The development and manufacturing of goods and the design of services are a primary activity of the global value chain. From small businesses to multinational corporations, taking products and services from the idea stage to entry into the global marketplace is an key task to be tackled. As part of global value chain management, production is impacted by many aspects of international trade.
So what does it take for individuals or organizations to develop, adapt or customize goods and services in relation to international trade? During this month’s #TradeElite Twitter chat, we asked the professionals about the entire process from research to marketing, in-market testing and compliance with local regulations.
And best of all, we asked them to share some valuable resources for those who ready to take their ideas international.
Here’s what they had to say.
Panelists:
Floyd Simpkins, CITP (@FloydSimpkins) is the Founder and President of Simcor Solutions Inc, based in Windsor, Ontario. He is a retired international business instructor with over three decades of experience in global trade.
Scott C. Ferris, CITP (@ScottCFerrisPEI) is the Director of Global Trade Services at Innovation PEI, based in Charlottetown, Prince Edward Island where he helps businesses go global. He is a leader in international business development, marketing and capacity building.
Frida A. Owinga (@FridaOwinga) is the Founder of PassionProfit Ltd. a business development support service company for small and growing businesses based in Nairobi, Kenya.
Giovanna P (@GPGlobalConsult) is the Founder of GP Global Consulting, where they specialize in international communication and localization strategies for global business growth.
Dhanraj Harrypersad (@exporTT_LTD) is the Manager of the Export Market Research Centre at exporTT Ltd., the sole national export facilitation organization of Trinidad and Tobago.
So you have a great idea for a product or service. What’s your first step in developing it for market entry?
A1 Research. You first need to know if your product/service is even relevant/needed in the target market. #market #TradeElite
— Giovanna P. (@gpglobalconsult) May 11, 2017
@FITTNews 1) Check whether there is a market for the product 2) Find local markets that have a demand for it 3) Identify routes #TradeElite
— Sannam S4 (@Sannam_S4) May 11, 2017
@FITTNews A1 Also finding out if there is a company you can partner with can help as they are already known in the market
— Frida Owinga (@FridaOwinga) May 11, 2017
A1. Figure out who your intended customer is & find a market that has those customers. Figure out if you have competition. #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
#TradeElite https://t.co/YcCmMAN9ea
— FITT (@FITTNews) May 11, 2017
@FITTNews #TradeElite #marketentry yes definitely research, and do as much primary as possible CDN Trade Commisioners, friends, family, contacts etc.
— Scott C. Ferris (@ScottCFerrisPEI) May 11, 2017
How can market research inform product development, and what are some great sources to get started?
@FITTNews A2 Market Research minimizes the risk of failure because you get to know who your target audience & establish their needs. #TradeElite.
— Frida Owinga (@FridaOwinga) May 11, 2017
A2 It can provide an assessment of the size of the market, its growth prospects, the distribution routes, the market segments…#TradeElite
— Frida Owinga (@FridaOwinga) May 11, 2017
Q2 It also informs the level of localization you’ll need in terms of product features, pricing, compliance, etc.. #TradeElite
— Giovanna P. (@gpglobalconsult) May 11, 2017
A2. By determining market preferences, (sweet over savory, for youth or elderly) you can tailor your product. #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
A2. CIA Factbook gives you basic statistics for every country. @wto has LOADS of info on countries & trade barriers #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
@FITTNews It helps identify a potential competitor in market and differentiate to create clear blue water. #TradeElite
— exporTT (@exporTT_Ltd) May 11, 2017
A2Start by visiting the Commercial attache of the country’s embassy to get info, also the National Chamber of Commerce & Industr #TradeElite
— Frida Owinga (@FridaOwinga) May 11, 2017
A2. @ExportDevCanada, @TCS_SDC @OntarioTCS (& other provincial TCS) @bdc_ca are Cdn gov’t sources mandated to help you. #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
A2 Internet is good but a scouting visit helps you understand a lot of things you wont get online #TradeElite
— Frida Owinga (@FridaOwinga) May 11, 2017
How can the product life cycle impact product development and adaptation for international markets?
@FITTNews A3 #TradeElite Old products can find new life in markets that have never seen the product.
— Scott C. Ferris (@ScottCFerrisPEI) May 11, 2017
@FITTNews A3 #TradeElite Old products may need tech upgrades to make new again – think any iPhone.
— Scott C. Ferris (@ScottCFerrisPEI) May 11, 2017
A3 Physical products must be developed for longer life cycles. Digital products can be updated more frequently. #TradeElite
— Giovanna P. (@gpglobalconsult) May 11, 2017
@FITTNews A3 #TradeElite It forces companies to develop new products that will be added to the market to take the place of declining.
