The ten guidelines for new exporters follow:
Market research helps in better decision making. Better market research leads to better products – when a company understand customer demands, they can tweak their product to cater to the demand.
Selection of the export market is the very first step. Once this is done, figure out whether you want to enter that market directly or indirectly, through a visiting/ resident buyers or through an export house.
Exporters should participate in domestic and international trade fairs, organized by various government agencies. Trade fairs help you network with potential buyers.
According to EPCH, pricing is like a tripod, the three legs being costs, demand and competition. ‘Export pricing assumes strategic significance especially because of the relatively lower technological base of developing economics resulting in higher cost of production.
Selecting an agent
Do not select an overseas agent haphazardly, advises EPCH. Here is how you go about it. First, determine your marketing requirement. Two, contact several prospective agents. Three, evaluate their strengths and weaknesses. And finally, appoint one.
Advertise in foreign publications / trade journals. Add a product catalogue on your company’s website.
Terms of Payment
Be clear as to payment terms.
The International Chamber of Commerce (ICC) lists clear cut rules of international trade, to avoid ambiguities. Any contract should clearly state the obligations and rights of both parties, that is, the seller and the buyer.
There are two different stages of finance namely pre-shipment and post shipment finance. During pre-shipment, the exporter needs funds to procure raw materials, process the same, manufacture or assemble goods, package and ship the same. Post shipment, the exporter needs to funds to provide his customers with facilities up until the proceeds from sales are realized.
The list, detailing documents needed to export goods, can be a long one. Contact the Director General Foreign Trade (DGFT), Indian Institute of Foreign Trade (IIFT), India Trade Promotion Organization (ITPO), respective Export Promotion Councils (EPCs), Foreign Embassies in India, buying agents or freight forwarding agents for more clarity on the same.