation is essential if you are to maximise the results and develop long term profitable relationships. what follows are some tips based on many years experience in export sales and marketing management.
       1. Create a market profile - what sort of market do you want?
consider size,accessibility,advanced, developing,emerging,economic status,language,logistics etc..
It is very important to find a market that is the right size. too small and you are wasting efforts,too big and you cannot meet demand and your reputation suffers. If it is several years behind UK,you may have some old friend and tested products on the shelf that are just what is needed. Accessibility is also important. You need to weigh up the costs of getting the goods to the market and costs of you servicing the market.
      2. Decide what information you need.Main competition,pricing, import regulations(licensing,quotes,embargos etc.) duties, taxes, payment regulations,standards, local manufacture, GDP, population, age ranges, education standards, IT standards, infrastructure(roads,rail links,airports,sea ports,etc..) climac conditions, corruptibility, country credit rating,distribution method. you will no doubt think of other information you need specific to your business. 
       3. Create a market research questionnaire.
Some questions to ask about the market for your product:
! Is there a need for the product?
! If not can a need be created and at what cost?
! Who are potential buyers?
! Where are they located?
! What is their average income?
! What is their disposable income?
! What are their spending habits?
! What do they read/see?
! Where do they go?
! Are they members of any particular organisation?
! What kind of message will they respond to?
! How much will they be prepared to buy?
! What will they be prepared to pay?
! How often will they buy?
! Which products compete with those you intend to import?
! How are these products distributed to the market in Australia?
! What do they cost?
! How are they regarded in the market place?
! Do they have any competitive advantage e.g. warranties, after sales service, etc?

! What quantity is being sold?

Having identified the market for the goods and located a supplier, the next step is to identify the regulations that may affect importation of the type of goods you wish to import.
You should be aware that the Australian Customs Service regulates all imports into the country and it is to this government agency that the following questions should be addressed:
• Is import of the product permitted?
• Are there any restrictions that might affect import? For example:
• special labelling requirements?
• special health requirements?
• quotas?
• fumigation?
• What rate of customs duty applies?
• What is the tariff classification number applicable to these goods?
• Are there any tariff concession orders/policy by-laws which may also be applicable?
The customs tariff is a complex document running into a number of volumes. It is further complicated by the application of tariff concession orders to the listed rates. These provide exemptions or reduced rates for specific items falling within a general tariff category. Rates for specific commodities can be obtained from the Australian Customs Service or from customs brokers.
If no tariff concession order exists it may be worth exploring, with a customs broker, the possibility of applying for a specific concession for the goods you intend to import.
However, you should consider the cost involved in both time and money in making such an application. To gain a concessional rate of duty you must prove that the imported product does not compete with an Australian-made product and also that no Australian manufacturer is prepared to make it.

Importers would be well advised to consult a customs broker in all matters relating to tariff classification and concession orders.
       4. Choose your source of information - e.g. existing customers,existing suppliers,complementary product manufacturers,industry associations,chamber of commerce etc.
       5. Investigate organised market visits-subsidies maybe available.
      6. Select potential partners and plan for a visit. Do telephone and book appointments first.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.