10 DEADLY MISTAKES ON THE ROAD TO EXPORT
Embarking on exports can create a new market opportunity for businesses. However, by taking the wrong steps, businesses can turn this opportunity on its head. Exporting is an ocean, and someone who has never swum in the ocean before is not aware of the dangers and risks they may face. Perhaps he or she has jumped into the ocean without even knowing how to swim. Mistakes in deep waters can cause both material and moral damage to businesses.
Pre-evaluating the risks and situations that companies may encounter on this path will provide them with a competitive advantage in the international market. In this article, we have compiled 10 fatal mistakes made when starting exports for companies that want to start exporting or continue on the export path. Let’s find ways to avoid these mistakes, gain competitive advantage in the export process and have a successful export adventure!
- NOT SETTING A TARGET
The most common mistake when starting to export is not setting a target. Companies that will start exporting prefer to chase demands over the internet instead of determining their target market. Instead of prioritizing a few countries and focusing on those countries, they look at all demands on a product basis. This leads to a fragmentation of focus.
In addition, since each country has different regulations on product imports, the product may need to be modified according to the country. This means additional costs for the company. Companies that have difficulties in target setting can identify the right markets for the company’s product with an accurate market research in the light of Export Consultancy.
As BM Foreign Trade Consultancy and Project Development, we organize Export Field operations during the year by combining the field intelligence and Target Market research we do at the desk. In this way, we directly reach the target country and target customer analyzes.
Remember, as Samuel Smiles said; “Deciding on a goal is often the goal itself.” - GENERALIZING
A method that is successful in the Turkish market may not work in other countries. Or different systems may be applied in different countries. For example, market entry methods in Germany may be different from market entry methods in Finland. These differences can be due to many reasons: Technical, legal, customization options, etc.
Unfortunately, this is one of the mistakes that many companies make. Many companies make this mistake and try to sell the product in other countries in the same way they did before. In order to avoid this mistake, it is necessary to carefully research the target market. Another method that will facilitate the work of other companies will be to work with a professional Export Consultancy firm. - SAYING “I AM THE BEST”
You may be one of the leading companies in Turkey, you may have been operating in the sector for many years, you may have been doing the business for 3-4 generations, but when you start exporting, you are now facing competitors not only from Turkey but from all over the world. For this reason, instead of saying “I know this business”, it would be much healthier to take better examples and try to improve yourself. Customers do not fit you, you will provide products and services in accordance with the demands of customers.
Another issue is to start exporting with low quality or wrong products. Without adequate quality control, export businesses can lose customer confidence when they do not provide products that meet the expectations of customers. Therefore, you should definitely pay attention to the quality and standards of your product before entering the export market. - NEGLECTING EXPORTS
For some firms, exporting is seen as an easy area to turn to when the domestic market stagnates. They prefer to export in order to overcome economic stagnation. After spending time and effort on exports for a certain period of time, when the domestic market revives, they prefer to neglect exports and turn to the domestic market they are used to.
However, export is a process. In this process, continuity should always come first. Because, turning to exports again when there is economic instability in the domestic market will cause the company to fall far behind in the intervening time.
Establishing a balance in the domestic market and export processes will provide a great advantage at this point. It is very important to distribute the annual production capacity in a balanced way and to carry out infrastructure works to easily direct one market to the other side when necessary. At this point, as BM Foreign Trade Consulting and Project Development, we aim for continuity in the export solutions we offer and ensure that companies’ production is directed towards exports in a balanced manner. - TRYING TO SELL THE PRODUCT IN A STANDARD WAY
Each country has different export rules and practices. Each country has different legal obligations and cultural habits. For this reason, it is not possible to sell the same product in the same form in every country. Therefore, after determining the target market, it may be necessary to change and modify the product according to the targeted country. This change can be in product names in packaging.
