The Indian exporters should understand the structure of EU including the introduction of common currency Euro by 11 of the 15 member’s states of EU. This will enable the exporters to evolve a suitable strategy for entry to the highly competitive markets of EU. The basic elements of the strategy are outlined as follows
1. The exporters should use environment friendly materials for the manufacture of their products and their packaging and packing. It would be desirable to study the regulations of the EU as regards environment protection and also conduct life cycle assessment of the product to ensure eco friendly nature of the materials through all the stage of the life cycle of the product.
2. The importers are highly quality conscious and the exporters can gain the confidence by exporting products whose quality has been ensured through the quality assurance system as certified under ISO 9000 series of standards.
3. The latest technology should be used for the manufacture of the products and the exporter should continuously be engaged in the process of technological up gradation of their products.
ADVERTISEMENTS:
4. Price competitiveness is a crucial factor to gain an edge over the competitors in the EU. This is important from the point of view of export from India as the items of export from India have a high degree of substitutability from the products offered by other competing countries.
5. The EU importers perceive Indian exporters to be good for small quantity orders and that too for products of average quality. This underlines the importance of bringing improvement in the quality from average to higher levels.
Image Source: cdn.business2community.com/wp-content/uploads/2014/03/shutterstock_116511649.jpg
6. Participation in trade fairs is the best strategy to enter the EU markets.
ADVERTISEMENTS:
7. The exporters should ensure regular flow of information to the European buyers. There is a need to ensure prompt replies to the queries of the importers.
8. The exporters should show utmost respect for the export contracts i.e. the exporters should comply with the commitments as regard supply of goods on scheduled delivery dates, quantities and price. They should not be dishonest while agreeing to the terms of delivery or the quality of the goods.
9. The exporters should be aware of the latest trends as regards fashions and designs of various products.
10. The exporters should understand the regulations of the EU as regards public health and safety as well as the GSP scheme in respect of the product targeted for exports to the EU.