The project is focused around business advancement in abroad market, in which I have concentrated on about fare business. Export is one of the lucrative business exercises in India . The Govt. additionally gives different special plans to the exporters for winning profitable outside trade for the nation and gathering there prerequisites for importing present day advances and engineering and vital inputs . Other than , the salary from fare business is likewise exempted to the detailed degree under the wage charge 1961 , discount of focal extract and custom obligation on fare is additionally made under the obligation disadvantage plan of the Govt. . There is no deals impose on items implied for export..
Types of exporters :
Exporters can be basically classifies into two groups :
1) Manufacturer :- As the exporter has the facility to manufacture the product , he intends to export and hence he exports the products manufactured by him .
2) Merchant Exporter :- An exporter who does not have the facility to manufacture an item .but he procures the same from other manufacturers or from the market and exports the same .
1. Import definition
A good or service brought into one country from another. Along with exports, imports form the backbone of international trade. Higher the value of imports entering a country, compared to the value of exports, the more negatives that country’s balance of trade becomes.
Export definition
A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods ads to the producing nation’s gross output. If used for trade, exports are exchanged for other products or services. Exports are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies.
Merchandising definition
Merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase.
In retail commerce, visual display merchandising means merchandise sales using product design, selection, packaging, pricing, and display that stimulates consumers to spend more. This includes disciplines and discounting, physical presentation of products and displays, and the decisions about which products should be presented to which customers at what time.
2. Pending list
While working for any import and export company there is a pending list which is given to every employee in the company. It is a very important list because it contains the list pending and completed list of stock which has been made. But in that there are many things for example: 1) buyer: means who is the buyer from whom the order has been received. 2) purchase order: type of code which is given to different order.3) perfume invoice date: when the order has been taken.4) delivery date: when the order has to be shipped.
5) ex factory date: when the order has to be dispatched by the factory.6) merchant: the person who is handling this project. Then there are different things in it like style, item size, qty, rate and amount.
In import export house there are different departments: cutting stiching, washing, and finishing.
3. Export marketing plan
In the development of such strategy, import regulations and other trade barriers must be taken into consideration as they have a critical impact on the outcome of the export venture.
Marketing mix
This refers to various elements in the marketing programmer of a company. These elements are product, price, promotion and place popularly these are called 4p’s.
The export marketing plan is a step-by-step guide to strategy implementation. It specifies target dates and provides detailed budgets for each step. It should answer all questions and how a strategy is to be implemented and direct the enterprise to the attainment of the strategic objectives. It addresses strategic issues and outlines the corresponding operational actions to be taken. A typical export marketing plan focuses on marketing objectives, marketing segmentation and positioning characteristics of the product line, distribution channels, expert pricing and promotion strategies. The plan should outline the action required in sufficient details. It should set out sales targets, budgets and activity and schedules as well as assign responsibilities for its implementation.
Market objectives
The first step in developing the plan is to establish export market objective. These objectives should be attainable realistic and clear, they should be communicated throughout the company. Since the objective will determine the company’s direction and its activity, management will have to devote considerable time and effort to the setting of these objectives.
An analysis of the company’s strengths weaknesses, opportunities and threats, or ‘swot’ analysis will provide a guide to the development of effective and realistic objectives.
Market segmentation
An export marketing plan is not complete has identified its target segmentation in the export market.
Countries are not homogeneous. Different consumer goods exit depending on such factors as income, age, lifestyle, occupation and education in other words, any large market has a variety of market segments which differ substantially.
One of the crucial elements of the export marketing plan is to identify the market segment the company the intends to reach. The company should choose the segment whose requirements fit its product specification best.
Market research
To succeed in exporting, the company must identify attractive export market and estimate the export potential for its products as accurately as possible. Market research and forecasting are therefore of great importance.
One should evaluate the size of the market, the characteristics of demand, consumer requirements, and trade channel as well as the culture and social differences that may affect the company’s way of doing business with the market.
Product characteristics
The company should next consider the product it has to offer the modification they require, if any; packaging changes needed, if any; labelling requirements; brand name; after sales service expected , if any.
Many products must undergo significant modifications as they are to satisfy customer and market requirements abroad.
Export pricing
In fixing an export price, the company should consider additional costs that do not enter into pricing for the domestic market. These include such items as international freight and insurance costs; product adaptation costs; tariffs and import duties; commissions to foreign distributors or agents; costs of changes in currency rates; and possible government price controls.
Distribution channels
The choice of distribution channel will depend on the company’s export strategy and the export market. If the company intends to export a product that has a differential advantaged of a market segment that it is well supplied, it may need to create greater awareness of the product through an appropriate promotion strategy.
In this case, it may be better to appoint an agent who does not handle many products and can allocate the time needed to promoting the products in question.
Promotion
The export marketing plan should consider the following aspects in relation to the promotion strategy; sales methods; export assistance; visiting buyers.
