Categories: Traders & Trading

Import Export Strategy For Beginner | Latest Guides 2022

Reading Time: 5 minutes

The growing demand for Indian products in the global market contributes to building an ecosystem that drives the economy. The rise in export is a good sign for the Indian economy as it strengthens the country’s finances. 

Developing countries require a flow of income through various sources to place their economy on steady growth. Import and export in the country make it possible for the businesses to produce the goods and sell them in the international market to earn profit. 

Due to new policy changes, India has become a hot spot for industrial production. New milestones are achieved every month by Indian companies. Improved infrastructure, speedy logistic services, and increasing production capacity all contribute to export growth. Indian export is no more limited to farming products. Manufacturing industries are taking place rapidly and contributing to ample economic growth.

As the world is moving towards automation, new technology is introduced to the existing structure, and production is increased. A subtle shift towards export gives India the advantages of selling products at affordable pricing and generating profits on international deals. Moreover, the friendly ties with the neighboring countries help the nation leverage the benefit of the new market.

Many businesses and Individual experts are looking for an opportunity in the Import export business. The guide for beginners will help you to learn the export strategy. The beginner must know the essential requirement to start an import export business. You should know the necessary documentation, procedure, and customs regulations to avoid trouble.

  • Business Setup

The first step in starting an import export business is setting up a business. The goods cannot be moved from the port without the authorized license to trade in the international market. Customs would ask for the necessary document containing all the certificates governed by the authority for verification purposes. 

You have to showcase the company registration number, import export license, and customs clearance document with the correct information about the product that you are trying to export or import in the document. Once these requirements are fulfilled, you can sell or purchase products in the international market.

  • Current Account

Every company has to open a current account to use for everyday transactions. It is a mandatory procedure, so you cannot ignore this. Without the current account in the company’s name, you will not be able to receive or send money from the customers. The current account ensures uninterrupted transactions to the dealers, customers, and suppliers. 

You can open the current account in any public or private bank. Remember that you have to bear the opening account charges, so choose the bank wisely. 

Some banks offer special services to the companies dealing in the import export business. Banks provide add-on services to support the companies running the business smoothly. Talk to the consultant before you decide on the bank that you can trust.

  • Export marketing plan

After you complete the business registration procedure according to the terms of the Indian government, the next step is building an export marketing strategy. Planning would make your efforts more accurate and save unexpected expenses. The export and import strategies are meant to identify lucrative business opportunities in the International market. Research the demand for products in various countries. 

Get the product export and import information of the different countries. Several websites on the web offer import and export data of the countries with the HS code. Based on the information you can conclude your decision of exporting products. It would be easy to tap the unexplored market with adequate data to analyze. 

Work on the export pricing strategy to set the cost for each product exported from the country. Price difference plays a critical role in international trade. Thus, you should learn how to manage the price trend and grab the opportunity at the right time to ensure a deal.

  • Obtain Import export code

Your shipment should comply with the rules of international trade and government policies. The import export code is allocated to the firm that sells and buys products in the global market. Code is also known as IEC code which requires essential documents when you send products through customs to other countries. 

Consult with the accountant to understand the rules and regulations of dealing in the global market to avoid your shipment getting into trouble. Without IEC documents, you cannot create an effective import export strategy

Vital documents ensure the investment you are pouring into the export market strategy serves the purpose without making too much loss. If you cannot serve the customer efficiently, the company faces various challenges while dealing in the international market. Thus, follow the rules of the import export trade wisely and keep growing steadily.

Following documents are required to get the IEC.

  • Personal and partnership PAN card.
  • Photographs
  • Canceled cheque of the current account

Once you obtain the required document and establish your firm, you are ready to market your brand in the local and international markets. Use different marketing strategies for export business and drive new customers.

Types of export strategy

  • Direct export strategy

In the direct export strategy, you reach customers without a middle person. It is an effective way to get the target customers and sell them directly without intermediaries. The direct export strategy benefits sellers and buyers as there will be less commission distribution to the middle person. 

A direct export market entry strategy offers a new frontier to the growing import export businesses and gives them open space to test their skills. Beginners would have little knowledge about the market; thus, they should try different marketing strategies to gain experience. In other countries, Direct marketing requires more research and dedication to find potential buyers. Even the buyers in the local market are challenging to discover.

  • Creative export strategy

Modern technology drives the world to open new doors to the import export business. Today, you can talk to customers over video calls in other countries and convince them to buy your products. Potential buyers would visit your office to check how the operation works and settle the deal with you. A creative export strategy will give you a strong hand over your competitors. You will be able to enjoy the growing demand for your product and generate positive revenue.

Export Business Idea

National and International Export Strategy

One solution cannot be applied to all the problems. Thus, you should have separate national and international export strategies to market your products. An international export strategy will give you exposure to other countries. You will be able to sell the product at a high-profit margin and generate quick revenue for selling products. The international market is lucrative, but it isn’t easy to tap. Hence, you should have strong control over your marketing messages.

On the other hand, the national export strategy would be easy as there will be networks of suppliers and vendors who will help you get buyers in the market. It is easy to meet the customers in the local market and convince them to purchase a product from your company. 

You can even offer a bespoke solution to each customer to ensure they stay connected with you for longer. There are few limitations compared to the international market, which makes selling products in the country relatively easy.

FAQs
What is the export strategy definition?

An export strategy is directly linked to the planning for marketing your product in the national and international markets. Once you establish your business, the next step is finding prospective buyers with the right marketing solution. Export strategy plays a critical role in growing the import export business; thus, you should focus on planning the perfect strategy for your business.

Why do beginners need a marketing plan for import export business?

The import export business strategy gives entrepreneurs a head start when they start their business. Every organization needs branding in the early stage. Buyers will not show interest in you until they are aware of your business culture. Without the proper marketing technique in place, it would be challenging to convince the buyers to buy the product from your company. Thus, you should focus on the marketing plan for the import export business in advance and start implementing it.

What is an export sales strategy?

Export sales strategy revolves around marketing the business in the target region. Companies dealing in exports should have a strong connection with the local companies. Export sales strategy lets you tell your story to the buyers and make them aware of your presence in the industry. It is similar to local marketing but a little challenging because you have to deal with the international norms before shipping the products.

Vaibhav Sharma

After always dreaming of taking the Indian EXIM entrepreneur's spirit to the road of success and growth, training and learning skills with Impexperts (A part of GFE Group)!

Recent Posts

5 Common Challenges Faced by Small Exporters and How to Overcome Them

Commencing a small export business could generate passion, but it’s not without the challenges.  Small…

4 days ago

How to start import export business in India 2025?

What is an Import Export Business in India?  Global trade patterns are changing quickly as…

1 month ago

Marble and Granite Export from India: Emerging Global Market

India has rich deposits of natural stones, predominantly granite and marble, which have ruled the…

1 month ago

Make Product Export Easy With a Simplified Export Plan

The first stage in product exporting is to make a plan, a clear strategy that…

1 month ago

The Cumin Export from India – The Booming Trade of Spice

India is renowned to be the spice capital of the world, and among the export…

2 months ago

Tomato Export from India: A Bright Star in The International Market

India has been a key player in the global agricultural market for decades. India produces…

2 months ago