Selection of Product in Export Business
- An entrepreneur should select the right product can be give a path of success in business. Selection of product can be made a various factor.
- Many people are ready to do export business, but they have a question about how to select the right product for export.
Importance of Product Selection
- Selectivity of product is key to success in the international business. Exporter have to select right product & proper market in order to operate at international level.
- Exporter has to consider various factor while selecting a product.
- Exporter have a select a product which is approved by government. And, product will be permittable by government.
- Ex: If I choose a product like Medicine & Drugs. So, I will not get a permission for export. But I think I want to export Fruits & Vegetable, Decorative Items, Spices, Handicraft, Scrapes Etc. These types of products get an easily permission.
How to find right product for export.
- Exporter has to examine the foreign market through research.
- Identify market opportunities & verify which product is need by those countries.
- Understand buyer requirement & persona.
- How can I solve problem of my buyer from product.
- Verifying the numbers/amount related to product like Purchasing cost, Sell Margine, Transportation & logistics, damages etc.
Future demand in Export product
- Petroleum Product
- Pearls Precius & Semi precious Stone
- Drugs formulation & biologicals
- Gold & other precious metal jewellery
- Iron Steel Organic Chemical
- Motor Vehicles/ Car
- Electric Machinery & Equipment
- Foods & Spices
- Building Materials
- Clothes & Fabrics
SWOT Analysis for product selection
SWOT analysis is the useful method for summarize any of the information.
SWOT Stand
S-Strength
W-Weakness
O-Opportunity
T-Threat
- It is an indicate the future opportunity or threat may exist in market.
- Strength & Weakness is an internal factors & opportunity & threats is an external factor.
SWOT Analysis for product Selection
Important factor for select the right product for export
- Delivery at a time
- Pricing of the product
- Packaging of the product
- Promotion of product through which medium. EX: Online/Offline Mode
- Identify competition in selected product
- Identify competition is selected market
- Be clear about reason for exporting
- Identify profit & margins of the product
- Easily available of products
- Easily Transportations of product
- Identify selected product is it in budgets
- Risk of product like Ex: Perishable Product
- Understand document of product
Investment in Export
- There is a big myth starting an export business. We need high amount of capital. But majorly it is not a right.
- In many cases, we need a minimum capital or zero investment.
- Export can start easily with minimum amount of capital. Ex: 2 lakhs to 10 lakhs.
- We can export the product where (Like USA) the prices are high & We got a high margin of product.
- EX: In USA, Rice price is $20, We can supply $15 & our cost will $10. So, we got a $5 profit easily without any hesitation.
Export can start with zero investment
- Here First, we have to complete documentation process. Then without investment we can start export business.
- Because buyer give an advance payment. So, here is a not need an additional funds.
Man power & Other resources
- Export business is successful. When we used right resources at right time.
- Understand man power & other resources. Because it can be helpful for to use of manpower & other resources.
Sourcing of the product
- Sourcing of the product is a critical process of procuring product to sell.
- It is important to providing high quality product at an affordable price with a timely delivery of the product.
- Every exporter is looking for a reputable supplier.
- Business cannot run on sourcing product, but it needs a high quality, good-value product, best product experience.
- Without selling a best product, we don’t get any business.
Availability & Feasibility of Product
- The exporter has to check that the product is easily available in the market. It may be available in higher quality and quantity.
• Transportation of the product may be readily available or possible. With the exporter having the check, he is able to deliver the goods to the foreign buyer as per the agreed delivery time schedule.
Production & Packaging in Export Standard
- A single product can capture the whole markets or Countries. But the same product will not work in another countries.
- Because the cultural factor, taste level, methods of using product, Cost of the product, Physical Conditions of product, preferences, Standard of product etc.
Packaging in Export
- Cerates, Pallets, Drums, Wooden Box, Eco-Friendly & Bundles, Corrugated Box.
- Packaging can be used as per product.
Small Budgets product for export
- India is export to all over the world. But initially we have selected only those countries, Where India is exporting all ready.
- Like USA, UK, UAE, Iran, Russia, Saudi-Arabia Etc.
- Above, all countries who are dealing in every product with India. Like Food Product, Engineering Goods, Construction Material, Jewellery & Textile Products Etc.
- We have to select those countries where already business is established by India.
List of products which can be export in small budgets.
- Toys
- Furniture’s
- Home Décor / Handicraft
- Garments
- Spices
- Fruits & Vegetables
- Carboard & Packaging Items
- Organic Foods
- Meat
- Pulses
- Cosmetic Product
- Electric & Electronics Product
- Stationary Items
- Mans & Women wares accessories
- Plastic & Paper Product
Start Export in Small Budget
- Export is a very profitable venture & any one can start export from India.
- Procedure of exporting product is very easy from India to abroad country.
- Government of India is Supporting to exporter & Export Sector.
- Government is launches various bonus & incentives scheme for exporters.
- When we receive an order from abroad, the buyer has to make advance payment. Therefore, we do not have to invest our money here.