Yesterday (2014.03.25) the Catalan newspaper ARA published the following article: Exporting companies alert the opportunities to grow outside are getting scarce.
Exports continue to be key to the economic recovery of Spain, but in 2013 its growth was inferior than in 2012, when it represented 2,5% of the national GDP, and the forecast for 2014 are not very encouraging. This are the words of Manel Xifra, chairman of Amec (Multisectoral Association of Companies).
Amec estimates that only six out of ten of their member companies forecast to improve the export figures respect the previous year. One of the main reasons for this tendency is the growing and aggressive outside competition which has rapidly increasing after 2009 and 2010.
All this said, Xifra believes there’s still a lot of room for improvement in the Asian market, where exports represent a mere 6% of the total. 57% of the exports stay in Europe, while Latin America is the second destination with an 11,8% of the sales.
Therefore, Asia and specifically China stay as some of the most interesting markets to explore and with the highest potential for companies with and exporting vision. But it is important to read between lines, and take into account, as the article say, that competition is fierce and opportunities are few, but not due to a lack of interest. It is just the offer and demand fluctuation.
That is why, before exporting we need to tackle certain aspects and take certain steps:
- Is our product interesting for the targeted market?
- Is there a similar product in place or competitors?
- Within the market, which is our niche?
- Which costs do we need to expect for the first steps and how will that effect the price of our product?
- What strategy do I need to follow in order to market our product?
All these questions and others that might arise all have an answer, but it makes it obvious that being ready, having good knowledge of the market and of our possibilities is necessary to export. Therefore, it will be very recommendable to do a market research and establish a business plan to assess whether the process is feasible, if changes in the product are needed or in its approach to a certain market, or whether we need to postpone the idea. Exporting might mean a giant step towards the development or you company, but exporting for the sake of exporting without a plan or forecast can also take you to the right opposite.
If you would like to export your product and you have asked yourself some of these questions, or on the other hand you realized you don’t have the answers after Reading this article, don’t hesitate to contact us so we can advise you as effectively and in a personalized manner as you deserve.