Are You Exploring the Opportunities in Exporting? Consider This Simple Strategy.
c2004 by Dennis Hessler
The opportunities for the global trader have never been better. Rising standards of living and appreciation for U.S.-made products have combined to make U.S. exports among the most desirable in the world.
Surprisingly, I hear all too often from new traders who are NOT doing well. There's no reason for that--unless they're going about it the wrong way.
Here's a simple strategy that has worked for me and many of my clients.
First of all, make sure to develop a sharp focus for your products. Only rookies think they're going to market their product in every country right from the outset. Look for countries that are already importing healthy quantities of products similar to yours. If possible (especially if it's appropriate for your product) look for industrialized countries only because they seem to be a better market for U.S. exports, all other things being equal. Look for nations that are both politically and economically stable, but don't make this a deal-breaker. This condition is becoming harder and harder to meet in today's world. Finally, find a country whose language and customs are familiar to you.
Okay, what's next?
While it's true that it's always easiest to sell products in a country already buying those or similar products, try to stay away from the largest of these countries. The big nations can be more difficult places to market for a first-time trader. Save the big countries until you have more experience.
On the other hand, it takes the same amount of energy to sell to a big country as a very small country and the return in the big country can be much greater. Bearing in mind the peculiar challenge of trading with big countries and the inefficiencies of the small ones, you might do well to look for something in the middle, especially if you're a first-time trader. Remember, you can always expand later on when you have more experience.
Consider a strategy of "clustering" your target markets. This simply means targeting countries in the same area, such as Europe or South America. This allows you to economically consolidate visits and to have one regional manager or representative rather than many all over the world.
Some markets are more attractive right now than are others. Let's take a brief look at what I like to call "the good, the bad and the ugly." And here I'm talking about markets. I'll try to focus on the best ones and the worst in specific areas.
I'll start with the emerging markets because they represent the best opportunities for new traders seeking a foothold in up-and-coming nations. The top seven emerging markets are:
1. Singapore (market growth rate, low risk)2. Hong Kong (market intensity, market receptivity)
3. Portugal (low risk)
4. Israel (market intensity)
5. Greece (market growth, infrastructure)
6. China (market size, market growth)
7. Czech Republic (market intensity, infrastructure)
All these countries offer real opportunities for traders as long as you bear in mind the cautions I mentioned earlier.
In the emerging markets, stay away from Ukraine (too much divisiveness), Russia (the government is a mess), and Pakistan (military domination).
Dennis Hessler is an international trade consultant and publisher who runs his own home-based trade and information company, Spyglass Point Productions. You can learn more about Dennis' international trade information products, including how-to-books, videos, software, newsletter and consulting services by contacting him directly of visiting his website.
Spyglass Point Productions
PO Box 13141
Pensacola, FL 32591
Phone: 850-438-5527
http://www.spyglasspoint.com
Dennis@spyglasspoint.com
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