Now, of course, customers can simply go to a grocery store and buy boxes at a time without a second thought to the complex nature of how they came to be in their hands. Non-perishable goods are even easier to come by, requiring the click of a few buttons to get them across countries and seas right to your doorstep. Need a specialized service from someone working in a region hundreds of thousands of miles away? No problem; technology has that solution covered. 

As trade evolves, so do the job roles that support it

Put simply, the movement of goods and services across borders has evolved at a breathtaking pace. Alongside these transformations, the teams that make global commerce possible have grown in both size and sophistication. What was once the domain of a few specialists now involves entire departments dedicated to logistics, technology, supply chain, and trade compliance, the latter being a job area that has recently seen incredible growth. 

Compliance specialization is booming

“Companies with greater than 15% expected growth allocate an average of eight people to trade compliance activities, compared to six in companies anticipating little or no growth,” states a 2025 benchmark study by Descartes Systems Group.

This increase can be attributed to many factors, from geopolitical shifts and tariff policies to shipping disruptions and natural disasters.  

The World Economic Forum also highlights this shift in their paper, Trade Compliance for Leadership, stating, “Non-compliance with new trade requirements could affect hundreds of billions of dollars of trade flows. The stakes are high: compliance safeguards business continuity, avoids supply chain disruption and can be a competitive advantage. It also mitigates the risks of penalties and reputational damage.”  

Customs roles are also becoming a C-suite discussion

Other trade roles seeing expansion include those focused on customs.

“Customs will be used as a business strategy, becoming an important C-Suite level discussion point to navigate the ever-complex international trade waters,” notes a recent article by shipping giant Maersk. And it’s easy to see why.

With a growing web of tariffs, counter-tariffs, and shifting regulations worldwide, importers and exporters must manage their classification codes, documentation, and compliance procedures with precision—or else risk costly penalties and delays. 

And then, there is AI

Virtually all areas of business, including global trade, are being touched by artificial intelligence and associated technologies. In fact, “The global AI in logistics and supply-chain market size was valued at USD 20.1 billion in 2024 and is projected to grow at a CAGR of 25.9 % between 2025 and 2034,” states a report by Global Market Insights. And these technologies are focused on improving operational cost, streamlining logistics planning, and managing real-time supply chain efficiency—but only if teams are trained on how to operate these new technologies.  

Agility, accuracy, and technology: core focuses for trade teams

All in all, in 2026, trade teams need to lean their roles toward technology, compliance, and risk planning for resiliency.  

The World Economic Forum notes in their Future of Jobs Report that “The most prominent skills differentiating growing from declining jobs are anticipated to comprise resilience, flexibility, and agility; resource management and operations; quality control; programming, and technological literacy.” 

That sets the stage for roles like trade-compliance analyst, customs strategy lead, global trade-technology architect, and import/export risk manager—titles once rare, but now increasingly common.  

A simple browse of current job postings finds top companies like Amazon hiring for Global Trade Compliance PMs or Global Customs Ops Analysts, requiring candidates to have the skills to build scalable trade-compliance programs and broker networks. While grocery chains like Loblaws are looking for Customs and Trade Analysts, roles focused on import and export clearance and risk.  

Globally, there are thousands of jobs focused on customs and international trade compliance, including many on FITT’s job board—making it more important than ever for competitive teams to make these professions a priority for successful international market expansion.

Offshoring, nearshoring, and re-shoring: strategies to mitigate volatility 

With increasingly unpredictable supply chains, companies are also rethinking where and how they allocate their trade teams. Offshoring, nearshoring, and re-shoring have become hot-topic strategies in this conversation—each offering clear advantages and trade-offs. 

• Offshoring refers to relocating production or services to a distant country, often to reduce labour costs or take advantage of specialized expertise. It can yield significant cost savings and access to global talent, but also exposes firms to geopolitical risks, shipping delays, and reduced control over quality and oversight. 

• Nearshoring involves shifting operations or sourcing to a nearby country or region—one that lies closer in geography, culture, or time zone. The proximity allows for faster communication, shorter transit times, and improved responsiveness to market shifts, though it may come with slightly higher labour and logistics costs compared to far-off locations. 

• Re-shoring (or on-shoring) brings previously relocated operations back home, offering the greatest control, supply-chain transparency, and resilience against global disruptions. However, domestic production typically comes with higher costs, and the process of re-establishing facilities and workforces can be both expensive and time-consuming. 

Together, these strategies reflect a broader recalibration of global trade—one that weighs efficiency against resiliency, and cost against certainty. What businesses choose to employ depends on their needs and goals, but they will all have to consider the risky environment in which they exist: 

“Geoeconomic fragmentation and geopolitical tensions are expected to drive business-model transformation in one-third (34 %) of surveyed organizations in the next five years. Over one-fifth (23 %) of global employers identify increased restrictions on trade and investment … as factors shaping their operations,” states the World Economic Forum in their job report, pinpointing the need for businesses to be prepared from all angles.  

Training is a unifying factor for all roles

At the heart of these workforce transitions lies a single, unifying factor—the need for continual training and upskilling. Finding employees with a new set of in-demand skills isn’t something that happens overnight. Most often, it starts with giving current teams training to upgrade their knowledge to current-day trends. 

“If the world’s workforce was made up of 100 people, 59 would need training by 2030. Of these, employers foresee that 29 could be upskilled in their current roles and 19 could be upskilled and redeployed elsewhere within their organization. However, 11 would be unlikely to receive the reskilling or upskilling needed, leaving their employment prospects increasingly at risk,” warns the WEF. 

Lora Rigutto, Partnerships and Community Lead at FITT, agrees. She personally sees how training benefits companies and employees working in international trade daily: 

“I’ve seen how upskilling and trade training can change the trajectory of both employers and employees. Many who complete FITT’s international trade training go on to work in government, policy, and business at some of the world’s leading organizations, while others use that knowledge to grow their own SMEs.”

What really stands out is the value of having a CITP®—someone with a broad, practical understanding of international trade who can connect the full A-to-Z process, from market entry and compliance to sales and growth strategy. Whether in a large enterprise or a small business just getting started, that ability to see the whole picture and bring in accredited knowledge created by business for business, along with industry best practices and frameworks—makes a meaningful difference.” 

The world is changing, but resiliency will always remain a strength

In 2025, it may seem like our world is changing faster than ever. But it’s important to put these shifts into perspective. Only 100 years ago, we were still delivering some products by horse and buggy. 50 years ago, we were sending customs documents via fax machines, and just 25 years ago, the biggest technological threat that dominated the headlines was Y2K. The point being, the world has always been in a state of rapid change, but those who flourish in it, no matter the challenge, remain aware, prepared, and upskilled for those changes. 

Curious about current job roles in trade? Below is a list of popular trade jobs that companies currently hire for: 

See active international trade job listings here 

• International Trade Consultant: Advises companies on entering new markets or expanding globally including assessing tariffs, trade agreements, and regulatory risks and recommending supply chain and market entry strategies 
• Export Manager: Responsible for planning, executing, and overseeing a company’s sales of goods or services into foreign markets; a mix of strategy, operations, and relationship management 
• Commodity Trader: Buys and sells commodities, such as agricultural products or metals, on international markets. 
• Economist: Analyzes data and develops theories related to the production and circulation of goods, services, and resources in a global context. 
• Data Analyst: Analyzes data for companies to help inform business decisions, which can include international market data.  

Logistics and supply chain

• Freight Forwarder: Manages the transportation of goods, including coordinating shipments, choosing carriers, and negotiating terms. 
• Logistics Specialist: Handles the planning and management of international logistics, including warehousing and last-mile delivery. 
• Customs Clearance Specialist: Processes paperwork for inbound and outbound shipments to ensure goods clear customs without delays. 
• Ocean/Air Export/Import Coordinator: Manages the specific details of export or import shipments via sea or air freight.  

Sales, marketing, and business development

• International Sales and Partnerships Manager: Develops and manages relationships with international partners and clients. 
• International Marketing Manager: Creates and implements marketing strategies for products and services in global markets. 
• Business Development Manager: Focuses on expanding a company’s business through new markets, partnerships, and services, often within a specific sector like freight forwarding.  

