Apart from all documentation, consents and marketing, the base of your export trade is the product itself. If you have a wonderful product that global buyers are eager to buy, everything else generally comes under place. What and how to export from India, thus, is the most difficult and important question you will have to answer when on your path to turning into an exporter.
As significant as it is to find what you can export, it is only as imperative to understand what you can’t export. The government of India possesses a list of products you can’t export from India as they are banned or restricted. Rather than these products, it is quite up to you to select what to export. At random, selecting a product and attempting to sell it globally is not a good business plan. Same, even if a product may evoke your entrepreneurial-exporter vibe, it may not be in demand overseas—which can be a setback for your business.
Factors to Consider While Selecting the Right Product to Export
Here are a few factors to help you select your export product without any hassle:
Look for Unique Products Made in India
What are the different products that India is recognized for? What about your state, and what are its top exported products? Who imports these products? Get answers to all the basic queries you can consider. Find out the past trends and layouts of the country’s exports, in addition to your state. You can get most of these details in public databases introduced by the DGFT and the Ministry of Commerce. By assessing India’s trade data, you will get a concept of what we sell effectively and which of our products have a good reputation globally.
Check Product’s Demand and Supply in International Market
Possibilities are that you earlier have some particular products in mind when you choose to begin exporting. You should know further information regarding the product and its supply chain, for example, how it is made, what are its raw material sources, who its manufacturers are, what its attributes are if it is recurrent, how much is its market demand, if this specific demand can be fulfilled by you, how can it be marketed, if assurances and substitutes can be provided in its place, etc. The queries you require to ask will differ from product to product. One of the most essential things to see is how much requirement is there for the product if you can conform to this demand and in how much time.
Choose a Country with Stable Product Demand
You should make sure that the product has a feasible demand wherever you want to deliver it to. Know the proper export market in particular geographies in which the demand occurs. For instance, exporting tea products from India to a place where coffee is chosen may attain defined success. You must know about the economy and political condition of your target market because these factors may impact the growth and continuity of your business.
Consider Growth Outlook
Assessing the growth outlook of your business is significant. You might be exporting a product to a specific location currently, but will there be any demand in the future? Is it feasible that the importing country may start producing your product at the domestic level? Will your product approach toa big client base in the country? Declining sales can be harmful to your export business, so you should make sure that your business is extensible in the future.
Product Profitability
As a business owner, you should select products that have the prospect of being economically rewarding. You must check the exact financial source of the product and assure that your target customer is eager to pay a fair price for it. A good thought will also be to verify how the product has been managed over the years. Know if it is inclined to seasonal or recurring trends. Make a prediction of all expenditures associated with the product, for example, product price, taxes, logistics, and estimate your profitability next to the sale price.
Trade Rules
Each market is different when we talk about compliances and trade rules. You must be well attentive to the regulations of your product’s target country. Check if the target country includes a trend of limiting the same products previously or imposing heavy duties and taxes on their import. You also need to know about the country’s trade links with India.
Market Competition
Unless your product is one of its kind, there is an increased possibility that you would go through tough competition from industries that are already involved in exporting the same products within your landscape. In this condition, you should show your product as special and diverse from your competitors. Your product USP can be of adequate quality, lesser price, more useful after-sale service, or a mix of these and different factors.
Once you have verified the product you want to export, you must enlist the markets you can deliver it to, along with discover many incentives and advantages you can get by trading that product.
Conclusion
Exports play an important role in growing the profits of a country. Indian exports have risen over the years, which has increased financial growth to a certain extent. So, by understanding how to export from India and choosing the right product to export, you will be able to earn huge profits in terms of foreign currency.
