Analyzing different ways to enter into export market

When you mark some potentially lucrative export market and decide that it’s worth giving a try. You need to make a very important decision, which is to decide on what exporting method are you going to use, in order to make inroads into that market? This decision is crucial for many reasons. For example, you are short on resources. Exporting needs substantial funds and expertise that differs from market to market. Or maybe you have got the resources but you are not ready to risk them all on this new endeavor. Another reason could be the size of your business that doesn’t allow you to start direct exports. It’s better to play safe when you are new at something. That is why you can choose one of these methods to start with. Once you gain the experience and confidence, you can change the nature of export later.

Hire an exporting agent:
First choice is to hire an agent to represent you in that market. A good export agent will bring many advantages, the most important being the previous experience of operating in that particular market. Selling or marketing your products through some agent is a lot easier. You can obtain the much-needed presence in that market without having the need of spending big amounts on setting up an office. All you need to do is to choose a seasoned sales agent, who has got the experience and the staff to get the job done for you.

Form Partnership:
Going into partnership (also called export consortium) is another option available for you. Partnership means more resources and more experience. Your partner may well be having a better know-how of the targeted market. It also helps in meeting large orders in due time.

Apart from these two commonly used indirect exporting methods, other alternates are exporting through trading companies, licensing or franchising. Note that when going into partnership or hiring an agent, it is still advisable to personally visit the country, at least once.

Direct Export:
If you have the time and resources and you are ready to take the risk, you can go for the real trade, where you’d be at the helm of affairs for almost everything, from launching your product in the market to marketing, from distribution to collection. Selling directly to the end users needs a lot of efforts but at the same time, it is the most profitable venture among all the methods discussed above.