Expanding Through Export

Global economy has opened up new markets and new sources for businesses for many years. In fact, global trade itself has become an industry, where trading goods between regions and countries is full fledged business for people.

There are cliches, like, can we get my new cool gadget or toy manufactured in China, so that I can sell them in USA, because I hear that it's cheaper to manufacture in China? Yes, but is your scale economical enough to warrant that route?

And then there are lesser known and traveled routes that involve same global trade channel. Export from USA to countries other than Canada and Mexico. USA exported roughly $700M worth of almonds to India in 2019. Overall, USA exported about $19B worth of goods to India in 2019, which involve shoes, luggage, cereal, paper pulp, liquor, textiles, leather goods, machines, tools, metal products, toys, chemicals and live horse!

India happens to be one of the largest consumer markets in the world, with increasing consumer purchase power and desire for high quality imported goods. There is a reason Walmart bought Flipkart (which is Amazon equivalent in India) and Amazon is investing billions in acquiring India's consumer market share.

So, if you are selling your products in US, and are hitting a growth plateau, have you thought about adding another market to your portfolio?

All that opportunity, however, comes with challenges. There are plethora of rules, regulations and unspoken cultural practices that need to be navigated before you can get in. The big corporations and wealthy small businesses (read my post on real small businesses) have the resources to navigate and access this market much more easily compared to real small businesses.

Knowledge is power though. And if you combine it with hard work, you forge new paths. So, here is a quick tip - high quality imports with brand & price sensitivity is one of the secret sauces to consumer market in India.

And did I tell you that there are plenty of SBA tools like EXIM bank guarantees to protect USA exporters.

Good luck, real small businesses, I’m rooting for you.