Exporting is a significant activity that demands organizations to take into account several elements. Analyzing the location, rules and regulations, logistics, customer perspective, capital and resources, cost, and insurance of the firm should be included in exporting products from India. It can ensure the success of the export of goods and services businesses in India. Before exporting the product, it is essential to research the area and market situation. The top export-friendly nations are the United States, China, Germany, Japan, the United Kingdom, and Asian and Eastern nations. The USA imported the most goods in 2017; the import value was approximately $2.41 trillion. You will also be shocked to learn that exchanging goods brings in a sizable sum of money for the nations. Between 2004 and 2018, global exports totaled 20,834,690,355.83 US dollars. The government of India is also actively making efforts to create a substantial online presence to expand its reach to importers and exporters. Government portals like ICEGATE allow the customs department to empower importers and exporters by offering a wide range of services in one place. Indian Customs Electronic Gateway (ICEGATE) is the nationwide portal of Indian Customs of Central Board of Indirect Taxes and Customs (CBIC) that provides a multitude of e-filing services to cargo and trade carriers, importers, exporters and many other trading partners.
The thriving export ecosystem indicates that export businesses in India have great potential and prospects that would put them on a global map, grow their profits exponentially and transform India into a magnificent export hub. By keeping this in mind, exporters must plan effective strategies to strengthen their operations, leverage government initiatives, tools, and schemes, and ensure their export business success. If you are an exporter, you can do plenty of things to increase your profits and expand your business. Here are four essential steps for successful exports from India.
- Research your market
Market research is an inseparable part of the export business. Unlike resident companies that sell their products in the native markets within the national boundaries, export businesses need to study the market that isn’t familiar to them. There are different aspects of studying the market before you start selling. One of the first things to have is detailed insights into whether your foreign customers need your product. Engineering goods, Gems and jewellery, Organic and inorganic chemicals, Petroleum products, Drugs and pharmaceuticals, Electronic goods, Cotton yarn, fabrics, handloom products etc. are some of the top products exported from India
Another thing to know about the market is to identify whether you can yield the expected profits after selling the intended products. There’s no point undergoing all the hassle if you are not making your projected profits from your operations. Knowing your competitors is essential to see where you stand in the market. When the local markets do not have a sufficient supply of required high-quality goods, your business can fulfil the demand. The regional competitors in the overseas markets might react by boosting their operations, improving their product quality and investing more in marketing. These factors indicate that you have a substantial position in the market.
- Devise an export strategy and know your product
Having an export strategy in mind is the first step toward business success. The strategy will provide you with a roadmap to follow when you operate your export business. One of the major mistakes many exporters make is implementing one strategy across all the markets. It’s crucial to understand that every market is different, and you should have a dedicated export strategy for each market. Exporting is a long-term business; you must invest your resources in knowing different markets and optimizing your export strategy based on your research. Different elements are involved in an export strategy, and your product or service is the most crucial. These elements dictate how efficient and effective your export strategy is. Here are those elements.
An exporting strategy that doesn’t consider the product or service you plan to offer is incomplete. Every market has its own preferences, standards and regulations, and it would be a mistake to think that your products or services can be exported without any necessary modification or changes in your products or service. You must know these standards, regulations and preferences for the products or services you plan to export.
- Optimizing your e-filling operations
Most export businesses eventually fail when they do not set high operating standards. Each of your operations, from product designs to e-filing your taxes and compliances, is essential to your business. Therefore you must invest the necessary resources into optimizing your e-filling operations. The Government of India has taken substantial initiatives to support exporters and other trade partners by providing them with a platform to fulfil all their e-filling activities.
ICEGATE serves as a nationwide platform for the customs department’s stakeholders. The platform assists more than 12.5 lacs importers and exporters. It is also linked with more than 15 trade partners aligned with the Customer EDI, accelerating Customs clearances. Some of the major services offered by the platform are:
- Verification of the status of IE code
- Online IPR registration
- Customs EDI document tracking
- E-payments of Customs duties
- IGST refunds, etc.
- Effectively market your product
No matter how helpful and amazing your product is, it has to reach the front of your customers so that they can buy it. Unlike local businesses, export businesses have to deal with an overseas customer segment with which they are unfamiliar. In such cases, it’s challenging to devise a marketing strategy. Knowing your target audience is the first and most important step to effectively marketing your product in overseas markets. You have to study their characteristics, what problems they face and who are the current solution providers. Based on this research, you would know which characteristics you need to focus on, which aspect of your product helps your customer to solve their problem and what things you can do differently to stand apart from your competition. Incorporating these insights into your customized and highly targeted marketing campaigns will expand your reach exponentially and boost your sales.
Every successful export business once struggled with challenges, but with the right strategies and perseverance, they overcame obstacles and created a profitable export operation. Every exporter must look for opportunities to strengthen their business and boost their profits. Leveraging the benefits and services offered by the government is one of the ways to do that.
