A.
Commitment: Developing export markets can be costly in terms of time, money have the commitment required to make a success of export? Entering new markets and developing them usually takes considerable time and effort. You must take a long-term view. Consider how many resources and how long it takes to break into a new regional market in Australia. The time and cost can be multiplied several times when you are looking at an overseas market.
B.
Finance: Breaking into any new markets requites considerable funds (airfares, accommodation, advertising, sales promotion, new brochures, training of overseas sales agent, etc.). Does your company have the financial strength to commit say $ 30,000 or more for the year or two it may take to develop a new overseas market?
Discusses your plans with the international Department of your bank to ensure that all the financial aspects are covered and viable. Gain an understanding of international trade finance. Discuss costing-for-export with your accountant, and transport/packaging requirements with a customs agent or forwarding agent.
C.
Become familiar with common terms used in international trade. The Australian Trade Commission (AUSTRADE) and the major trading banks have reference booklets. The Australian Institute of Expert provides courses.
D.
Select one or two likely markets and undertake desk research to identify their characteristics. Most first-time exporters start with New Zeatand. Many are also interested in the USA, but that is an enormous and complex market.
In making a detailed market study the following should be considered:
·whether the country selected already imports the product (import statistics will show how much and from where)
·what import duties the product would attract
·other barriers to imports, such as import licensing
·frequency and cost of shipping or airfreight between Australia and the market
·regulations, such as quarantine and labeling standards, consumer protection rules, and product standards
·whether cultural differences need to be taken into account. 'Read economic and social literature on the target market to understand its fundamental characteristics.
E.
The desk research should have indicated the market with the most potential and you should now be in a good position to visit the target market. The main purpose of the visit will be to study its special characteristics, the opportunities/competition at first hand, seek a suitable agent or distributor, and jointly draw up an appropriate marketing plan to introduce and expand the sale of your product. These are all very important considerations, and more than one visit will probably be necessary. Choosing the right agent, for most Companies, is probably the single most important step. Do not rush this step.