Many companies do not export at all. Other companies do not export as much as they can. Why do so many companies not export? The usual reason is "I'm satisfied with the domestic market" or "I'm too busy with the domestic market to think about exporting." That's understandable in a very large market like India.
However, this is a shortsighted view. In effect, these companies are
saying "I'm not interested in the additional sales and good profits!"
Yet, if asked whether they would not go for a sales
order because it came from abroad, many answer, "Of course not!"
Mainly, people do not export because of fear and ignorance,
"I'm too small", "I can't afford it", "I can't compete", "It's too
risky", "It's too complicated." These are myths and misconceptions. All
these can be overcome.
"Only large firms with name recognition, ample resources, and export departments can export successfully."
False! The vast majority of exporting firms in most countries are
small and medium-sized enterprises (SMEs). Many have less than 50
employees. It's true that large firms typically account for a huge part
of the total exports, but SMEs dominate the world’s exporting
"I don't have the money to hire people, market myself abroad, or expand production if I get new export business."
Not true! There are low-cost ways to market and promote abroad,
handle new export orders, and finance. These don't require hiring new
staff or setting up an export department. At little or no cost, for
example, you can get product and country market research, worldwide
market exposure, generate trade leads, and find qualified overseas
distributors to represent you.
"My products are unknown and my prices too high for foreign markets."
Since you are an Indian company, this is most likely NOT the case.
The Indian industries are able to produce goods at a much lower cost as
compared to companies in other countries around the world. The products
sold in India, are sold at a fraction of the cost at which they are
This is because, for a company to be successful in India it has to
come up with ways to reduce the cost of the product it is selling.
Until very recently a large part of India did not have a very high
buying capacity. Because of this, if a product was to be sold all over
India, the companies here had to innovate and lower the prices so that
the product will not be too costly for the people.
Don't assume your price is uncompetitive. Your products could still
be a bargain in strong-currency countries, even after adding overseas
delivery costs and import duties.
So most of the products manufactured in India are very very cost competitive as compared to products manufactured in most other countries.
Besides that, the world is large, with varied needs and interests.
If your product is popular in the domestic market, it might be wanted
somewhere else in the world! What makes your product sell in the home
market can help it sell abroad! Price is important, but it is not the
only selling point. Other competitive factors are need, utility,
quality, service, credit, consumer taste - these may override price.
"I might not get paid. I might break a law I didn't know about."
Not likely! Selling anywhere has risks. But doing the right things
can reduce the risk. There are a number of insurance programs that help
you safeguard against the risk involved in exporting. Besides that, as
explained earlier, the Letter Of Credit etc. can be used to insure
payment when exporting.
"Exporting is too complicated; I don't know how."
Wrong! You don't need to be an expert to export. Almost all the complicated parts of exporting can be outsourced. There are Export Management Companies (EMCs), overseas agents and distributors, who can represent you, find overseas customers, present you with sales orders, handle all the export paperwork, and deliver the goods. You fill the orders and get paid for the sale. You pay them a fee or commission.
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