Many Canadian companies are under pressure to act quickly due to the ongoing trade wars and increased threats of tariffs. However, this might be a good time for companies to diversify into new markets. As you begin to consider this, bear in mind that you will need to get all the leadership team to support and commit to this vision. The entire organization must also understand the need for this expansion and identify its role in making this a success. It will require a lot of planning, research, investment of time, and resources before you begin seeing good returns.
It is essential to conduct a thorough evaluation of your current operational status to determine if you are export-ready, identify existing capability gaps along with appropriate mitigation strategies, and develop a comprehensive export readiness assessment to guide strategic planning.
Some of the things to consider are if you have the resources required to succeed in the market, which includes both financial resources and human resources:
Financial resources include doing some financial planning, like budgeting and forecasting, to understand the costs and potential returns of entering a particular market of your choice. Be sure you can self-fund this; otherwise, consider other options like looking out for available government grants and incentives, getting a bank loan, and partnership opportunities with another organization that has the resources and can help access the new market. Having a financial buffer in your projection will help to cover unexpected costs along the way. Putting all these into consideration may help make informed decisions and reduce the financial burden.
Human resources require you to have people with the right skill set on the ground to do the work. You need to delegate an international trade professional to champion this course, someone who will be able to help your organization navigate the new business environments, understand the cultural differences, comply with the regulations, and uphold your ethical principles. This individual or team will be able to do a feasibility study, identifying the target market and an effective market entry strategy for your organization.
You can take the following few strategic steps to start entering new international markets:
Attending Trade Shows and trade missions:
Identify trade shows and trade missions that will be valuable to your course, and you can decide to walk the show to observe, gather information and network or decide to have a booth. You can also participate in Trade missions for credibility and support as you get int the new market. Using this would help you have first-hand interactions with buyers, distributors and understand competitors’ presence to observe their offerings and strategies in the market. Also, this helps to test product in the market to know if they are fit.
Market Research:
The next step is to conduct market research/ intelligence. This involves identifying global demand and supply trends for your product, analyzing the leading importing and exporting countries, and recognizing potential emerging markets. Reviewing relevant market reports will provide valuable insights into current trends, challenges, and opportunities. Additionally, evaluating tariff structures and trade agreements can help you identify target markets with competitive advantages, as well as potential barriers and the ease of doing business in specific regions.
It is also important to determine the NAICS code and HS code for your product and assess the key markets actively trading in these goods.
Some of this information may be available freely online, while others may require paid subscriptions. If your company lacks a dedicated research and development team, it may be worthwhile to engage a professional research firm to ensure a thorough and accurate market analysis.
You can also leverage the connections established through networking at trade shows, the research you have conducted, and even initiate cold calls to target companies. Identifying key contacts within these organizations is crucial, and you can connect with them via LinkedIn or opt for face-to-face meetings to build stronger relationships.
Finally, please note that World Trade Centre Winnipeg is committed to supporting Manitoba businesses seeking to expand into new markets by providing Advisory services, valuable resources, Trade certification trainings, Funding opportunities and Market intelligence. We encourage you to connect with any of our Advisors using this link: Trade Consultation to support you in your journey.
