Discover the power of Networking for your export business and sales growth!
Introduction:
Are you ready to take your business to the next level and expand your reach on a global scale?
Then it's time to consider implementing an export networking strategy.
By building relationships and partnerships with international businesses, you can increase your export sales and grow your business in ways you never thought possible.
But why is an export networking strategy so important?
Well, it helps you to identify new markets and opportunities for growth.
By connecting with different people in different regions, you can learn about local customs, regulations, and consumer preferences.
By connecting with different stake holders in export business like bankers, Government officials, logisticians, etc, you can run a hassle-free export business.
This knowledge is invaluable when it comes to selling your products to the international markets.
Another benefit of an export networking strategy is that it can help you build trust and credibility with potential customers.
By partnering with reputable businesses in different parts of the world, you can demonstrate that your company is trustworthy and reliable.
This can be particularly important for any export businesses, as it can help overcome any scepticism or doubts that potential customers may have.
This blog helps you to Key Elements of Export Networking Strategy
Are you in our Exports Growth Secret Community? If not, Join using the link below:
Key Elements of Export Networking Strategy:
Expanding into international markets can be an exciting opportunity for businesses to grow and reach a wider audience.
However, building an effective export networking strategy is crucial for success in these markets.
Let's dive deeper into the key elements of export networking strategy:
Identifying Export Markets:
Regular customers are key to any business growth. Importers once found a suitable exporter, unlikely to change their suppliers. So, Exporters can supply on a regular basis and be quite happy with their business.
In current situation, Exporters must regularly find new importers to have a sustainable business. Majority of the exporters have the challenge in finding genuine importers or generating quality export inquiries.
The first step in building an effective export networking strategy is to identify potential export markets. Businesses should conduct thorough research to identify the most promising markets based on export trend.
Export trend:
Usually, Exporters tend to look for importers from “anywhere”. This leads to spam or inquiries that do not convert into orders.
Understanding the export trend helps the exporter to spot the opportunities, overcome the competitions, grow your business.
There are 3 factors important in the Export trend to lay a strong marketing to generate quality export inquiries throughout the year.
3 factors in Exports trend:
The 3 factors that are to be considered in the export trend as follows:
Countries exporting our products:
International market has the inflow of same products from different countries. This provides the end user to get wide range of products.
As an exporter understanding this, helps in pitching in accordingly. The products characteristics vary depending upon the country’s ability to produce that product.
For example: Rice is produced by India, Pakistan, Thailand, Vietnam, USA.
Each origin has its unique varieties with season and costing.
Trade map (trademap.org) is the tool that helps to understand this:
Countries importing our products:
Export business offers a vast opportunity of supplying to more markets. It’s important to know the different countries importing the products.
These importing countries are also called as the import markets. There are different types of market conditions such as saturated, unsaturated, tapped, and untapped markets.
Ex: Rice importing countries in the world
Saturated markets:
These are the countries import quite a lot from a particular country. Exporters tend to think that these are the markets to be targeted. But the actual challenge is that there will be a good flow of inquiries, but the conversion will not be there.
These markets are good for the companies with huge cash flows with the ability to create brands and own presence in the importing country.
Ex: China and U.A.E are saturated markets for rice imports with negative growth in both annual growth in value & quantity.
Unsaturated markets:
These are the countries that import regularly from a particular country, but the market is not overcrowded with the supplies. It may be the second option for the exporters but once the order is materialised, these buyers are more likely to stay with the exporter.
These markets are good for growing exporters as you can find additional buyers in the same markets.
Ex: Saudi Arabia and U.S.A are the unsaturated markets for rice in the world imports with positive figure. The average growth in value is higher than the average growth in quantity over last five years.
Tapped markets:
These are the countries that provide favourable conditions for the import from a particular country. The exporters will have enough information on doing business with that country.
The custom regulations, market dynamics, business culture, and buyers’ expectations are well known. These markets are easy to access for the exporters. These markets are good for the budding exporters as you require to prepare yourself on various aspects of the export business.
Export Potential map (https://exportpotential.intracen.org/) helps in understanding the tapped and untapped markets
Untapped markets:
These are the countries where exporters are not focusing but it provides a good opportunity. Exporters focusing these markets are called as early adopters. They are well experienced in exporting and risk taking in nature. These markets are like unexplored gold mines.
It would be hard initially to crack the code of exporting to these markets. Once done, these markets pay good profits to the exporters. Though we are in 21st century, there are so many markets unexplored for Indian exports.
