How to start exporting with experience and assertiveness?
Becoming an internationally known and recognized company can seem like a big and difficult thing. And it is, for those who don't know how to do it. For specific areas, such as pharmaceuticals and medicine, for example, it can be even more difficult because of all the complexity involved in this segment.
As many say, Foreign Trade is not for amateurs and in the case of Exports there is an aggravating factor: your company's reputation, as a poorly done internationalization goes beyond the financial amount spent, it can damage the company's image abroad and be a way of no return making a mistake at such a delicate moment as its introduction to the international market.
Mistakes such as brand and market positioning, lack of knowledge of the local culture, lack of market research, ignorance of laws and regulatory agencies in the target country are just some of the difficulties that the future exporter may encounter on this journey, not to mention the bureaucratic requirements here in Brazil by Customs, as it is not enough to have a Tax ID to be able to export.
Since starting to export may seem like something nebulous, we will give you some tips here to help your company in the beginning of this journey.
How to start exporting: Enable RADAR and be ready to close exchange
To adventure into Foreign Trade in Brazil it is not enough just to have a CNPJ (Tax ID), one of the steps to start exporting is to have a specific registration. Known as RADAR (Registration and Tracking of the Performance of Customs Intervening Parties), whose legal basis today is IN 1.984, de 27 de octuber de 2020.
RADAR is nothing more than a license required for importing and exporting companies to operate in SISCOMEX, an integrated system for recording customs and tax obligations managed by the Internal Revenue Service.
Any formal import or export operation must be processed by this system. Individuals, legal entities, non-profit entities and public agencies can obtain the authorization, just check the requirements, criteria and necessary documents in the normative instruction.
The qualification is subdivided into 4 RADAR modes:
Limited (USD 50 thousand/Semester);
Limited (USD 150 thousand/Semester);
The normative instruction mentioned above will define the system of the Internal Revenue Service to classify companies in one of the modalities.
Once the RADAR is provided, your company will be able to access Siscomex, register an Export Declaration and sell, but to receive this payment it is recommended that you already have a negotiation, either with your bank or with a specialized and trusted foreign exchange broker, as payment must be made in foreign currency, so you will need to negotiate the exchange rate with them, as well as the payment fees for this service, and these amounts will be converted into BRL in your bank account. Having a trusted bank or broker can also help define financial strategies for these receipts, from investments to hedges (a contractual instrument that ensures prices for future purchases or sales).
Here is our indication: We use @travelex, which after much research, proved to be the most competitive and also with great service.
How to start exporting: Develop a digital presence in a foreign language
When we think about internationalization, even before the product is physically in the target country, there is currently no better tool than the internet.
It is through the company's page, whether on websites or social networks, that many customers find their suppliers, national and international, therefore, if your company intends to be international, it is essential that this communication be made at least in English (or depending on the target market in the country-specific language, such as French or Japanese). In case the Latin American market is one of the first that Brazilian companies get access, Spanish is desirable.
Let's think about a hygiene, beauty product or even a medicine: it is essential that there is a correct translation not only of the package insert and the way to use the product, but in all advertising and publicity so that the customer feels security and trust.
How to start exporting if not even the customer understands the name of the product or its characteristics? A bilingual digital presence brings the target audience together, while its absence distances it.
How to start exporting: Collect information from the target market
Market prospecting makes possible for the company to define a profile of its customer abroad and to direct its marketing to this audience.
This step should even be one of the first and main ones for future exporters, but for good results it is necessary to do it correctly.
Let's leave here two important tips in this internationalization process below. However, due to its complexity and the lack of a marketing department, some companies choose to have an outsourced market prospecting and development services with companies that, in addition to experience, have structure and resources for market research through official surveys, including their presence in the target country.
Here are the two main tips you should follow if you are learning how to start exporting:
The market research will bring information such as: what is the best way for investments to be made, both for marketing strategies and for the type of product; trends in that market; average prices of competitors; verification of logistics – as for certain countries the delivery of this product may have a high value; if there is any regulatory agency or any specific requirement that contributes or hinders the insertion of your product in the country, among others.
Know your customer
Defining your customer's profile in the country is also a relevant factor, as it is necessary to ensure that your product will reach this public. An investment in a wrong or uninterested public will result in wasted time and resources.
How to start exporting: Participating in international fairs
Participation in fairs, if well prepared and analyzed, will certainly result in recurrent and prosperous exports. It's also important to get to know your competitors.
This is always a great opportunity!
For companies that are starting in the international market, participating in international fairs (or national ones with international projection) allows their first contact with this market. For which a prior research is essential before venturing. The presence in this location will provide a closer contact with the customer, which digital media cannot overcome, even with videoconferences.
Serve with quality to guarantee the next exports
All companies are looking not only for more customers, but customers with quality and, above all, with high purchase volumes.
Therefore, it is necessary not to focus and invest only in attracting new customers, but also in the loyalty of current customers, and for this to happen, it is important to serve them with quality at all stages.
Not just the product itself and the price, but the commercial and technical materials, the delivery, and especially the ease of communication throughout the process and in the after-sales service, so the customer feels that working with the exporting company was a good experience and want to repeat it and increase it more and more.
Outsource the export department
As we can see, the steps of how to start exporting require several fronts and efforts by the exporter and, with no doubt, focusing on the core business must always be the main objective of companies, as they need to update and develop in technology, reducing costs, process optimization and many other variables to make their product more attractive and competitive.
For the exporter to be focused on his core business, the outsourcing of the export department is a great cost-benefit, as it will eliminate from the company's day-to-day the need to deepen and monitor all the updates that customs legislation undergoes daily, at the risk of non-compliance with any of them with any activities linked to customs matters.
SC Vitola can help you at this stage and in all prospecting for you reaching the right markets with less risk and greater success, as we have a great deal of experience and a dedicated team ready to attend you.