The exports business as you know, is a type of business which requires persistence and a bit of smart work. If done right, can yield some lucrative results that can be compounded over the time.
The business involves quite a lot of researching about several markets as well as taking swift action when and if required to have a gain in the business. Therefore, opportunities analysis plays a crucial factor in the import-export industry to drive sales and profits your way. Majorly, SMEs and MSMEs contribute to the exports of India.
There certainly are challenges of exporters in the industry and that’s what this guide will get rid of – ways to tackle challenges faced by B2B exports.
Any business’s most crucial factors are revenue and customer/client retention. An import-export business pretty much excels in that by properly catering to the right audience and providing them with quality-oriented products. If that’s the case, why won’t existing customers deal with you for several transactions!
Judging by the massive surge in the past couple of years, a business in the said industry and be assured that the trade industry is not going anywhere and is definitely here to stay. As long as countries require commodities to fulfill their product needs, import-export will continue to cater them. It basically is an exchange of goods among countries due to the inability to produce or manufacture them in their home country. Fortunately, India is a highly dynamic resourceful country which contributes a major chunk in the worldwide exports across several industries.
Considering the demanding nature of several goods and evergrowing Indian exports, doors are wide open for Indian businesses to go global and cater to the international markets which ultimately calls for profits for years to come.
Fun Fact: The Indian government is aiming for $10 trillion trade by 2035 and has several initiatives in place to achieve the same.
Factors to consider for Profitable Exports
What to export and where to export? This question should be considered and researched upon very rigorously from the exporters looking forward to entering the international markets and gaining profitable exports in countries like India.
This is due to the fact that the product and market which you will choose to export to will decide the fate of success in the international or even domestic trade for that matter.
So, how to identify the right market and product? This is where market research comes into the play. Here many crucial aspects are looked at to initiate exports and ultimately get profitable business from exporting. The factors to consider in market research in order to export are:-
- Analyse target market – The target market is the one for which the exports products are meant for. Identifying such a market is pretty crucial to get the best results from the exports business. Here, several factors are to be considered such as the demand of the product, the importers’ preferences and most importantly the rules & regulations of the country exporting goods to.
- Product Quality check – Another important factor to consider to gain a profitable business through exports is by comparing the quality of the product of several competitors in the target market. Having an idea about the product standard makes an exports business realise where they lack and how it can improve on it.
- Competitor analysis – Competitor analysis is the identification of strengths and weaknesses of other businesses operating in the exports industry. By doing so, an export business can have a gain by improving upon the weaknesses of its rivals and directing all the potential customers and leads on their side. Speaking of opportunities, export businesses should be on a constant hunt for those to have a profitable business in the long term. These opportunities should be determined as early as possible and have first mover advantage. For instance, having a check on the forecasted trends regarding the demand for a certain product can act as an opportunity to export those.
- Target market rules & regulations – The laws regarding export & import vary from country to country and having a look at the laws of the targeted exporting country becomes quite crucial as to not land into problems in the long run. These factors deal in the smooth flow of the exports business with minimum to no interference by foreign government authorities.
- Upcoming trends – To be a profitable exports business, always look out for the opportunities and threats coming your way and dealing in business accordingly.
Profitable Products to Export from India
India has been exporting a wide range of commodities to several countries over the years. Being an extremely resourceful nation, India is able to cater to a vast number of export industries which have proved to be high income sources over the years. Below mentioned are some products which can yield profitable exports business in India. It will give an idea about what to export and gain lucrative results.
According to the latest records as per Q1 2021 (January – April), these industries’ products have a high demand in the foreign exports markets from India.
- Gems and Jewellery – Indian jewellery are worldwide famous for its authentic traditional designs and resonance. The main reason for its ever-rising preferences and demand in the international market is its cheap rate with high-grade quality.
India has adopted some world-class methods of refining and polishing diamond & gold, bringing about extremely appealing finishes. This makes India the most preferred country in the world in terms of gems and jewellery export.
The top importing countries of gem and jewellery from India are USA, Europe, Japan and even China. Targeting these countries result in extremely high-profit margins.
- Engineering Goods – Engineering goods include metal products, industrial machinery and equipment, auto and its components, and transport equipment. Thanks to India’s continuous development of machinery technology and low labour rates, makes India a preferable nation to import engineering goods from.
Also, engineering goods recorded an impressive 70% increase in the exports which shows the exports are only going to rise. With the deployment of vaccines in the country, restrictions are finally loosening up creating more export opportunities.
- Pharmaceutical products – India is considered as the land of herbs and ayurvedic medicines. Which makes it the world’s largest natural and organic medicine hub. The ongoing pandemic has made people realize how important sound health and body is. People’s preferences for immunity boosters are higher than ever before, which leaves organic and natural medicines and health boosters an extremely demanding product all over the globe. Another sector to gain lucrative and profitable exports business.
- Rice – Rice is the backbone of Indian exports due to the vast variety of the slender grains India produces throughout the year. The competition also has grown to a massive scale which makes the entry of newcomers often difficult.
This is where B2B platforms such as Global Trade Bazaar come into play. Knowing the situation of exports in India, this platform aids new and initial exports businesses to target a market, connect with interested buyers and provide potential leads. This way, exports businesses registered can establish a credible and profitable export brand. Not to mention the online marketing activities that will be imparted on behalf of the registered businesses. Going online is the key to success in this digital age.
Apart from the stated exports products, several industries also contribute to the Indian exports, like dry fruits, handicrafts, dairy products, clothing & apparel especially cotton.
Clearance Agencies – Alternate to Earning from Product Exports
Export – import plays a vital role in the supply chain system where several formalities are involved including going through trade barriers in the international trade and requirement of necessary documents. .
A custom clearance agency is where an agent handles all the documents and necessary paperwork on behalf of the exporter so as to focus on more core operations in the business.
One can also enter in this profession, considering has all the knowledge about ins and outs of the import-export industry.
The export business is full of potential and opportunities. A bit of smart work can surely give huge returns and render a profitable export business in India. Being a resourceful and impressively dynamic country, one can export an end number of products and goods to the target market. Strategically working would be extremely crucial in this industry which also involves taking huge risks without random thoughts.