January 18th, 19th, 20th Accra, Ghana
January 23rd, 24th, 25th Kumasi, Ghana
What does an exporter need to know?
What are the trends in
my industry?
What products
should I focus on?
Which markets are
attractive?
How do I find the right
contacts to do business?
How do I promote
my products?
What are the
requirements of these
markets?
What’s going on in the world market?
•Who are the main importers in the world market?
•Who the main exporters in the world market?
•What is the trade performance of my country in the world
market?
•Who the fastest growing markets in the world market?
•Which markets seems to be the most attractive?
•How my country is performing in attractive markets?
Initial answers to these questions and many
more are easily found in Trade Map
Steps in analysing world trade data
Identify the HS-6 digit code of your product
• HS-6 digit code
• National Tariff Line Code (8 or more digits)
Analyse world market
• World importers and exportaters
• Export performance
Identify attractive markets
• Market scanning of importing countries
Cross-check and complement statistical
data
Which product do you want to export?
• Product type and characteristics
• Define the main features of your product.
"If I asked my customers what
they want, they simply would
have said a faster horse."
Henry Ford
Ford T
Features of our product?
CORE
PRODUCT
ACTUAL PRODUCT
AUGMENTED
PRODUCT
The core product - Why does it matter?
• It is necessary to understand the core product benefit in
order to :
•
•
•
•
•
Develop products that best satisfy those needs
Understand what customer require
Identify the main sources of competition
Forecast and understand potential future competitors
Guard against marketing myopia
The actual product
•
The tangible factors – the physical features
• physical attributes that the consumer can see, touch, want
and need: the actual product that the customer buys
• The specific offering aimed at the market
• Tangible features associated with the product. The
elements that combine to deliver core products benefits.
The actual product - Why does it matter?
• This is the way firms have traditionally differentiated their
product from rivals
• Unless products are differentiated the firm can only
compete by offering the lowest price good
• Differentiation (if based on consumer preferences) permits
premium pricing and builds customer loyalty
• It is also important in segmentation, targeting and position
(STP)
Features of our product?
Warranty
Brand Image
Additional
Services
Efficiency
Packaging
Trade Mark
Versatility
Quality
CORE
PRODUCT
Style
“Ethical
Consumption”
ACTUAL
PRODUCT
AUGMENTED
PRODUCT
POTENTIAL PRODUCT
After-sales
service
Steps in analysing world trade data
Identify the HS-6 digit code of your product
• HS-6 digit code
• National Tariff Line Code (8 or more digits)
Analyse world market
• World importers and exportaters
• Export performance
Identify attractive markets
• Market scanning of importing countries
Cross-check and complement statistical
data
Identify your product’s HS code
The HS is an internationally recognised hierarchical schema for classifying products
for trading purposes overseen by the World Customs Organisation (WCO)
The basic HS system uses a 6-digit number to hierarchically identify products. There
are around 5,000 product groups at the 6-digit level.
• HS-2 digit level: Chapter
09 = Coffee, tea, mate and spices
• HS-4 digit level: Heading
09.01 = Coffee
09.02 = Tea
09.03 = Maté
• HS-6 digit: subheading or product
09.01.11 = Coffee, not roasted, not decaffeinated
 09.01.12 = Coffee, not roasted, decaffeinated.
 09.02.10 = Green tea (not fermented) in packages not exceeding 3 kg
 09.02.10 = Green tea (not fermented) in packages exceeding 3 kg.
HS-2
HS-4
HS-6
Data classification
National Tariff Lines (NTL) codes
• Classification of goods after the 6 digit level of the Harmonized System
classification.
• National Tariff Lines go from 8 digits to 12 digits.
Why use the HS and NTL classification?
• The HS classification is standardised internationally
• The NTL classification is not standardised internationally.
• Each country decides its own further classification after the Harmonized
System. Hence, National Tariff Line codes can be different from a country
to another.
National Tariff Line level can be as many as 17,000 products
Data classification
HS
(International
standard)
08
Edible fruit and nuts; peel of citrus fruit or melons.
08.04
Dates, figs, pineapples, avocados, guavas, mangoes
and mangosteens, fresh or dried.
08.04.50
Guavas, mangoes and mangosteens.
Australia
08.04.50.00.
Fresh or dried guavas, mangoes and mangosteens
Japan
NTL
(NON
standard)
08.04.50.01.1
08.04.50.01.9
Mangoes, fresh
Guavas and mangosteens, fresh
United States:
08.04.50.40.40
08.04.50.60.80
08.04.50.80.00
Mangoes, fresh, if entered during the period from September 1, in
any year, to the following May 31, inclusive
Guavas and mangosteens, fresh, if entered during the period from
June 1 to August 31, of the following year, inclusive
Guavas, mangoes and mangosteens, dried
Nepal:
08.04.50. 00
Fresh or dried guavas, mangoes and mangosteens
Market scan: identify attractive markets
Market Scan: identifying attractive markets
Market Scan
All importing
markets
Argentina
2. Market Dynamism
Brazil
3. Competition
Cambodia
Most interesting
markets
1. Market Size
4. Distance
Current
markets
1. China
2. India
Denmark
Egypt
5.Cultural Proximity
France
6. Country Risk
Germany
7. Business
Environment
3. UK
4. Indonesia
5. Russia
6. Brazil
Indonesia
(…)
Market
opportunities
8. Market Openness
(…)
(…)
Market scan: identify attractive markets
Stage 1
Stage 2
Stage 3
Market Size
Market Dynamism
Competition
Distance
Cultural Proximity
Country Risk
Business Environment
Market Openness
Selecting Target Market
19
Voluntary sustainability standards –
definitions and examples
WTO technical regulation
Voluntary
sustainability
standards
Compliance
is voluntary
Mandatory
standards
Compliance
is mandatory
Rules of origin/certificate of
origin
Other national or regional
standards
•
•
•
Regulation increasingly includes principles and provisions developed by VSS or directly
refer to voluntary standards.
