What Should Be Prepared Before Trade?

      Preparation stage before transaction

The main tasks to be completed in this stage are: Market Research And make plans.

      (1) Market Research

Market research to obtain and Trade All kinds of information. Through the analysis of the information, we can draw a conclusion. international market The characteristics of the market determine the feasibility of trade and then formulate trade plans.

Market research scope and content include: economic research, market research, customer research.

      One Economic Research

The purpose of economic research is to understand the overall economic situation, the level of productivity development, the characteristics of industrial structure, the macroeconomic policies, monetary systems, economic laws and treaties, the level of consumption and the basic characteristics of a country or region. In short, we should have a general understanding of the economic environment and estimate the possible risks and benefits. Foreign trade should always be carried out as far as possible between countries and regions with good overall environment.

      2. Market Research

Market research is mainly aimed at a specific selected commodity, to investigate its market supply and demand, domestic production capacity, production technology level and cost, product performance, characteristics, consumption class and climax consumption period, products in the life cycle stage, the product market competition and monopoly degree and so on. The purpose is to determine whether the commodity trade is feasible and beneficial.

      3. customer research

Customer research is to understand the basic situation of foreign manufacturers who want to establish trade relations with them. Including its history, capital size, scope of operation, organization and credit rating, its overall situation, including its history and current situation with other customers around the world and with our customers in developing foreign trade and economic relations.

Only when we have a certain understanding of foreign manufacturers can we establish foreign trade links with them. In the actual work of foreign trade, there are often serious losses caused by foreign trade activities which are not clear to the other party and rush to engage in foreign trade activities. Therefore, before trading negotiations, we must have a full grasp of the foreign clients' capital and credit status, and must not rush to success.

      The main sources of research information are:

(1) general information, such as the general data and information on national economy officially published by a country, includes the gross national product, the balance of payments, the total volume of foreign trade, the inflation rate and the unemployment rate.

(2) comprehensive publications at home and abroad.

(3) entrust foreign consulting firms to conduct market surveys.

(4) collecting data abroad through the branch offices and Commercial Counselors' offices of China's foreign trade companies.

       (5) use trade fairs, various trade fairs and customers to do business opportunities in China to learn more about the information.

(6) sending special export missions and sales teams to conduct direct international market research and obtain first-hand information.

      (two) formulating a plan

The formulation of a plan means that the relevant import and export companies make a business plan for the export commodities they operate according to the state's policies and decrees. It is a prerequisite for a smooth and orderly transaction. The business plan for export commodities generally includes the following:

     1. commodity Domestic supply Situation

Such as the place of production, the main place of sale, the main place of consumption, the characteristics, quality, specifications, packaging, price, output and inventory of the commodity.

      Two Foreign market Situation

For example, the basic situation of market capacity, production, consumption and trade, the transaction situation of major import and export countries, the possible trend of development and change in the future, the requirements for commodity quality, specifications, packaging, performance and price, and the basic practices and sales channels for foreign markets to operate the commodity.

      3. identify export areas and customers.

On the basis of market research and information analysis, we choose the most favorable export areas and partners.

      4. business history

Such as the status of China's export commodities in the international market, the main sales areas and sales, the main competitors, and the main experiences and lessons of managing the commodities.

      5. business plan arrangement and Implementation

      Such as sales volume and amount, growth rate, trade mode, payment method, settlement method, sales channel, mode of transportation and so on.

Editor: vivi