Preliminary Desk Research
Now that you have considered that there may be opportunities outside the home market, the next step is to start identifying and quantifying them.
Overseas travel is expensive, so you should do as much preliminary work as possible from the home base - i.e. desk research. Consider what types of information would help in forming a preliminary view of where to concentrate your efforts.
You may think that the whole world is your oyster but, in reality, comprehensive desk research will normally narrow your interest to a manageable number of markets where other knowledge (e.g. home market experience) suggests that you have the best chance of success.
In practice, the oyster typically consists of the UK, the EU or the USA. Most Irish exports go to these markets. In 2002 approximately 24% of Irish exports went to the UK, 17% to the USA and 40% to all EU countries. As a beginner, it will probably make sense to start your export effort in these traditional markets, as they tend to present less difficulties and risks.
Furthermore, don't tackle the whole German market, or the whole UK market, but rather a segment or segments of it. You need to find the right niche.
Avoid countries which are politically unstable or where there is a considerable risk that you will not be paid. Look for regular transport and shipping links and remember that distance increases the cost and time of almost every facet of exporting. Favour markets where business is conducted in a language you understand. It is a big advantage to be able to talk to customers in their own language.
Choosing a Market
This should be approached in two stages:
- Shortlist two or three markets where your product is likely to find acceptance
- Compare shortlisted markets to see which offers greatest potential
You may need data on any of the following, depending on the nature of your product(s).
- Recent import statistics
- Size of local market for your products
- Local economic data
- Competitors' products and prices
- Local labelling and packaging regulations
- Lists of agents, importers and distributors
- Import licence and quota regulations and administration
- Foreign exchange controls
- Tariffs (and any other non-tariff barriers not covered above)
Desk Research Sources
Much information about export markets can be gathered from sources such as:
- Internal sources
- Your own files
- Company records
- Institutional sources
- Libraries
- International organisations (e.g. UN/OECD Trade Statistics)
- Government Departments/agencies (Irish / Foreign)
- Chambers of Commerce, both foreign and domestic
- The European Commission
- Trade associations, e.g. The Irish Exporters Association
- Research institutions (e.g. Minitel & EIU)
- Banks
- Consumer organisations
- Embassies
- Documentary sources
- Bibliographic
- Directories and yearbooks
- Trade statistics
- Newspapers and journals
- General reference books
The Enterprise Ireland library is the largest reservoir of export trade information in Ireland and is linked by computer to databanks overseas. It contains market statistics and major research which, aided by Enterprise Ireland staff, can indicate the saleability of new product in Amsterdam or Bahrain, identify potential outlets, outline special regulations and offer an analysis of the competition.
Field Research
At some point it may then be necessary to conduct field research within the potential market country.
Desk research can often answer general questions such as how much? Or how many? However, field research is often necessary to answer more specific questions like what kind? What size? What colour? What flavour?
Field research can be expensive, so it should be reserved for the markets that offer the best prospects for your product.
Take some samples with you, talk to potential customers, and listen to informed advice on changes which would make your product more acceptable. Look around retail outlets. A visit to a trade fair devoted to your product area is one of the best ways to size up competition and assess the export potential.
Enterprise Ireland, through its network of overseas offices, is well positioned to carry out detailed research work on your behalf. Overseas staff briefed by Development Advisers in Dublin will report back directly from the marketplace on prospects for your product.
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