What to keep in mind before you start exporting!
Just as logistics and deliveries went through dramatic changes in recent years, innovation has also helped to boost international shipping. Although the disruption in international maritime transport was not as powerful from an operational point of view, the technology behind the distribution processes is constantly evolving.
The access to such detailed information allowed to personalize the offer and reach the consumer in several ways.
The keys to success
What should a Small and Medium organization take into consideration before starting to export? To find the most recommended mechanism in each case, experts recommend making a market research and defining which channel and strategy foreign competitors use to sell to this market. If it is possible to continue the same path, it becomes a more interesting route for your business.
Logistics is one of the main points of the value chain in an internationalization process, as well as knowing each step in detail is essential so that failures do not happen that would end up causing troubles to the customer. This way, organizations that provide international consulting services emphasize that logistics and customs are essential aspects that the organization must take into account in advance, to implement its positioning strategy in a new market.
When starting to export at an initial stage, Small and Medium organization often choose to give the of transportation responsibility their partner in the country of destination. Some argue that we should never attribute it to the partner, as knowing and supporting this process is another commercial tool that generates trust.
Among the benefits of such delegations, it's worth to note that normally a distributor already knows its customers, has their trust and also facilitates the administrative issues. On the other hand, the main disadvantage of this option is that there is no access to consumer data, since they are final customers of the local organization.
It is essential for companies to be fully aware of the implications of incoterms: rules of international trade that determine the responsibilities and rights assumed by each party in international transportation process.
Experts agree that ignorance is one of the greatest risks that a company faces when defining the objective of entering an external market. Therefore, it is necessary to take into account from the technical part of foreign trade to cultural adaptation, and not only in the product.
Adapted from: Jesús de Las Casas, Madrid, in the newspaper Expansión y Empleo.
Read more information about:
- Prevent failure outside small and medium organizations;
- What mistakes to avoid when selling abroad.