Compliance and analysis

• Trade Compliance Specialist/Manager: Ensures a company’s operations adhere to all trade regulations, sanctions, and export/import laws. 
• Customs Broker: Acts as an intermediary between businesses and government customs agencies, navigating complex regulations to facilitate the movement of goods. 
• International Trade Analyst: Conducts research and analysis to help companies make informed decisions about global markets and trade policies. 
• Policy Analyst: Researches and analyzes policy outcomes, which can be applied to trade policies and social issues.  

The post Growing global trade jobs: Top roles, skills, and trends to watch in 2026 appeared first on Trade Ready.

This approach is logical. The challenges are immense, and new owners rely on existing connections and their comprehensive knowledge of the market to minimize unpredictable variables and business uncertainty. For this reason, entrepreneurs usually start with local customers and operate within the local market. They study adoption rates, refine their offering, and begin to see traction, growing their turnover and reaching a stable market position. Some may fail, but that’s part of the journey.

So, what’s next? As the business grows and enables them to save resources for further investment, founders can begin to look beyond domestic borders: what about exporting? Can we serve this unexpected request coming from this far away market?

This is the moment to consider internationalizing the business.

And, after earning well-deserved confidence from leading a market or niche, the question becomes: how do you win this next challenge?

Replicating domestic strategy doesn’t work internationally

While success in the local market can be a strong foundation for launching a company abroad, it can also become a trap. Simply replicating local practices may prove unsuccessful with foreign customers. Adaptation—not only of the product but of the entire company’s operations—will require time, investment, and (a lot of) persistence.

Often entrepreneurs will make that leap to a new market and think, “We did it! International customers are happy, and orders keep coming in! We made it!” only to realize the celebration came too early.

Exporters also need to be prepared for what comes next: the after-sale phase.

Customer assistance peaks, orders are returned, warranty claims absorb unpredictable amounts of cash, and the whole business starts to become less profitable. So how can businesses set themselves up for export success from start to finish?

While roadblocks are inevitable (external factors are numerous and not always predictable through research or experience) entrepreneurs launching new businesses or products can benefit from using a framework to simplify the process.

Start by placing design at the center of all conceptual work. Encompass all activities needed to build, communicate, and deliver a successful and scalable product both nationally and internationally, based on the principles of “Simplicity, Scalability, Safety”.

Designing a product ready for international market growth

Let’s apply this model with concrete ideas. The activities outlined below are not meant to provide a detailed and comprehensive sequence of “tasks” to follow but serve as examples of ways to optimize when setting up or developing a product in multiple markets.

The ultimate goal is to demonstrate how to build a business as scalable as possible, where scalability is achieved by selling both internationally and domestically.

Simplicity

Set up clear, honest communication

Companies that adopt a clear communication strategy are well-suited to expand into international markets with minimal adaptation effort or growing pains.  Create a content strategy that features easy to understand, intuitive messaging and information, supported by simple visual tools like infographics, images, and videos. Distribute them on the channels used by your target markets such as international social media platforms, and be prepared to localize and translate all content for each market. You can start with English content first to be more broadly accessible.

Approach: Use transparent communication, highlighting the pros of your offer without overpromising, and being clear of its limits (of performance, application, etc.). A frank style allows the international customer to understand your product’s real advantages, increasing the chances of positive acceptance upon real expectations[1].

Format: deliver your content in more than one media format (website, brochures, digital ads, videos, etc.), professionally drafted for a wide (multi-country) audience.

Channels: design and launch an attractive and clear company website, and build a consistent presence in international social media.[2]

An additional practical recommendation is to register local domain extensions for targeted markets to protect brand identity and prevent misuse by others in new regions.

While the “.com” domain is still one of the safest options, companies that begin their business domestically often have a local domain. Before entering new markets, companies should register the local domain extension to prevent competitors or former partners from misusing the brand.

Engineer for easy adoption

When designing a new product, engineer it to be easy to set up, use, and maintain. Carefully study the customer’s experience from the moment they receive the product, and provide clear instructions—not only in text, but also through multimedia formats such as QR codes linking to informative landing pages or video tutorials.

Design the product for intuitive operation and simplified maintenance to minimize product returns, increase customer satisfaction, and reduce post-sale support and warranty costs. These benefits are significant for local customers but become essential for buyers located abroad (and sometimes very far away).

In addition, implement an effective sampling strategy to support product adoption by new buyers: offer smaller-sized products, material samples, and customization options all in one convenient kit that can be shipped for trial before a first order.

Since shipping products (often free of charge) can be expensive, compact sample kits are a cost-effective solution for international markets.

Plan for easy customization

Whenever possible, design products to be easily customizable. One way to do this is to add custom features to a single base product, so that parts can be applied as “customized accessories.” While this approach may involve sacrificing certain features, it delivers significant advantages in reduced inventory requirements, lower personalization costs, and faster achievement of economies of scale.

For example, if a manufacturer plans to launch a new chair collection in different colors, this typically means multiplying inventory or incurring extra “last mile” customization costs for each order. Instead, consider using the same wooden base with a standard upholstery, allowing customers (or company staff) to apply colored fabric themselves. The fabric can be shipped with the chair and included in the setup instructions, eliminating additional handling and manufacturing costs.

The same principles apply to modular product design.

By creating products from different modules that can be easily assembled by the customer, manufacturers can ship items in a compact form and achieve significant benefits.

These advantages include economies of scale, easier personalization, and more efficient transportation.

Modular design allows manufacturers to standardize components, streamline production, reduce inventory costs, and offer varied product configurations simply by switching modules. This approach also ensures flexibility to meet customer preferences, simplifies assembly, and lowers shipping expenses, making it ideal for both operational efficiency and international logistics.

Scalability

Optimize your product for efficient logistics and operations

Many of the ideas discussed for making things easy translate directly into operational efficiencies and cost savings. For example, well-engineered product modularity leads to shared components, consolidated semi-finished products, and reduced inventory. This makes it much easier for companies to expand into new markets through more efficient working capital management and optimized packaging and transportation.

The same principle applies to product accessories and packaging. Using standardized packaging for multiple items, planned with dimensions to fit various products and customized only through labeling, reduces complexity, simplifies warehousing, and lowers investment requirements. This streamlined approach supports market expansion and sustainable logistics by minimizing handling, inventory, and overhead.

Safety

Safety as a feature

Safe materials, robust performance, and user safety generally pave a smoother path toward international readiness. Designing a product’s shape, features, and use of high-quality, non-harmful materials, focusing on detailed components and ease of assembly and modularity, will all help reduce compliance requirements for multiple markets.

Modularity brings additional advantages here: for example, sensitive components like an electrical engine can be outsourced or assembled locally, which may significantly simplify or reduce the scope of electrical compliance certifications.

Similarly, if a local partner adds large-volume elements such as a chassis or fills liquids, shipment costs and import tariffs can be lowered substantially.

This strategic design and outsourcing approach facilitate regulatory compliance, reduces logistics costs, and supports efficient entry into international markets.

How it all comes together to build a product ready for export

Management decisions in any company trigger cascading effects across the business’ many sectors and activities. The points listed here have immediate, short-term, and mid-term impacts on a company’s capacity to compete internationally, helping to avoid costly and resource-intensive late corrections.

The above ideas, while sometimes more applicable to certain industries or products, present a general framework of proactive strategies to design competitive and adaptable products for international markets.

Although these design approaches enhance a company’s competitiveness both domestically and internationally, the heightened challenges, costs, and complex competitive dynamics inherent in global markets make these strategies even more crucial. In other words, they simplify and accelerate the company’s path to global success by minimizing painful, resource-intensive corrections in a later stage.

[1] The management costs of an unsatisfied foreign customer can be drastically higher than the same profits which can be generated by the original sale.

[2] Before opening a social media account, the company must be sure to dedicate sufficient resources for regular posting, prompt replies, audience moderation.

The post How to design a product ready for export appeared first on Trade Ready.

Add in shifting geopolitics, rising demand from emerging markets, and the need for stronger, more secure supply chains, and it’s clear that agility and foresight are more important than ever.

