Whilst many online platforms have made it easier than ever to connect with overseas buyers and sell globally, there’s a clear difference between those champion export businesses and those making a few sales.
I recently met senior directors at business (X) and business (Y). Business (X), already sells into 20 different markets around the world, which sounds fantastic. Business (Y) only export to 5 countries, yet generate 5 times the revenue of the aforementioned. How’s that so? Business (Y) had a STRATEGY!
Business (X) May sell into 20 different markets, but merely as a result of reactive sales and establishment of mediocre distributors who showed strong interest in their goods over the internet. Do they have a strong understanding of each market place? Probably not. Did the excitement of these quick sales lead them to act quick with a short term view? Most definitely.
On the other-hand, Business (Y) had a clear plan and direction. Business (Y) researched each market first to identify the biggest opportunities and challenges. They identified and analysed potential trade partners that they wanted to work with and had a clear criteria to appoint one that complimented their long term plans. This has helped them really tap into existing distribution channels which in turn has driven revenue. Acting rationally with their eyes on the bigger prize.
Whilst it may seem great to get your products ‘Out There’ with a scatter gram approach, it would be far more beneficial to invest in a targeted strategy and reap the long term rewards!
Whilst I’m not against business (X) for making the reactive sales (after all revenue is revenue), but if you truly want to establish a long term sustainable export business, become a (Y) business: know your markets and create a long term plan.