When it comes to running a successful business, it is always easier to trade on your home turf. However, we cannot neglect how technology has made the world smaller. It has made it easier for businesses of all sizes to profit from the many advantages of international trade. Going global can enhance your business and offer the perfect pedestal to a world of opportunities.
If stats are what you are looking for, then let us tell you that export business from the country is only on the rise. India’s merchandise export in January 2022 was USD 34.06 billion, an increase of 23.69 over USD 27.54 billion in January 2021 and an increase of 31.75 over USD 25.85 billion in January 2020.
Today, we have greater reach and ability to find success for our businesses in the global marketplace than ever before. While several strategies must be considered and implemented, let’s first look into the advantages of foreign trade for your business.
One of the top and most lucrative benefits of international trade is that you may be able to increase your potential clients as your market share increases. Each country you add to the list can open up a new path to growth and increased revenue.
Your product and services may have to compete in a smaller, domestic market, but you may find that you have less competition in other countries.
One of the significant advantages of global trade is market diversification. Focusing only on the domestic market may expose you to increased risk from economic downturns, political factors, environmental events and other risks. It’s as simple as not putting all your eggs in one basket. Not being dependent on a single market may help you mitigate potential risks in your core market.
- Access to export funding:
Another advantage of exploring international trade is that you may be able to leverage export financing.
Doing business in other countries can boost your company’s reputation. Successes in one country can influence adjacent countries, raising your company’s profile in your market niche. It can also help increase your company’s credibility overseas and in the domestic market.
These are just some of the many benefits of international trading. Exposure to the world’s realities outside your home base may even help upgrade your current offerings. It helps open up ideas through the feedback and experiences we gain from outside the boundaries of our own country.
If you wish to expand your business in the overseas market, below are some strategies you can implement before you dip your toe in the unknown.
Confused? Hear us out! If you were launching a new product or service for the domestic market, would you skip the prototype and go for the most elaborate version of your product? No! You would start with a minimum viable product. You would streamline your process and test market a simple version of your brainchild. Likewise, you don’t have to begin your global expansion with an elaborate offering in the first go, whether you are marketing a product or service.
Starting out with the primary product with help gauge reception in foreign markets. You will be able to determine whether your offering will succeed. You can set the right price and get valuable feedback by thinking small.
- Go global while sitting in the domestic market:
When you go global, it is crucial to understand your new market, culture, customs and language. This may make it hard to market. However, you can easily take time to reach out to immigrant communities to get an insight into practical strategies for launching your offering in foreign markets. This way, you are beginning your cultural education before you invest money in a different country and open your home-grown business up to a host of new clients.
As an entrepreneur, you must realise that you don’t have to figure out everything yourself. There is a globe full of wise, experienced people, and partnering with folks who know their stuff is essential.
Starting a company in foreign markets is a daunting task in terms of legalities, language and culture. Finding a partner in the new foreign market of your choice can be a fantastic way to explore global expansion.
These strategies are a great way to boost your way into the global marketplace, but it can still be an intimidating experience to step into the unknown. This is where EXPORA walks in.
We are here to simplify and grow global trade by building a network of global hubs to enhance international trade with a tech-first approach. We are here to solve global trade challenges through our in-house platforms. With a focus on four categories: Agro & Food, Gems & Jewellery, Fashion & Textiles and Personal Care & Beauty, EXPORA has got you covered with a system that alleviates trust deficit in the global ecosystem through our EOR (Exporter On Record) and IOR (Importer On Record) services.
Reach out to us at contact@expora.in for more information on our services and how we will set you up with all you need to succeed in the global market.
