VIA Marketing Forum organized a session on “Why do exporters fail? : The recipe of success in foreign markets” on Zoom.
Dr Rajendra Prasad Sharma, Associate Professor (Marketing Area) of Indian Institute of Foreign Trade, Kolkata, an expert on the subject was the key speaker shared the Dos and Don’ts of International Marketing with a focus on SMEs and Focusing on the aspects exporters go wrong. He informed the participants that IIFT is setup with the objectives to Impart professional education in modern management techniques relevant to international business. He said IIFT develops capacities among business executives for improved understanding of various trade and economic issues and also enables the interrelationship between the diverse and complex tasks of international business. He said IIFT conducts high quality research that addresses domestic as well as world trade and business issues.
It was observed that many exporters fail due to not properly identifying the commodities, exporting country, lack of trade policy, DGFT schemes. In many cases, we had seen that goods reached the destination / shipped without using proper HSN Code, which tends not to customs qualify, attracted higher duty and the container had been rejected. He said while exporting, exporters should take precautions and do detailed study of exporting country, knowledge of trade policy, DGFT schemes.
He cited the examples of small countries like Kenya and East Africa, they are getting good retail price of their exporting items and fetching 4 times higher price then India by using better skills, maintaining good presenting, focusing on branding, packaging, quality certification, etc.
Another example, he said the economy of Japan is a highly developed free-market economy and is the world’s second largest developed economy. Japan is far ahead from other countries because after Hiroshima and Nagasaki they have adopted the professional approach, good business ethics, attitudinal changes and following code of conduct for attracting the importing countries. He said during the short span Japanese have discovered and innovated many products.
He also advised the exporters to have a vision and create proper mindset for long term planning of their company by identifying required commodities, studying demand and supply of international markets, agreement with country, foreign trade policy. He also recommended to take the help of the High Commissions and Consulate Generals to get latest trade information, requirement of products by the importing countries; this will help to develop better trade relations between two countries.
He further said for exporting of any commodity, only a professional degree is not sufficient, it requires practical knowledge too. Exporters should also attend short term courses run by Governments like Export Import Certification from IIFT, FIEO, Trade Promotion Programs, EXIM Tools, which helps to tap more exporting opportunities. He said exporters should not opt for commodities of low respect, as it will not be feasible for long term business and should focus on brands, customers will pay premium more for GI Tag brands, as it carries a lot of weight-age, higher value. He also recommended to choose the handicraft items, which are in large demand from India. He said Indian exporters are not very good in Virtual exhibitions as they are not presenting properly and do not place knowledgeable people to guide the importing countries.
While addressing the queries, he advised the participants to aptly handle the market situation and work upon and overcome the poor negotiable skills, good branding, marketing, packaging, etc.
Lastly he said exporters should eliminate and overcome the commercial risk, country risk, culture risk and currency risk. He said lots of data is available at the India Trade Portal to identify products and they can be identified by putting HSN Code, products, country, trade agreement with country, what duty will be attracted? top import country, etc. He emphasized to think local and go global and by using e-commerce and to take advantage of the excellent policy/scheme of DGFT and to get rid of the typical trade approach.
Earlier Anuja Sharma, Chairman of VIA Marketing Forum welcomed and introduced the guest speaker.
Suresh Rathi, President VIA in his welcome address said it is a privilege to welcome the IIFT renowned speaker. The objectives and activities of IIFT was set up to impart professional education in modern management techniques relevant to international business. He said we at VIA having EXIM Forum which looks after the import and export related issues and marketing forum has taken up this relevant topic because of lots of goods exporting from this region, most of the exporters do not much know about the reasons for failure, how to the handle the situation within the country and outside the foreign buyers.
Mili Juneja, Convener of VIA Marketing Forum made an opening remark and moderated the Q&A session. Sourabh Mohta, Project Coordinator, summed the session and said the session was knowledgeable and informative for existing exporters as well as for prospective entrepreneurs to know details of buyers, requirement of parties, etc. and he formally proposed a vote of thanks.
Program was largely attended by exporters, members, industrialists, marketing professionals and interested persons.