Working an Exporter, there are crucial challenges with Export Business :
Extra Costs : There in Exporting always challenges and fear of extra cost in new product development, raw material purchasing, production and labor cost with marketing and promotions. The Cost always goes above the planned budget. Small & mid size companies have always finding this problem.
Product Modification/Standardization : Product modification and approval with quality standard and satisfy to the importers as per their country quality standard is challenging subject. Sample approval is taking more time with lot of modification requirements.
International Financial Risk : Collections of foreign payments has challenges like currency fluctuation, documents delay in collection and not matching documents as per mentioned requirements in the L/C, any mismatching words or language issue. always facing delay in foreign payment remittance.
Export Licenses and Documentary Issues : Some products need to special Export License and if this is not meeting and incomplete with Export documents, forwarded to the Buyer’s country and found the mistakes or invalidation than it may be big headache to correct and re-send to the buyer. This is big challenge in Exporting.
Poor Marketing Knowledge : Foreign market is full of challenges and need very deep research, analysis and aware about the legal and regulatory information. Customs and Tradition, Quality Standard and Buying nature of customer are also important to know and aware before the exporting.
Before exporting to your products in foreign market, you should ware about the above points.