November 30, 2022
Types of International Trade Strategies
Let’s see what some of the most common types of international trade strategies are and how ATI can help you create one.
According to research done by Forrester, B2C e-commerce in the cross-border arena is likely to more than double in the coming years. The estimated figures are $629 billion by the year 2022.
Add to that how the internet has accelerated and broadened the horizon for everyone in international trading. It’s the perfect opportunity for suppliers and marketers to sell their products across borders and overseas markets.
According to ATI’s internal research, almost 95% of the consumers are overseas with South Korea, the UK, Germany, Japan, and China being the biggest markets with the highest potential.
In many overseas markets, it’s a requirement to have cross-cultural and linguistic knowledge before you can gain access to retailers. So, the first thing you would want to do is get yourself acquainted with the local culture and the language target audiences speak. That is where international trading partners come in handy.
The more market research you gather, the better odds you will have of achieving success in different world markets. Market research tells you which services and goods carry the highest potential for success, various market segments, different competitors fighting for the same market position, and how to level with them. You can also get insight on pricing your product right.
During the research phase, focus on collecting data from global markets via interviews or contacting brand reps and/or customers. The secondary market research should focus on gathering data from trade shows, news articles, and export specialists.
Another great way to conduct research is getting in touch with international trading companies, government agencies, and consultants.
Lay down an export plan detailing how you will finance the expansion, how you plan on selling goods and services across overseas markets, and your eventual business goals. Also, understanding compliance with foreign government and local policies/regulations is important during your planning.
A key question to ask here at this point is: how would you sell your products overseas? Do you plan on selling over the internet? Or overseas on selves in various stores? Does this require working with an international trading agency with a dedicated sales team?
The first step to gaining a better understanding of your target market and audiences is to pinpoint the exact region/country that you want to carry business expansion. Take into account major economic, cultural, and political market risks at this point. Which region has the most concentrated number of potential customers?
Some of the things to think about at this point are:
This is a perfect option for suppliers, sellers, and exporters that have target consumers concentrated in one particular region. It pays to contact and form a long-term relationship with a logistics company that serves the target region by shipping products in bulk.
Several large retailers practice this. For example, retailers that source their products from Taiwanese and Chinese regions find these options the best and most profitable. So, instead of shipping the sources to the US before shipping them to China and Taiwan, a logistics partner can streamline things on the behalf of sellers.
American Trading International, Inc. (ATI) is an export trading company based in the United States with a complete focus on food and beverage products from US suppliers to more than 80 markets globally. The company has 26 years of experience and growing.
Here at ATI we cover five major export categories:
Established in 1995, ATI is an international trading company that helps retailers sell name brands across overseas markets. Our company helps with shipping, storage, logistics, financing, communication with retailers, and everything in between.
Below are a few ways in which we help companies find their footing in the international market by connecting them with target retailers.
Here at ATI, we maintain a region-specific team with extensive knowledge of the target market. Our sales team pays attention to maintaining strong, long-term relationships with key decision-makers and overseas buyers.
Many of our staff members come from various countries overseas and are often very familiar with the country and surrounding countries. This puts the ATI staff in a special place where they have key cultural insights and understanding which allows them to excel at international trade more easily.
Our sales team at ATI is always knowledgeable of the latest developments in the foreign market economic conditions, and maintains the latest reports on demographic and key trade information.
The team here at ATI is always reviewing import requirements and the latest happenings. That means maintaining direct relationships with US embassies overseas relating to various trade issues such as non-tariff barriers to trade.
We also follow a direct-to-retail business model; as is preferred by most overseas retailers. This helps us become a direct supplier of United States sellers. This also allows us to eliminate expensive distributors/importers who often take a margin fee of up to 40%.
Our ATI sales team regularly visits overseas markets to perform store checks. It also takes care of product positioning representation during those visits. These visits allow us to come up with a more tailored and custom approach for selling products overseas.
Having the right overseas trading partner is crucial for the right product representation. Poor representation could hurt your goodwill and brand image. Our teams at ATI conduct due-diligence essential for ensuring ideal buyer targeting, which allows us to create campaigns to attract the most qualified and interested overseas partners.
There is never a better time than now for manufacturers and sellers to broaden their horizons across global marketplaces and find their footing internationally. Working with a qualified and experienced international trade partner could help you expand exponentially.
Questions on what ATI can do for your business? Call us today at +1 (310) 445-2000 or fill out our form on the contact us page.
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