In our annual look ahead, we break down the top 10 global trade trends we’ll be watching, reacting to, and writing about in 2026.

Read on for our 10 2026 trends.

Curious about our past predictions? Check out what we thought 2017-2025 had in store.

1. Global trade hits record high in 2025 but faces slower growth in 2026

Global trade reached a record US$35 trillion in 2025, demonstrating strong resilience despite rising geopolitical tensions, higher costs, and increasing trade barriers. According to UN Trade and Development (UNCTAD), trade expanded by about 7% year over year, driven by higher volumes in both goods and services, with particularly strong contributions from East Asia, Africa, and South–South trade.

However, UNCTAD warns that momentum is slowing and expects weaker trade growth in 2026 as economic uncertainty, higher trade costs, and fragmentation weigh on global flows.

The World Trade Organization (WTO) echoes this outlook. Global merchandise trade grew faster than expected in early 2025 as firms front-loaded imports ahead of anticipated tariff increases and demand for AI-related products surged, especially in Asia and North America.

As a result, the WTO revised its 2025 merchandise trade growth forecast upward to 2.4%, while sharply lowering its 2026 forecast to just 0.5%, reflecting a cooling global economy and the full-year impact of higher tariffs.

Trade in commercial services remains more resilient but is also slowing. The WTO expects services export growth to ease from 6.8% in 2024 to 4.6% in 2025, and 4.4% in 2026, as weaker goods trade and slower output growth spill over into services.

Together, the UNCTAD and WTO assessments point to a global trade environment that is structurally strong but increasingly constrained, supported in the short term by technology investment and resilient demand, yet facing slower growth ahead as protectionism, economic cooling, and fragmentation reshape global trade dynamics.

2. Sustainable & carbon-sensitive trade

Sustainable policies (Electricity Demand & AI)

As electrification and digitalization accelerate, trade policies are increasingly aligning with climate and energy goals to support clean energy infrastructure and carbon-sensitive trade.

Global power demand is surging—driven in part by data centers and AI workloads—forcing energy systems to evolve and integrate more renewables.

Policies are beginning to incentivize renewable electricity generation, grid modernization, and clean technology exports to manage this growth sustainably while maintaining climate objectives.

Trade in renewable energy technologies (e.g., solar, wind, electrolyzers) is expanding rapidly, reshaping energy markets from fossil-fuel dominance toward clean trade flows that include grid equipment and storage systems. Export of these technologies supports carbon-sensitive value chains and opens new trading corridors as countries compete to lead in clean tech deployment. News Release Archive

At the policy level, many countries are implementing clean electricity investment tax credits, carbon pricing, and regulatory frameworks to encourage grid upgrades and clean power trade. For example, Canada’s Climate Competitiveness Strategy aims to boost clean energy and critical mineral supply chains globally, enhancing trade competitiveness while cutting emissions. Canada

Sustainable supply chain management

In 2026, sustainable supply chain management is becoming central to reducing climate impacts across international trade. Trade agreements and sustainability initiatives are increasingly tying environmental performance to supply chain practices, encouraging cleaner logistics, emissions tracking, and resilient value chains.

A recent OECD working paper emphasizes that trade policy can foster environmentally sustainable supply chains by integrating sustainability standards and climate objectives into trade agreements and corporate practices.

AI and advanced analytics are playing a transformative role by enabling companies to monitor emissions, optimize logistics for lower carbon output, and enhance transparency across multi-tier networks, helping firms make data-driven decisions that reduce carbon footprints while improving efficiency.

These developments reflect a shift from cost-only supply chain metrics toward carbon and environmental risk evaluation, with sustainability strategies embedded into procurement, production, and logistics planning.

Stronger collaboration among trading partners on carbon disclosure and low-emission practices would build resilience while aligning commercial incentives with net-zero goals.

3. Rise of emerging market demand

Emerging markets, particularly those in Southeast Asia and Africa, are becoming increasingly important demand centers in global trade. Countries in the ASEAN region, including Vietnam, Indonesia, the Philippines, Malaysia, and Thailand, are expanding their imports of manufactured goods, agricultural products, pharmaceuticals, and electrical machinery, driven by robust industrial expansion and stronger trade partnerships.

Africa’s major economies like Nigeria, Kenya, Egypt, Tanzania, South Africa, and Ghana are also growing their imports of food products, engineering goods, consumer goods, and medicines as rising populations and urbanization boost domestic consumption.

This shift is widening export opportunities for suppliers outside traditional Western markets and encouraging exporters to diversify into high‑growth developing regions where demand is rising faster than in advanced economies.

4. Competition & customer service shortening delivery times

In 2026, last‑mile delivery remains one of the most complex and important parts of the supply chain, shaped by evolving consumer expectations and ongoing market challenges. Logistics providers will need to address three key areas to stay competitive:

Big and bulky items: Demand for doorstep delivery of oversized goods like furniture and appliances is growing, but many carriers avoid these due to complexity. Specialized networks can turn this into a strategic advantage.

Reliability over speed: A shift in customer priorities shows that most shoppers (about 90%) prefer reliable delivery within 2–3 days rather than ultra‑fast service, highlighting the importance of consistent performance.

Transparent options: Providing clear estimated delivery dates at checkout and flexible delivery choices reduces cart abandonment and improves customer satisfaction.

Overall, successful last‑mile strategies in 2026 will combine specialized services, reliable performance, and delivery transparency to meet shifting consumer needs.

5. Scenario planning a strategic necessity for international businesses

In 2026, international businesses face geopolitical fragmentation, rapid technological change (especially AI), economic volatility, and rising sustainability and regulatory demands.

Scenario planning moves beyond traditional forecasting by exploring multiple plausible futures, helping companies build resilience and agility in global operations.

It uses “digital twins” to simulate different outcomes. Such a tool becomes critical in an unpredictable market. Any situation, even truly disastrous, can be simulated, tested, and solved virtually. So, the company gets a clear action plan before issues happen.

Key drivers include shifting trade alliances and tariffs, accelerating AI and automation with new cybersecurity and workforce implications, fluctuating interest and exchange rates, and increasingly complex ESG and data regulations. Supply chains remain vulnerable to natural disasters, conflicts, and strikes, highlighting the need for diversification and visibility.

Common scenarios that are run through scenario planning technology: Multipolar Patchwork (fragmented global blocs), Global Managed Trade (negotiated flows with policy shifts), and Localization/Self-Sufficiency (nearshoring to reduce geopolitical risk).

6. Shortening supply chains & localized manufacturing

Many companies are working to shorten cross-border supply chains and bring manufacturing closer to end consumers, whether on a national level or within regional trade blocks. For instance, many energy companies are acquiring manufacturing assets in, or shifting production to the Middle East to service regional customers, regardless of where the business is headquartered.

Additionally, there is a desire among multinational companies to develop close relationships and bring local partners into overseas markets where they might historically have sought to grow organically.

That is in part a recognition of a broader desire among customers to work with local counterparts and it often results in joint venture transactions that can bring local operational knowledge.

7. Services trade outpacing merchandise

The World Trade Organization (WTO) and other forecasting bodies indicate a steady, albeit slightly decelerated, growth for services trade in 2026. This contrasts with a significant slowdown projected for merchandise (goods) trade due to ongoing geopolitical tensions and increased tariffs.

Key global trends and factors include:

• Steady Growth: Services are expected to continue outpacing goods trade growth in 2026.
• Service exports a large proportion of Canadian trade growth: Between 2014 and 2024, Canadian service exports more than doubled to $232 B, now representing 23% of total exports and over 7% of GDP, accounting for 62% of the country’s real export growth while goods exports remain largely flat.
• Key Drivers: Growth is particularly strong in digital and business services. The demand for AI-related goods and services is also a significant driver.
• Headwinds: The overall global economic environment remains challenging, with trade disputes, high operating costs, and rising business insolvencies creating uncertainty.

8. Digital currencies transforming cross-border payments

Digital currencies issued or regulated by governments—such as Central Bank Digital Currencies (CBDCs) and stablecoins—are becoming a faster, cheaper way to move money across borders.

