Direct exporting has great significance in international trade owing to its unique advantages. An organisation, regardless of its nature and size can resort to export direct if their products after conducting research are found to be in demand in another market place abroad. Direct exporting is evidently a very effective marketing strategy for any organisation that plans to enhance their market share and return on investment.
If you are looking to direct export without any intermediaries or middlemen in another foreign market place, there are indeed some factors that directly affect its successful implementation. The following are to be checked in with before a firm or an exporter plans to take up direct export as part of the business expansion process.
- Exporter should be ready to initiate the whole process on his own
- The target market should be readily accessible
- The target market has similar customs and regulations prevailing in exporter’s country
- Consider the distance to which goods are transported
- Means of transportation of goods
- Independently handle risks of losses during shipping and storage
- Lot of investments should be carried out for sales and marketing activities
- Able to handle risks as a result of political and economic instability in the target market
Despite these limitations, direct exporting offers a plethora of opportunities for a firm to expand its share in international trade. It helps direct exporting companies to have greater control over the positioning of the products in foreign markets unlike in the case of indirect exporting. Direct exporting assists a firm to aim for long term growth by expanding their share of business in foreign markets.