Updated at: 05.02.2023
For people looking to grow their own businesses and expand, should consider starting an export-import business. But picking the right market to focus on can be a really difficult task if you do not know what to consider. The demand for your products, the level of competition, the expense of logistics and shipping, and regional laws are just a few of the factors that affect how successful your export business is going to be. So, one should definitely select markets for exports, what is best suitable for this business, and product selection.
FREE Export-Import business course includes the following lessons:
- How to start as a direct exporter/importer
- How to start as a commission agent
- The best way to approach selling & finding customers
- The biggest mistake beginners are doing
- Guidelines to help you decide your next steps & taking action
In this blog post, we’ll walk you through the procedure and steps of choosing the best markets for your export business. By the time you finish reading this post, you’ll know what to consider, when choosing export markets for your own export-import business. You will know, how to conduct market research to find potential customers, and how to evaluate and choose the best export markets for your business.
In case you are just starting your export business, then read also export import business ideas.
The Importance Of Market Selection For Exporters
The overall success of your export business depends strongly on the products and markets you have chosen for your export-import business.
The right market can give you a steady stream of customers and orders, a competitive advantage, and the chance to expand your business. If you pick the right market, you’ll be able to take advantage of an increasing customer base, good exchange rates, and a positive business climate. You’ll be able to concentrate on creating and marketing your products, improving your business’s operations, and growing it as a result.
On the other hand, picking the wrong market can lead to low sales, higher expenses, legal difficulties, and in worse cases serious losses or even bankruptcy. Picking the incorrect market can present a number of difficulties. For instance, you might discover that there is little demand for your goods, there is fierce competition, or there are unfavorable regulations for you. This may make it challenging to expand your export- business and sell your products, which could ultimately result in lower profits and a smaller market share and it can be hard to find buyers for your export business.
As a result, it’s crucial to take your time when choosing suitable markets for your export business. You’ll increase your chances of success and avoid costly errors by doing this. We’ll look at the important factors you should take into account when choosing export markets in the following section.
Purpose of this post: To provide a comprehensive guide for market selection
This blog post’s main goal is to give you a comprehensive understanding of market selection for export business. We want to help you choose the best markets for your export business by giving you practical advice, best practices, and strategies. We want to equip you with the knowledge and abilities you need to thrive in the export-import business, which is also the main goal of our website and our export-import business training programs.
This guide will give you the knowledge you need to choose markets wisely, whether you’re an experienced exporter or just getting started, no matter as a direct merchant or as a commission agent. In the end, You can master the market selection process, and expand your export-import business. So let’s get going!
II. Factors to Consider When Selecting Export Markets
Market Demand For Your Products
Market demand is one of the most important factors to consider when selecting markets for your export business. You need to ensure that there’s enough demand for your products in the market you’re targeting. If there’s low demand for your products, it will be difficult to sell your products and grow your business.
To assess market demand, you can start by conducting market research. You can use a variety of tools, such as online surveys, customer interviews, and market reports, to gather data about the demand for your products in potential markets. You can also use market intelligence tools, such as Google Trends and SimilarWeb, to see how much traffic related websites are receiving.
Another way to assess market demand is to look at the sales of similar products in the target market. For example, if you’re selling organic food products, you can research the sales of organic food products in the target market. This will give you a good idea of the demand for your products in that market.
It’s important to note that market demand can vary significantly from one market to another. For example, a product that is popular in one market may not be in demand in another market. Therefore, it’s important to conduct thorough research and gather as much information as possible to assess market demand before selecting a market.
Competition In The Target Market
When choosing markets for your export business, one of the most crucial factors to take into account is market demand for your products. You must make sure that the market you are targeting has sufficient demand for your products. It will be challenging to sell your products and expand your business if there is little demand for them.
You can start by conducting market research to gauge market demand. To learn more about the interest in your products in potential markets, you can use a range of tools, including market research reports, customer interviews, and online surveys. You can also try to find out how much traffic related websites are receiving, you can also use market intelligence tools like Google Trends and SimilarWeb.
Examining the sales of closely related products in the target market is another way to gauge market demand. If you’re selling organic food products, for instance, you can look into how well they’re selling in your intended market. This will help you determine how well your products are in demand in that market.
It’s important to remember that consumer demand can vary greatly between markets. A product that is in high demand in one market might not be in demand in another. Therefore, before choosing a market, it’s crucial to carry out in-depth research and gather as much data as you can to gauge market demand.
Legal And Regulatory Requirements
It’s important to take into account all potential legal or regulatory requirements when choosing markets for your export business and specific products. To legally run your business, you must abide by the laws and regulations that apply in the various nations and regions.
