#Exportability: Know your target markets’ trends and characteristics
Picking up from where we left off in the previous article – once production capacity is ensured, it is now time for market research.
Market research is important in determining the success and sustainability of an export business.
The main aims of market research are to identify market opportunities and constraints abroad, as well as to identify prospective buyers.
Identifying market trends ensures higher market penetration
Knowing the market trends of potential export locations allow businesses to plan and strategize ahead with higher opportunities of gaining consumers’ interest.
As stated in the previous article of this series, the demand for a specific product varies amongst various markets.
Hence, be sure to study the current demands in a potential foreign market prior to establishing an export business to that particular market.
Other than guaranteeing a sustainable business, identifying current market trends also promises customer satisfaction as their demands are being achieved – the higher the customer satisfaction, the higher the number of returning customers.
Besides the above, getting in-depth knowledge on market trends enables companies to identify other important variables such as:
- Market size
- Tariff and non-tariff barriers
- Distribution channels and market structures
- Competition/Competitor’s performance
- Demographics and market segmentation
- Consumer preference and purchasing behavior
All of which, are important elements in stabilizing and sustaining an export business.
However, the accumulation of the data above is not enough. All that’s there are figures.
Picture source: www.informationbuilders.com
In order to transform those figures into something meaningful, it must be analyzed and interpreted into something actionable.
More details on Big Data Analysis (BDA), click here.
For more tips and tricks on market analysis, please visit Malaysia External Trade Development Corporation’s (MATRADE) website.
In the next series of this article, we will be focusing on the importance of acquiring a Certificate of Origin.
Till then, stay tuned!