Ex: Each market with untapped export potential can be checked by placing cursor over the country.
Unsaturated & tapped markets:
If you are new to exports and focusing on products like eco-friendly, vegan, organic, ethnic, the markets which are unsaturated but tapped provides the good export opportunity.
Building Relationships with Export Partners:
Once you have a list of countries based on the above research, it's time to focus on building relationships with export partners. This is a crucial step in the process, as it can make all the difference when it comes to navigating the challenges of international trade.
So, how do you build relationships with potential export partners?
Here are some tips to get you started:
Identify potential partners:
Exporting is a complex and multifaceted process that involves many different individuals and entities. To achieve success in your export business, you'll need to work with a variety of partners and stakeholders throughout the entire export business cycle.
First and foremost, you'll need to have a strong suppliers or team of employees (if you are a manufacturer) who are knowledgeable and experienced in supplying product as per international market standards.
You next set of networks is with international trade regulations bodies (such as Exports Promotion Councils, Inspection agencies, credit agencies), logistics (freight forwarders, customs brokers, and insurance companies), and importers.
These people will become your team for helping you in every aspect of the export process, from procurement, negotiating contracts, arranging shipping, and ensuring payment & timely delivery to manage risk and ensure compliance with legal and regulatory requirements.
In addition to these internal and external partners, successful exporting also depends on building strong relationships with a range of other stakeholders, including foreign distributors, government officials, industry associations, and trade organizations.
These relationships will help you gain valuable market intelligence, identify new opportunities, and establish a solid reputation in the global marketplace.
There are different ways to find your importers. But the marketing process doesn’t stop with finding the buyers. There is a buyer’s journey to convert a stranger into your buyer.
The marketing expense should be spread across from finding till converting the prospects into your buyers.
The best way to optimise your expenditure is by utilising the technology. There are so many tools to find the companies database.
But it would be overwhelming to test every tool and focus on the export business at the same time.
So, We, at Consult Kriba has tested many tools and selected top 6 tools that you can use to build your buyers database for free. We spent enough testing each tool for different products. You may find one or the other tool useful for your product if not every tool.
You can help handholding support for your Export Business through our Reverse Sourcing Method Program. You can find more details here: Reverse Sourcing Method Program.
By working closely with a diverse group of individuals and organizations, you can create a strong, resilient, and profitable export business that can thrive in today's global economy.
Establish communication channels:
Once you have identified potential partners, it's important to establish a way to communicate with them. There are several communication channels that you can use to connect with partners and customers around the world.
This could be through social media, email, phone, or video conferencing. Make sure you have a clear message about your purpose, products and what you can offer.
Here are some of the most common communication channels used in international business:
Social media: Social media platforms like LinkedIn, Instagram, Facebook are important communication channels for companies in international business. You can use social media to build your network, share information about their products and services, and engage with partners and customers around the world.
Email: Email is a widely used communication channel in international business because it's fast, convenient, and cost-effective. You can use email to send messages, proposals, and documents to partners and customers around the world.
Phone: Despite the prevalence of digital communication, the phone is still an important communication channel in international business. Companies can use phone calls to discuss complex issues, negotiate deals, and build personal relationships with partners and customers.
Video conferencing: Video conferencing is becoming increasingly popular in international business as it allows participants to communicate in real-time, regardless of their location. You can use video conferencing to conduct virtual meetings, e-factory visits, and product demos.
Instant messaging: Instant messaging apps like WhatsApp and WeChat are commonly used in international business to quickly exchange information and communicate with partners and customers. These apps also provide a platform for building personal relationships with partners.
Postal mail and courier services: Although slower than digital communication channels, postal mail and courier services are still used in international business for sending physical documents, samples, and products.
Overall, the choice of communication channel will depend on factors such as the nature of the business, the location of partners and customers, and the level of complexity involved in the communication.
By choosing the right communication channels, you can build strong relationships with partners and customers around the world to achieve your business goals.
If you are looking for an effective business communication strategy across the above channels, Reverse Sourcing Method helps you to build your network faster, better, and cheaper.
Build personal relationships:
When it comes to international trade, personal relationships are key.
Building effective business relationships internationally requires understanding and adapting to cultural differences and communication styles.
Here are some tips to help you build successful business relationships across borders:
Do your research:
Before you start doing business with someone from a different culture, learn about their customs, traditions, and business practices. This will help you avoid any cultural misunderstanding and show that you respect their way of doing things.
