With geopolitical tensions reshaping supply chains, unilateral tariffs disrupting established trade agreements, and regulatory complexity increasing across regions, global business decisions carry more weight and risk than ever before.

According to the World Trade Organization, global merchandise trade volumes are projected to grow in 2026, but at a slower and more volatile pace than in previous decades, driven by geopolitical fragmentation and policy uncertainty. In other words: opportunity is there, but so is risk.

Against this backdrop, the most successful organizations are not asking whether they should grow internationally. They’re asking smarter questions about how.

1. What are some of the most important steps to take before venturing into a new market?

One of the most common mistakes in global expansion is reacting to opportunity before assessing readiness.

Before venturing into a new market, organizations should conduct a situational analysis, including assessing organizational readiness and planning and analyzing the results of international market research. This is not simply a planning exercise, it is a risk filter.

As the guide explains, “Before an organization embarks on a new initiative in international trade, it is important to assess the organization’s current conditions, attitudes, and resources”. This assessment helps determine whether the initiative is feasible and whether the potential gains justify the exposure.

Companies that skip this step often become reactive exporters, responding to inquiries without clear strategy or trade expertise. In today’s environment, readiness is a competitive advantage.

2. What international market research do you need to do before expanding into a new market?

International expansion demands structured research, not guesswork.

The guide outlines a seven-stage approach to international market research, beginning with defining the research objectives and progressing through stages such as screening potential markets, selecting the research design and data sources, and ultimately presenting conclusions to then apply the research. Each stage reinforces disciplined decision-making.

Beyond methodology, macroeconomic indicators play a critical role. The guide highlights key data points including Gross Domestic Product (GDP), GDP per capita, Household Disposable Income, market size, unemployment rate, population, and inflation rate. These metrics help businesses evaluate market suitability and purchasing power before committing resources.

In other words, expansion decisions should be evidence-based—not optimism-based.

3. How do tariffs introduced unilaterally by the U.S. government affect trade between Canada, the United States, and Mexico, even with CUSMA in force?

North America illustrates how quickly trade conditions can shift.

While CUSMA is designed to facilitate trade, recent unilateral tariff actions by the U.S. government (2025) have disrupted this predictability. Businesses that once relied on stable, tariff-free access have faced sudden cost increases and regulatory uncertainty.

As a result, companies must assume volatility. The guide notes that businesses must assume the possibility of future, unexpected tariffs and plan accordingly. Practical strategies include diversifying supply chains, strengthening trade expertise and maintaining contingency plans.

The broader lesson extends beyond North America: formal agreements do not eliminate political risk. Professionals must remain agile and informed.

4. What integrative export and FDI approaches can businesses employ when expanding into Asia?

International growth is not limited to exporting finished goods.

Organizations can expand through export, international transfer, international partnering, or through FDI. Within these pathways are multiple approaches: indirect export, direct export, licensing, franchising, strategic alliances, representative offices, greenfield investments and mergers and acquisitions.

Each model carries different levels of investment, control and exposure. For example, the guide explains that Greenfield/Brownfield investing is the riskiest and most expensive market expansion option. Conversely, indirect export may limit risk but also reduce market visibility and control.

Selecting the right strategy requires alignment between organizational capacity and long-term objectives. There is no universal blueprint, only informed decision-making.

5. When a company expands into a new market, how important are cross-cultural considerations?

Market entry is not only about economics and logistics. Cultural alignment can determine success or failure.

The guide emphasizes that understanding and adapting to cross-cultural differences is critical for success. Communication styles, consumer behaviour, marketing imagery and negotiation practices can differ significantly between markets. Ignoring these nuances risks damaging relationships before they begin.

Cultural intelligence reduces friction, accelerates trust-building and strengthens long-term positioning.

6. How are tariffs determined on products that are being exported?

Amid strategic discussions, technical fundamentals remain essential.

A tariff is the rate that is used to determine the amount of duty that will need to be paid to the government of the importing country when goods are shipped internationally. Tariffs are determined using the Harmonized System (HS) of nomenclature, an internationally standardized coding system. Many governments have online tools for importers and exporters to determine and obtain a HS code for their materials and products.

Accurate classification directly affects cost, compliance and clearance timelines. Errors can lead to delays, penalties or reputational damage. For international professionals, understanding these mechanisms is not optional, it is operational risk management.

A more disciplined approach to global growth

Across regions, from the United States to China, the Middle East and the Caribbean, the opportunities are real. So are the risks. Regulatory unpredictability, infrastructure differences and currency considerations all influence outcomes.

As the guide concludes, a well-informed and adaptable approach is central to long-term success.

For professionals navigating global markets today, the essential questions are not simply “Where can we grow?” but:

• Are we prepared internally?
• Do the macroeconomic fundamentals support entry?
• What risks exist within the regulatory and political landscape?
• Which market entry model aligns with our capabilities?
• Do we understand the cultural and compliance dimensions well enough to execute effectively?

Exploring these questions in greater depth, along with region-specific insights and practitioner perspectives, can help organizations move from reactive expansion to structured global strategy.

For readers interested in examining these issues further, the Essential International Trade Questions Answered guide offers additional context and practical insight drawn from experienced international trade professionals.

The post 6 Essential questions every international business professional should be asking before they go global appeared first on Trade Ready.

But eight years later, Starbucks closed nearly three-quarters of its Australian locations.

 Headlines screamed: “Shunned Starbucks in Aussie exit.”

So what happened?

Clearly, Starbucks wasn’t working with a bad product. Its success in the American markets testified to that. And there weren’t any obvious instances of bad luck or misfortune. Instead, Starbucks’ expansion highlighted the cultural gap that can make international expansion challenging. And given that Starbucks Australia eventually started turning a profit decades later, there are some interesting lessons to learn from what went wrong—and how Starbucks turned it all around.

The risk of skipping the necessary cultural research

Most market entry failures start with poor preparation. Starbucks’ foray into Australia proved no exception.

The brand went full-throttle: Starbucks opened 84 Australian stores in just eight years, many in major cities with established coffee markets. However, Starbucks failed to take into account the highly developed coffee culture already present in Australia. After World War II, an influx of immigrants from Italy brought espresso machines and introduced coffee en masse. Australians had already “met” coffee cafe culture.

As the Australasian Marketing Journal reports:

“Australia’s taste for coffee is a by-product of the waves of immigrants arriving on the country’s shores following World War II. European migrants, predominantly Greeks and Italians, were the first to establish the coffee culture, which was later embraced more widely in the 1980s.”

In the U.S., that hadn’t been quite as true. Starbucks had already defined cafe culture. Meanwhile, Australians already had deep-set preferences for strong, artisanal coffee being served in locally-owned shops. In Australia, Starbucks wouldn’t be driving the culture. It would feel more like an outsider selling a familiar product. And its corporate approach felt less authentic (and often, more expensive) than the local cafes.

