The international trade market is irresistible, luring companies to embark on a thrilling path of success and prosperity by opening up new markets for innovation and fostering cultural exchange.
When your business is on the rise, it’s time to step up your game and boost your competitiveness. Whether you’re importing or exporting products, it can make a world of difference for your success. With their sophisticated moves, import and export provide benefits that entice both ambitious entrepreneurs and experienced business owners.
This article will walk you through the remarkable benefits of import and export to help your business thrive in the market.
Market diversification through exports
Engaging in export activities allows MSMEs to diversify their market presence beyond Nepal’s borders, which not only means market diversification. By tapping into international markets, MSMEs can reduce their dependence on the domestic market, minimizing risks associated with economic fluctuations and seasonal demands. Market diversification can also mean diversification of revenue stream. On top of that, get better prices too.
For instance, if your business focuses on distinctive handicrafts like Pashmina shawls, metalwork, and woodcraft, it can entice clients from the US, Europe, or Australia, where demand is evolving for fine traditional craftsmanship. Similarly, a Nepali textile company that sells clothes abroad can reduce the risk of a domestic market slowdown by depending on export earnings. Furthermore, exporting goods to foreign markets exposes your business to a range of consumer and cultural influences.
So don’t hesitate to spend some time identifying markets with high demand or niche markets for your product.
Learning and networking opportunities
Export-oriented MSMEs often participate in trade fairs, exhibitions, and international conferences, which provide valuable learning experiences and networking opportunities. These interactions can lead to collaborations, partnerships, and potential foreign investments in Nepal.
Access to inputs, raw materials, and technology through imports
Engaging in import activities allows MSMEs to access high-quality inputs and raw materials and innovative technology and resources, and international exposure that might not be readily available domestically. This enables them to produce better quality products through simplified processes and competitive prices.
For instance, a Nepalese agro-processing business can import modern rice milling equipment or coffee processing machines to optimize production processes and for value-addition purposes.
Enhancing competitiveness
The competitiveness of your business can be increased through participation in international trade. Global market exposure demands innovation, quality improvements, and compliance with international laws and regulations. As a result, goods, procedures, and services are continuously improved, increasing competitiveness on a national and international level.
Brand recognition and reputation
Successfully exporting products or services can enhance reputation and brand recognition on an international scale. This can attract more customers and investors and further strengthen their position in the global market.
Import as a cost-saving business
Many businesses discover that importing goods or resources is more cost-effective and prospective than producing them locally. This is especially true for products and services with the following traits:
- requires expensive raw materials or specialized manufacturing processes,
- trendy or popular products from other countries that help businesses stay ahead of local competitors and attract customers seeking new and innovative items
- products that are not locally available or are in short supply, which can help meet the demands of niche markets
- seasonal products that allow businesses to offer them to customers year-round, eliminating the challenges associated with local production limitations.
Even if you are into an import business too, remember to forge a partnership with a reliable and reputable international supplier, develop an effective management team and innovate in domestic supply and distribution channels are crucial.
