Research Your Export Markets

2. Do Your Goods or Service Fit?

2.1 Find out what the targeted country's gross domestic product (GDP) is overall and per head of the population. This will give you an idea of the country's spending power.

• If the majority of residents have a GDP near the national average, they're likely to have similar spending habits. It could go in your favour if the distribution of GDP is uneven, especially if you have a particularly luxurious or basic item to export.

2.2 Look at the likely demand and size of the potential customer base.

• Find out the proportion of the population within the specific age and income groups you would target.
• Most countries have a statistical office providing demographic information. Visit www.statcan.ca for links to other countries' statistical offices.

2.3 Check how buoyant the market is.

• Is the demand for your product and service increasing?This may be best answered by a market research agency based in the country. They will have immediate access to the market and should quickly gauge the potential.
• Are there any other products or services aimed at the same market segment?

2.4 Research whether you would be legally required to make any changes to your product or service.

• You may have to translate information and change packaging and labelling or comply with electrical standards.
• You may be unable to export certain goods, such as meat, to particular countries. Check with BERR's Export Control Organisation (email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ) or by visiting www.berr.gov.uk/europeandtrade/strategic-export-control/index.html.

2.5 You may need to make minor changes to make your product or service attractive to the market.

• This could be hard to assess from the UK.

2.6 Find out what your service or product could retail at. This will give you an idea of your possible net profit margins.

• To do this, compare the quality of your product with other goods and services on the market and gauge what you can offer that they don't, and vice versa.

2.7 Find out about the sales and distribution channels for your target market.

• Remember, it may be possible to find a distributor or agent to sell your product or service. They will take a margin but it will cut out effort in finding a sales channel.

2.8 Other factors that may be important, due to their potential effect on cashflow, include:

• The cost of payment insurance or factoring services in your target countries.
• Typical credit terms, which may cover longer periods than in the UK.
• Typical warranties and guarantees offered.