— exporTT (@exporTT_Ltd) May 11, 2017
A3 When a market is no longer growing but product is doing well the company can use revenue to enter new untapped markets #TradeElite
— Frida Owinga (@FridaOwinga) May 11, 2017
@FITTNews Depending on the cultures needs products can be rebranded to fit customers’ buying interest #TradeElite
— Sannam S4 (@Sannam_S4) May 11, 2017
A3. Reworking & Upcycling are coming back into play & “Innovation” is the buzz word du jour… anything is possible! #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
How can you test your product/service to be sure it’s ready for launch in a new market?
#TradeElite https://t.co/qPnOoxfWQM
— FITT (@FITTNews) May 11, 2017
@FITTNews Run a local pilot, be there when the pilot is happening, listen to feedback, and don’t translate into what it would mean for you back home
— Sannam S4 (@Sannam_S4) May 11, 2017
@FITTNews A4 Depends on the product. Food – retail sampling, tradeshows a good op. to connect w/ potential consumers and buyers #TradeElite
— exporTT (@exporTT_Ltd) May 11, 2017
A4 If possible get local offices/distributors involved and solicit feedback. #TradeElite
— Giovanna P. (@gpglobalconsult) May 11, 2017
A4 #TradeElite running focus groups of local people, get feedback & allowing them to translate the same without your perception interfering
— Frida Owinga (@FridaOwinga) May 11, 2017
A4. DEFINITELY get yourself to the market you are considering & have a look around, explore & chat up locals. #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
A4. You could try a limited launch. If you are confident in your product, you have to take the risk & just GO! #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
@FITTNews A4 #TradeElite Have also taken products to colleges/universities set up public displays to capture feedback like a focus group but broader
— Scott C. Ferris (@ScottCFerrisPEI) May 11, 2017
What tactics can you use to get a foothold with a new product/service in a new international market?
A5 #TradeElite Free samples as an added value with an existing local product that complements your offering helps. Trade shows,TV interviews
— Frida Owinga (@FridaOwinga) May 11, 2017
@FITTNews A5 Appropriate pricing for the product i.e. penetration pricing or skimming #TradeElite
— exporTT (@exporTT_Ltd) May 11, 2017
@FITTNews A5 Find a proactive distributor, have representation on the ground, and drive home your value proposition to local market #TradeElite
— Sannam S4 (@Sannam_S4) May 11, 2017
A5 #TradeElite https://t.co/lcYp2W3JOP
— FITT (@FITTNews) May 11, 2017
A5. A strong distributor / PR / Advertising team is crucial especially for a new product. Each product type has diff needs. #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
@FITTNews A5 #TradeElite this is where various pricing strategies can come into play here’s a great article on that https://t.co/Udhg9VyAmN
— Scott C. Ferris (@ScottCFerrisPEI) May 11, 2017
Should you consider adding related services to enhance products and generate added revenue? How practical is it?
@FITTNews A6 Definitely, adds to the USP & could be an additional revenue stream eg. maintenance services. Not practical for all products #TradeElite
— exporTT (@exporTT_Ltd) May 11, 2017
A6 Yes, but only if the market demand it. Consider the ongoing costs of this effort. #TradeElite
— Giovanna P. (@gpglobalconsult) May 11, 2017
@FITTNews A6 #TradeElite When exporting have to consider everything – cost/benefit of course – customers are always looking 4 best deals/best bundles
— Scott C. Ferris (@ScottCFerrisPEI) May 11, 2017
One last question to wrap up: What legal aspects and regulations should you watch out for in global markets? Where can exporters get help?
A7 We are here to help! We specialize in helping companies become compliant in new markets. #TradeElite
— Sannam S4 (@Sannam_S4) May 11, 2017
#TradeElite https://t.co/iR2gQ5peSS
— FITT (@FITTNews) May 11, 2017
A7. Big name companies at home often have partners overseas, you could start there & then find a local rep. #TradeElite
— audrey ross (@tresAudrey) May 11, 2017
A7 Other government agencies can help : @tradegovuk_ecom @USCommercialSvc @CanadaTrade #TradeElite
— Sannam S4 (@Sannam_S4) May 11, 2017
@FITTNews A7 #TradeElite One of the greatest sources I’ve used for legal and regs are my freight forwarders and supply chain connections Very up2speed
— Scott C. Ferris (@ScottCFerrisPEI) May 11, 2017
Read the rest of the chat and follow future discussions by following the #TradeElite hashtag.
For more information on how to take products and services from ideas to the international marketplace check out the new FITTskills course: Products & Services for a Global Market.
Stay tuned for the next #TradeElite chat, coming up Thursday, June 8 from 2:30-3:30PM ET.
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