If you are going to enter the export market with your own brand, you may need to research the meaning of your brand in that country, and if it has a negative meaning, you may need to enter the market with a different name. Establishing an appropriate, global brand structure and conducting detailed research will put you in an advantageous position. - NOT ESTABLISHING AN APPROPRIATE DISTRIBUTION/SERVICE NETWORK
If the product to be exported requires technical service, not establishing this beforehand puts the continuity of exports in trouble. A consumer who does not believe that they will receive after-sales service after purchasing the product will not prefer your product. Therefore, if you have a product that requires a distribution/service network, you should plan this network in a healthy way.
In addition, delivery problems are sometimes experienced due to inadequate logistics management. Export businesses must provide adequate logistics management to deliver their products to their customers on time and without any problems. For this reason, working with an Export Consultancy company that carries out the sales and operation process together and meticulously plans each stage will make a great contribution to your company. - LACK OF DETERMINATION
Exporting is a process that needs to be planned step by step and each stage must be meticulously examined. It would be a great chance to intend to export this month and load containers within a month.
Even researching the target market, finding relevant companies in that market and contacting them takes time. It is also a process to hold meetings with those companies, to send and receive samples, and to make visits. Therefore, it will take at least 6 months for the exports intended today to be reflected in the figures. Of course, exports can be made in a shorter period of time just by pursuing demand, but when done strategically, this implementation process will be experienced.
If we want to make a sustainable export, if we want to make our brand known in the global market, we need to set out decisively with the right planning. If you want to capture the right channels quickly, it will be beneficial for you to work with an Export Consultancy firm. - FAILURE TO ESTABLISH AN APPROPRIATE DEALER/ DISTRIBUTOR NETWORK
Having a liaison office or representative abroad is a great advantage for achieving sustainability in your export processes. However, it is not right to give representation to every company that wants it. You should not immediately say yes to those who ask you for representation at the first purchase of goods. First of all, it is important to conduct detailed research after a few sales are realized. “Will the company you choose be able to reach a certain volume in its country? Will it be able to promote your products as it should?” You should definitely elaborate on questions such as. - MISTAKES IN PERSONNEL SELECTION
The first step that companies usually take to start exporting is to look for export personnel. The export market has now reached such a point that it has become very difficult to find personnel who can represent your company, your product and market it in the right way. Unfortunately, a staff with language competence, more or less foreign trade and export processes do not work in a sector for many years. Generally, personnel with these competencies turn into brokers after a certain period of time. Working with such people will take the progress in your export processes, where you will spend a certain amount of time, money and effort, even further back.
If you want to export and are taking a step towards sustainable exports, the best choice for you would be to work with an Export Consultancy firm. As BM Foreign Trade Consulting and Project Development, we make all the necessary planning for Sustainable Export with our experienced and professional staff and deliver it to you as an Export Workflow Chart at the end of our process. In this way, no matter which personnel comes, your exports will be continuous and there will be no disruption as a sustainable system is built. - NOT GETTING HELP
Exporting is not just about producing and selling. As mentioned in many articles above, preliminary preparations such as updating the product according to the country of sale, preparing catalogs in that language are necessary. In addition, there are very important issues in exports. Payment methods, delivery methods, financing options, incentives are some of these important issues. A company that is just starting to export cannot be expected to have a good command of all these. For this reason, getting service from a guiding export department on these issues is one of the most risk-free methods for companies.
CONCLUSION
Mistakes made before starting to export can negatively affect the success of companies. Therefore, it is very important to plan carefully, create the right marketing strategies and conduct good research before starting the export process. At the same time, the right equipment, adequate financial resources and an effective logistics plan are also important to achieve success in the export process.
With the Export Solutions we offer as BM Foreign Trade and Project Development, we aim to ensure that companies that will start exporting do not make these mistakes and achieve sustainability by making the right strategies and plans. With our Export Consultancy and Autonomous Export Department services, we plan your every step in detail with our professional team by bringing a new perspective to export. If you want to start exporting or increase your existing exports, you can reach us through our communication channels.
