Knowledge series 2018: part 1 – jewelry export markets

There are several aspects to be considered before you commence manufacturing for a particular market. Understanding the country’s culture, macroeconomic conditions prevailing, customer preferences etc. is essential for a successful penetration.

• Country research
  Before entering a market for exports, research on certain economic attributes such as GDP, average income, and gender ratio gives a better perspective of the scope of luxury purchases in the country. This information can be availed via basic desktop research/web analysis.
• Entry Barriers
  A thorough research must be undertaken on government compliances in the country of export. These would include duties and taxes such as import duty, the due dates for payment of such duties among others. An attempt should also be made on finding out the local manufacturing presence and their market share. This would assist in understanding the scope for gaining market share.
• Survey
  A survey must be conducted to identify the main players in the jewelry industry, from a supply side as well as retail/eCommerce sides. This will also help in identifying prospective customers.
  An analysis of the product mix should also be undertaken, including gold purity, diamond qualities generally preferred by end customers and design preferences. Every region has its own uniqueness in terms of design and understanding the same can be path-breaking.
• Communication
  The next ideal step would be to approach prospective customers that have been identified from the above research. LinkedIn contacts can be leveraged in this case. Hence, it is important to keep an active and updated LinkedIn profile as it is one of the best ways to connect with professionals across the world.
  However, the most suitable way of building contacts would be to attend and participate exhibitions and workshops that take place in the target market. Several wholesalers and retailers generally attend such events with the motive to source quality products as per customer preferences.
  Once contacts have been established, an introductory email along with the product portfolio should be sent to the prospective customers requesting a meeting with them. An important point to note here is that the product portfolio should NOT generic but should be specific to the country or region based on the research on product mix and design preferences. This will make your approach more relevant to the receiver.
• Risk Management
  Background checks on customers have become as important as bagging new customers, if not more. This should be done before commencing work on a new customer. In light of the recent scams hitting the jewelry industry, background checks are necessary to understand the creditworthiness of the customer. Few references that can be used for such checks are D&B reports, Hoovers, Societe.com among others. Part advance payments is one of the options to mitigate credit risk.