Today’s global trade payments still rely on slow, complex banking networks that add delays and fees.

CBDCs and regulated stablecoins offer a modern alternative, allowing funds to move almost instantly between trading partners while maintaining the stability of traditional currencies.

Unlike cryptocurrencies that fluctuate in value, stablecoins are backed 1:1 by real-world currencies, making them suitable for everyday trade, treasury, and settlement payments. Their digital design also enables automated payments tied to delivery or contract milestones.

For businesses, the benefits include quicker settlement, lower costs, and greater transparency. Studies show many companies are already achieving double-digit cost savings, and financial institutions expect digital currencies to handle a meaningful share of global payments by 2030.

As regulators in major economies advance real-world adoption, the biggest opportunities will be for platforms that support digital-currency payments seamlessly across international trade.

9. AI becomes the defining competitive advantage for manufacturing in 2026

Deloitte’s 2026 Manufacturing Industry Outlook highlights that artificial intelligence (AI) will be a key driver of competitiveness as manufacturers respond to lingering challenges from 2025—including rising costs, trade policy uncertainty, and slower growth.

According to the report, many manufacturers plan to increase investment in smart manufacturing technologies such as automation, advanced analytics, cloud platforms, and agentic AI, which can independently make decisions to improve productivity, quality, and capacity.

AI’s role is expanding beyond traditional automation to include functions like identifying alternative suppliers during disruptions, capturing retiring workers’ expertise, and improving customer service processes.

Advanced physical AI, such as autonomous robots and robotic systems, is also set to grow, with adoption expected to more than double within two years.

Manufacturers are increasingly using AI to strengthen supply chain resilience, employing AI-driven analytics to monitor risk, forecast disruptions, and rebalance networks in real time. The technology also supports a shift from reactive to predictive services, boosting equipment uptime and customer satisfaction.

Despite talent shortages, AI itself can help capture workforce knowledge and accelerate training. Deloitte concludes that companies that invest strategically in AI and smart manufacturing will be better positioned to navigate uncertainty and widen their competitive advantage in 2026.

10. Growing focus on cybersecurity in supply chains

Heading into 2026, cybersecurity is rising as a core priority in international trade supply chain management, driven by the increasing digitalization of global logistics, manufacturing, and trading systems.

As cross-border commerce relies on interconnected IT systems, cloud platforms, AI-driven operations, and third-party partners, vulnerabilities are expanding, making cybersecurity essential not only for IT teams but for strategic supply chain and trade risk management.

Key aspects shaping this trend:

• Expanded attack surface: Complex global supply chains now include multiple vendors, logistics systems, and digital interfaces. Cyber threats exploit weak links in this ecosystem, with third-party and multi-tier vendor vulnerabilities increasingly leveraged by attackers.
• Regulatory drivers: Standards and regulations like the EU’s NIS2 and broader risk disclosure requirements are pushing businesses involved in international trade to embed cybersecurity compliance and governance into their supply chain protocols.
• Operational risk and resilience: High-impact cyber incidents—such as ransomware attacks disrupting freight operations—underscore the operational risks to global trade flows and reinforce the need for robust cybersecurity measures across partners and transport networks.
• Integrated visibility and trust: In 2026, firms are moving toward end-to-end security visibility, continuous monitoring, and zero-trust frameworks that secure data and operations from origin to delivery across international borders.

In 2026 cybersecurity will no longer be a niche technical concern but a strategic imperative for global trade supply chains. Protecting digital infrastructure and partner networks is critical to ensuring uninterrupted trade operations, regulatory compliance, and confidence among trading partners.

The post Top 10 global trade trends we’ll be watching in 2026 appeared first on Trade Ready.

Gaps in knowledge are among the top reasons that some small and microbusinesses don’t yet export their goods or services, according to the Canadian Federation of Independent Business (CFIB).

Regulatory hurdles and expenses are other factors keeping many small businesses local. This guide to exporting provides an overview and resources to help you get started if you want to sell your products and services in international markets.

How international trade affects Canadian businesses

In recent years, government statistics show that international trade accounted for nearly two-thirds of the Canadian GDP.

Canadian business exports add 3.3 million jobs to the economy. To put that in context, that’s nearly one in six Canadian jobs.

Even if your business is secure, you may still want to scale it to take advantage of opportunities for growth.

For businesses of any size, exporting provides the opportunity to find new markets, scale your business, and become more resilient in a volatile economy. Yet, as recent research from the CFIB shows, only a minority of Canadian small and medium-sized businesses are currently seizing these opportunities.

Step 1: Are you ready to join the global market?

The first step is to decide whether your business is ready to expand into international trade. Identify which of your products or servicesmay appeal to consumers in other countries. Next, figure out whether the investment is likely to be worth it by doing a feasibility study and thorough market research.

FITT’s Export Vision Board can help you realize what exporting might look like for your business.

You can use the Export Vision Board template to visualize and capture the critical components for your international market expansion.

If you’re not sure what to include, there are 3 examples of completed templates including B2B product exports, B2C product exports, and service exports to inspire you and help you get started.

If you want to dig deeper, consider taking some training like the Feasibility of International Trade course, which was designed to help businesses of all sizes assess whether international opportunities are viable, and if the potential benefits outweigh the risks and costs.

Once you decide whether exporting is a good move for your business, start making a plan so your actions will be strategic, not accidental. Identify your target consumers and how you offer something better than what they might find locally.

Continue to revise and change your export plan as you learn more.

Step 2: Learn the bureaucratic requirements for your industry

Each industry has its own set of regulations and laws to work within when it comes to exporting or importing.

Exporting in Canada means actively engaging with multiple government, legal, and financial frameworks.

Your first step is learning what is required within your industry. For example, exporters must comply with regulations enforced by the Canada Border Services Agency (CBSA). These regulations may include export classification, permit requirements, and rules for export reporting in Canada.

The value of your product plays a role. All exports above $2,000 require a declaration using the CBSA’s Canadian Export Reporting System (CERS) and may also need special permits from Global Affairs Canada. Also, don’t forget taxes that may apply, like Goods and Services Tax (GST) and Harmonized Sales Tax (HST).

As you unravel the requirements, use that information to update your plan. Does this knowledge change the logistics of how you will get the product or service to your prospective customers abroad? How does this affect your budget and costs? How will you cover these added expenses?

Not only do you need to be aware of Canadian trade regulations, but also those in your export destination country. Once you have a sense of the fees, taxes, and tariffs involved, you are in a better position to plan. Just be aware that laws, tariffs, and taxes change.

If you have been keeping up with U.S. news, you may wonder if now is the right time with increased tariffs on certain exports to the United States.

In international trade, like in life, change is one of the few constants.

These changes and potential culture changes make the new trade environment more complex, but you have a couple of options.

Now is a time when you could focus on building your market outside the U.S., or you could focus on learning the ins and outs of expanding your North American market. Either option has a unique set of challenges, and both require a nimble approach as you adapt to any unfolding changes.

Step 3: Identify your supply chain and budget

Map out the specifics within your supply chain from planning, manufacturing, marketing, and getting the product to your consumers. If you offer a service, this may be easier, but you should go through the same steps.

Some of these steps are likely already part of your business workflow. Spend a little extra time on the added steps, such as any permits and reporting you may need to do. Also, note any changes to your product as your export country may have specific standards for its own regulations, safety standards, or documentation requirements. Will you need to translate any of your packaging or materials?

Update your plan and put together a budget. Do you need to raise additional capital in order to build the export branch of your business? If so, take the time to look into business development loans, grants, and investment capital options.

Step 4: Develop your marketing and fulfillment plan

Marketing your products abroad is challenging. But thanks to the internet and social media, your customers are more accessible than ever. The hard part can be effectively communicating with potential customers in a language you are not fluent in. If this is your plan, be sure to partner with a quality translation and localization service.

Since you take on additional financial risks when exporting, you want to be sure to conduct market research and develop a comprehensive marketing strategy.

At this point, you may be in a better position to revisit your risk assessment. What are your export-specific risks beyond those you face as an entrepreneur in your home country? Craft a plan to mitigate those risks.