According to Justologist,

“Australians are spoiled for choice when it comes to coffee” while “the large coffee chains are not dominating the market like Starbucks is in America.”

Australian coffee culture was largely fragmented, not as ripe for national domination as American coffee culture had been.

What Starbucks could’ve done differently

Succeeding in any export market requires companies to clearly define their customer and adapt their approach as appropriate. That begins with thorough market research: a deeper understanding of the cultural context into which you’re exporting your products.

Creating detailed customer profiles

[This content is an excerpt reproduced from the FITTskills International Sales & Marketing course]

Customer profiles are used for product and service adaptations and other marketing decisions. Profiles are also often created for specific segments for the market. Customer profiles are almost certain to be diverse within every foreign market, taking into account income levels, culture, living standards, fashion, religion, politics and general attitudes toward imported products. Include the following 3 sections:

Demographic Portrait

This part of the profile demonstrates a detailed understanding of the organization’s customers and typically includes demographic characteristics such as age, gender, career or job, income, level of educational attainment, geographic location and language(s) spoken.

Estimated Demand

Based on collected research, marketers estimate demand for products and services, and the rate at which the demand is expected to grow.

Purchase Motivation

It is important to understand what motivates customers to buy. Are they looking for savings or a way to simplify their lives? Perhaps they are seeking attention or safety. Why will customers choose the company’s product or service over the competition? Is what they have to offer too inexpensive or too costly? Do they offer something unique? What cultural factors influence the values, preferences and behaviours in this target market?

For more on how to conduct customer research including collecting and analysing data and identifying insights about market segments explore International Sales & Marketing

In Australia, a full profile of coffee customers would have revealed that they weren’t necessarily looking for big-time chains. They valued their independent cafes. They already had their favorite barista-crafted coffee shops. They were fine with a localized, relaxed experience, and didn’t see a need to change

Starbucks had been encouraged by its rapid expansion in the U.S. and may have assumed that success in another western-style country would be assured. Instead, they tried to transplant the American model wholesale. And it was a model that simply wasn’t going to work in a country with a different coffee history.

A flawed international marketing strategy

‘‘I just think the whole system, the way they serve, just didn’t appeal to the culture we have here,” said Andrew Mackay, VP of the Australian Coffee Traders Association.

A key point of issue for Starbucks’ strategy was differentiation. International marketing can get tricky if your brand can’t figure out what makes it different. While the Australasian Marketing Journal notes that Starbucks had an initial spike of interest thanks to the novelty of the store and Australians’ curiosity, it failed to differentiate why it was superior to the already-embedded local coffee culture across the Australian continent.

Starbucks was perceived as having a premium price that required some point of differentiation to justify paying that much for coffee. The extant coffee culture in Australia made that selling point difficult. Other marketing problems—such as the uniformity of the store design—didn’t appeal to Australians the same way they had appealed to Americans.

The rapid expansion strategy also introduced an element of fatigue. While the appeal of a standardized coffee store had legs in America, the uniformity and success of the brand eventually started to wear on many customers. The same was true in Australia, where Starbucks’ rapid entry to the market and aggressive expansion strategy failed to make inroads.

Ultimately, Starbucks was a first-mover in America, while the brand had failed to acknowledge that in Australia, it would simply be another place offering coffee.

Additionally, Australian cafe owners weren’t intimidated by Starbucks. Starbucks’ fast-expansion philosophy might have worked in the United States, but Australian cafes were able to double down on the specialty brews and cozy atmospheres that had already made them popular with the Australian public. In that environment, it was difficult for Starbucks to differentiate itself from the competition.

How Starbucks Australia eventually recovered

A younger demographic eventually came to the rescue. According to Coffee Intelligence, “a new cohort of Gen Z and young millennials are driving coffee consumption in Australia, and they exhibit new drinking preferences that align with what Starbucks offers.”

Starbucks finally found itself aligning with what Australian consumers wanted, which was now an on-the-go lifestyle. Convenience and mobile online ordering systems were becoming preferable to the cozy cafe experience—which played to Starbucks’ strengths.

Additionally, Starbucks eventually shifted from a pure growth strategy to focusing on tourist-friendly locations with more international audiences. Shopping centers and popular commuting destinations proved valuable in this strategy.

In other words, Starbucks eventually found success not in trying to teach Australians to be like Americans, but in finding where its current Australian market already existed, then doubling down on that strategy.

Actionable lessons for exporters

Starbucks made some expensive missteps, but eventually learned some key lessons to enter a new international market:

• Define your customer profile, remembering to keep it local. Don’t assume what worked for your current customer base will work for the new one, too. Use customer profiling to understand demographics, demand, and culturally-driven purchase motivations in the new market.
• Adapt your product or service to fit the culture. Starbucks started seeing more success when it a mobile-driven generation stared drinking coffee. Rather than stick to its old U.S. playbook, the brand eventually shifted to finding its niche, which provided further opportunity to grow.
• Localize your marketing strategy. One-size-fits-all branding can often be a mistake, as you use previous successes to predict future ones. But sometimes, those successes were due to elements that may not exist at the next stage of your expansion.

A powerful “export plan” takes plenty of research, along with generous dollops of patience and humility. Starbucks was able to turn things around by addressing their mistakes and doubling down on customer research and adaptations. Lesson learned? Don’t skimp on your customer profiles and never assume your domestic approach will work in global markets.

FITTskills content adapted from: FITTskills International Sales & Marketing. Forum for International Trade Training (FITT), © 2023.

The post Lessons from a failed export plan: why Starbucks couldn’t crack Australia 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.

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Here are the key takeaways for businesses embarking on their international expansion journey, along with real-world examples and expert insights:

1. Conduct thorough market analysis

A deep understanding of trade dynamics, including demand patterns, competition, trade gaps, and consumer behavior, is crucial. Furthermore, demographic and geographic factors significantly impact your product or business in a particular market.

Businesses should leverage government trade data portals, market intelligence platforms, and local consultants to gain insights before market entry, which helps mitigate various risk factors and aid in the smooth launch of your project.

Example: A small trading company sought to expand its business by entering into international markets. To identify the most promising opportunities, company leveraged market intelligence reports that provide data on global demand trends, key importing countries, volume, and regulatory requirements. Equipped with these insights, the company successfully entered Middle East markets where data showed immense potential of supply within oil & gas, water treatment, and manufacturing industries. In a short span of time the company secured long term supply contracts and increased export revenue significantly.

In the early stage of expansion, companies should use trade data to strategically select the right market for their products, analyze target customers, and assess competition. This insight helps develop a tailored market entry strategy, ensuring effective product positioning, pricing and branding to maximize success.

2. Understand regulatory & compliance requirements

Each country has unique import-export laws, tax structures, and trade compliance standards. Non-compliance can lead to shipment delays, penalties, or legal action. Businesses should collaborate with trade experts and use platforms like macmap.org and government trade databases to navigate regulatory challenges.

