Market research for exports: how to approach it

You can find a lot of information from behind your desk. But you can only really get to know a foreign market by conducting extensive market research in the country where you want to do business. You can do this yourself or hire a specialist. Think in advance about why exporting might be interesting for you, so that all your work is worthwhile. Find out how to choose promising export markets. What information you need to use for your research. And who can support you in this.

What is your goal?

Consider why you want to export. Is it for growth, to spread your risk, or to reach new target groups? Exporting is not something you can just do on the side. It takes time, so plan ahead. It can take 2 to 3 years before you have regular foreign customers. Having a clear goal in mind will prevent you from wasting time and money.

If you only receive foreign orders occasionally, conducting market research and drawing up an export plan will add little value. You should only do this if exporting is an integral part of your business plan.

International market research

There are 2 ways to conduct market research: desk research or field research.

• Desk research is done from behind your desk. You search online, read reports, and call potential customers or partners.
• Field research is done by visiting the country. You talk to customers or potential partners, visit shops, and see how competitors work.

You collect information for your market research by means of research questions. You write these questions down on paper before you start.

Research questions

Research questions will give you a good idea of the foreign market in question. Consider questions such as:

• Is there a demand for my product?
• Do I need to adapt the product to national requirements or regulations?
• What do I need to arrange in advance if I want to provide my service in another country?
• What do my potential customers and my target audience look like?
• What is the best way to sell in the foreign market? Direct, via partners, or online?
• What is the price level of my productsor service in the market?
• What competitors are there?

These questions mainly focus on opportunities and threats outside your business. The strengths and weaknesses of your business itself are also important. This will help you determine whether you are ready for the next step. You can investigate this using a SWOT analysis.

SWOT analysis

A SWOT analysis is part of your market research. It allows you to identify your business's strengths and weaknesses, as well as the opportunities and threats in the foreign market. This gives you an overview of which areas require extra attention and where opportunities lie. 

Select promising markets

Make a list of requirements that your ideal market must meet. Compare different foreign markets for your product or service. Then choose a few countries where you see the most opportunities. This will quickly give you a good idea of your foreign market.

When choosing your favourite country, take language and cultural differences into account. Compare countries on the basis of, for example:

• Import restrictions and import duties. Higher costs for your customer make exporting more difficult.
• Laws and regulations. Products that comply with these are easier to export.
• Transport costs. A longer distance means higher shipping costs.
• Level of prosperity and economy. Countries with a high level of prosperity and a growing economy spend more money.
• Demographic characteristics. The age, composition and size of the population determine the demand for your product or service.

RVO offers tailored country information (in Dutch). This includes market data, product requirements. and regulations. But there are other ways to find answers to your research questions.

Resources and tools

To collect information on foreign markets, you can use several sources and tools.

Resources

• Online market reports. RVO offers numerous market reports by sector and country (in Dutch).
• International market reports, from organisations such as Statista, Nielsen, or Euromonitor. You sometimes have to pay for these reports.
• Contact the Dutch embassy or another party in the overseas network (in Dutch). Besides getting to know each other personally, you will gain information directly about doing business in the country concerned and promising sectors.
• Join an inbound or outbound trade mission, or visit a trade fair abroad. This is how you get to know local contacts and build a network.
• Statistical information can be found for the Netherlands at Statistics Netherlands (CBS). The country you are exporting to may have a similar organisation. In Germany, for example, it is the Statistisches Bundesamt (in German), and in Belgium Statbel.
• VO offers country information (in Dutch).
• Search for sector information (in Dutch). Local trade associations may have market and industry reports online, or put out trade magazines.
• Useful market reports from CBI for those selling to European markets.

Tools

• KVK help with legislation and regulations (in Dutch) in the Export Guide. This tool gives you information on requirements and rules related to the export of products or services.
• Access2Markets tells you all about product requirements, documents, import restrictions, and tariffs abroad, among other things. Watch this video to see how to use Access2Markets. 

Support

Explore financial support schemes such as Support International Business from RVO. This will help you with a coaching programme, for instance, or can help you cover the costs of a lawyer or a tax expert.

This subsidy is only for businesses with legal personality. It is not for an eenmanszaak or VOF. 

A complete overview of schemes can be found in the RVO Subsidy and funding guide.

Outsource your market research

You can conduct market research yourself. Or you can hire someone to do it for you. There are various ways to do this.

• You commission a market research agency with knowledge of the country. This costs money. But an agency has a lot of experience with market research and has a valuable network in the foreign market.
• You can ask advisers abroad for help with legal or tax questions. They can answer your research questions, have national knowledge and a network. They are also familiar with the latest developments in laws and regulations.
• You can engage students from Dutch universities of applied sciences. For example, for an internship or graduation project lasting a few months or weeks. This allows you to bring new knowledge and ideas into your organisation. This takes extra time, because students need supervision.

Take your next step

Good market research will lay a solid foundation for your export activities. Proper preparation will largely determine your chances of success in foreign markets. Start small, make smart choices, and only expand once you are confident in your approach.