Business, Thought, and Management Articles --- Advice of Export
To export and sell products overseas will contribute significantly to business growth and increase sales as well as to earn foreign currency simply. We can see the movement of domestic by looking at the world market. Here we feature about the challenges and strategies of export business.
To export and sell products overseas will contribute significantly to business growth and increase sales as well as to earn foreign currency simply. We can see the movement of domestic by looking at the world market. Here we feature about the challenges and strategies of export business.
It seems to say in today's progressed and globalized world, the business to see only the domestic market will be behind the times already. In fact, a lot of attractive markets will be found if you pointing your eyes abroad.
When sales come peaked If you are relying on only domestic sales, business growth will also stop.
However, it is possible to increase sales by adding export thereto.
You can improve utilization rate by improving plant production as sales increased, thereby reduce the cost due to economies of scale.
If you can establish the position as an international brand, it will also be useful for improving the brand image in the country.
There is a number of effects on the growth by the export.
Exports is the more attractive, but can we start exporting our products easily and immediately?
There seems to be various difficult points.
Not only issues about logistics procedures and legal processes, but also business practices of each country can be also barriers.
It is also important to make strategy to sales, quality assurance and marketing.
Not a few cases exporters face with trouble they have not even thought of in domestic sales.
Know-how, markting, and planning is required in order to challenge and succeed in the export businesses.
Japan used to be said as an export nation, there are many companies that has expertise in export.
And many books are published explaining about exports.
Information collecting will also be easier by the Internet, marketing of overseas markets are no longer as difficult as before.
It may be said that a favorable condition for starting the export business are aligned.
Not a few people think "Now is not good timing to export". But, yes. It is a good timing.
Some may say, "Our nation's products are too expensive".
It may be so, but if the products are with high quality and confidence, many people want to buy them even they are expensive.
However, there are also risks to export.
You may suffer unexpected legal troubles such as patent law at the forein countries.
Competition with rival companies will also violently, and excessive increase of export may cause political issues such as trade frictions.
To become a reference for people looking to export from now, here we feature about the challenges and strategies of export businesses.
Production Volume Expansion for Export
There are a variety of attractiveness and benefits in export businesses. Benefits that can be expected in the first by export is the expansion of production volume. It enables to improve product competitiveness, to the purchase cost by expanding the production.
Improvement of Brand Image
By making the export, the corporate brand image will improve. It is not only the fact that the company exports produces such evaluation, image of people are changing slowly over time.
Improvement of Competitiveness
By the challenge to export, a variety of changes will occur within the company. By the market competition abroad, new know-how are obtained, stamina and competitiveness of the company also have improved.
First Step of Globalization for Company
Exports, can be positioned to be the first step that companies take to globalization. There is a risk that the company depends on the state of one forever, and continuesto work in only one economic region.
Excavation of New Idea
Through the export, the view points of the company increases. It allows company to excavate new ideas by checking rivals, trends, and consumers characteristics in the world.
Tariffs and Barriers of Countries
Country determines a variety of economic policies in response to the situation. For any countries politicians will proceed to free trade when economy is good. On the other hand, protectionists increase under the worse economic situations.
Claim and Quality Issues
The products which had exported could be a claim in the local market. The products may be causing quality problems, it may have to dispose all the products in transit and in stock. Quality issues and claims can have a significant damage to the company.
Business Customs and Trade Friction
Exporting products to foreign countries places a variety of political and social influences. You will be met with anger from many places if you export without considering local business customs. Exporting products makes a serious trade friction in some cases.
Intellectual Property
When you export the goods, you need to keep in mind a lot about intellectual property rights and the handling relating to products exported to the local country. It may occur unexpected troubles when you neglect the intellectual property rights.
Market Competition
Products are exported to foreign countries, are exposed to market competition in overseas. We have to overcome the competition.
Export Procedures
To export, you need to make export documents after having signed a sales contract with the buyer of the destination country. You should know the documents to be submitted and conditions for export approval in advance if you are to export.
Sales in Local
Brand image and sales of products for export will vary greatly depending on by who, and how the products are sold in local. How to manage the sales in the export destination is very important in advancing the export business.
Local Production
Logistics costs to export. Price of exported products are largely determined by the distribution costs. In addition, exports can cause trade friction. If the government of the country were inclined to trade protectionism, export will get stuck whereupon.
Full Utilization of Information
As the spread of Internet, information from foreign countries can be obtained more and more easily. Also for export business, it is important to utilize fully the information.
Ingenuity of Logistics
Since many vendors are entangled in the export, logistics tend to be complex. As transportation cost and margin expenses are piled up, the end-users prices will be considerably much expensive.