Example:  A growing premium energy drink producer from India shipped a consignment to Malaysia, but the shipment failed to clear the customs due to a near expiry issue. In this case both the customer and shipper were unaware of the importing country’s minimum shelf life rule, which requires imported food and beverage products to have a certain % of shelf-life remaining upon arrival. As a result, the shipment was rejected, leading to disposal and consequently financial losses to the shipper. This highlights the importance of understanding destination market regulations, including product validity requirements, to ensure a smooth trade transaction.

Moreover, regulatory and compliance reviews are essential when launching or registering a new  product and getting necessary approvals before the shipment to avoid any unwanted delays and penalties at the destination. Staying updated is equally important with any amendments in policies or domestic laws to avoid disputes or rejection.

3. Build financial resilience

Expanding internationally involves costs like shipping, customs duties, currency fluctuations, and marketing. Businesses must:

• Maintain a financial buffer
• Explore trade financing options
• Hedge against currency risks

For instance, a small chemical manufacturing company secured its first export order to China in 2018 but faced challenges in financing raw material and logistics expenses. Lacking the capital to independently fund the order, the company opted for the invoice factoring option with a private lending firm which allowed them to secure 70% of the invoice value at minimal factoring fees. This provided immediate liquidity to cover the production and shipping costs. As a result, the company successfully fulfilled the order without financial strain, ensuring smooth operation and a timely delivery.

Additionally, businesses should assess their pricing models, operational costs, and return on investment in foreign markets.

Strong financial planning and disciplined cash flow management allow firms to scale operations, withstand market downturns, and reinvest profits into further expansion.

4. Consider the FDI route for market entry

Foreign Direct Investment (FDI) is an effective way to establish a strong presence in new markets. Businesses can:

• Form joint ventures with local firms to leverage market expertise
• Establish subsidiaries for better operational control
• Seek investment partnerships for credibility and funding

Example: Foreign semiconductor companies like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung have invested heavily in US plants, particularly in regions such as Arizona. These investments not only strengthen America’s semiconductor supply chain but also bolster innovation and technological leadership in the global market.

In the clean energy space, the IRA has led to significant foreign investment in electric vehicle (EV) manufacturing. Ford’s $11 billion EV project, in partnership with South Korea-based SK On, highlights the importance of global collaboration in bringing advanced clean technologies to the US. As a result, manufacturing construction investments in the US reached a record $225 billion in early 2024.

Through the FDI route, smaller businesses can enjoy direct access to local skilled workforces as well as government incentives and support, while also contributing to local job creation and economic growth.

Moreover, FDI can help businesses mitigate risk associated with foreign exchange volatility and trade barriers by having a physical presence within the country. Strategic alliances through FDI can also lead to technology transfer, innovation synergies, and enhanced brand credibility in new markets.

5. Establish local representation

Having a trade representative, distributor, or local partner can be a game-changer. Benefits include:

• Faster regulatory approvals
• Stronger relationships with stakeholders
• Better customer service and market insights

Example: A US-based family-owned clothing brand aimed to establish a global footprint with minimal investment. Instead of setting up costly international offices, they appointed foreign trade representatives who provided valuable market insights. These representatives helped the company adapt to local preferences by furnishing designs, preferred colors, and fabrics suited to different climates. This strategy not only enhanced the brand’s visibility in new markets but also enabled it to source competitive local vendors, reducing shipment costs and minimizing carbon footprints through localized packaging. By leveraging local expertise and sustainable sourcing, the company successfully expanded internationally while maintaining financial efficiency and environmental responsibility.

A local partner or representative acts on behalf of the company, eliminating multiple barriers such as language and cultural differences while ensuring full compliance with domestic business practices.

6. Customize marketing & branding strategies

Adapting branding to cultural and consumer preferences is key. Businesses should:

• Modify brand messaging to resonate with local audiences
• Adjust visual identity (logos, colors, typography) based on regional preferences
• Launch localized digital marketing campaigns

Example: The same Indian energy drink company who lost a shipment in Malaysia, successfully gained a prominent market share in South Africa by adopting to local preferences. They modified their packaging colors and adjusted their brand messaging to resonate with the South African market, leading to a strong foothold in the region.

It’s imperative to mold your branding and promotional activities to the taste of the local market to engage your target audience. Businesses should also ensure that their brand story aligns with local values and traditions, making it more relatable.

Leveraging region-specific social media platforms, influencer partnership, and native language advertisements can enhance brand credibility and customer engagement.

7. Incorporate ESG values to attract socially conscious consumers

Environmental, Social, and Governance (ESG) values are becoming a key differentiator in international markets. Businesses should:

• Implement sustainable supply chains
• Highlight eco-friendly initiatives in marketing
• Commit to ethical sourcing and corporate responsibility

Example: Unilever integrates sustainability into its business model, reducing plastic waste and focusing on carbon-neutral operations, which has increased customer loyalty globally.

Consumers are increasingly aligning their purchasing decisions with brands that demonstrate social and environmental responsibility. Sustainable business practices such as carbon footprint reduction, responsible waste management, and fairtrade sourcing can serve as competitive advantages in new markets.

8. Leverage technology for growth

AI & ML can enhance international expansion by:

? Predicting customer behavior for targeted marketing

? Automating business operations to increase efficiency

? Optimizing logistics through smart trade platforms

Adopting technologies like AI and ML tools early in international trade expansion can keep you ahead of the competition and significantly increases your organization’s efficiency.  AI utilizes advanced machine learning and predictive analytics to make demand forecasts, streamline supply chains, and simplify customs procedures. This may lead to more effective logistics and inventory control. Furthermore, AI can automate document verification and risk analysis.

Tech driven businesses are bringing in a revolution of efficiency which will enhance the capacity and accuracy in most industries. It is here to stay and leveraging the technology in early stages of business can keep you ahead of the competition.

In international trade, AI can be applied to automate marketing activities, warehouse and inventory management, and to detect  errors in financial documents.

Final thoughts

International expansion offers tremendous opportunities, but businesses must prepare strategically to navigate market complexities. By leveraging market research, compliance expertise, financial resilience, local partnerships, FDI routes, ESG values, and technology, companies can achieve long-term success in global trade.

Are you planning your global expansion? Remember: Success isn’t about entering a market—it’s about thriving in it!

Don’t miss any steps in planning for export success. Check out this free tool to assist both novice and seasoned exporters in visualizing the critical components for international market expansion: FITT x EDC Export Vision Board

The post 8 Key actions businesses should take in the early stages of international expansion appeared first on Trade Ready.

Many small- and medium-sized companies will not have a substantial budget for conducting international trade research. These companies will often rely on secondary trade research as much as possible.

Most SMEs will perform the majority, if not all, of their research in house by using published sources and the Internet.

This type of research is called desk research and it involves obtaining secondary data (existing data that have already been collected for some purpose).

Whatever the size of the company, researchers should always start planning their research design by investigating whether any information can be sourced from within the company; for example, by finding information stored in company records, by talking to customers or distributors or by asking employees who have worked in a potential target market for information. However, most secondary data sources are external.