In summary, learning how to export in Canada is a multi-step process that includes:

• Assessing whether your business is ready
• Developing an export vision that aligns with your business goals
• Conducting market research as well as feasibility analysis
• Understanding export regulations and compliance
• Managing tax, payment, and GST/HST implications
• Identifying and managing export-specific risks
• Building a formal export plan with a timeline for implementation

The challenges and complexities of running an export business can be overwhelming. But there is plenty of support available to businesses of all sizes looking to grow globally.

The thing that trips up many businesses that are new to importing and exporting is “knowing what they don’t know”.

Or in other words, getting a full picture of what is involved in setting themselves up for success in international markets, and how to avoid common pitfalls that come with inexperience.

Exploring training to fill in knowledge gaps, hiring outside help that bring in much-needed expertise, and seeking guidance from trade advisors and locally-engaged support such as the Trade Commissioner Service, can make what may seem daunting doable.

The post How to start an export business in Canada appeared first on Trade Ready.

Brand loyalty is high since IKEA delivers what its customers expect. Despite IKEA’s track record, its team occasionally makes mistakes. In the late 1990s, a failed foray into inflatable furnishing exposed how sometimes an innovative idea isn’t enough.

An exciting idea and promising beginning

Swedish teen entrepreneur Ingvar Kamprad founded IKEA in the 1940s, originally as a small mail-order business selling pens and wallets. By 1948, he started selling furniture, but packing and shipping furniture mail-order was a major pain point. This led to IKEA becoming an innovator and disruptor. It developed quality flat-pack furnishing like shelves and tables. Fast forward to the mid-1990s, Kamprad and his team found it challenging to create a durable, comfortable upholstered sofa that could be shipped flat-pack.

Meanwhile, Swedish designer Jan Dranger had an interest in inflatable furniture dating back to the 1970s when he and his design partner created a range of inflatable easy chairs and mattresses that were briefly sold by the Swedish Cooperative Union (KF). Unfortunately, these furnishings deflated quickly, but Dranger persisted in developing inflatables using better materials and new techniques.

In the early 1990s, he approached IKEA and met privately with Kamprad. He had prototypes for inflatable furniture, including a sofa. The idea seemed promising since this sofa was lightweight, could be shipped flat-pack, and consumers could easily assemble it at home using an ordinary hair dryer. The idea addressed one of Kamprad’s biggest pain points.

Several IKEA managers were invited to an unveiling of these prototypes. When they arrived,  they saw inflatable sofas draped in loose covers. The covers made the sofa more attractive and also helped maintain its shape.

As former IKEA business area manager Tomas Paulsson told the IKEA Museum, “No one was allowed to look underneath the furniture, but we were allowed to sit on it. It felt a bit like an inflatable mattress or water bed.”

Dranger didn’t want to share technical details before signing a contract with IKEA. In theory, the inflatable sofa required 85% less material than a standard sofa, and the plastic material used was 100% recyclable. Especially notable for the team at IKEA, the inflatable sofa reduced transport volume by 90% compared to their existing products. IKEA formed a spin-off company, SoftAir, in anticipation of the line’s success.

In 1998, the Toronto Star reported that a consumer could bicycle home with an unassembled sofa in their backpack, then walk upstairs to their apartment and quickly assemble it.

Laurence Martocq, an IKEA spokesperson at that time, said: “We expect the line to appeal to university students, young people living in apartments and condos and first-time home buyers… We’re also targeting people who look to us for innovations and new trends.”

IKEA launched the A.I.R line in 1998, including an inflatable sofa, easy chair, and an ottoman. The furnishings came with a ten-year warranty, washable slipcovers, and a patch kit. The design featured a series of small air pockets or compartments, so damage to one pouch wouldn’t cause the whole thing to quickly deflate.

How the A.I.R. line….deflated

First, according to Paulsson, it cost more to manufacture the A.I.R. products than originally anticipated. And when they launched the line in IKEA stores, shoppers reacted in unexpected ways.

One selling point was that it was very lightweight. A promotional illustration portrayed someone lifting the sofa with one hand to vacuum underneath. In the stores, this selling point also proved to be a downside. The sofas would easily slide around if someone bumped against them.

Shoppers reportedly picked them up and moved them or even tossed them around the showrooms. According to the IKEA museum, an IKEA team member said they looked like “a group of swollen hippos” compared to the other sleek designs in the stores.

IKEA project manager Lena Brandt Persson said, “Customers found it so much fun that even adults would jump up and down on the sofas.”

It didn’t get better once the inflatables made it to the shopper’s home. The instructions didn’t clearly warn the buyer to use the cold setting on their hair dryer, so some inflated their new sofa with hot air. Not only did this pose a risk of melting the plastic, but it also resulted in the sofas deflating as the inflated hot air cooled down.

It turned out many people didn’t love inflatable furnishings as much as they hoped. When sitting on the chair or sofa, a sudden movement could cause an embarrassing squeaking sound.

Too many of the A.I.R. products were returned. In September 1999, IKEA announced it was ending its involvement in the SoftAir spin-off company but continued to sell the designs. In 2013, they stopped selling the A.I.R line.

Key takeaways and lessons learned

The story of IKEA’s inflatable furniture launch flop can serve as a cautionary tale for other inventors, designers, and entrepreneurs. Sometimes, enthusiasm for an exciting concept can fall short if you don’t back it up with testing and market research.

Deviation from core principles?

Consumers trust IKEA in part because its design honors five core principles: form, function, quality, sustainability, and low prices. The A.I.R. line was an interesting concept. In reality it didn’t hold true to these core principle according to Ikea’s global design head, Marcus Engman, who admits he was partially responsible for it.

He told Sidney News, “This is one of the biggest mistakes in Ikea’s history. An amazing fiasco.”

They missed many of the product’s flaws. So many of the problems would have been obvious if people tested the prototypes for longer, facing real-world challenges.

For example, the team saw the very light weight as a benefit, but a few days of watching the sofa slide around an office or living room may have proved otherwise. They would have also noticed how the furnishings would gradually deflate despite the innovative design.

Engman also commented that they were excited about a product, but didn’t really know how the general public would respond. The designs may not have fit many people’s homes.

“If you want to do new engineering maybe put it into something people can relate to from the beginning instead of something that is such a new form because it’s hard to relate to,” he said.

The missing link: Where product testing failed

The collapse of IKEA’s A.I.R. inflatable furniture line demonstrates the importance of product and testing, even if you have an innovative idea.

Despite promising sustainability benefits—85% less material and 90% lighter shipping weight versus traditional sofas—the series ignored critical market realities. According to the IKEA Museum, prototypes were tested in controlled labs but never subjected to real-world user scenarios.

For example:

• Engineers used ideal conditions (e.g., precise inflation methods) but overlooked how customers might misuse the product. Many users inflated their products using the hot air setting from hair dryers, causing warping and accelerated wear.
• IKEA assumed users would value eco-friendliness over convenience. They failed to anticipate that daily re-inflation and valve leaks would frustrate customers. The “pffft” sounds when sitting became a notorious pain point.
• The 1990s saw IKEA expanding into markets like the U.S. and Asia, yet no adjustments were made for regional preferences.

How to do thorough product testing

This case study illustrates why product testing in real-world settings is so important for anyone interested in international trade. This includes cross-cultural validation and iterative testing.

Products must be tested in the actual environments of target markets with diverse user groups. IKEA’s oversight of these steps turned even an industry pioneer into a cautionary tale.

Rigorous processes would have flagged:

1. Frequency – How often users would need to re-inflate (daily vs. weekly).
2. Intensity – How real-world stressors like pets, children, or humidity affect material integrity.
3. Technical – How well did the valve perform in varied home environments

[This content is an excerpt reproduced from the FITTskills Products & Services for a Global Market course]

Prototype and test marketing offer opportunities to test the product and its performance, and to put the product into a limited, but real-life field situation to collect data for product and marketing plan modifications or improvements. Refinements to initial prototypes, concepts and ideas resulting from customer feedback can also allow engineers, procurement managers and production  designers to better quantify the projected unit costs for the product when it finally reaches production.  