VSS require compliance with local laws and regulations, e.g. labor or environmental laws
Buyers ask suppliers for compliance with voluntary standards.
Mandatory Standards
Certain standards are required by governments for any products or services and
are mandatory for any product to be legally commercialized in that market. These
standards can be product or packaging characteristics, or certain processes to
that need to be followed for example: technical regulations, sanitary or
phytosanitary (SPS) measures including health and safety regulations, product
specifications, labeling requirements, quality controls and rules of origin.
Labeling
requirements
Rules of Origin
and Certificate
of Origin
Phytosanitary
Certificate
Minimum
Residue
Levels
Mandatory/Regulatory
standards
Mandatory Standards
Mandatory standards differ depending on the product and the
country of export and import.
Non-compliance with these requirements may lead to
quarantining or product rejection by import countries.
Under the WTO Agreement on the Application of Sanitary and
Phytosanitary Measures (SPS Agreement), trade measures
that are considered “necessary to protect human health,
animal or plant life and health” are permitted if they are based
on risk assessment and are in compliance with the principle of
non-discrimination.
Standards for product labeling requirements fall under the
WTO Agreement on Technical Barriers to Trade (TBT
Agreement). The agreement uses the requirement of ‘like
products’ to ensure that different products are not discriminated
against on the basis of different process and production methods
(PPMs).
Specific concerns about food hazards usually
focus on:
•
•
•
•
•
Microbiological hazards
Pesticide residues
Misuse of food additives
Chemical contaminants, including biological toxins,
Adulteration
Now, the list is expanding with concerns about:
• Genetically modified organisms
• Allergens
• Veterinary drugs residues
Voluntary Standards
In ADDITION to the mandatory/regulatory standards that your product or
service needs to comply in a certain country, there may also be other
standards that, though not required by law, might be requested, suggested or
looked for by manufacturers, retailers or consumers. Like mandatory
standards, they can refer to product characteristics, process requirements or
production methods. They may also communicate their compliance to the
Good
standard through seals or labels.
Agriculture
Practices
International
Standard
Organization
Quality
Bird Friendly
Coffee
Voluntary
standards
Mandatory/Regulatory
standards
Organic
Certification
EU
Company Specific Standards
Manufacturers, retailers can also add specific requirement that may go above
and beyond mandatory standards. Most of these are also in addition to some
voluntary standards and maybe used for risk management (for example in
sanitation requirements) or for differentiation (for example in an ‘all natural
ingredients’ type of certification). They may just be included in a suppliers
code of conduct or they could also have a seal/brand.
Ikea’s supplier
code
Voluntary
standards
Mandatory/Regulatory
standards
Private sector sustainability commitments
100% of six key products to be
sourced sustainably by 2015
Unilever aims at
sourcing 100% of its
agricultural raw
materials in a
sustainable manner by
2020.
Mars aims at sourcing 100% of its
cocoa from sustainable sources
by 2020.
IKEA aims to source 100% of
wood, paper and cardboard from
more sustainable sources by
August 2020.
Development of the VSS compliant area
worldwide 2008-2013
10,000,000
9,000,000
8,000,000
Tea
Sugarcane
Soybeans
Oil palm
Cotton
Coffee
Cocoa
Bananas
Hectares
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2008
2009
2010
2011
Source: FiBL-SSI survey 2015
2012
2013
Producers perspective
• Producer needs to comply with a series of standards and
requirements. Some will be specific to one country, some might be
specific for a product while some may be requested from your
customer and would only be good when selling to this customer!
For example, Victor from Ghana
might need to comply with multiple
requirements at all levels before his
cocoa get to the shelves of Tesco’s
supermarket in England!
Companyspecific
codes
Voluntary/Open
standards
Mandatory/Regulatory
standards
EU Food Hygiene, food controls
Traceability requirements
Packaging material requirements,
etc.
Are voluntary standards good for me as a
producer?
Compliance with voluntary standards
can translate into market and
economic advantages for you as a
producer, for workers and for
communities.
• Premium prices for certified
products
• Business opportunities
• Better relationships with clients
• New clients
• Better working environment
• Community development
• Environmental conservation
Complying with the requirements of
many standards does not guarantee the
short term benefits will compensate for
the costs.
• Certification can be costly, not only
in certification fees but also in
management time and investments
needed to meet the requirements!
• Most voluntary standards pay only
modest premiums for certified
product
• Certification by itself does not
guarantee that a market will be
found for the product.
What is going on with Voluntary Standards?
Six Key Trends to think about…
1. Consumers are increasingly concerned about how products are
produced.
2. Voluntary standards are growing beyond the ‘niche’ market
category and large ‘mainstream’ players are leading this expansion.
3. Interplay among standards organizations, including between
voluntary and mandatory standards organizations.
4. Supply and demand of sustainable products don’t match market.
5. Entire value networks, not just companies or supply chains,
compete and strive for “collaborative advantage.”
6. Researchers, Private Organizations and Governments are focused
on understanding the impact of voluntary standards for producers
and for the environment.