Verify the legal and regulatory requirements that apply to your industry and products before entering a new market. Regulations governing labeling, packaging, product safety, and other issues may fall under this category.
The tax laws and trade agreements that are relevant to the target market must also be taken into account. In addition to being a part of regional trade agreements, some nations may have specific tax laws that apply to foreign companies and may have an effect on your business operations as well or affect your competitiveness at a particular marker.
To make sure you fully comprehend the requirements that apply to your business in the target market, you may want to consult with legal and regulatory experts. This can assist you in avoiding costly errors and ensuring the efficient and legal operation of your business.
In conclusion, it’s crucial to thoroughly investigate and comprehend these requirements before entering a new market because the legal and regulatory requirements in the target market can have a significant impact on your export business.
Logistics And Shipping Costs
Another crucial aspect to take into account when choosing markets for your export business is logistics and shipping costs. The profitability of your export business can be significantly impacted by these expenses, so it’s critical to comprehend them and pick markets with advantageous logistics and shipping conditions. Main factor affecting the logistics costs for your export business is the location and the distance.
You can start by looking into the available shipping options and their prices in order to gauge the logistics and shipping costs in a target market. This may include freight that is transported by air, sea, or road, each of which may have a range of prices and transit times.
The target market’s connectivity and infrastructure should also be taken into account. For instance, some markets might have effective ports and well-developed transportation networks that can help lower shipping costs and speed up delivery.
Additionally, you need to research the taxes and fees in the target market that are applicable to your products. The cost of your exports may be significantly impacted by the high tariffs or import taxes imposed by some nations.
When choosing markets, you can optimize the efficiency and cost-effectiveness of your export business by taking logistics and shipping costs into account. By doing this, you can increase your company’s competitiveness in the target market and maximize your profits.
Related reading: Export import procedures and documentation
Cultural Differences And Local Market Trends
It’s important to take cultural differences and regional market trends into account when choosing markets for your export business. These elements may have a big impact on your export business and may limit your chances of market success.
Consumer preferences, corporate policies, and communication methods are just a few examples of how cultural differences can affect your business. For instance, certain cultures might have distinct preferences for the kinds of goods or services you provide or distinct standards for customer service.
Trends in the local market may also affect your company. For instance, while some markets might be expanding quickly, others might be having economic difficulties. You can choose the markets to target and how to position your business in those markets by understanding the local market trends first.
You can start by conducting market research, speaking with local experts, and joining industry associations to learn about cultural differences and regional market trends. To learn more about the state and trends of the market, you can also look at government reports and economic data. We also recommend having a visits to the country first and inspecting the situation directly.
In conclusion, it’s critical to take cultural nuances and regional market trends into account when deciding which markets to export to. These aspects can have a big impact on your export business. You can make sure that your company is well-positioned to succeed in the target market by doing this.
III. Research Methods for Identifying Potential Export Markets
You should conduct in-depth research to learn as much as you can about the potential target markets of your export business, in order to determine which are the best for you. You can use a variety of research techniques, such as networking, primary research, and secondary research.For next we will explain each of these to you.
Secondary Research Using Market Reports and Data
The process of gathering information through secondary research is using published sources like market reports, official statistics, and trade association reports. This kind of research offers useful details about market conditions, consumer preferences, and other crucial factors, making it a great place to start when identifying potential export markets for your export business an products.
For example, you can use secondary research to learn more about the size and rate of expansion of potential target markets, as well as trends and patterns in consumer spending. Additionally, you can use secondary research to discover the costs associated with shipping and logistics when exporting to various markets, as well as the legal and regulatory requirements in those nations.
One great resource we are suggesting for exporters and imports is a Export Potential Map. Using this platforms you can get a first rough idea and directions of where your potential target markets could be, so you can start digging deepers these potential export markets for your products.
Below. just to give you an example, we have searched the potential export markets for the Turkish companies, regarding eggs. The result can be seen below. As seen, the best export markets would be middle east countries on the first hand.
If you would like to learn more about Turkiye export and import products, then read how to start export import business in or with Turkey.
Primary Research Through Customer Surveys and Market Visits
Direct information gathering from customers and other related parties, such as suppliers, subject-matter experts, and trade associations, is known as primary research. For a deeper understanding of the target market and the preferences and needs of the target customer there, this kind of research is very helpful. This kind of research is used to get detailed information from the target market about your target customers and customer segments.
For example, you can carry out customer surveys to learn more about the demand for your products in various potential markets, as well as the competition and other crucial factors there. You can also travel to your target countries yourself, to meet with potential clients, suppliers, and other parties.
Networking With Industry Experts and Trade Organizations
As it enables you to connect with industry experts, trade associations, and other stakeholders who can provide helpful insights and information about target markets and customers, the networking is an important research technique for exporters.
