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International Market Research

What is market research?

Market research involves finding out about things you need to know such as import duties, regulations, distribution channels, market size and growth, competition, demographics and local production – so you can assess market opportunities and the costs of capturing them.

Gathering this information is usually straightforward and helps you understand how a market operates. The most valuable element of market research is information about ‘market feel’. How will your product or service compete in the environment where you will be doing business?

Where do I start?

The first step is to gather basic market information ranging from Import regulations to Exchange rates. This is available from free online sources. Then we will develop a short list of Internationals markets & Buyers and create a structured search outline.

The next step is to narrow the focus to our product and the process becomes much more specific. Then we will start to present our product samples to overseas buyers and get their reaction and will follow necessary action.

We suggest some more key points as follows:

• Choose the right country 

Market research should focus on two principle questions: where is demand strong and where is supply weak ? We suggest launching for export initiative in a single country and keeping things as focused as possible. However, if you want to tap into broader market, choose a region that shares a common language, similar cultures or is with closely-bound by trade agreements.

• Check the cost 

Aside from production and distribution costs, it is crucial to know how much capital it will take cover shipping, insurance, import duties, foreign taxes such as VAT (if payable) and of course overseas distribution and storage costs. With all these factors taken into account, does this still leave room for competitive pricing and a decent profit margin ? If not, you may need to rethink your target regions. 

• Know the market 

We suggest three main points that will sum up most of what we need to know about the market :

Conduct some basic consumer research and get an idea of our target market’s buying habits.

Know how new products are being marketed within the region and get an idea of how local prices compare.

Where would our product most likely be sold? In open-air markets, department stores, online, etc. ?

• Choose the right foreign local partner 

This is potentially the most important factor to take into consideration, and trust us, you will need a foreign local partner when you begin your foreign venture. It’s therefore vital that you choose the right one. Also make sure that they are both trustworthy and reliable, i.e: can they cover the right areas and handle your goods and products from the port all the way to the marketplace ?  

If you want to ensure successful international business, make sure you know your market!

You will need to collect and analyse all the information you need to make choices, assess the impact of the macro-economic environment on your business, conduct a competitor analysis in your target market, understand the socio-cultural differences and buying habits of consumers abroad, etc. So make sure you’re fully prepared with international market research.