basic-guide-to-exporting_Latest_eg_main_086196

Gathering and evaluating secondary market research may be complex and tedious.However, several publications are available that may simplify the process. Thefollowing approach to market research refers to the publications and resources thatare described later in this chapter.A Step-by-Step Approach to Market ResearchYour company may find the following approach useful. It involves screening potentialmarkets, assessing the targeted markets, and drawing conclusions.Screening Potential MarketsStep 1: Obtain Export StatisticsPublished statistics that indicate productexports to various countries provide a reliableindicator of where U.S. exports are currentlybeing shipped. The U.S. Census Bureau providesthese statistics at census.gov/foreign-trade.The correct statistics willreliably tell you where in theworld products similar to yoursare currently being shipped.Step 2: Identify Potential MarketsFirst, you should identify 5 to 10 large and fast-growing markets for your company’sproduct. Look at trends over the past 3 to 5 years. Has market growth been consistentyear to year? Did import growth occur even during periods of economic recession? Ifnot, did growth resume with economic recovery?Then, take a look at some smaller, fast-emerging markets that may provide groundflooropportunities. If the market is just beginning to open up, there may be fewercompetitors than in established markets. To qualify as up-and-coming markets, thesecountries should have substantially higher growth rates. Burma (which recentlyopened its economy after years of economic sanctions) and Morocco (which enteredinto a free trade agreement with the United States in 2005) are good examples ofsuch markets.Look also at groupings of countries such as thosewith which the United States has free tradeagreements within Latin America. Or look atregions within large countries such as westernCanada or far eastern Russia. The U.S. CommercialService has regional services that will help youfind buyers in multiple countries in, for example,East Asia. If you’re targeting Hong Kong and thePearl River Delta area, why not stop in nearbyThailand or Singapore?Smaller, emerging marketssometimes provide greatopportunities. If a marketis just beginning to openup, there may be fewercompetitors than inestablished markets.34U.S. Commercial Service • A Basic Guide to Exporting