At present, the globalization of the economy has meant that the growth and consolidation of a company is strongly impacted by investment and trade between countries, which is why it is becoming increasingly necessary, especially for the largest companies. small, look for new markets where to offer their products and thus not depend only on the domestic market.
The success of the international expansion process, as well as of exports, is not the product of chance, but rather the result of a process in which there is no master recipe, but which does require 5 extremely important factors to achieve the objective. . Next, we tell you what they are:
1) Have exportable products
It may sound obvious, but it isn't always. Entrepreneurs often fall in love with their products and think that it is enough for the product to have a very good taste, but although it is essential that the quality is good, it has to be well accompanied by attractive packaging. Sometimes it is necessary to analyze and study well if your product meets what the target market wants or what the competition offers, and after that, see if it is necessary to make changes and what this implies.
2) Select a target market with potential
Some entrepreneurs want to reach markets that are known as the United States, China, Brazil, to name a few, but it may be that in said market there is no potential for growth or attractive consumption. It may also happen that in these markets your product is not competitive due to various factors such as price, packaging, non-tariff barriers, certification requirements, etc., however, smaller markets may be the ones indicated to start your expansion process. .
Remember, the largest market is not always the ideal one for your product, it is necessary to study its behavior, the consumer, your potential customers, the marketing channels, and, above all, the price scale to know how much the final consumer will finally pay. for your product.
3) Promotion and Sales Management
If you do not show your company and its products, it will be difficult for someone interested in buying from you to fall from the sky. It is essential to develop a specific strategy for each destination market, since interests, tastes and preferences change according to their culture.
One of the main mistakes of SMEs is to think that, in exports, you only sell and the rest is a problem of who buys, that is why it is key to understand that promoting your products and carrying out sales management must start from the producer, because only in this way whoever sells, will be able to reach their goals and buy from you permanently. If not, it will only be a business that will help you reach some sales goal, not grow permanently over time.
4) Be serious and consistent
There are no magic formulas and it is not an immediate process either, opening a new market usually requires time, effort and preparation. Therefore, it is necessary to be transparent with your buyer and serious when negotiating, it is frowned upon that you are changing the conditions at all times. Make sure you know all the costs or variables that may affect your costs, and consider them when preparing an offer, get proper advice to avoid any phantom cost making your business unprofitable.
Every process takes time, and if it doesn't work, you must keep insisting, be consistent over time so that all that effort gives results.
5) Logistics efficiency
The first thing is to quote and evaluate the experience and support of the provider that will provide you with each of the logistics services. If you're just starting out or inexperienced, see who shows the most knowledge and don't buy everything out of hand. All providers will promise you the best quality of service and have the latest technology for their processes, but the real quality of it is seen when there are problems.
If you are new to the process, get good advice, so that you do not pay for the novitiate.
Like everything in life, exporting is a process in which you learn and also get feedback to constantly improve not only your products, but also as a company. Today more than ever the world is a single market and any event can affect us, the pandemic is the best example of this. If you consider these 5 factors, rest assured that you will go one step forward and have a greater chance of success.