Plastics production is a specific type of business. Therefore, you would need a specific strategy to enter or expand your presence in foreign markets.
In 2022, plastics and rubbers were the 6th most traded product in the world, with a total trade volume of US$1.09 trillion. Trade in plastics and rubbers accounts for 4.6% of total world trade. In 2022, the top exporters of plastics and rubbers were China ($189 billion), the United States ($110 billion), Germany ($104 billion), South Korea ($53 billion), and Japan ($40.6 billion). In 2022, the top importers of plastics and rubbers were the United States ($132 billion), China ($90.7 billion), Germany ($75.6 billion), France ($40.2 billion), and Mexico ($38.1 billion).
The global plastics market size was valued at USD 624.84 billion in 2023 and is projected to reach USD 943.76 billion by 2033. The major reasons for the growth of this market are increasing production in automotive, packaging, manufacturing, and construction industries.
Strategy to reach foreign markets
The cultural aspects of each region of the world dictate their own particularities. For example, in some parts of Europe, price is an important factor, while in others strict deadlines, fast support and feedback prevail over competitive pricing. In Asia, product visibility is critical, while in some parts of the Americas, purchasing and distribution managers have high demands for homologation of products from Europe.
In general, however, the steps to forming an export strategy remain the same:
Stage 1: Researching the potential market
Market research is often neglected, either because business managers consider it too complex or because they consider it irrelevant to their projects.
However, it does provide a detailed understanding of how the target market works. Once such a study has been conducted, it becomes easier to understand the prospects for strategic presence in a particular market. For example, Germany afghanistan telemarketing is the largest European producer of plastic products, so in order to successfully enter the German market with your products, you need to offer something truly unique, yet of high quality and competitive prices.
With Kompass solutions for international trade , you can get answers to the following questions:
Market
- What is the target market (its size and evolution)?
- What are the products/services in that niche?
- Who are the key players?
Demand
- How is demand developed and segmented?
- What is consumer behavior?
Catering
- How is the offer evolving?
- Who are the main competitors?
Environment
- What external factors could affect your project (regulations, lobbying, etc.)?
- What is the economic and political situation in the destination country?
Stage 2: Export Marketing Plan
With your market research report complete and your export goals clearly defined, you can now move on to preparing an export marketing plan how to decrease latency in text to speech apis that outlines exactly how you will meet the needs of your overseas buyers.
Your export marketing plan should allow you to address the following questions:
- How can you standardize or adapt your product to meet your buyers’ expectations?
- What export pricing policy should you adopt?
- How can you inform potential buyers about your product and encourage them to buy it?
- How can you deliver your product to buyers?
Stage 3: Distribution channels exporting plastics
The choice of distribution channel for your export products depends on your objectives and your international strategy.
In a nutshell, it sounds like this:
- Direct distribution . You launch your own exporting plastics direct sales network by opening a representative office, hiring qualified staff and renting warehouse space. This will give you complete control over costs and time, as well as over your brand image.
- Indirect distribution . You hire an agent company that acts on behalf of the exporter. The advantages of this channel include the agent’s better knowledge of the market and local culture, experience in dealing with administrative, banking and customs authorities. Or you can work with local importers or distributors who act on their own behalf and at their own expense. They buy your products to resell to their customers in the local market.
For example, to enter the plastics market in exporting plastics Australia, which imports up to 70% of plastic products, it is best to find a local distributor, as doing germany phone number business on the green continent is quite specific, and the fact that many Australian distributors also cover New Zealand is a definite advantage for choosing an indirect distribution channel.
If you want to export to Brazil, which imports US$9.74 billion worth of plastic products per year, you should opt for a direct distribution channel, as Brazilian business culture relies heavily on building strong personal relationships, so you will need to open an office or joint venture for successful expansion.