Where to Next? Find your ideal export market using these criteria

Unfortunately, there is no one-size-fits-all solution. Before any market launch, the criteria should be re-evaluated and the situation assessed individually.

1. Market potential & demand

Demand for a product or service is probably the most important indicator of market suitability. No demand, no business. The purchasing power of potential customers and the general state of the art in industry provide initial clues. A growing market segment or promising niche can offer special opportunities. Local competition also plays a role: existing providers in the market, both local and international companies, set standards when it comes to price and quality. 

2. Regulatory framework & trade barriers

Trade barriers such as customs duties, import restrictions, time-consuming certification processes, and sustainability regulations can generate additional costs and make the process of entering a market complex. At the same time, existing free trade agreements are often beneficial and facilitate access to a new market. A careful assessment of the regulatory environment helps to provide an idea of what to expect.

3. Resources & costs 

Market entry requires targeted investments, for example in market research, marketing measures, and the development of distribution channels. At a later stage, these are joined by ongoing operating costs. Companies also have to take internal resources into account, and personnel experienced in exports and logistics are needed. In some countries, the presence of a member of the Executive Board is even mandatory when contacting new distribution partners. Expenditure in terms of costs and resources varies considerably depending on the destination country.

4. Socio-economic conditions 

Specific cultural aspects such as those related to religion or sustainability can influence marketing, sales, and customer service, which requires adjustments but can also open up special opportunities. Language barriers should also be taken into account, especially in markets with a strong local business culture.

The economic and political situation of a country influences planning security for companies. If not present, this leads to risks that the company has to hedge. Legal certainty and the protection of intellectual property are other factors that need to be examined.

5. Distribution channels, logistics & infrastructure

Depending on market conditions, distribution can be carried out from Switzerland, via local partners or through one of your own subsidiaries. Well-established logistics have a positive impact on sales and costs, as do customs clearance and the entire import process.

E-commerce possibilities should be looked at separately. If these are well developed and able to be integrated, this greatly simplifies export administration. 

Opportunistic versus strategic

It does, of course, make sense to proceed strategically when selecting export markets. But an opportunistic approach can have its advantages, especially for smaller companies that rely heavily on the possibilities of local distribution partners. This is because a major part of the success here essentially depends on the commitment and networking of the business partner. If they have the best relationships with potential customers and are highly motivated on top, this may well be the deciding factor that can suddenly make a specific market the most attractive one, even if the figures on paper suggest otherwise.

Statistical figures versus personal experience

Every new market comes with opportunities and challenges. The usual key figures for a market often provide an initial overview. However, we always recommend seeking dialog with someone who knows the market from their own experience. Before making a decision, it is also a good idea to visit the country in person. This often offers an additional and unique perspective.