Some techniques that can be used to evaluate consumer response to new or adapted products are: 

• The use of select groups of product users to test prototypes (often referred to as beta testing)  
• Tasting panels (for food products) 
• Product demonstrations at select venues  
• Follow-up with consumers after purchase 

As part of product development and adaptation, product testing is carried out throughout the product life cycle to ensure compliance with specifications and regulations. There is a wide range of product tests.  

Learn more about how and why to test products thoroughly BEFORE bringing them to market.

Get Test Marketing and the 15 Point Market/Concept Assessment Questions templates, the full Product Testing Process and much more – explore Products & Services for a Global Market

FITTskills content adapted from: FITTskills Products and Services for a Global Market. Forum for International Trade Training (FITT), © 2023.

The post How IKEA’s inflatable furniture flop teaches us the value of rigorous product testing appeared first on Trade Ready.

For small and medium-sized enterprises, especially those managing growth, it’s easy to say yes. Why not ship a few pallets abroad? It’s more volume, after all… and every sale counts! But after more than a decade working in international markets, I’ve learned that this way of thinking is not only short-sighted, it’s risky.

Export is not just a sales channel. Export is a business model!

Treating international sales as an extension of domestic operations often leads to a pattern of reactive decisions: inconsistent pricing, opportunistic partnerships, product misalignment, and a lack of brand presence. While it may bring in some revenue in the short term, it rarely delivers sustainable growth. That’s because export isn’t a side hustle. It’s a strategic commitment!

The missing link between ambition and an export plan is an export vision – here’s how to build yours

When companies view export as merely a sales transaction, they tend to operate in what I call “pallets and paperwork” mode. Get the order, ship the goods, move on. Success is defined by how much product you move, not whether the market is truly working for the brand.

The result is often fragile. When competition intensifies or a distributor loses interest, there’s no foundation to fall back on. Sales dry up, and the market disappears as quickly as it emerged.

From reactive tactics to strategic thinking

But when companies begin to treat export as a business model, everything changes. They stop chasing short-term orders and start asking longer-term, strategic questions. They begin to understand that international markets are not extensions of their home market, they are different ecosystems, with unique consumers, competitive landscapes, cultural dynamics, and regulatory environments.

With that mindset shift, export becomes more than a commercial activity, it becomes a transformational one!

Why export requires company-wide alignment

In this model, export is no longer the responsibility of a single sales team. It becomes a cross-functional initiative that touches every part of the organization.

• Product and R&D must assess whether formulas, claims, or packaging need adaptation.
• Marketing must rethink how to position the brand for unfamiliar consumers.
• Operations must prepare for lead times, logistics, and local compliance.
• Leadership must view export as a core growth driver, not an afterthought.

Without this alignment, even the best opportunities falter.

If your internal teams aren’t prepared to support export markets, results will be inconsistent and hard to scale. Growth will remain tactical rather than strategic.

The evolution of the export manager

This shift also redefines the role of the export manager. In a transactional model, the Export Manager is a dealmaker. But in a strategic model, the export manager becomes a business architect, someone who can connect internal capabilities with external needs, orchestrating everything from pricing and compliance to long-term partner development.

That requires a blend of strategic thinking and operational expertise. Export Managers must understand market dynamics, cultural context, commercial frameworks, and internal systems. They must be empowered to lead, not just execute. They are no longer just shipping products, they are building businesses.

Better questions lead to better outcomes

One reason companies fall into a sales-channel mindset is the volume of inbound interest. You get approached at trade fairs. Distributors promise volumes. Consultants offer shortcuts.

It’s tempting to respond.

But if every export decision is driven by who asks first, rather than who needs your product most, you end up chasing deals instead of building markets.

This reactive posture may feel like momentum, but it rarely leads to scale.

Strategic export leaders ask better questions:

• Who is our consumer in this market?
• What value do we bring that local brands don’t?
• What kind of partner fits our long-term ambitions?
• What does success look like beyond the first shipment?

This is how companies move from volume to value. They stop reacting and start designing. Instead of settling for any growth, they pursue the right growth.

Redefining success in export

Success in a strategic export model goes far beyond initial sales. It’s measured in repeat purchases, brand visibility, partner alignment, local relevance, and operational resilience.

Volume matters but only when it’s sustainable. Profitability matters but only when it doesn’t erode brand equity. What you want is repeatable success: a system that works, a brand that resonates, and a business model that can grow.

Say no more often

One of the clearest signs of strategic maturity is knowing when to say no. When export is a business model, you gain filters. Not every market is worth your attention. Not every distributor deserves your brand. Not every opportunity aligns with your ambitions.

With clarity comes discipline. With discipline comes control.

Export is not a shortcut to growth. It’s a journey.

And like every serious journey, it needs a map.

This article was reproduced with permission of the author from the Food & Drink Export Business newsletter. Check it out and subscribe on LinkedIn for more of Luis’ insights on the food & drink export business.

The post Export Is Not a Sales Channel. It’s a Business Model! appeared first on Trade Ready.

As an example, Singapore and Malaysia are bordering countries and members of ASEAN, but very different in social, legal, economic, political and technology contexts. Simply put, the markets are unified under the ASEAN framework, but highly fragmented and unique, and as such each market needs different entry and development treatment.

Competition should be reviewed and assessed during the trade readiness stage.

Price decisions must be made based on factual market intelligence and a logical thought process which takes into account customer demand (price elasticity), total addressable market, cost function, logistics, and competitors.

A SWOT analysis (figure 1) should be completed, keeping in mind that you will most likely be facing local and imported brands. Without exceptions all competitors and alternatives must be reviewed and analyzed.

High-end elite and luxury brands command a price premium in most global markets. However, as a new entrant you may not be able to leverage your home market brand equity. In that case, you will need to build brand equity to achieve that premium price.

There are 4 stages to reaching that premium price level:

1. establishing brand awareness
2. building brand acceptance
3. attaining brand preference
4. achieving the “holy grail of branding”, brand insistence

All of this this takes time and investment.

There is a longer-term hierarchal approach to developing an international or overseas market. This approach begins with exporting your product to your new market – entering it for the first time. When the business builds traction and gains momentum, a local sales and marketing support office and inventory can be established.

Investing in local production assets eliminates value-detractor costs like shipping, handling fees, and duties (depending on relevant trade agreements). Moreover, local production could serve as an export platform to neighbouring countries as you expand geographically to continue growth.

In this hierarchical approach a company may accept lower profits to fast-track the initial stages, with the intention of maximizing profitability during the growth stage after investing in local production. This is often referred to as the “market entry fee”.

Not many companies will consider foreign direct investment (FDI) without first establishing a sustainable and scalable business model.

Again, it’s important to be patient. Establishing a foundation for a business could take three to five years.

5 pricing strategies to consider

Price positioning options should be evaluated, and a pricing strategy selected during the trade readiness – situational analysis and strategic planning stage.

There are many different price positioning options available, depending on:

• route to customers
• layers of distribution – retail or wholesale
• business-to-business (B2B)
• business-to-consumers (B2C)
• type or nature of the business

As an example, if you’re selling through a distribution network, the business model is business-to-business-to-consumer (B2B2C).

Multiple layers of distribution can be effective at reaching large or remote target customer segments. However, additional layers increase consumer cost, and it’s crucial to be mindful of this when selecting a pricing strategy.

There are many pricing and price configuration strategies to consider, and a business needs to decide the most effective strategy to achieve financial and non-financial objectives for each market and segment.

Selling directly to consumers or through a distribution network will also influence the price strategy choice. Most businesses entering the Southeast Asia or Indo-pacific region will sell through a distribution or channel partner network.

The most popular and relevant pricing strategies are premium pricing, penetration pricing, competitive pricing, cost-plus pricing, and value-based pricing.

1. Premium pricing

Premium pricing sets a high price for products or services reflecting superior quality, customer experience, and exclusivity. This strategy works well in the luxury goods segment where products are highly differentiated and unique with strong consumer brand affinity.

However, in most emerging and developing markets there are three distinct customer segments – premium, mid-level, and economy (figure 2).

