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Registered exporters will be able
to get direct access to basic export assistance services provided by
TradeMate, which
include:
- Export
product identification
- Export
readiness assessment
- Development
of an Export Plan
- Registration
for export purposes
For
the sake of unregistered users the following is an explanation of the services
provided:
Export
product identification
The
common approach is used by TradeMate
to identify and assess the export potential of a
product/service. It includes:
- The
identification of products for the purpose of designing a marketing strategy for
a specific sector, including all necessary action and support activities that
help generate or increase exports;
- The
ability to address specific concerns of a sector, particularly obstacles to
export growth, as well as provide the basis for coordinated or cooperative
actions, including joint export promotion and marketing activities;
- The
capacity to help individual companies develop their own marketing strategies and
programmes, and identify specific areas where support or assistance is
required.
Export
readiness assessment
Similar
to the situation diagnosed in respect to export potential identification, there
are also companies that are perfectly capable of doing their own export
readiness assessment as well as companies that have no experience in this
activity although they may have been involved in exporting.
Firms
with experience in producing and supplying the local market might want to
venture into exporting because they want to exploit the gains from exports in
terms of higher profit margins, or because they find the local market too
restrictive for their growth potential.
A
decision on whether to export or not, and whether a firm is ready to start
exporting (a particular product or a service to particular markets) depends on
consideration of:
- Management
objectives - how strong is the commitment to export?
- Experience
- does a firm have any experience in exporting or will it rely on domestic
experience only?
- Management
and personnel - does a firm have the human resources to handle
exporting?
- Production
capacity - does a firm have spare capacity in case of sudden rise in demand? What will the impact on sales be?
- Financial
capacity - will the expected earnings cover costs? What are the implications should there be a need to expand capacity?
Advice
and assistance on all of the above will be provided by
TradeMate.
Development
of an Export Plan
New
exporters will require assistance with the essential elements of an export plan
which includes:
- Introduction.
This provides the background for the export plan. Normally it summarizes the
history or the products/services to be exported, the reasons and rationale for
exporting them, and any required financial support and conditions for accepting
any investment as applicable;
- Domestic
market performance.
This element contains information on the company’s record (performance) in the
domestic market. It should refer to what type the company is, the nature of the
products/services, the performance history, human and financial resources,
organisational structure and domestic marketing strategy (if
any);
- Export
objectives and goals.
An indication should be given of what the company expects to achieve by
exporting. It should include a description of the short-term (one-year) and
long-term (five-year) goals;
- Target
market.
This information should include a description of the following topics: target
market and industry structure; buyer analysis and projected demand for the
chosen products or services; competition and market shares (if known);
distribution and promotional channels; government regulations (trade
restrictions, import duties and standards); challenges and opportunities
identified in target market; and cultural factors;
- Delivery.
This element should include information on expected delivery of the selected
products or services to the target market;
- Marketing
plan.
This is the key section of the export plan and should include information on
sales strategy, pricing, promotional strategy, channels of distribution, and
aftersales service (if applicable);
- Sales
forecast.
This element outlines a firm’s monthly forecast for the first year of operation
and provides an annual forecast for the next few years;
- Production
plan.
This provides an assessment of physical plant requirements, machinery and
equipment, the raw materials needed, inventory requirements, suppliers,
personnel and an estimate of production costs.
- Risk
assessment.
This element addresses the following topics: the reaction of competition in the
foreign market(s); political and/or economic risks in the target market; and
critical internal and external factors in the foreign market, possibly affecting
firm’s export;
- Implementation
and development.
This element describes the planned steps to be taken to achieve export
objectives;
- Market
performance evaluation.
This element contains a description of the methods to be used in tracking and
measuring progress in the target market;
- Financial
statement;
- Financing
and capitalization.
This element addresses a firm’s financing needs, what financing services
(government or bank) and export financing (for example, a letter of credit) will
be used.
Registration
for export purposes
Specific
assistance with registration procedures and forms is provided for in respect of
registration with:
- DTI
- SARS
/ CUSTOMS & EXCISE
- Local
Chamber of Commerce and Industry
- Sector
Body Associations
- National
Export Council(s)
- Provincial
Authorities
- Municipal
Authorities (City of Johannesburg)
- Export
Assistance Organisations
- Training
Organisations (such as ITRISA)
- TradeMate
e-Trade Portal
- Sector
Trade Portal(s)
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