There’s a world of secondary data at your fingertips

Internal records and information from internal experts:

Sales and accounting records – can be used to determine baseline comparisons of trends, costs and target customers

Distributors and customers – can be used to determine buyer expectations and purchase patterns

Employees with experience in the target market – can be used to determine opinions about general conditions, cultural impact and business methods

External sources and experts:

Government departments and agencies – can be used to determine market assessment publications, trade statistics, trade regulations and export and import controls

Representatives of the target country – can be used to determine trade and market conditions specific to the country and cultural considerations

Trade or industry associations – can be used to determine practices, trends and conditions related to the organization’s expertise

Non-governmental associations (NGOs), universities and trade-related businesses – can be used to determine comparative market, population and demographic statistics, competitor information and credit information

Publications, directories and yearbooks – can be used to determine market statistics, general information about trends, interests, demands and regulations, sources of information and advice

Various websites and data tools – can be used to provide fast access to publications, directories, statistics and market research reports

When should you dive into secondary data?

Researchers should always check whether secondary research data are available internally before accessing external sources.

There are several reasons why a research project should always investigate secondary data sources first:

• It is cheaper to collect secondary data than it is to collect primary data.
• It is faster to collect secondary data than it is to collect primary data.
• Secondary data might be available that answer the market research objectives without the need for primary research.
• Secondary data collection can help improve a researcher’s understanding of a marketing problem and therefore lead to better design for the primary research.

Secondary data should also be used in the following circumstances:

• When companies are considering entering unfamiliar markets, secondary data enable companies to gain an appreciation of the nature of the market and the competitive business environment without spending too much money
• When researchers need facts that would be unrealistic or unnecessary to gather from a primary research source, such as the annual consumption of coffee in Poland or the population of Trinidad
• When researchers need to understand or monitor trends in financial issues, business conditions or demographic factors
• When primary research is too difficult or too expensive to access, secondary data might be all that is feasible

This article is adapted from content covered in the Feasibility of International Trade FITTskills course.

Learn everything you need to know about assessing your organization’s readiness to make the leap into new global markets including planning and executing effective market research.

The post You can conduct valuable secondary trade research from your desk – here’s how appeared first on Trade Ready.

Politics drives economic policy and economic policy guides business decisions. Its critically important during geopolitical influenced economic uncertainties that we minimize assumptions and emotional biases to our products and companies and make data driven decisions and choices.

These decisions should be based on facts derived from keen research and analytics and a logical thought process. There is no shortcut, you need to do or contract-out the work.

Focusing on Southeast Asia markets

After living in Singapore and working throughout the Asia Pacific region for more than 20-years, I offer my opinion based on my experience and expertise to help companies navigate the inherent challenges and barriers and  successfully compete and win in the fastest growing region on the planet.

In particular, the ASEAN, Indo-Pacific, or Southeast Asia region has emerged as the global growth engine of the next decade and beyond.

Companies worldwide should be pivoting to the region to take advantage of new and emerging growth opportunities.

Export is crucially important to any growth-minded company. It establishes the first step to entering a new market. As your business scales you can decide upon progressive steps like establishing a local sales office, bonded warehouse, or local manufacturing. In most cases exporting leads to foreign direct investment (FDI) in local manufacturing assets, either greenfield or acquisition.

Southeast Asia is not a homogenous marketplace. Each country is a different ecosystem, with its own vibe and set of preferences, values and norms. New entrants must be capable of understanding and embracing social and cultural diversity.

One-size-fits-all cookie-cutter strategies fail in Southeast Asia, – you need to tailor your approach to each unique market.

Don’t just adapt to Southeast Asia, become a part of it. Take the time to understand the culture, the history, and the emotions behind customer buying behaviors.

Getting started with market research

So where do you start? The first step is to identify, validate and quantify opportunities, and determine your company’s export readiness. The second step is to craft your market(s) entry or go-to-market strategy and business plan – think of strategy as your logic and compass, and your plan the roadmap or process.

The third step is to develop a distribution network capable of reaching your target customers. If you’re selling B2B2C you need channel partners. This article will delve into the first step of evaluating export markets for your business.

Finding the best sources of secondary research

Normally, when I approach a new research assignment, I purchase two industry reports. A typical and focused market survey or industry report will cost between $2,000.00 – $3,000.00 US.

Industry reports are a market assessment tool that provide a comprehensive examination of a particular industry in specific countries.

In my Indonesia example below (figure 1), the company wants to sell its fiber cement exterior finishing products. The total market volume for exterior finishing products is 79 million M², fiber cement products represent 4% of the total market volume. The company’s addressable market in Indonesia is 3.16 million M². I then convert volume into economic value, (volume x wholesale cost per M².) Most reports will provide compounded and annual growth rates and trends.

Other valuable sources for secondary data are Export Development Canada (EDC),  Asia Bank, IMF, government websites, Channel News Asia, and a few of my favorites that require a subscription are Nikkei Asia, Oxford Business Group, Focus Economics. I also use a segment specific project and leads directory when needed – as an example in the Asia Pacific construction segment I use BCI Asia. Secondary research data can cost between $8,000.00 – $10,000.00 US, depending on the scope of the research project.

Presuming we now have loads of secondary data, the data now needs to be translated into quantifiable, meaningful and useful information that can be shared and understood cross-functionally.

Analyze your data using the PESTLE model

One of the most useful analytical tools to evaluate markets is the PESTLE model, (Political, Economic, Social & Cultural, Technology, Legal, and Environmental factors.)

The PESTLE tool has evolved over the years, starting as a PEST analysis more than 20 years ago, then to the SLEPT analysis, and to what is used today the PESTLE analysis. An interesting and important addition is the Environmental factors.

The importance of Environmental factors and compliancy and how this can be leveraged or translated into differentiation and customer value should not be underestimated.

Southeast Asia customers make brand choices based on personal value perceptions and the environmental benefits and impact of your products. In addition to the PESTLE model, I use a weighted scorecard to visually organize and present my findings.

In my abbreviated example below (figure 2) I am only comparing three countries, all countries under consideration must be evaluated. Each main factor will have five to ten sub-factors. Each sub-factor is weighted on importance and given a score, the scores are tallied, then each main factor is calculated. In my example the total score for Singapore main factor political is 36.

We then create a graph chart (figure 3) to visualize our comparative and quantitative analysis. Every company’s analysis will differ due to different metrics or criteria. Each company will also have a threshold, in my example my minimum threshold value is 120, so Indonesia and Singapore would be selected as my target markets for further evaluation.

Further evaluation would come in the form of primary data collection, so get your passport ready, you need to travel to meet the potential customers you intend to sell to.

Get your passport ready for primary research

The best source for primary data collection is “voice of customers” (VOC), and I am a strong supporter of trade shows in the Southeast Asia region. However, trade shows are expensive, and the merit of a trade shows needs to be carefully considered.

