Experienced exporters know by exporting their products into markets it achieves the potential of accelerated growth of the business into new overseas markets, rather than just serving the domestic market in Australia.
This also reduces your dependency on the domestic market by eliminating the dual risks of a downturn or from increased competition in the local Australian market.
Some other benefits of exporting include expanded sales and customer networks, exposure to new ideas, technology and global sourcing .The opportunity achieve greater economies of scale in the production or service delivery process.
By spreading your fixed costs over a greater volume of units sold when your production costs remain unchanged earns greater profitability $$$ to the bottom line. Export markets may often be used to sell excess production capacity or maximize the use of expensive capital equipment and or human resources.
Exposing staff to foreign customers, competitors and events such as trade shows is an excellent way to build knowledge of latest available technologies, and ideas that can be applied and leveraged to improve products, manufacturing processes and service delivery methods.
While there may be extra costs incurred in managing an export business, this is more than rewarded by increased profitability through a higher sales volume or the ability to achieve higher margins in some foreign markets when compared with Australian market.
To be a successful exporter, a business requires long-term plan with a result based commitment for achieving success.
By developing a thorough plan covering product research,marketing, and distribution and logistics requirements you have every chance of becoming a very successful exporter.
How to be successful, you need to learn about a wide range of issues, such as how foreign markets operate, different industrial relations policies and practices, and new tax provisions and labour regulations. You need to become familiar with the standard export documents, many of which vary depending on the product and destination.
Taking the time to understand the culture, language, business practices and regulatory environment of the country in which you’re looking to invest can be time well spent.Once you’re confident that your business can handle the financial challenges of exporting, the next step is to put together an export strategy .
Your Strategy should include
The country or countries that you will target, including the size of the market, the cities or regions you will be targeting, the demographics of your target market
• the market segment in each country that will buy your product or service, where they are located, how much they will pay
• your competitors in each country, including their strengths, weaknesses, distribution strategy, price point and customer service strategy
• your distribution strategy, covering how you will distribute your product or service, the delivery costs, how you will service your customers
• regulatory requirements, such as the government standards that you will need to adhere to, the licenses that you will need to apply for, the warranties and after-sales service that you will need to provide
• marketing and branding, whether your business name, brand or logo is suitable for the country you are targeting, any trademark or brand-mark