Priority when walking on tha global trade path 2017-10-10T23:22:59+00:00

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Priorities when walking on tha global trade path

    Have you ever think about why you choose to go internationally, to export, to set your market overseas? Before you have the global mindset, what should you consider as the top priority?

    I have listed the 4 priorities for you.

    1. Market Condition

    2. Market Demand

    3. Market Operational Requirements

    4. Market plan

    1. Market Condition

    Firstly, we should ask you the below questions to define is your product’s global market condition good enough to get you move a step forward?

    •  Is your product’s global market healthy and growing or is it undergoing a decline situation?
    • Does the global  market have some roadblocks? kind of like, huge tariff barriers or unsupported political policy.
    • Who is the biggest player in the market?
    • Where is the big competitors located?

    Be noted, set a long run vision to do the market condition analysis, you should look into 5, 10,15 years or even longer.

    2. Market Demand

    Never forget ultimately it is the customers you should serve. The sum of their demand is your market’s demand. What you are supposed to consider are:

    • Does the target market want cheaper products or want more personalized  and customized items?
    • Do they prefer extended payment terms, or discounts on prepayment?
    • Will them like a longer warranty with extra charge?
    • Do they prefer buy online or grab the product after experience it in bricks and mortar?

    Knowing the market demand, you have to know their point of purchase, which in turns become your point of sell. That’s resource you know how to sell successfully.

    3. Market Operational Requirements

    This is to say you need to have operational abilities such as reliable access to raw materials, parts and equipments.

    For instance, if you supply disposable foodservice products made from paperboard  and you got a huge contract with a customer and you have promised your customer an one time delivery, but you only have one or two paperboard suppliers, and they both had a whole year backlog. In this case, you will definitely get into trouble for your weak raw material source control.

    And you should be equipped with clearly defined technological requirements and knowledge to make sure your business move to success path.

    4. Market plan

    I’ve seen a lot of Chinese business owners plan to go international and anticipate the overseas exhibition. When they were asked by foreigners what’s their purpose on the show and their next plan, they said,“ you know, we are just here to see the market, maybe talk with some customers and know our opportunity.”

    With no disrespect, they were like birds flying with their head off, aimlessly. Without plan, you are probably waste your money on the exhibition.

    Let’s see what if you don’t have plan before going to a overseas exhibition(micro version of going to intentional market),

    • You may not have a organized want – to – display products list, which affect the show.
    • You will not be able to define what’s your target customer, retailers or distributors.
    • You will not know how to price your products? Should the price made for distributors or for retailers?

    You should know these two kinds of customers are totally different, if you don’t plan beforehand to decide which one you should pursue, you probably will see two sides who have interest in your products either fight in your booth or both will go and never come back.

    Let me get this clear, an overseas show should never be considered as a tool to just see your mark opportunity,you should do it on the market analysis phase listed as above points one and two. Right now it is top priority to make your detailed plan, let your customers know you are ready and prepared.

    Say “yes, I do” to your potential customers, and tell them now it’s their turn to say yes.

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