In the post-Covid environment trade show costs have increased to pre-Covid levels. Trade show space and booth design cost will vary, I try to cap this cost at $15,000 US. You also need to consider travel expenses, and that cost could be $10,000 per week including airfare.

Considering this, we need to establish clear and attainable goals or outcomes to justify the expense. For me my goals are to:

1. understand the market and customers and begin building relationships
2. interview potential customers
3. identify key competitors, and
4. recruit distribution and channel partners.

I have learned from past experience to add a week post trade show to follow up with contacts and prospects gleaned from the event.

As an example, prior to Vietnam’s economic awakening, we identified Vietnam as a rising economy and attractive market. We attended a relevant trade show and then the following week was filled with business development activities, visiting potential distributors and customers, and we appointed two new distributors.

At this point we have conducted our initial PESTLE analysis through secondary data collection, participated in our first overseas trade show, visited potential customers and channel partners, and we can now amend our PESTLE analysis based on the more comprehensive information gleaned from our overseas trip. Next, we need to assess our capabilities and ensure we are correctly positioned and aligned to capitalize on the opportunities uncovered. Are we export ready?

Evaluating your export readiness

Being export ready is more than a mindset, it’s a commitment of resources and funding to support a successful export endeavor. The export ready self-evaluation process will help define your strategy and plans. FITT’s Feasibility of International Trade course provides thorough and contemporary training on how to assess organizational readiness. Typical questions

• Are you willing to invest in resources, people, time and capital without an immediate return on investment (ROI)?
• Will your pricing strategy enable you to compete profitably?
• Is product customization required to meet specific market or customer needs?
• Are your products compliant to relevant codes or standards?
• A new one for me recently, will your bar-codes scan in overseas markets?
• If exporting to a non-FTA country, what is the duty impact to market pricing and profitability for you and your partners?
• What are your trade terms and conditions, do you need credit insurance?
• Have you established clear, relevant, and attainable goals?
• Do you have senior leadership and cross-functional support?
• Do you have an international freight forwarder?
• Do you have experience with export documentation, do you understand incoterms?

Each company is unique and will have specific questions relevant to their business and chosen markets. Go beyond the superficial qualitative narrative and translate the data into actionable quantitative information.

The next step is to craft your market-entry strategy and business plan. Remember each market is unique, and the Southeast Asia marketplace is not just about products and price-points, it’s about people and relationships founded on symbiotic trust, confidence and collaborative partnerships.

I will share my thoughts on strategy and plans in my next article.

For more valuable tips and concepts follow me on FITT, LinkedIn, or my website.

The post How to evaluate new ASEAN export markets for your business appeared first on Trade Ready.

Whether you sell goods or services or both, there may be tremendous opportunities for you to grow your business outside of the domestic border. In fact, going global can make you more efficient, make you more competitive and make you stronger.

However, if exporting were easy, every company would do it, so it’s crucial to understand what’s involved.

During this series, we will provide an outline of some of the risks of going and growing globally, as well as a high level “A to Z” of exporting – everything from assessing your company’s export readiness to planning and researching market entry, finance and marketing.

FITT experts:

Daniel Lewis CITP, Founder – Daniel’s Chai Bar, Author, International Speaker

Marvin Hough CITP, President – MIRA Limited

Lora Rigutto Vigliatore CITP, Loyalty and Engagement Manager – FITT, International Business Instructor

Assessing your company’s export readiness

Feasibility of International Trade

When we talk about feasibility of international trade we’re principally referring to three broad components:

• Export readiness – does your venture have the resources required to venture into foreign markets?
• Choosing your target market – where should you start?
• Suitability of your products and services – is your product or service suitable for your target market, or do you need to modify it in some way?

The first step in assessing your export readiness is to do a SWOT analysis – you must assess your strengths and weaknesses and figure out your gaps.

The second step is asking yourself those tough questions – why are you exporting, who is going to get the work done, and are you really ready?

Daniel, can you tell us about your company’s journey to importing and exporting, and how you determined when you were ready to go global?

The thing I like to say is that we started exporting accidentally, and then we learned how to do it the right way, so a lot of what I learned was by mistake.

When we started our company, our focus was on how we could positively impact the community that we’re in, which was working. But then it got to a point where the people that we were impacting in our local market well, they have family that visits from international locations, and when they would experience our brand and our products we started to hear the questions like “do you ship to the U.S., to Australia, Japan?”

When you keep getting those questions then you start to ask, is there business potential elsewhere? That’s what started to happen for us. We started to sense a demand, especially from the U.S., for our teas and we had to start thinking about how to get it there. So we had to figure out packaging and how to ship it – what were the documents that we needed.

We made a lot of mistakes in those early stages, until we started to learn from those experiences and get our feet on solid footing.

We also started to learn that in the U.S., which became one of our big markets, it’s very different than Canada. People are different, the buying decisions and motivations are different, and we couldn’t just copy paste what was working with our Canadian market. Eventually we tapped into resources like FITT to learn and refine that process.

What were some of those gaps that you had to address before you could make that leap to a new market?

 One of the biggest gaps for us was, from our company’s inception, we branded ourselves as a company who uses tea as a tool to impact people’s lives in a positive way, so in our marketing we put our mission before our product. And that resonated very well here in Canada.

But when we went to an international market, like the US, they didn’t really know us, and that connection was not the same. We had to find a strategic way of turning that around and creating a product focus. It was the complete opposite of how we were branding and marketing ourselves originally.

Marvin, how do you assess or help your clients evaluate their own export readiness?

You know in Canada, we have about a million SMEs and only about 4% are actually exporting. And out of those about three quarters sell into the United States. Going global for an entrepreneur or startup SME is really challenging, but it’s also really There are three pieces of good news I want to share:

1. There are more groups available now to help entrepreneurs than ever before. FITT and Startup Canada are both excellent examples.
2. The digital revolution has created an easier path into markets.
3. Startups can be very flexible and agile and being able to pivot and change the way you’re operating is really, really important.

I put my clients through a readiness checklist that can be quite extensive. I’ll mention some of the points that I think are really important that companies look at. Number one is management’s commitment to the export field.

I’ve seen companies say they’re ready and they want to go at it, but two months later, they come back and another project has taken priority. To tackle international markets, companies have to be sure they’re committed from the very top.

The second part is foreign market research. You can do a lot of this online now, which makes this much more accessible.

Thirdly, having the financing setup and support is important, whether you have to adapt your products or just completing an order. So many companies I’ve seen are stretched too thin, and they’ve got an export order but they lack that risk management.

As you enter a market you’ll often be relying on an agent, partner, or distributor. It’s so important to do the full analysis and fully vet your partners.

There are many other items on the export readiness checklist – from getting the right freight forwarder to understanding the promotional material requirements in your target market.

A great resource I’ll point out is on the Trade Commissioner website  – there’s an export readiness quiz that you can complete to assess all these readiness factors.

