Preliminary Exercises Print

What to do first before starting the export business?                                [Back]

i) Choose a quality product.
ii) Choose a particular overseas market.
iii) Concentrate only on few products and minimum three countries (If you are a beginner).
iv) Ensure that you can manufacture or procure the selected products at competitive prices in sufficient quantity and will be able to meet the delivery schedule.
v) Get the full information of similar products of other manufacturers in the selected markets, their prices, marketing techniques, terms of business etc. to offer your products to overseas buyer with reduced prices to capture the market.
vi) Assess the degree of competition of product(s) which you propose to export in a particular market.

Where do you get the export information?

1) Various publications of Chambers of Commerce.
2) Export Promotion Councils
3) Export Credit Guarantee Corporation
4) Banks
5) Institutions engaged in International Trade
6) Private Publications / Project Report available on certain fees

How to choose a commodity for export?

i) List out manufacturer of capacity.
ii) Availability from others – merchant export.
iii) The demand for the commodity in the importing country.
iv) Government of India’s policy and regulations –export.
v) Foreign Government policy and regulations –import.
vi) Total profitability of commodity.
vii) Quota fixation (in both countries).
viii) Knowledge and experience of similar – exporters –export of such commodities in various countries.

How to obtain particulars of foreign buyers?

i) Trade representatives (India and Foreign Governments).
ii) Export Promotion Councils and Commodity Boards and other Govt. and Semi-Government Agencies.
iii) International Trade Directories and International Yellow pages
iv) Participating / visiting in International Trade Fairs and exhibitions in India and abroad.
v) Reading materials published by various trade related organizations.
vi) Advertising in Indian and as well as foreign newspapers, magazines and journals.
vii) Relatives, friends and other contacts in foreign countries

Once the buyer is ensured, our position in respect of the following to be assured

a) Price to the overseas buyers.
b) The terms of credit which one can offer.
c) Packaging, transportation, storage, distribution and after sales service methods .
d) The promotional methods, which one can offer.