If you want to grow your customer base and take your business global, choosing an export market is the first step.

Before you make your decision, be prepared to research available options in depth. After all, you're not only considering the viability of the market, but also learning about the exporting process.

This guide will outline the different research options available and how you can use them to inform your decision.

Researching different export markets should help you to determine:

• Which overseas markets are most suitable for your business, and at what stage
• The best routes into these markets and any barriers to entry
• Your target customers and how to position your brand in your chosen markets
• Your competitors in each market

Setting research objectives

Start by setting some objectives. What do you want to achieve by branching out to new markets and what benefits do you hope it will bring to your business?

For coconut water brand Cocofina, it was all about levelling out sales throughout the year. UK sales were good during summer but fell dramatically in winter. Founder Jacob Thundil wanted to export into a market that could plug the sales gap.

The company looked at countries by their general attitude towards health foods and average annual income. Eventually, Cocofina settled on Iceland.

Consider what information is essential and what is desirable. This will stop you getting sidetracked by data that isn’t relevant. List the key questions you need to address and make sure these link back to the objectives you have set.

• What is the size of the market?
• How much competition is there?
• What are the needs of your target audience there?
• Are there any significant barriers to entry?
• How easy is it to do business in this market?

Research methods

How do you plan to gather the information you need about the different overseas markets you are considering? There are two overarching research methods – think about how each of these can help you at each stage of your research.

• Quantitative research. Numerical and statistical information, such as population size, age and gender breakdown, market size, costs and pricing
• Qualitative research. Observational information about cultural preferences, the behaviours and requirements of potential customers, similar products on the market

The first step in your research process is online market research. There’s a wealth of information online that will help to inform your decision.

The pros and cons of desktop research

Pros:

• You can do it at any time
• It is free, or very low cost
• There is a lot of good quality information available online
• Particularly useful for gathering quantitative data

Cons:

• The data you need may be out of date
• If you need specific information it may be harder to track down
• Gaining deeper cultural and behavioural insight is difficult

Resources to help you get started

Department for International Trade export market guides

A country-by-country guide, providing useful data on the market potential, economic growth and ease of doing business in each country. It also gives vital information about the opportunities open to different sectors and allows you to search by sector to find the countries best suited to your business.

World Trade Organization

Access to WTO documents and resources that includes trade statistics, economic research, maps and more.

Organisation for Economic Co-operation and Development (OECD)

Looks at each country's relationship with aid, as well as economic outlook, policy information and population statistics.

Field research – or in-market research – is an important step in the exporting process. It involves visiting the country to get a more in-depth understanding of its potential. Narrow down your options from your desktop research longlist and prioritise one or two markets to research more fully.

The pros and cons of field research

Pros:

• Get the latest and most up-to-date data
• Talk directly to potential customers
• Visit suppliers and see the supply chain in action
• See how your product or service would work in this environment

Cons:

• Costly and time consuming to pay for the trip and arrange visits
• Can be tricky to make the right connections ahead of your visit

How to conduct field research

Attend trade shows, events and exhibitions

It’s easy to find out about trade shows and events in advance, so plan your trip around key dates if you can. This is your chance to research the market – who are your main competitors, what are their price points and how do they market themselves? It’s also a place to network with potential customers, agents and distributors.

Search the Department for International Trade (DIT) events site to find out about trade shows in different countries. If you plan to be an exhibitor, you may also be able to get grants to offset some costs through the Tradeshow Access Programme (TAP).

Build key relationships in your new market

Put in some legwork researching your main contacts before you go. Try to schedule as many meetings in advance to avoid wasting precious time during your visit.

Any information you have gleaned about customs and etiquette should be put into practice here. Ensure you know the appropriate ways of conducting business and what to expect in social situations.

Consider using an agency

Using an agency is expensive, but it’s worthwhile if you’re time poor. Give them a thorough brief to ensure you get the results you need and be clear about what they will be researching and how.

Investigate OMIS

The DIT offers a chargeable service called the Overseas Market Introduction Services (OMIS). This is a good option if you’re struggling to make the right contacts or are coming up against difficult barriers to entry in your chosen marketplace.

OMIS uses the network of DIT staff in overseas embassies and consulates to help you identify possible business partners and give you support during overseas visits. It can also provide bespoke market research, sector advice and market entry strategies.

By this point, you should be able to assess whether it’s viable to export into your chosen market. With your research at hand, consider the following points:

• Do you have the necessary resources to trade in this market?
• Are there any constraints that need to be addressed?
• Does your business have the infrastructure in place to export here?
• Is your supply chain secure here?
• Do you understand your best route to market? You can enter through direct sales, use an agent or distributor, use licensing or franchising, create a joint venture agreement or set up a business abroad

By taking a methodical approach to the international market selection process, you should put your business in a strong position to start exporting.