And if you don’t have an answer to some of those questions, or the answer is no, then consult with consultants, and CITPs, and seek training resources like the workshops and courses provided by FITT. The Situational Analysis workshop and Feasibility of International Trade course in particular can help on the preparedness side.

EDC, is also a good resource for companies that are assessing if they’re ready to export.

But as mentioned, sometimes an export order comes out of the blue and all of a sudden there’s an order coming in from a new market. That can be an exciting and overwhelming situation, but it’s also a great learning experience because startups have the agility to learn and adapt quickly. Daniel and his company are a great example of that.

You’re never too small to start exporting, you just have to know where your gaps and tap into the right resources that can help you.

How do you determine which markets to start exporting to?

I caution companies to get focused on their target market and don’t take on too many markets at the same time. That can often be a recipe for disaster.

As mentioned, many companies start exporting to fulfill orders that have come to them through e-commerce or a random request in their inbox. But there can be a tremendously steep learning curve.

The vendor may not be set up to ship internationally and may not understand customs procedures or local requirements for labeling and packaging.

So, if we take that strategic approach to market expansion, are there certain types of markets that are good testing grounds for first time exporters?

Many Canadian businesses start their international expansion in the United States where there’s cultural affinity and we conduct business in similar ways.

One resource that comes to mind is called the New Exporters to Border States (NEBS) program run by the Ontario government which helps businesses who are exploring the U.S. market. If a company is going through the readiness stage, they can go to the U.S. for a two day program and get all of the details about crossing the border from currency exchange to tax and legal issues.

Through this program the businesses can gain that knowledge firsthand, they can for example, go to Buffalo for two days and meet with all of the officials who can help facilitate the logistics in that market.

There’s a plethora of information online through government websites here in Canada, and I find industry associations have really good information on foreign markets for companies looking at getting into a sector.

But then there’s always those unexpected orders that come and companies have to evaluate them. Having somebody focused on the research is very important, whether that’s an internal employee or engaging a consultant to do that.

Hiring a research consultant can be extremely important, in my experience, for a smaller company.

Daniel, you mentioned, you started your company’s exporting journey in the United States because of unplanned opportunities to fulfill orders from word of mouth.

Was exploring that market also a strategic choice or was it just because of that unexpected demand coming in?

I was not strategic at all, I was just reacting to those opportunities. And that’s a place you don’t want to find yourself in when it comes to exporting.

So often in business, you have this checklist and this plan, and then boom! Something else just side tracks it. That’s what happened to me in many cases, and I was not necessarily ready.

For example, I’m also an author and with my book sales, I said “I’m open to the world!”

I learned you have to be careful of just saying that you’re open to selling internationally, because I was selling my book for $9 and I got an order from Vienna. Long story short, by the time I shipped that and got it to the customer it cost me $85. It was either that, or they had to wait like five months to get the book.

Logistically for you, you need to know if you are entering the best market from a sales and marketing standpoint. Explore where there are trade agreements between your home country and that market or that country that you’re trading into.

We didn’t know about the HS codes that we needed to declare and put on our packaging, and we got hit so hard with this influx of information that we weren’t prepared for.

If I was to do it again, I would have found people who have experience – and I would have started with FITT courses and the Trade Accelerator Program.

These kinds of resources have helped to make me aware of the things that I don’t know about exporting and importing.  And that’s what I didn’t do before, so if I was to do it over again, making that commitment from a management standpoint to do the research, learn about the shipping logistics.

Start by getting training, attending workshops virtually, doing your online research, reading books – it will all make you feel so much more ready and give you a psychological confidence to start exporting.

Before I did that, I was getting to a place where I didn’t want orders to come in anymore, because I felt like I was just going to mess it up. But once you feel ready, you get more aggressive in doing business and getting sales and facilitating those orders. Then your customer service kicks in and that’s when business starts to thrive.

Something that sometimes happens when companies enter big markets – it’s that idea that a big country like the U.S. or Mexico is one market. It’s a fallacy, I’ve seen so many companies think that they’re into the market and really they’ve only got a little bit of a foothold in a particular city. We have to realize that there are difference markets within these big countries from region to region and different cities. That has to be explored as part of your analysis.

I’ve been teaching here at the Telfer School of Management and in the MBA programs in many universities. Within these types of programs the students often undertake international research projects for companies as a learning experience. These can be a sort of a free service, and a great resource that I would highly recommend to assist with your market research and analysis.

Stay tuned for the next article in the Ready. Set. Export. series – “Adapting your products and services”

The post Ready. Set. Export! – Assessing your company’s export readiness appeared first on Trade Ready.

Even when conditions indicate that a potential market might be suitable, certain political and legal issues—such as import restrictions or lack of copyright protection—could make the market less attractive. When trading with another country, organizations are directly influenced by the political, legal and business conditions of that country. A crucial step in deciding whether a new international market is a feasible one for your business to enter is to identify and analyze any possible political risks. The first step in analyzing political risk is to collect and review as much of the relevant data related to this target market.

Review historic and current data related to political risks

The following 11 potential political risks can be identified and evaluated through research:

1. Political instability: A country’s level of political instability is determined by the likelihood that its government will be destabilized or overthrown by violent or unconstitutional means, such as terrorism and civil war. This instability can include a rise in nationalism, civil unrest and labour issues. It can result in frequent changes to the legal requirements, destruction or appropriation of property or goods, inflation volatility, rapid price rises and a decrease in the quality of life for the country’s inhabitants.

2. Political cycle:  The timing of the election cycle may have a bearing on the launch of a new international trade initiative, especially if there is the potential of a change in the type of political leadership, such as from dictatorship to democracy.

3. Hostility to foreigners, foreign trade or foreign investment: Some countries openly welcome foreign trade and investment by offering incentives or beneficial tax reductions. However, in other markets, discriminatory legislation, trade barriers, “buy-national” procurement policies, quotas and tariffs are applied to foreign organizations.

4. Corruption and control over commerce: In some countries, control over commerce can lead to situations in which organizations feel pressured to befriend, persuade or even bribe officials in order to secure the permits required to conduct trade. However, gift giving and bribery can result in severe criminal and civil penalties.

International trade research helps identify markets in which organizations are likely to face trade barriers unless they or their representatives act in an illegal manner.

5. Weak legal protection for property and Intellectual Property rights: In countries with weak protection for property rights, there is an increase in black market activities (e.g. where illegal copies of products are being manufactured, distributed and sold in a foreign market with the consent of the intellectual property owner). Organizations are wary about investing in such countries because of the possibility of large property losses when property is stolen or misappropriated without recourse or when contracts are not honoured. Intellectual Property rights are also important. The degree to which Intellectual Property is protected influences the flow of innovative ideas and creation of new products in a  country, which impacts creative and economic wealth. Intellectual Property includes inventions, literary and artistic works and symbols, images, names and designs used in commerce.

Looking to determine if your new trade opportunities are viable? Check out the FITTskills Feasibility of International Trade online course!

