The attraction of earning in foreign currency might make your eyes pop out $$$. The wide world out there certainly offers a bigger market for Filipino entrepreneurs who have already road-tested their business ideas locally.

Sheryll Ang-Tiong of Proud Mama Store says: "Many companies want to sell their products overseas because it offers a whole new market. If you think that you've already reached most of your target market for your business in the Philippines, exporting your products to another country will give you a new set of clients to target." Her partner, Rianna Roces-Trinidad adds that "higher volumes help one maximize economies of scale, allowing for better profit margins. Exporting abroad also strengthens the brand image, giving it more credibility."

Joey Cuerdo, proprietor of MOJO Flip Flops, also points out that through exports, "the business becomes more stable and less susceptible to fluctuation in local demand."

But just because you think the world will be a much better place if your product reached every corner of the globe does not mean that you should expand, pronto! There are a lot of factors that you should consider before choosing to take definite strides in that direction.

DIFFERENT STROKES
When it comes to overseas expansion, there are several routes you can explore.

1. Online store. Through their online multiply site, Proud Mama Store has reached mothers in different parts of Asia, Europe, and America.
2. Exporting to or supplying existing stores. Cuerdo opines that this is the least risky. "Opening a store without a local name is premature."
3. Offshore buyers. Proud Mama Store also has wholesalers in Asia, particularly in Hong Kong, Indonesia, and Singapore.
   

ARE YOU READY?
If you went through different stages of preparation and adjustment before opening your business, so should you do before expanding overseas. The market, after all, is made up of different cultures and different tastes. You need to spend much time, effort, and investment before you get your feet wet.

• Check  the competition. Tiong cautions that "before you start exporting to a country, you'll need to check if similar products are already being sold there. Are your products unique? Are you items better or cheaper than the ones that are locally available?"

• Assess the market. Trinidad advises you find out "if the market shows inclination for and appreciation of similar products; and if the new market has a large concentration of your 'bulls-eye target market' (in our case, new moms)."

• Strengthen your product. Cuerdo says you should make sure that you have everything put together: total product image, aesthetics, packaging, branding, etc.

• Secure your supply. Cuerdo says you should ensure that you have a steady supply of your product before you commit to offering it to the world.

GET SET...
Before you dive out into the previously unexplored world of exports, there are a few things you should consider regarding your products.

1. Packaging. According to Trinidad, ?different markets require different ways of doing business. Our packaging (box) is designed primarily for retail outlets; one of our overseas resellers sells primarily online.  So we are in the process of designing packaging [that are] equally presentable yet ship well.
2. Price. Cuerdo says this aspect depends heavily on the market to which you will be catering.
3. Styles and fabrics. For example, native styles and abaca or Manila hemp will sell well in Europe, Cuerdo says.
   

BEFORE YOU "GO"
Tiong and Trinidad give the yellow light on the following:

• Research the rules. Each country has different rules. And rules are stricter for some product lines such as food and drugs, etc. It would help to have a local partner or representative to assist you in these matters.

• Watch out for copycats. Unless your product is very unique, you'll need to protect your brand from look-alikes or similar products that are available [in other countries].

• Research on the validity of your patents in the new market. Your protection may only be limited to the Philippines, making you vulnerable to imitation once you launch in another country.

• Research on the hidden charges with regards to shipping, customs, and receiving money from overseas.

CONTACT DETAILS:
Proud Mama Store
website: http://proudmamastore.multiply.com

MOJO
website: www.mojosandals.com

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