Market Research is an important aspect of exporting, as you have no particular knowledge of the market. Depending on your market strategy, you will need to know the legal requirements for an entry to a foreign market. It is important that an exporter should know the import duties, regulations, freights and costs to help you determine cost structure of the product. Other factors such as competition, market size and growth and demographics are also important information to determine company’s positioning. Market research will also help you to have a “market feel” or how your product will compete in the present environment. For example, an internet search (Yao, 2008) shows “big business for mooncake in China”. There is a big demand for the product especially during festivals that even big bakeshops and hotels develop their own specialty of mooncake. Very often, the mooncake is used as networking tools and gifts. Presence of a new patisserie will not crowd out the market as there is a big demand for mooncake among the Chinese consumers. Yao reported that in 2006, Networking Tools had sold 250,000 tons of mooncakes in China that paid handsome revenue of $1.42 billion for manufacturers, bakeshops, and hotels. The report also cited the USDA mentioning mooncake as a golden opportunity for business such as selling the imported fillings of cheeses and cherries to China. The Starbucks, Hagen Dazz and Ocean Spray, all U.S. companies, are manufacturers and exporters of mooncake to China for a decade now, the source said. (Yao, 2008) Depending on the marketing strategy that you may wish to adopt in your business, it is important to create the first impression. If you decide on IT e-commerce or online marketing, an interesting website will make customers return to you to order. An example of a market entry is the case of Bangerang Cake and Pie Shop that sells to both local and international customers through their website. Customers reach them thru internet and delivery is done within 3 to 5 days upon order.
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Yao, Joanne, 2008 “Moon Cakes are big business in China” Entrepreneur.com. Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2008/09/22/AR2008092200928.html> 10 October, 2009
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