Communicate clearly:
Use simple language, avoid idioms and slang, and be patient when communicating with people who speak a different language. Also, pay attention to nonverbal cues such as body language and tone of voice, as they can differ across cultures.
Build trust:
Trust is the foundation of any successful business relationship. Be honest, transparent, and consistent in your dealings with your network. Show that you are willing to go the extra mile to ensure the mutual win-win.
Be patient:
Building international business relationships takes time. Don't expect immediate results and be willing to invest the necessary time and resources to develop a successful partnership.
Be adaptable:
Be willing to adapt your communication style, business practices, and even your products to meet the needs of your international partners. This will show that you are committed to their success and willing to work together to achieve common goals.
Network:
Attend trade shows, conferences, and other events to meet potential international partners whenever possible. Join local business associations and chambers of commerce events to expand your network and gain valuable insights into the local business environment.
By following these tips, you can build effective business relationships internationally, overcome cultural barriers, language differences and increase your chances of success in the global marketplace.
Follow-ups:
Don't let your relationship with your export partners fizzle out after the initial contact. Stay in touch and continue to build the relationship over time.
Effective follow-ups are crucial in maintaining positive relationships with stakeholders, partners, and networks in the exports business, whether they are local or international.
Here are some tips on how to do effective follow-ups:
Have a clear objective:
Before making any follow-up, have a clear objective in mind. This could be to check on the progress of a quotation, request an update on a shipment, or schedule a meeting with Government officials.
Having a clear objective will help you stay focused during the follow-up and ensure that you achieve your goal.
Personalize your approach:
When following up with stakeholders, partners, or networks, avoid using generic messages or templates. Instead, personalize your approach by addressing them by name and referring to specific details from your previous interactions.
This will show that you are focused on track with the conversation, serious about the relationship.
Use the right communication channel:
Choose the right communication channel for your follow-up, depending on the urgency and nature of your message. Email is usually the most common way to follow up, but other channels such as phone calls, video calls, or social media can be more appropriate in certain situations.
Be sure to get prior permission to contact through your partner’s preferred communication channel.
Be timely:
Time is of the essence when it comes to follow-ups. Make sure to follow up promptly through the proper communication channel and concise message. However, avoid being too pushy or aggressive in your follow-up, as this can damage the relationship.
Give enough time and space for the other party to respond.
Provide value:
Make sure that your follow-up provides value to the recipient. This could be sharing relevant industry news, offering solutions to a problem, or providing updates on your own products. Providing value will keep the relationship positive and help establish you as a valuable partner.
Follow up consistently:
Consistent follow-ups are essential for maintaining positive relationships. Set a schedule for follow-ups and stick to it. This will ensure that you are staying top of mind and will help you avoid dropping the ball on any important matters.
By following these tips, you can ensure that your follow-ups are effective, professional, and help strengthen your relationships with stakeholders, partners, and networks in the exports business.
Conclusion:
So, how do you go about building an effective export networking strategy?
Here are a few key elements to keep in mind:
Research and identify potential partners: Before you start reaching out to businesses, take the time to research and identify potential partners that align with your business goals and values. This could involve attending industry events or trade shows, joining relevant networking groups, or leveraging online resources such as LinkedIn.
Develop a clear value proposition: When approaching potential partners, it's important to have a clear value proposition that outlines what you can offer and why you're a good fit for their business. This could include information about your products, your experience in the industry, or your track record of success.
Build relationships: Once you've identified potential partners and developed your value proposition, it's time to start building relationships. This could involve setting up meetings or calls to get to know each other better, sharing relevant resources or information, or collaborating on a project or initiative.
Establish trust and credibility: As you build relationships with potential partners, focus on establishing trust and credibility. This could involve providing references to common interest or case studies that demonstrate your expertise and reliability or sharing testimonials from satisfied customers.
Monitor and evaluate your progress: Finally, it's important to monitor and evaluate your progress as you build your export networking strategy. Keep track of your goals and metrics and be willing to adjust your approach as needed to ensure that you're making progress towards your objectives.
So, what are you waiting for?
You can effectively start building your export networking strategy today and take your business to the next level using Reverse Sourcing Method!
With the right approach and mindset, you can connect with businesses around the world, identify new opportunities for growth, and establish yourself as a trusted and reliable partner in the global marketplace.