6. Legal restrictions on trade: These restrictions can apply to both the import and export of goods and services.

In 2021, Pacific Gateway Holdings,  a  seafood  importer  in  British  Columbia,  was  fined  CDN  163,776  for  importing  endangered  eel  species  products  from  a  supplier  in  Xiamen,  China.  The  company  had  declared  that  the  shipping  containers  contained  American  eel,  but  five  of  seven  containers  that  were  inspected  were  found  to  also  contain  a  percentage  of  European  eel  meat  (which  is  not  legal for importation). The shipment, which was valued at roughly CDN  400,000,  was  also  seized  by  the  Crown  at  the  border  and  ultimately scheduled for destruction.

7. Legal requirements for business registrations, incorporation, local partnering or other types of  performance: Because a company’s legal structure has an effect on liabilities and taxes, it is important to consult with a tax accountant and legal expert to investigate each form of legal structure before making a decision. Organizations must also ensure that they adhere to all legal requirements and payments.

8. Tax regimes: Tax rates on identical items vary from country to country and sometimes even between regions within the same country. A country’s tax practices might be unusual or complex. If tax treaties between a foreign country and a company’s home country are not established, a foreign company might have to pay tax twice (i.e. they may have to report, and be taxed on, earnings in both countries).

9. Relationships with other countries: It is important that an organization is aware of the relationships the target market has with other countries, including alliances and conflicts. For instance, if an exporter sells a product to a country that is known to then trade that product to a country with international sanctions against trade in that product, the exporter may face legal consequences.

In 2021, Biomin America, a company based in Kansas, U.S., agreed to  pay  a  penalty  of  USD  257,862  to  the  Government  after  being  found  to  be  in  violation  of  the  U.S.  Department  of  the  Treasury’s  Office  of  Foreign  Assets  Control  (OFAC)  regulations.  Although  U.S.-based  companies  can  sell  food  to  importers  in  Cuba,  the  United  States  carefully  regulates  and  monitors  all  shipments  to  the  country  so  a  permit  is  required.  In  this  case,  the  shipments  to  Cuba  were  actually  made  by  subsidiaries  that  Biomin  America  owned  in  other  countries  and  the  goods  were  not  produced  in  the  United  States.  However,  since  the  companies  involved  were  owned  by  the  U.S.  parent  company,  a  permit  was  still  required,  and since it had not been obtained, the company was penalized.

10. Infrastructure failure: It is important to consider the potential of infrastructure failure for government-owned assets such as electric power and transportation.

11. Cultural misunderstanding: Organizations must always be aware of the potential for cultural misunderstanding in business dealings.

This information will have been collected in the research phase. An excellent source for this type of information are country reports, many of which are free or available at low cost.

Organizations, especially larger companies involved in complex trade deals, may also hire specialists in the political risk analysis to complete the research and target market analysis. These specialists provide reports and recommendations that inform business planning decisions.

It is critical that organizations identify the requirements of the target market and their own countries. Misinterpreting these requirements can lead to difficult situations – for example, you could be required to remove a product, such as veterinary products and live animals, from a foreign country that cannot be re-admitted to your own. Once  the  information  is  collected,  you can identify  the  key  areas  of  concern and measure the probability of occurrence of each risk and the potential impact your  business  activities.

The post The 11 political risks that could sink your imports and exports appeared first on Trade Ready.

These are challenging times, to say the least. So much we can’t do, so many places we can’t go to, so many people we can’t see. So many plans curtailed, so many projects on hold.

Yet, believe me, there’s a lot we can do. And how we cope through the crisis and prepare ourselves for whatever’s next is critical. Not just for our businesses today and tomorrow (and therefore our jobs and the economy as a whole) but for our sanity right now.

So let me share with you just ten things you can absolutely do from home to support your international business during the coronavirus crisis, once you’ve dealt with the urgent like staff concerns, orders in-progress, accommodating operations to the new situation, and dealing with tax/legal issues.

1. Take stock of your business

Make the most of this time by evaluating where you are at with your international expansion. Gather data, speak to colleagues (remotely), and get a good picture of the situation.

For example, look at your sales history:

• Can you identify any trends?
• Can you identify any markets that are becoming particularly important that you need to maybe look after in a different way?
• Are any markets dwindling?
• Where are those online sales coming from?
• Are any distributors under-performing?

It is a great time to take a step back, look at data, reach conclusions, design measures and start implementing them.

The beauty of this process is that you’ll spot your data gaps, too. When you take a step back and start questioning your data, you will see what you haven’t been measuring so far and start thinking of ways to do it.

2. Check out your competition

You should always be keeping an eye on what your competitors are doing as part of your own market strategies. But now is a great time for a deep dive.

• What markets are your competitors present in?
• What are they (not) doing?
• How are they communicating?
• What are their routes to market?
• What’s their pricing like?

There’s a lot you can find out online.

This links to the point above: if you are selling less to a certain market and a competitor is pursuing an aggressive or rather clever marketing strategy, are you losing out to them? What market intelligence lies beneath all these marketing moves?

3. Revisit your business strategy

It might seem like a difficult time to plan ahead with the current level of uncertainty, but now is actually a good time to plan a strategy (again, having dealt with the urgent before) for when the crisis is over.

• Any new markets you need to target or at least explore?
• Any distributors that need managing differently?
• Any improvements you can make to your international marketing, financing or logistics? For example, can you use social media more efficiently?
• Can your pricing structure be more export-friendly?
• Shall you consider a new logistics provider or look, for example, at a regional hub/warehouse, a free trade zone, maybe?

Think about what you can do to improve your readiness to trade in target markets. Get your team on-board with some in-depth market research. Consultants can help too, either to guide you in an in-house research project, or to help you get the work done – for example, in markets that are totally new or where language is a barrier.

Consultants can help teams conduct research more efficiently by looking at each individual’s skills and preferences, and then matching market research tasks accordingly. For example, someone in your team may have language abilities you didn’t know about, or might have lived in another country and have some contacts or cultural awareness.

By mapping those skills and passions to what needs to be done, you can put together a three-month home-based project to develop a target market strategy. It’s amazing what can be achieved.

4. Identify potential distributors in overseas markets

This is a great time to do some online research and then get in touch with these potential partners, since you are more likely to find them in front of a monitor now (depending on the sector, obviously).

Needless to say, we need to be tactful. But remember that they need business as much as you do. Just be sensitive and ask if this is a good time to engage, be empathetic, and focus on the positive – if you explain that this is part of your crisis exit strategy, they’ll probably understand.

5. Generate content

Is your company blog looking a bit patchy? Website a bit out of date? This might be the time to produce content (blog posts, case studies, press releases) that can be used throughout the whole year.

With a client, my colleagues and I are looking at datasheets and installation instructions now, making sure everything is up-to-date, consistent and correct. We’ve never before had time for such a thorough exercise. With another client we are starting to write articles for a blog that we will launch later in the year. You can also work on press releases.

