Understanding the key characteristics of a certain market requires a certain degree of primary and secondary research, much of which you could obtain for free online.
Primary research, such as product compliance standards, statistics, population figure, and other facts can be gathered without any cost from international organisations like United Nations and Word Trade Organizations. Through analysing export statistics over several years can help one determine whether a market for a certain product is shrinking or flourishing.
Secondary research such as studies, periodicals, surveys, and market reports could be found in government websites, commercial market intelligence firms, and international organisations.
Foreign Market Selection Process
Step #1: Gather Information on a Wide Range of Markets
The process of selecting a market requires a vast range of information, depending on the services or products to be exported. This includes the following:
* demand for the product or service,
* size of potential audience,
* whether target audience can afford the product or service,
* regulatory issues that impact the exports of products,
*proximity or the ease of access to this market,
* availability of appropriate distribution channels for the product or service,
* environment for doing business -- politics, culture, language, etc.,
* financial viability to export to chosen market.
Step #2: Research a Selection of Markets In-Depth
From the result of analysis from the initial stage, narrow your choices down to 3-5 markets, and conduct in-depth research associated specifically to your product. While doing this, consider the following questions that may arise:
* What products in the marketplace are similar to yours?
* What makes your product unique? What are the certain key selling points of your product?
* How do individuals obtain and/or use these products; and who provides them? Are these products imported? If yes, from which countries do they come from?
* Is there a local provider or manufacturer?
* Who would your main competitors be? What are their trade names or major brands?
* What is the size, shape, and structure of the market?
* How big are niche markets, if any?
* Who are the major stockists, importers, agencies, suppliers, or distributors?
* What are other methods of obtaining a representation or sales?
* What are the fees or prices in various parts of the market?
* What are the mark ups at various distribution levels?
* What are the import duties, regulations, taxes, professional registration, and compliance?
* How will your market or promote your service or product in the midst of tough competition?
* If your product branding -- imagery, colours, etc. acceptable with regards to culture?
* Have you found a reliable and experienced freight forwarder to export your products?
