Are You Ready to Export?

Before trying to access export markets,  it is important your organization understands and is well prepared for the demands and opportunities of the global marketplace.  Exporting requires different products, service, pricing, marketing, production, shipping and financial resources than the domestic market.  Because competition in the global market is high, buyers may turn to alternate suppliers if you are not ready to meet their expectations in a timely manner.  Be well prepared!

Export Readiness

The following questions explore the major demands of exporting. Review these thoroughly before exporting so you will be prepared. Be sure you can confidently answer "yes" to these questions or you are taking actions to address these issues. The following is a detailed list of questions. You can also use the export readiness check-list as a reference tool during your preparations for export.

1.      Do you have an export product line or collection?  This would mean that you have researched a target export market and hve either developed a new product line for that market or determined your current product lines are sellable.

2.      Do you have a product development strategy for your business?  Continual product development is vital for sustaining sales in export markets.  A product development strategy includes a cross-functional team, an annual budget for prototypes and market research, and a calendar of product goals.

3.      Do you have sufficient production capacity to fulfill new orders?  On-time delivery is essential to keep your customer happy and encourage re-orders.  Be sure you have sufficient staff and supply of raw materials to produce orders on-time, and with consistent quality.

4.      Do you have a good quality control system?  Export orders usually require repeating a product exactly to the specifications of the original sample.  Maintaining consistent sizing, colors, patterns and quality is essential.

5.      Can you finance export orders?  The time between receiving an export purchase order and delivering it to your customer overseas (and then receiving payment) is considerably longer than domestic orders. Export orders can put a strain on your cash flow.  Be sure you have the financial reserves to buffer this strain or you have access to other financing.

6.      Do you have access to email on a daily basis?  Export buyers expect responses to their emails in 24-48 hours.  Email is the most common mode of communication for international buyers with phone, fax and Skype as secondary modes.

7.      Do you have staff members who speak international languages and can respond to buyers?  English is the most widely spoken language in international businessThe  language in your target export market would be an alternative.

8.      Do you have an export price list, export sales terms, and a product catalogue or product images?  Once you interest a customer in your company, the first thing they will request are prices and terms.  Having a price list, terms and catalogue ready will insure you can respond to them within 24-48 hours.

9.      Do you have an export license and a good understanding of export procedures and regulations?  There can be hidden costs and unexpected delays in the export process that you want to avoid.  Working with a freight-forwarder or export agent is often a good option for managing these risks.

10.  Do you have good packing and labeling materials?  Good packing materials are needed to prevent breakage during international shipping.  Labeling products with codes, country of origin, material content and other information relevant to the product category is required for importing into the destination country.  Your customer may also have custom packaging and labeling requests.

11.  Do you have a good understanding of global customer expectations and a solid knowledge of the "Universal Market Demands"? Do you have qualified sales and customer service staff? Communication, quality, delivery, design and price are the main concerns of global customers.  You and/or your staff must be able to keep customers happy and cultivate sales

12.  Do you have a budget for export marketing activities?  In rare cases your customer will come to you, but in most cases you must go find your customer.  Promotional materials, visits to buyers' offices and exhibiting at trade shows will help you to access buyers

13.  Do you have resources to invest in market research?  Time and a budget to do research on the internet, purchase trade publications, market reports and other references are needed to develop a good understanding of your target market, both in terms of products and marketing.

14.  Do you have the desire to sell for export?  Export marketing involves more risk and requirements than selling domestically; it also can hold more opportunity.  Good problem solving skills are essential, as are the energy and stamina to find solutions quickly and thoroughly.  Exporting is not easy; but for those who love challenges, it can be very rewarding.

If after reviewing this export readiness list you feel you are not quite ready for the export market, don't be discouraged! Use these questions as a guide to improve areas you are weak in, while you strengthen your local and regional markets.  You will find information on many of the points mentioned here in other areas of the ArtisanWork website.

While the global marketplace, and it's demands, may seem daunting, keep in mind it also holds great opportunities to increase your sales and - most importantly - develop long-term relationships with some very wonderful buyers.  Buyers are looking not only for a good product and excellent customer service; they are also looking for exceptional suppliers and partners with whom they can work with for years and years. They want to build relationships which allow them to solve problems together, collaborate on new product designs, tap into new markets, and increase sales for both your organization and their own businesses.