For instance, you can interact with other exporters and learn about the most recent market trends and best practices by participating in online forums, attending trade shows and conferences, joining trade organizations, and using social media. You can better understand the target market, the opportunities and difficulties associated with exporting to that market, by networking with industry experts.
In conclusion, you can use the research techniques listed here to find potential export markets for your company. You can gather the data you need to decide which markets to target and how to position your business and products in those markets by combining secondary research, primary research, and networking all together.
IV. Strategies for Evaluating and Selecting Export Markets
Developing Market Selection Criteria For Export markets
As a first step in evaluating and selecting export markets is to develop a clear set of criteria to guide your decision-making process. This may include factors such as market demand for your products, competition in the target market, legal and regulatory requirements, logistics and shipping costs, and cultural differences and local market trends. By defining your criteria upfront, you can help ensure that you are making informed decisions based on a consistent set of standards.
Using a Weighted Decision Matrix to Assess Potential Export Markets
Following the establishment of your criteria, the following step entails using a weighted decision matrix to assess potential markets. Using this tool, you can rate each potential market according to how well it meets your criteria and then give each criterion a weight based on its relative importance to your export business. Based on your requirements and objectives, you can use this information to determine the markets that present the highest probability of success for your business.
Prioritizing And Selecting The Best Markets For Your Exports
When choosing the Best Markets for Your products and business and Setting Priorities, The last step is to prioritize and pick the best markets for your exports after having a clear understanding of your criteria and the potential of various markets. This might entail weighing the advantages and disadvantages of various markets as well as your company’s objectives, resources, and constraints. In the end, you want to choose the markets that fit your overall business strategy and offer the best balance of opportunity and risk. This can be done together with a SWOT analysis of your export-import business.
You can make sure that your export sales is going to be successful and that you are able to grow your business in the right direction by utilizing these strategies and taking a structured approach to market selection.
V. Actionable Tips for Successfully Entering New Export Markets
Build a Network And Contacts In Export Markets
Having a large network of contacts in potential target market can be very advantageous for exporters. This network can help to speed up the process of gaining a foothold in the market and getting insightful information about regional market trends and customer preferences. By participating in target markets business events, attending trade shows, and contacting local chambers of commerce and industry associations, exporters can all expand their network.
Adapting Your Product Offering to Local Market Needs
In order to succeed in a new market, it is important to understand local customer preferences and tailor your product offering accordingly. This may involve making modifications to your product or packaging, or offering different product configurations or sizes. Exporters should also research local competitors and look for opportunities to differentiate their products and stand out in the market.
Build a Strong Brand For Your Export Markets
Success in a new export market requires a strong brand image. Exporters should concentrate on increasing brand recognition by utilizing marketing and advertising tactics, such as fortifying their online presence, spending money on search engine optimization, and utilizing social media platforms. Additionally, they should pursue chances to exhibit their goods and services at regional trade shows and exhibitions and take part in regional PR and influencer outreach initiatives.
Creating a Comprehensive Sales and Marketing Strategy
Exporters need to create a thorough export marketing and sales plan that focus on regional market trends and customer preferences. This strategy should incorporate a thorough plan for connecting with potential clients and building relationships. This strategy should help you find buyers and get orders abroad. If you are just starting out your export business, then you should create a complete export-import business plan, not only the sales and marketing plan.
VI. Conclusion About Market Selection
Summary of Key Takeaways
- Importance of market selection for exporters
- Research methods for identifying potential export markets
- Strategies for evaluating and selecting the best markets
- Actionable tips for successfully entering new export markets
Some Final Thoughts on Mastering Market Selection for Exporters.
Market selection is a critical step in the success of any export business. By taking the time to research, evaluate, and choose the right markets, you can increase your chances of success and achieve long-term growth for your business and avoiding possible mistake and losses.
Start Researching And Selecting Your Export Markers!
We hope this guide has provided you with valuable insights and actionable tips for selecting the best markets for your expor business and products. It’s time to put what you’ve learned into action. Start by developing a market selection criteria, collection the information from export markets and then evaluating potential markets, and prioritizing the best options for your business considering also your export-import business strengths and weaknesses . Good luck on your export journey!
If you want to learn how to start your own export-import business, then we have online courses and programs which will give you the instructions to start an international business either as an agent or direct merchant – from scratch.
We have also tools and resources for exporters/importers which help you to grow and expand your business and get more customers and raise profitability.
You are advised to take courses and use the resources and tools listed below:
- Export/import agency business course (start as an agent from scratch)
- Sales mastery online course ( to unlock your sales potential)
- Export-import business courses and programs
- Most popular online exim course: “Zero to first deal“
- Resources and action plan for exporters/importers, online sellers.