Interested in tapping the export market? From jewellery to electronics, demand for Indian-made products has been rising steadily. Countries around the world are looking to diversify their trade due to the threat of increased trade tariffs by the USA. Indian exporters are well placed to exploit the situation by becoming alternative suppliers to such countries. India’s competitive cost advantage in terms of cheap labour and production capability means that Indian exporters could soon supplement or even replace traditional suppliers in the world market.
Fending off competition from China, whose economy is currently showing signs of a slowdown, is expected to become easier as India is negotiating several Free Trade Agreements (FTAs) to gain access to foreign markets on a reciprocal basis.
The decision to set-up your own enterprise is only the first step. Let’s look at how you can successfully set up and develop your own trading business. Apart from you can for quick business finance to set up trading business with the help of financial institutions.
1. Identify the product
Online marketplaces such as Alibaba and IndiaMart offer exhaustive catalogues of millions of products. Browse through their curated product lists to identify the product with the most potential for export. Choose a product that you have a personal interest in as that will help you relate to the problems it is meant to solve. It will also help you position your brand as an alternative to established competitors in the market.
Once you have researched the market potential of your chosen product, it is time for you to analyse the competition and study their marketing strategy. This will help you get a clear understanding of what you need to do to differentiate your product and evolve its Unique Selling Proposition (USP) for the target audience.
Also, spend time on making the design of the product as distinct as possible. Research suggests that products with customised packaging sell more because of the novelty factor.
2. Build your supplier network
Once you have validated your product idea, the next step is to select a manufacturer who can produce it to your specifications. Quality, time and cost are the watchwords as you evaluate offers from different manufacturers to identify the perfect solution for your needs. This process may take longer than you expect, so you will need to be patient and open to negotiation.
Online marketplaces such as Alibaba and IndiaMart have listings of verified manufacturers from a number of countries that you can look through. Alternatively, you can even approach government agencies like the Export Promotion Council of India for assistance in approaching potential importers for your products overseas.
You can also consult them for information regarding export documentation and procedures. You may be eligible for subsidies as an exporter of select commodities.
3. Finance
A growing business needs capital. As overheads such as staff, office space, equipment, inventory and logistics increase, you will need finance to sustain a steady pace of operations. This applies equally to day-to-day working capital needs as well as long term growth plans, for example, adding new products to your range.
A business Loan for traders is specifically designed to provide liquidity for your needs. You can avail up to Rs.30 lakh at a competitive interest rate without pledging any collateral, making it an ideal source of finance for export trading houses. As an exporter, you will need to constantly look for opportunities to find new markets for your products. To do this, you may consider participating in road-shows and other marketing events abroad. In partnership with Indian diplomatic missions in other countries, you can create interest especially if you are a trader in Indian handicrafts, textiles, jewellery, herbal products, etc.
4. Connect with buyers
By leveraging online networking as well as export authorities, you will now need to identify import partners in the country of export. This will help you minimise risk and adhere to regulations that apply in the importer’s country, prepare invoices including documentation for shipping, storage and handling. Once signed, the contract becomes legally enforceable and the execution of the export order can begin.
