The global market is becoming far more accessible to SMEs and a growing number are looking towards international sales to boost their growth. But with so many markets to choose from, how do you know which one is right for your product or service? These are seven of the questions you should be asking to get an indication of a market’s opportunities and challenges.
Will you expand to one market or many?
While you might pick a country to export to, it’ important that you understand there are typically many markets within a single nation. If you’re exporting to the US or China, for example, regions can have very different needs, populations, and interests.
How has the market grown and changed over the years?
Research is key when it comes to picking out an export market. You need to spend some time looking at how the market has changed over at least the last decade and what’s driving the changes. Growing affluence is a key growth driver in some counties, for example, would your business fit into this? Remember to look at credible projections to.
Is your product or service filling a gap?
Whatever you’re exporting, you need to make sure that there is demand for your business in the market. If there’s a clear gap in the market that you know you can fill, it can give you a head start on generating profit.
Will you need to change your sales approach?
Different regions have different cultures, which can affect the way business is conducted. Your sales approach will need to take this into account and you’ll need to understand if your business will hold up to a different way of working. Depending on where you’re exporting, your marketing strategy could need a complete overhaul to better reflect the local culture too.
Will you work with local businesses?
Local businesses can help you lower costs and open doors for accessing the market. If your exporting model means you’ll be working with local business, assess what challenges this may bring, for example, language barriers, time difference, or differing payment terms.
Who will your competitors be?
Before you launch into any market, competitor research should be undertaken. If there’s already an established business within your area of expertise, it’s clearly going to be more difficult to earn the trust of both consumers and businesses. Competitor research can also help you identify your USP in the new market too.
Are there any tariffs or controls on your product or service?
Political and geopolitical factors have a huge impact on business. Don’t jump into a market without first looking at any existing tariffs or controls that the government is imposing, issues that are being debated, and potential risks.