What
Kind of Information Should Be Collected?
It is important that the exporter knows the exports
market before starting any export business. The
exporter should know in advance, the distribution
channel, the market segment, the governing regulations
and the price at which his goods can be sold in
the new market. This information will be useful
for him when drawing up his own marketing plan and
negotiating with the importer.
He has to develop his own strategy to match his
products to the local needs and preferences of
consumers. There is only a slim chance that his
product will fit the target market without some
modification. He may have to change the size,
color, specification, etc. in order to meet the
consumers' preference and the rules and regulations
concerning the distribution of the product. Therefore,
it is ideal that the exporter should know the
following points about the target market before
he commences on his export business :
- Local production figures
- Export by destination & Import by country
of origin
- Market size in terms of value and quantity
- Profile of local major manufacturers
- Distribution channel and mark-up at each of
the distribution channel
- Competitive situation among local products
and imported brand: Evaluation of products by
consumers, retailers, wholesalers and importers
in terms of price, quality and design
- Import systems and related rules including
special certification and necessary documetation.
It is advisable for the exporter to be aware
of his responsibilities concerning import rules
well advance. When doing business under such
trade terms as DEQ: DELIVERY EX QUAY and DDP:
DELIVERY DUTY PAID, the exporter has to obtain
at his own risk and expense an import license
and other authorisation. He also has to carry
out all customs formalities for the importation
of the goods, therefore, it is a must for the
exporter to check the rules concerned beforehand.
- Local rules and regulations related to the
marketing of the intended product for sale:
- It would benefit the exporter if he knew earlier,
whether time consuming and elaborate modification
and testing and labeling of his product to meet
the local rules and regulations are necessary.
How can market information
be collected?
For those who do not have any financial or origanisational
capability to engage marketing companies to conduct
the research, there are some other ways to know
more about the target market. Listed below are
some ways to find information on overseas markets:
- Visit MATRADE Business Library which is open
to the public. It provides customs tariff schedules,
company directories, trade statistics etc.
- Collect catalogues of the products, magazines
and newspapers concerning the products which
he intends to sell through his business associates.
- Participate in overseas trade fairs and exhibitions
or trade mission sponsored by MATRADE. The participants
may have a chance to associate with people related
to the business concerned.
- Visit trade promotional organizations or commercial
sections of foreign embassies stationed in Malaysia.
- Visit trade asociations in Malaysia, or even
target country if this is feasible.
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