You can't get through without connections. 6 myths that prevent your company from establishing itself abroad

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Selling goods and services in other countries is an opportunity to get new income. But often entrepreneurs are in no hurry to export, because they think that it is too difficult and expensive. Dealing with prejudices - together with the national project "".

1. Mastering a new market will cost a pretty penny

It is really necessary to lay the expenses on analytics of the foreign market and search for local partners. But it is not for nothing that our century is called informational - the world is united as never before. You can collect data from open sources: statistical reference books, journals about economics, websites of specialized organizations, expert articles in the media. And networking is much easier when you have social media.

First of all, it can be done: it will help assess the prospects of markets and obstacles to growth. It is important to confirm the information with specific data and figures. The analysis has four components:

• The strengths of the company that distinguish it from competitors (for example, high-quality products, affordable prices).
• Weaknesses (for example, a lack of employees).
• Market opportunities (growing demand for products, low competition).
• Threats (high taxes, weakening of the national currency, rising prices for raw materials).

2. It is difficult for a small company to break through abroad

Large companies do have more resources to enter new markets. But there are many digital tools for small players as well. For example, marketplaces, aggregators, partner networks and ecosystems - they help with the promotion, delivery and acceptance of payments from two countries. Tenders, participation in exhibitions are also working tools that will allow you to establish export. A list of foreign resources for tenders can be found, for example, on the foreign economic information of the Ministry of Economic Development.

Even a small company can successfully sell products abroad. And the national project "" will help in this. Specialists of the Russian Export Center and Russian trade representatives abroad, who work in more than 50 countries of the world, provide consultations for SMEs, help to find new sales markets and transport channels. You can leave a request for consultation on the website of the Ministry of Industry and Trade.

If you already have a little experience in international trade, you can get marketing support for analysis, as well as assistance in participating in international exhibitions. The activities of the national project are aimed at companies in different industries - support will be provided to both agrarians and industrialists working in mechanical engineering, pharmaceuticals, metallurgy and other industries.

3. It is worth going to the international market only with a unique or niche product

A working business model is more important than uniqueness. In any niche - even one that seems filled - you can compete. At the expense of quality, speed or DVO - additional types of services.

Many companies become successful not because they do something unique, but because they offer added value - quality service, convenient delivery and payment. There are dozens and hundreds of coffee shops in every big city, but some of them close quickly, while others are open for years. It is unlikely that they brew unique coffee, but they managed to stand out from the competition. It is important to find a value proposition - that is, to summarize how the product is useful to the client.

It is possible that the product will have to be adapted to the local market. A simple example: left-hand traffic in Japan. The steering wheel in locally made cars is on the right, so that it is easier for the driver to maneuver when overtaking. But for export, the Japanese produce cars with a steering wheel on the left. To sell overseas, you too may need to translate documentation, change units, or add new features to the product.

4. Without connections or personal presence, nothing will work

In 2021, it is quite possible to conduct sales in another country remotely. There are international platforms where you can talk about your project and find partners and investors in different parts of the world. You can use professional networks such as Linkedln or Xing, which are more commonly used in Germany and other German-speaking countries. Fill in your profile in detail - it will be your resume. In the first message to a potential partner, do not forget to tell which company you represent and what you want from cooperation.

Industry exhibitions and competitions are suitable for live communication. If you do not have the opportunity to prepare your stand, you can buy a ticket to the event and, for example, come in a branded T-shirt. And then - get acquainted and talk about your project. In order not to get lost, write an elevator speech - a short product presentation that can be fully told in a minute or two.

5. It is easy to run into dishonest counterparties or fraudsters abroad

This happens - not only abroad, but also in the home country. To minimize risks, do not be lazy to check a foreign counterparty or partner. For example, you can request information from foreign registers that are similar to the Unified State Register of Legal Entities in Russia. A list of such registers is posted on the Federal Tax Service.

Do not enter the first contracts with 100% postpay. It is convenient for the customer, but for the seller or manufacturer it is always a risk. Do not limit yourself to verbal agreements on the time: write down the terms of payment and penalties in the event of delay in the contract.

6. Other countries are full of their proposals, nobody needs us

Different markets have their own specifics, but some trends are relevant everywhere. For example, now the demand for environmental friendliness is growing in the world - cosmetics made from natural ingredients, farm and organic products. Manufacturers of such goods from Russia find buyers in Europe.

You can look at the markets of developing countries, where the production of finished products in many categories has not yet been established. There may be attractive conditions not only for large corporations, but also for small and medium-sized businesses. With some countries, Russia has a free trade agreement that abolishes customs duties, taxes and fees - for example, the CIS countries, Vietnam, Serbia.

China is the world leader in online commerce. In 2021, it will become the first country where the e-commerce segment will surpass offline sales. It is difficult to work in the Chinese market - you have to compete with large local companies. But you can look at other Global Ecommerce 2020 / eMarketer markets in the Asia-Pacific region where e-commerce is booming (eg Philippines and Malaysia).

Another logical option is neighboring countries. If a company is located in the European part of Russia, it can sell goods and services to the Baltics or the CIS countries. And if you trade in the Far East, take a closer look at the Asian market.

The promotion of companies that want to enter international markets is carried out by the national project "". Russian trade representatives abroad will tell you what requirements the export product must meet, and will also help to analyze counterparties. On the basis of the Russian Export Center, there is a digital ecosystem "", with the help of which you can find new sales markets and find out how to get support in participating in exhibitions or transporting products. There is a “One Window” service, where all the services needed by exporters are collected - analytics, search for new partners, and you can also apply for financial assistance.