What are the entry barriers that usually occur with this type of product and what is the best way to overcome them? According to experts, it is best to turn to an experienced logistics operator who can facilitate key tasks such as preparing documentation, which many small companies cannot prepare as they do not yet have an export department. Here are some of his tips for overcoming the main challenges:
Packaging. “I know the case of a company that sent the garments in normal cardboard boxes, which arrived practically open at their destination, which caused a bad image, apart from promoting theft in transport or at customs. Once the problem was detected, a remedy was put in place with reinforced cardboard boxes”.
- Advice: “It is necessary that the packaging withstand continuous handling and be well closed,” he indicates. “To avoid being a point of attraction for theft, there are companies that choose to hide the logo.” For delicate products (wedding dresses) or dangerous products (perfumes, for example, because they contain alcohol), special packaging is used.
Transportation. “For basic products, or in the first large shipments, the least expensive means of transport is usually used, which is maritime for long distances. In Europe, to Russia and some of the CIS countries or Turkey, by truck: there are routes with relatively short deadlines. For products with a high margin, or in periodic replenishments of high-selling products, air transport is usually used”.
Entry barriers. “The problems come, above all, from the protection that certain countries give to their national industries”, points out Luis Lara: “Turkey, Brazil or Argentina have considerable barriers for certain products (footwear, cotton textiles). In many cases, companies are expected to find local partners to produce under license. It may be an interesting proposal”. On the other hand, “Egypt and other countries in the area require product composition tests that must be done at customs. They are usually entrusted to specialized agencies, which can greatly help companies that want to enter these markets”.
- Advice: “You have to get the numbers right” taking into account the ‘landed cost’ (transport cost plus tariffs). Calculate the PVP well for the chosen market.