Why Market Research?

Market research is important for successful export planning. Global markets can change suddenly, and it is critical to review the demand for your products regularly. Regulations and ground conditions can also change in your target markets, therefore it is important to track them. Market research could help your business in formulating cost and time-efficient export plan.

How to Collect Information?

There are two types of market research, with different strengths and weaknesses: primary or secondary research.

Primary Market Research

Collect information by conducting an on-site visit to the target market.
Conduct interviews and surveys with potential business partners and potential buyers, either directly or via third party services.
Attend international trade exhibitions and/or business conferences

The main advantage of primary market research is that the result will be tailored to your businesses’ specific needs. However, this method could be time-consuming and upfront investment would be necessary.

Secondary Market Research

Use reliable online resources such as government websites to gather market information, destination country demographics and industry data.
Businesses can use sources of information, such as:
  • Chambers of Commerce and Trade or Investment Ministries at destination countries
  • Industry organizations or associations
  • Embassies of destination countries
  • International organizations
  • Private institutions, e.g. banks
Secondary market research can be done independently with little or no cost. The challenge is data inaccessibility, outdated information, and data reliability. Businesses can supplement this by conducting primary market research.

Steps to Conduct Market Research

Pre-Research Consideration

• Identify Business objective, i.e, Continious or Intermintent Export, short or long term business • List Down the necessary information
• Note: After the pre-research considerations, choose primary market research or secondary market and folow the step

Primary Market Research

Secondary Market Research

Identify Potential Consulting firm

Identify Information that You Need

• You may consider working with a consulting firm in the target market to conduct the primary market research
• Without a consulting firm, you may choose to conduct the primary research yourself(e.g. counduct on site visit etc.)
• The potential markets that you want to enter and when you want to enter
• The best routes to enter the markets
• The regulations to enter the markets and how to fulfill them
• How to position your products
• The comptitors and the added value that you have
• Possible challenges in accessing the markets
• Gather trade statistics on which countries import your products
• Identify 3-5 markets that you want to export to
• Examine publicly available market research reports on the target countries(if any), esp. on market openess, common trade practices, regulation on applicable standars.etc.
• Idetify the existing competitors and the added value of your product
• Counsult with the destination countries embassies or representatives
• Identify potential business partaners/buyers
• Examine the consumtion and production of similiar products, as well as demographic and economic trends in the destination countries
• Analyse the possible distribution chanels
Analyse the required licenses and applicable standars and how to meet these requirements
• Examine the degree of competition, with domestic industry and with other foreign suppliers, and how you can compete
• Analyse the possible distribution channels
• Identify the existing tariff and non-tariff barriers and how they affect the competitiveness of your products
• Determine whether the prices of your products are still competitive, by considering the following tariffs, sales commissions, and other costs.
• Prepare the necessary documentation
• Prepare the necessary licenses and standard requirements
• Determine the amount and types of products that you want to export
• Prepare a reasonable timeline (securing contract, determine payment method and terms, etc.)

Find Potential Markets

Asses/Review Target Market

Evaluation Competitiveness of your Product

Conclude Wheter you want Export the Target Country

Develop an Export Plan