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How To Enter Export Markets

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Information Required to Evaluate Export Markets

April 25, 2005

1. Key Market Indicators

a. Population (000'):

b. Pop Growth % :

c. Literacy :

d. School children :

e. GDP (US$'000) :

f. Per Cap US$ :

g. Exchange Rate : I Rs

h. Exchange Rate : US$

i. Inflation :

2. Current Market Size - Pens

Volume Value (US$'000)

'000 Ns % US$'000 %

A Local Production

B Imports

C Re-exports

D Local consumption 100% 100%

Source: Chamber of Commerce or Trade bodies

a. Market Potential = To be based on the Gulf Potential sheet

3. Key Product Categories and Price Points

a. Identify key product categories and price points

4. Key Market Players

Please refer annexure I

5. Market Accessibility

a. Duty and tariff structure {duty, tax payable, surcharge, and other fiscal levy applicable at the point of import, preferential tariffs for India productions}

b. Freight cost from Mumbai

c. Detail costing on CIF to landed cost conversion

d. Key local manufacturers {who are they, where are they based, what products and brands manufacture, distribution partners, availability}

e. Key local import agents/distributors {same as b}

f. Trade structure {Identify the flow of goods from importer/manufacturer to the consumer, retail chains, independent grocery shops, specialty outlets, specialty wholesales channels, are they located/concentrated in specific geographic areas?, is there any ethnic bias in trade? how many different types of outlets are available? what's the geographic dispersion of trade?}

g. Modern Trade Structure {what are the key modern trade outlets/retail chains? What would be share of top 5 retail chains? No of outlets in each chain}

h. Selling practices {how are the goods sold in each step of the flow of goods? From importer to wholesale and then to retail outlets}

i. Buying practices {who are the key decision makers in the key retail chains? What's the decision making process?}

j. Trade terms {credit terms and other services}

k. Institutions markets {how're the institutional markets catered to?}

l. Merchandising and Trade Marketing Practices (Ref Annexure II)

m. Packing {What are the different type of packing available and display units, please take photographs or collect samples, what are most preferred retail pack sizes and shipper sizes? }

n. Price/Margin Structure {detail breakdown of margins and discounts from MRP downwards across each step of the distribution flow}Annex III

o. Sales Taxes applicable

p. Duty, sales tax and fiscal levy rebates for re-exports

q. Advertising expenditure by leading brands (source: Ad Industry)

r. Secondary markets

i. Markets to which products are re-exported and key re-exporters

s. Non-tariff barriers or preferential treatments for products of Indian or Sri Lankan origin and writing instruments

t. Any measures to protect local industry

6. Financial Services/Investment Information

a. Short term lending rates

b. ROI and net margins expected in FMCG trading

c. Bank charges on LC

7. Prospective Distribution Partners

a. Brief history

b. Identify leading distribution companies engaged in importing and distributing FMCG products

c. Current product portfolio and principals

d. Retail coverage

e. Callage

...

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