The premium segment may be profitable, but it may also be the smallest customer segment with limited growth potential. Product and price positioning must be organizationally aligned with target markets and customer segments.

2. Penetration pricing

Penetration pricing is a strategy that sets the price lower than marketplace pricing to more quickly gain market-share. The idea is that lower prices will attract a larger number of customers. The profitability focus is higher-volume lower margin percentage, but higher margin dollars based on volume.

As an example – $1m sales at 50% GM = $500k margin dollars. $3m sales at 40% GM = $1.2m margin dollars. Ten percentage points lower, but 140% or $700k additional margin dollars.

The premise is as market share is built and brand equity develops and customer loyalty is gained, you can gradually increase your prices.

This strategy can be highly effective at penetrating intensely competitive markets where lowest price prevails and is the determining factor in deciding brands and suppliers.

However, it will be extremely challenging at any time to increase prices without alienating customers, especially if you’re the only one increasing. On top of that, competition will retaliate and it becomes a race to the bottom, and a race that’s unwinnable – in most cases local manufacturers will have lower cost structures.

3. Competitive pricing

Competitive pricing is a strategy that prices products similar to brands already available in the market. You should also review products that are dissimilar that could be used as an alternative.

As an example, a nut and bolt and a rivet, both are mechanical fasteners similar in functionality but different. The rivet might be more expensive but it’s faster to install and offers an overall consumer cost-savings (the value proposition).

Alternatively, you could price your products slightly lower as you would with a penetration pricing strategy, but Southeast Asia or Indo-pacific markets are intensely competitive, and competitors will respond aggressively.

4. Cost-plus pricing

In my opinion, this is the most overused and simplistic method to establish pricing. This strategy factors in all contributing fixed and variable costs to establish a selling price to distribution with a fixed margin.

In most cases incoterms are FCA (free carrier), channel partners and customers arrange to have loaded containers collected from the manufacturer, trucked to rail yard, railed to port, and port to export destination.

The strategy is simple and generally applies to all products across all regions, markets and segments. The downside to this strategy is that it doesn’t take the consumer or market price into consideration. The strategy also excludes regard for channel partner margin, and if your product line is not profitable and salable, channel partners will soon lose interest.

5. Value-based pricing

Value-based pricing is grounded on target customers’ perception of value. I have found this strategy to be most effective in determining the right price to drive revenues and maximize profitability for companies and their channel partners.

The price point is determined using a demand curve that illustrates the relationship between demand at different price points. Corelate that data with VOC (voice of customer) to determine the threshold of affordability – in essence what the target customers are willing to pay for the products or services, considering the added value being delivered.

Figure 3 compares cost-plus and value-based pricing strategies.

The difference is determining the market price first as the threshold of affordability, then working backwards. Subtract distribution margin,  duties (if applicable) and logistics cost. That will determine the distribution selling price or distribution cost of goods.

The difference in profit between the two is cost-plus delivers 50% margin, and value-based 42%. As explained in the penetrating pricing section, you may need to accept a lower margin to increase demand.

The goal when determining a pricing strategy is to rapidly develop market share and drive profitable revenues for the business and any channel partners while considering the threshold of market and customer affordability.

As mentioned, this might take some experimenting before you get it right, that’s to be expected. Take the time to get it right, pay close attention to competitors and fully understand their key differentiators and value propositions.

Let research and data and a logical thought process drive your product and pricing decisions.

The post 5 pricing strategies for international markets appeared first on Trade Ready.

Without a unique value proposition, your brand risks becoming just another brand in the aisle. That’s why building a unique value proposition is critical when you pioneer to a new market!

I found that having a structured framework to evaluate your market readiness can help you build and validate your value proposition.

Based upon Alexander Osterwalder and Peter Thomson’s work, I created a new framework more adapted to the food and drink industry which I think will help you develop your value proposition for any new markets.

This adapted framework comprises two main sections: Home Market Benchmark and Target Market Evaluation.

In this article I will explain the first section with more detail: Home Market Benchmark regarding the Current Value Proposition.

Home Market Benchmark – Current Value Proposition

Many in this industry initially try to sell the same products in new markets using the same arguments. However, the value proposition will be evaluated differently by consumers in a new target market. Nevertheless, it serves as a starting point.

This “Current Value Proposition Canvas” is divided into two parts: Your Product and the Consumer Insights based on your target audience in your home market.

Typically, your home market is where you have your strongest brand positioning and where you know the most about your consumers.

This intimate knowledge forms the basis for adapting your value proposition to a new market.

Product

Starting with your product, you need to answer three questions:

1. Benefits – What are the emotional attributes of your product that make your consumers’ lives better in your home market?

General emotional attributes for food and drink brands include:

• Brand Recognition: Confidence and pride in choosing a well-known and respected brand. These brands are often seen as a reference for quality or innovation within the category.
• Reliability and Trust: Security in consistent quality and safety standards. A brand that delivers on its promises.
• Celebration and Social Connection: Joy and uplift during special occasions with family or friends. Facilitates social interactions and creates a sense of community.
• Culture and National Pride: Pride in consuming products that celebrate cultural and national heritage. Emotional satisfaction from authentic products reflecting genuine practices.
• Nostalgia and Comfort: Bring fond memories and comfort from past experiences. Connection to cultural or familial traditions through food and drink.
• Satisfaction and Delight: Joy from consuming delicious and flavourful products. Pleasure in discovering new tastes and different cuisines from other parts of the world.
• Luxury and Indulgence: Pleasure from indulging in premium, high-quality products. Satisfaction from treating oneself as a reward.
• Health and Wellbeing: Enhanced health and energy from nutritious products. Comfort in making health-prioritized choices.
• Environmental Responsibility: Pride and satisfaction from supporting brands with sustainable practices, such as eco-friendly packaging and ethical sourcing.

2. Features – What are the functional attributes of your product in your home market?

General functional attributes for food and drink brands include:

• Taste and Flavour: The sensory experience, including taste, aroma, and mouthfeel.
• Nutritional Value: Health benefits like vitamins, minerals, protein, fibre, and essential nutrients.
• Convenience and Ease of Use: Ease of preparation and consumption.
• Quality and Freshness: Overall quality, including ingredients, manufacturing process, and freshness.
• Packaging: Design, functionality, and sustainability of the packaging.
• Price Positioning: Cost relative to perceived value and competitive landscape.
• Dietary Compliance: Suitability for specific dietary needs, such as gluten-free, vegan, or allergen-free.
• Shelf Life and Storage: Duration of freshness and safe consumption, and storage conditions.
• Sustainability and Ethical Sourcing: Environmental and ethical considerations in production, packaging, and distribution.
• Safety and Compliance: Adherence to safety standards and regulations, ensuring the product is free from harmful substances.

3. Consumption Experience – How does the experience of consuming your product make the consumer feel (consumer statement)?

When considering how the experience of consuming your product makes the consumer feel, it’s important to recognize that different types of target audiences may relate to your brand in unique ways.

By creating multiple personas, you can tailor consumer statements to reflect diverse emotional connections each segment may have.

This approach ensures your product resonates deeply with a wider range of consumers, enhancing overall brand connection.

Examples include:

• High-Protein Yogurt: “I feel strong and nourished after my workout, thanks to the high-protein content that helps me recover and build muscle without compromising on taste.”
• Fair-Trade Coffee: “I feel ethically responsible and connected to the global community, knowing my morning coffee supports fair trade practices and the wellbeing of farmers.”
• Classic Breakfast Cereal: “I feel nostalgic and comforted every morning when I enjoy a bowl of this classic cereal. It takes me back to my childhood, reminding me of carefree mornings and family breakfasts.”

