Introduction:
There is an old saying: choice is more important than effort, and this holds true in the field of B2B international trade as well. For example, some people compare sales figures, but the moment you make your choice determines the outcome. Some products reach their ceiling with sales in the millions per year, while others generate tens of millions in revenue with a single order. This not only depends on the salesperson's abilities but also on the products you choose. Drawing from the practical experiences and current situations of nearly twenty startups, let's explore how product selection works in foreign trade and what strategies can be employed.
How to Choose Products in Foreign Trade?
Since the purpose of selecting products for international trade is to get more orders, sell more products, and ultimately earn more profits, how can we achieve our goals? This depends on whether our objective is long-term profitability or short-term gains. Different objectives lead to different methods, and deriving methods from objectives is often a reliable approach.
Selecting Products for Short-Term Goals:
Choose Trending Products: Sell products that are currently popular. For example, during the COVID-19 pandemic in 2020, face masks were in high demand. Choosing trending products ensures a market for your goods, but pursuing short-term profits also comes with significant risks that need careful consideration.
Choose Seasonal Products: Many products have seasonal demand. Choosing products aligned with the seasons ensures a market for your goods during specific times of the year.
Selecting Products for Long-Term Goals:
Choose Products from Low-Barrier Industries: Some industries require salespeople to possess specialized technical knowledge, making entry difficult for newcomers. For beginners in international trade, it's advisable to choose products from industries with lower barriers to entry, reducing risks. Experienced professionals can bypass this consideration.
Choose Products from Long-Term Popular Markets: To achieve long-term profitability, selecting products from consistently popular markets is essential. Long-term popular products directly indicate high market demand, ensuring a steady customer base and a constant flow of orders. Daily consumer goods and personal care items are examples of products with enduring demand due to their necessity in people's lives.
II. Strategies for Product Selection in International Trade:
Product Export Trends Analysis: Before selecting products, conduct thorough research on the target market's customer demographics, purchasing power, needs, and buying cycles.
Production Capacity and Product Supply: Exporters should choose products that can be manufactured in the target country and are available in the required quantities. A stable supply foundation ensures timely delivery to foreign buyers according to agreed-upon schedules.
Product Adaptability: The popularity and market potential of the same product can vary across regions. Consider differences in cultural history, technological advancements, education levels, geographical conditions, etc., to tailor products for specific regions. Customize product features, colors, sizes, parameters, performance, and configurations to meet the diverse needs of customers in different areas.
Trade Restrictions: Exporters should be aware of any restrictions that apply to the products intended for export in the target market.
Product Weight: Exercise caution when selecting lightweight products to avoid high shipping costs for buyers. Shipping expenses, in addition to the product price, are a significant factor influencing purchasing decisions.
Shift in Spending Patterns: Consumer purchasing decisions are primarily influenced by taste, preferences, and the price advantage of a product over others. Another significant factor is consumers' income levels.
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