Start Exporting?

• Why export?
  • Growth: The internal market can soon appear to be too small. Exporting allows you to increase your customer base, and to exploit your production capacities more efficiently.  Leading to bigger turnover and higher benefits.
  • Risk spreading: Obtain more stability and continuity for your company by being present in different markets. A drop in demand in Vietnam can be absorbed by the demand of external markets.
  • Specialization and innovation: Through export you can focus on just a few products and thus maximize your knowledge and means. Through export you also stay in touch with the latest market trends, and thus always remain a step ahead of competition.
  • Visibility: The vision and efforts you put into international growth can attract the interest of investors and analysts. International presence can also make you a more attractive place to work, helping you find the best personnel.
• Are you ready to export?
  You should evaluate the following in your decision making process
  • Financial support: Exporting requires investments in people, resources, time and energy. Make sure your company has the necessary financial reserves.
  • Engagement: Exporting does not only concern the export manager, but has an impact on the whole company (stock, expedition, marketing, production…). It is very important that whole management team is engaged on mid and long term goals, and the whole staff is motivated to join the journey.
  • Flexibility: Going international requires your staff to be open for new cultures, languages, regulations… make sure your internal organization is prepared to adapt, has the correct structure and communication tools.
  • Competitiveness: Contacting new customers, learning new local requirements. Make sure to fully take advantage of those, to increase the competitiveness of your company.
  • Experience: Sometimes the advice is given to start exporting to neighboring countries to start gaining experience. It’s easier to go discuss and solve possible problems to those first customers. When distances are bigger, more flexibility (time, money, language…) is required from you.
• How to start exporting?
  To reduce the time between the decision to start exporting and actually shipping the first goods, a thorough preparation is key. The export plan with clear goals and well described and defined plan is the base. You also need to make sure exporting is a clear objective in your company strategy and the goals are in line with the other goals of your company.

An export plan consists of 5 phases:

1. 1. Analysis: make a SWOT analysis of your company, both in the internal market as abroad, and define how you will act on those factors.
   2. Positioning: Position your company versus your competitors, and find answers to :
      • Who are my main competitors?
      • What are their products and brands?
      • What is their pricing strategy? What is the main price?
      • What distribution channels do they use?
      • What are their delivery terms?
      • Do they offer added value services?
      • What has my product to offer, what are the unique propositions and characteristics I can offer?
   3. Market approach: decide what channels to use to market your product or service abroad
   4. Budgeting: ensure detailed a long term budget plan aligned with the goals and needs.
   5. Planning: define a step by step plan, mentioning the milestones. Depending on your product or service, and if your organization already has experience with exporting, the implementation of an export plan may take a few years.

• Is your product / service ready to export?

You will be facing different challenges in your export journey, so make sure you have thought about following points.

• • Do you have enough production capacity? Nothing is worse than to have new customers waiting for your products.  If you don’t have the capacity, limit yourself to smaller contracts or markets
  • Are you able to adapt to local needs? Know the preferences of the local customers regarding your product, color, shape, regulations,.. Too much diversification might increase your production costs though, so make sure to maintain a balance between standard and bespoke products.
  • Differentiate yourself! Local products and services can be preferred in your target market, so make sure you stand out in price, quality, design, added services, etc..
  • Limit the after sales service if possible, because that may be hard to provide in other countries. If necessary, it might be interesting to have the service provided locally, so customers feel they have a better service and care.
  • Take local conditions into account, like geographical, climatological, ecological, legal, economical, technological, demographical or cultural factors.
  • Protect your intellectual property! Obtaining patents or licenses is easier and cheaper in your home market.  Be sure to maintain and protect your intellectual property!