Consumer Insights

Going next to the Consumer Insights, you will also need to answer three questions:

1. Desires – What are the emotional drivers that the consumer wants to be, do, or have?

• Status and Prestige: Products that elevate social status and reflect success, often premium or luxury goods.
• Indulgence and Pleasure: Products that provide enjoyment and sensory delight, often serving as treats or rewards.
• Health and Wellness: Motivation to improve health and maintain a balanced lifestyle.
• Convenience and Time Saving: Products that save time and effort, are easy to use, quick to prepare, or portable.
• Social and Cultural Identity: Products that resonate with cultural background or social identity, reinforcing a sense of belonging.
• Innovation and Novelty: Unique products that stand out and expand the palate, challenging and exciting consumers

2. Need States – What are the rational drivers that the consumer needs to get done?

• Basic Nutrition: Essential nutrients to maintain health and wellness.
• Compliance with Dietary Restrictions: Catering to specific dietary needs or restrictions.
• Safety and Quality: Assurance that products are safe to consume and of high quality.
• Affordability: Good value for money, competitively priced without compromising on quality.
• Availability and Accessibility: Easily accessible and consistently available in preferred shopping channels.
• Sustainability: Products produced sustainably, with minimal environmental impact and ethical sourcing practices.

3. Concerns – What are the Fears, doubts, and anxieties, a consumer might have while consuming your product?

• Healthy Ingredients: Concerns about the ingredients used in goods.
• Quality and Freshness: Concerns over the freshness and quality, especially for perishable or processed goods.
• Value for Money: Anxiety about not getting their money’s worth, seeking assurance that the product delivers on its promises.
• Regulatory Compliance: Concerns that products may not comply with local regulations, affecting safety and legality.
• Brand Trust and Authenticity: Doubts about the authenticity of brands, especially those making bold health claims or from unfamiliar sources.
• Cultural and Ethical Misalignment: Worries that products may not align with cultural practices or ethical values.
• Availability: Fear that preferred products may not always be available, leading to the need to find alternatives.

I will continue to develop the next subsections of the Home Market Benchmark of my Value Proposition Framework for the Food and Drink Industry newsletter. Check it out and subscribe on LinkedIn for more of my insights on the food & drink export business.

The post Food & Drink: Use this framework to define your current value proposition before you go global appeared first on Trade Ready.

Product compliance is a constantly evolving process. Because laws, standards and regulation continuously change, manufacturers, retailers and suppliers are pressed to innovate quickly in order to create compliant products and substances. Whether an organization manufactures the product or resells it, the responsibility to comply makes the manufacturer, suppliers and the reseller legally accountable.

The role of product compliance increases in scenarios of product proliferation, complex supply chains and multiple markets. With a recent increase in compliance-related penalties, fines and recalls, there is no room for non-compliance. The challenge for your company lies not only in producing a compliant product, but also in declaring it as compliant by placing it on store shelves.

Legal issues and risks—particularly product liability—are increased by production activities in multiple foreign markets, off-shore manufacturing and off-shore contracts. Some of these legal risks can be mitigated through regulatory compliance and meeting product standards.

What is Product Compliance?

In the simplest terms, product compliance means adhering to all the regulatory requirements and standards that products and services need to meet to be lawfully marketed in a given jurisdiction. These requirements vary depending on the product and the market, covering areas such as electrical safety, chemical composition, and children’s safety, to name a few. Compliance can be a complex area with multiple laws and regulations for suppliers and buyers to consider. Regulatory authorities ensure that products and substances are in compliance and can authorize regulatory approval.

It’s important as a manufacturer or distributor to have a comprehensive understanding of the different aspects of product compliance to avoid costly mistakes. Since different laws regulate various aspects of products, manufacturers need to understand not just one regulation, but possibly multiple regulations to bring their products to market in a compliant way.

Want to learn more about regulatory compliance and getting your products ready for global markets? Check out the FITTskills Products & Services for a Global Market online course.

Regulatory Compliance

Manufacturing compliance is comprised of technical, legal and corporate requirements, as well as regulations and practices manufacturers must comply with in order to produce and market products.

The risk of non-compliance has become an increasingly major concern in recent years, particularly for manufacturers with operations in multiple countries and jurisdictions that have their own compliance requirements.

This development has been further heightened by the increasing role of governmental regulatory bodies in certain industry sectors, along with the emergence of global standards to address the increasingly global nature of manufacturing. Regulatory compliance can impact every stage of the manufacturing process from product design to the end product.

Product Safety Compliance

Product safety compliance requires products to conform to regulations that ensure the product does not harm consumers, property or the environment throughout the product life cycle from inception to disposal. Regulations govern product concept/design, manufacturing, labelling, packaging, use and disposal (see Figure 2 1)

Safety regulations can cover the characteristics of a product, as well as its technical specifications, safety features, functionality, quality and durability. Product safety regulations may also apply to production processes, such as the way in which a product is manufactured. These regulations can also apply to the product life cycle, including how returns and disposals are managed, illustrated below.

Each company must research the regulations that apply to its products within its target markets, and ensure that its products, production processes and packaging comply with those requirements.

Many industries also have voluntary industry standards and best practices for packaging that often exceed regulatory expectations to reassure consumers and the general public with respect to the safety and integrity of that industry.

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It is important to understand the relationship between services and products when developing products. Many services are related to products because they:

• Are part of the product, such as a warranty

• Affect products, such as transportation

• Are part of the reverse supply chain, such as free delivery of product

Provided on a global scale, these product-related services generate billions in international trade revenue.

Consider the American coffee company Starbucks. The service provided by baristas making Starbucks beverages is an integral part of customers purchasing the company’s products. In 2015, service generated USD 19.2 billion in revenue for Starbucks.

Starbucks entered the market offering a coffee shop experience. The company sells its signature fair trade coffee perfectly ground, brewed and served in their coffee shops all over the world. In 2016, Starbucks had baristas serving coffee in fifty countries. In terms of continued growth, it expects to have more than 37,000 stores by 2021. Starbucks continues to innovate both in terms of its products and its brand experience.

Want to learn more about adapting your products and services to best serve your international markets? Check out the FITTskills Products & Services for a Global Market online course.

Starbucks offers coffee-based drinks, such as lattes, as well as teas and smoothies. It also sells coffee paraphernalia, such as mugs, coffee beans and coffee makers. Customers can also buy food products. Starbucks uses these associated products to enhance its coffee service and offer more to customers with a “one-stop-shopping” strategy.

Customers can go in for coffee and also have a snack or lunch. Starbucks has also expanded its home brewing by selling beverage pods for consumers using single cup brewing systems.

Understanding how organizations can employ services to enhance their products is directly related to increasing a product’s competitive advantage through a “service-added competitive strategy”.

Many manufacturers are exploring the “servitization” of their products by reviewing production, operations and ownership aspects of their products to move towards a service model. For example, in the United Kingdom, Finning Equipment has moved towards a service model where its equipment is tracked to monitor, maintain and, if necessary, replace equipment based on use and physical condition data.

How servitization improves customer satisfaction and increases profits in manufacturing

Servitization refers to the process manufacturing companies and other organizations undergo to develop the capabilities they need to provide services that complement their traditional products. As equipment becomes increasingly complex, customers need more service expertise than ever before.

Manufacturers around the world are redeveloping their approach to meet the needs of customers. Servitization has grown to become a popular strategy for boosting both customer satisfaction and profits in the manufacturing industry.

Through the design process, the addition of services is a part of product development and adaptation.

The servitization strategy is driving manufacturers to review their business models and consider service and leasing models instead of ownership models. This is very much in line with models supported by the circular economy movement.

3 key benefits of servitization for manufacturers

Manufacturers benefit from integrating servitization into their business model through:

More effective solutions: Before servitization took hold, manufacturers simply sold products and service as an afterthought. Today, customers want a strong service program to complement the equipment they purchase. By offering service programs, manufacturers can play an active role in solving their customers’ problems, rather than just selling a product.

Greater financial stability: The long-term service contracts that go along with servitization guarantee more secure revenue streams. Service contracts lay the foundation for customer loyalty and provide upselling and cross-selling opportunities.

Increased customer retention: Some manufacturers report that servitization increases customer retention because it allows them to become familiar with their customers, their equipment and their needs. The close relationship gives manufacturers the information they need to make their customers’ businesses more efficient.

With increasing demand for additional benefits—including mobile management systems and responsive customer service—more manufacturing companies will start offering service contracts.

By integrating service into their business models, manufacturers benefit from increased financial stability and opportunities to develop better relationships with their customers.

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