We’ve seen journalists on Twitter desperately seeking positive, non-virus related content, so you’ll have their attention!

If you have the budget, try engaging others too, like translators, designers, and copywriters to help make your content valuable to your audience. A lot of these creative professionals are self-employed and need the work now. They can do things faster, better, and free you up to focus on what you do best. You can test different vendors and start putting together a great team for years to come!

6. Audit your marketing efforts

When did you last look at your marketing materials for overseas markets? You can do a small audit now and identify areas for improvement, then get started working on it or at least plan for when things go back to normal.

Want to learn more about how to plan and implement marketing strategies that will attract new customers?

Evaluate your marketing efforts:

• Who is engaging with your social media globally?
• What are you doing about it?
• Are there any translations you should be commissioning?
• Any videos that need subtitling in another language?
• Any manuals that could be simplified to make them more export-friendly?

Start with something very simple and go step-by-step. No need to feel overwhelmed. It’s the same as if you were sorting your pantry at home, or your fridge. Grab a piece of paper or open a Word file and write down everything you do for your export marketing – everything.

Ask your team. Work out what you do, why you do it, how often, when was the last time action was taken, who is responsible for what. Just that. Then leave it. Go back to it a few days later. Anything you see that can be done better, added or deleted?

What is extremely important is that this is done in conjunction with revising, or at least understanding, your international business strategy and marketing plan.

For example,

You won’t know if you need Twitter in Spanish unless you understand what you are trying to do about Spanish-speaking markets.

A blog is only useful if your marketing plan indicates it. Your content plan and how you promote it also need to have some well-researched rationale behind them.

7. Connect with your clients

I asked a client recently if we can do a video call to catch up with the export team spread around the world. We communicate daily by email and we have the odd video call normally, but we don’t usually do team-wide calls. I am convinced we need to see each other now more than ever, since we are spending so much time secluded.

We all know that so much communication is non-verbal. Even if you look tired, go for it, you’ll certainly gain my sympathy. I want to see the mess on your desk and hear your kids around. I want to see that picture frame and that plant you love so much. I want to see that you and I are in this together and that we can have a laugh (or a cry). This will be over one day, but we’ll never forget the personal connection from that video call. It’s human nature.

8. Team building

Similarly, this can be a great time to video call your local partners, such as distributors. They will be available, anxious and keen to feel supported. You can just ask how they are, how they are coping, what the street around them looks like. What’s the toilet paper situation? (you laughed? so will they!) Anything you can do for them? Any tips you can share? Stay positive, too, think about what you’re going to do together when this is all over.

Keeping in touch with suppliers (including freight forwarders, customs brokers, translators, consultants, designers, for example) will be hugely valued. Remember that many are either self-employed or working in very small companies and they might be struggling.

9. Ecommerce & delivery

Can you beef up your ecommerce capabilities? If you deliver services, can you deliver more online?

Trade missions, market visits and trade shows are three key services we deliver for clients in Latin America and, even as a microbusiness, we are quickly adapting to deliver all of them online. So can you!

10. Training and capacity building

This might be the time for your team to get some valuable training and upskilling. Identify what capacities you need to build in-house and find online providers, some of whom can deliver bespoke training in the form of webinars or other virtual media.

This is the time to assess your own professional development, too, and identify any relevant gaps. Then you can find online courses, webinars and blogs to learn more. And remember to share your knowledge, too!

As you can see there is a lot to do. So sit down and work out a plan first – you can’t do it all – and the last thing you need is to add stress to yourself and burden your team.

Make sure that whatever you plan is manageable, realistic, and positive. However much or however little you can do under the circumstances is great.

Putting into practice any of the above will keep you busy, motivated, and talking to people. Beyond business results, we all need a bit of that right now, don’t you think?

From a business perspective, and global economic perspective, we are dealing with unprecedented and unpredictable times. It has never been more crucial to ensure we are all staying informed through credible sources. FITT has collected COVID-19 global business resources from world-leading organizations collected in one place. 

The post 10 things you can do from home to boost your export business appeared first on Trade Ready.

To identify new markets and potential opportunities, or eliminate unsuitable markets, researchers should first examine macroeconomic data. Macroeconomics refers to research into the overall aspects of a country’s economy, including income, national output and the interrelationship between economic sectors.

The economic characteristics of an international market are conditions that organizations cannot control. If an organization cannot contend with these characteristics, or if the characteristics mean that a product or service is unlikely to be suitable for that country, then the market can be discounted as an opportunity or the organization can investigate methods of adapting to the market.

The macroeconomic features of a potential host country can be divided into several areas for research:

1. Gross national product (GNP)

The market value of all final goods and services produced by the nationals of a country in an annual time frame. GNP is often used as a measure of the size of a country’s economy, and incorporates income derived from overseas activity.

2. Gross domestic product (GDP)

The market value of all final goods and services produced in a country or region in an annual timeframe. GDP per capita is often used as a measure of the standard of living in a country.

3. Purchasing power parity (PPP)

Compares the purchasing power of different currencies in their domestic countries and is often used as an alternative to GDP figures for measuring the standard of living in a country. PPP is calculated using the amount of domestic currency needed to purchase a similar collection of goods in different countries.

4. Household disposable income

This is the average amount a household in a country has to spend after taxes and payment of essential items, such as housing costs and utilities.

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5. Market size

The market’s total number of buyers. The larger a country’s population, the larger the potential customer base.

6. Market potential

Describes how many people or businesses in a country could realistically be expected to purchase a product or service.

7. Market resources

The presence of natural resources in a country will have an impact on international business success. The presence of resources such as oil, soil, timber and minerals increases a country’s wealth and leads to increased development of infrastructure.

It is also important for exporters to consider the geography and climate of a potential market country, because both have an impact on the transportation of goods and dictate which products or services are likely to be purchased.

For organizations considering sourcing goods from an international market or setting up a production site in a foreign county, the presence of resources needed for production processes will be essential for success.

8. Market activity

In some cases, organizations will need to investigate the major economic industries present in a specific country. For example, an organization wishing to sell building machinery might need to check whether a potential market has its industry centered on agriculture rather than industry.

9. Infrastructure

A country’s infrastructure, such as the transportation network, the distribution of cities and major centers, and the extent of the national power supply, will have an impact on the distribution of goods or services and the costs involved with distribution.

In some cases, this information will also indicate a need to adapt a product or service (because the supply of electricity is intermittent, for example), or will indicate the unsuitability of exporting to that market.

Information about a country’s infrastructure will also give an idea of how effective business communications might be (for instance, the availability of telephone, Internet and mail services) and how easy it will be to travel to the country for meetings and to monitor business activities.

10. Urbanization

The amount of urbanization in a country is a measure of that country’s demand for certain goods and services and its income levels. In general, workers in urban areas are paid higher wages than workers in rural areas.

The post Start to identify new markets by looking at these 10 statistics appeared first on Trade Ready.