Choice of market and foreign buyer
Entering the market of a foreign buyer can have several reasons and advantages:
1. Expansion of the customer base: Attracting foreign buyers allows you to expand the sales market and reach new customers outside your own country. This can lead to increased sales and business growth.
2. Risk diversification: Working with foreign buyers helps to reduce dependence on one market or region. If the market in one country is experiencing problems or declining demand, having foreign customers can help a company mitigate losses and maintain stability.
3. Access to new technologies and knowledge: Working with foreign buyers can provide access to new technologies, processes or knowledge that can increase the company’s competitiveness. Foreign customers can keep abreast of the latest innovations and market demands, which will enable your company to improve products or services.
4. Increasing profits: Foreign buyers may be willing to pay more for your product or service, especially if you have a unique offering or quality that is not available in their market. This can lead to increased profits and improved financial performance of the company.
5. International brand development: Working with foreign buyers can help your company build an international brand and awareness. Success in foreign markets can help build reputation and attract new customers, both domestically and internationally.
However, before entering a foreign market, it is necessary to conduct thorough research, adapt products or services to the requirements of the target audience, and take into account the legal and cultural characteristics of the country in which you intend to work.
SEARCH FOR FOREIGN BUYER
Exporting and starting a business in a foreign market will require the enterprise to establish new contacts and select foreign buyers.
Ways to find a buyer:
– Participation in exhibition and fair events, business missions.
– Direct negotiations/negotiations on SKURE,
– Calls and mailings.
– Exporter’s website and its promotion in search engines. To enter the international market, the site must be translated into a foreign language. It is optimal to create several sites (for Russian-speaking buyers – on the RU domain, for foreign buyers – on the COM domain).
– Direct, contextual advertising. For example, placement in the electronic catalog of Russian manufacturers, as well as an advertising banner or text ad on a search engine website.
PRELIMINARY MARKET ANALYSIS PLAN
1. Studying the geographical location of the region in relation to other countries:
1.1 Which countries are closest to my region?
1.2. What are the limitations, unique advantages, transport and other export opportunities of my region?
1.3. Study of the interest of individual countries in economic cooperation with the Russian Federation (with a specific region of the Russian Federation).
1.4. Exploring a potential foreign market
– assessment of market capacity;
– assessment of competitors;
– study of the price of goods;
– study of linguistic, cultural and religious characteristics.
2. Target audience research: Determine the profile and preferences of foreign buyers in order to tailor your offer to their needs. Study their demographics, behavioral characteristics, cultural backgrounds, and preferences.
3. Competitive Analysis: Study the competitors in the foreign market, including their products, prices, marketing strategies and benefits. Determine how you can compete and how you differ from other players in the market.
4. Legal and Regulatory Research: Familiarize yourself with the laws and regulations in force in the foreign market. Review customs and import requirements, licensing, certification, and other regulations that may affect your business.
5. Financial analysis: Evaluate the financial aspects of entering a foreign market, including marketing costs, expansion of production, logistics and customs fees. Analyze potential returns, profitability and expected returns on investment.
6. Risks and Opportunities: Assess the potential risks and opportunities associated with entering a foreign market. Consider political stability, the economic situation, currency fluctuations, and other factors that may affect your business.
7. Cultural research: Study the cultural characteristics and customs of the target audience. Understanding local norms and values will help you tailor your communications, marketing materials, and sales strategies.
8. Product or service localization: Explore the possibility of adapting your product or service to local needs and preferences. Consider local standards for quality, packaging, size, language, and other considerations.
Conducting this research will help you make informed decisions and develop an effective strategy for successfully entering the foreign buyer market.