Once you have a good idea for your export business, you should decide which overseas market you are going to enter. Here are some factors you need to take into consideration during the decision-making process.
Firstly, you need to determine the market condition; therefore, you will ask yourself some questions below, because each country might offer a unique advantage versus another:
- Who will buy your product, and why?
- What is the size of the market?
- Who is your competition?
- How new is the product to the market you have selected?
- Are there growth opportunities in the market?
Secondly, you need to understand how will culture influences affect how your product or service. A simple solution for this issue would be to export to cultures that are similar to your own locale.
Thirdly, you should think about the size of the potential market in terms of population and the amount of money people have to spend (GDP per capita purchasing power) – Can consumers afford your product?
Lastly, relationships rule the world and you’ll be cultivating lots of them through the course of managing your business. Thus, you must do your homework in order to choose the right market for your business.
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