4.Export finance
Introduction:-
Institutional frameworks for providing finance consist of RBI
Commercial bank, export import bank, export credit guarantee cooperation (ECGC).RBI being the central bank of country lays down the policy framework and provide guidelines for implementation. Finance short or medium term is provided exclusively by the Indian and foreign commercial banks. RBI functions as refinancing institution for sure and medium, terms loans. Export import bank of Indian in certain cases participates with commercial banks in extending medium term loans to exporters. Commercial banks provide finance at concessional rate of interest and in term are refinanced by the rbi/exim banks of India at concessional rate.
Export declaration forms
1)G.R.forms:- it is read to be filled in duplicated for all the exports except Nepal and Bhutan are not included for g.r. Forms.
2) P.P. Form:-it is used to export to all the countries by post parcel.
3) Soften form:-it is used to export computer software in non-physical form.
4) SDF form:-the statutory declaration form is required in case of export where shipping bills are electronically processed.
Pre-shipment finance
It is provided to exporter for the purchase of raw material, processing them and converting them into finished goods for the purpose of export. Let us discuss various pre-shipment advances available to the exporter;-
1) Packing credit
The basic purpose of packing credit is to enable the exporter to produce from the process manufacture or to share the goods meant for exporter. The foreign buyer through the medium of repudiated bank gives the credit to exporters for specified purpose against irrevocable l.c.
It is also available against the exporter conformed order from india.
2) Red clause
3) Running account facility
RBI has permitted banks to grant packing credit advances even without l.c or form order/contract under the scheme of running account facility.
A. The facility may be extended for running account facility has been established by the bank for the satisfaction of exporters.
B. firm order is produced within a reasonable period of time; it should not be go beyond 180 days.
Amount
The loan amount is decided on the basis of export order and the credit rating for exporter by the bank, generally the amount should not exceed fob value of the export good whichever is less.
Period
The pressing credit could be allowed for a greatest time of 180 days. The banks are approved by RBI to enlarge this period. This period might be reached out for a further time of 90 days on the off chance that on non-shipment of merchandise inside 180 days. For every shipment credit may be given for a more drawn out period up to a greatest to 270 days, if the banks are fulfilled about the requirement for more span of credit.
Rate interest
The interest payable on pre-shipment finance is usually lower than the normal rate.
Advance against incentives
When the value of material to be produce for export is more than fob value of the contract the excess of cost production over the fob value of the contract represent incentives & receivable. For e.g. When the domestic price of goods exceeds the value of export order’s the different represent duty drawback entitlement. Banks can grant advances against drawback at pre-shipment stage subject to the conditions that the loan is covered by ECGE. This guarantee helps the bank to sanction advances at the pre-shipment stage to the full extent of cost of production.
Pre-shipment credit in foreign currency
This credit is available to cover both the domestic and imported inputs of the goods exported from India. This facility is available in any of converting current. The credit will b self liquidating in nature and accordingly after the shipment of goods the bills will be eligible for discount for both shipment credit foreign currencies.
Post shipment finance
Post shipment finance may be defined as any loan or advance provided by a bank to an exporter of goods from India to bank of extending the credit after goods to the date of realisation of export proceed. Post shipment finance is granted under various methods. The exporter may choose the time facility as per his read. The bank scruff the document submitted for compliance of exchange control provisions.
1) The document is drawn in permitted contract and payment received as permitted method of payment.
2) The GR/PP form duly certified by the custom is submitted and particulars as stated in GR/PP forms are true with the document entered as well as the sale contract.
3) The documents are submitted within the time limit stipulated and in case of delay suitable explanation is made.
4) The period of nusance is in accordance with the time limit prescribed for relation of export proceeds.
Negotiation of export under l.c
When the exporters are under l.c arrangements the bank will negotiable the export bills provided it is drawn in conformity with l.c.
When document are presented to banks for negotiation under l.c they should be scrutinized carefully taking into account of all terms and conditions of the credit, deviation from those refusing the reimbursement of payment that might have been already made by the negotiating bank.
Purchasing of foreign bills
The document under the document against payment (dp) arrangement are released through foreign corresponding only when payment is receipt. When as in case da document is delivery to the overseas importer against acceptance of the draft to make payment on maturity. Since the financing banks are open to the risk of non-payment ECGC policy is issued in favour of exporter and assigned to banks are insisted upon.
Under the policy ECGC fixes payment and limits terms that the limit is not exceeding so that the benefits of policy are available.
Advance against export bills on collection basis
Sometimes it is possible that the documents drawn under l.c have some fault and bank is reasonable is sure that the same will be acceptable to the buyer or there is no fault even in the documents. Under such situations considering the immediate mean and financial requirement of the exporter the bank may send bill on collection basis and finance him to some extend out of the total bill amount under the heading such as ‘advance against bill send on collection basis’.
The amount advance will be liquidated out of the proceeds of export bills and the balance paid to exporter.
Advance against goods second an collection
Sometimes exports are effected on consignment basis in such condition payment is receivable to scale of goods. Goods are exporter at the risk of explorer for sale. The bank may finance against such transition subject to the exporter enjoying specified limit of such purpose. The overseas branch of the bank is instructed to deliver document against trust receipts.
Advances against undrawn balances
In drapes line of export it is the exchange trade practise that bills are not to be drawn for the full invoice estimation of products. Anyhow to live little part undrawn for the full receipt estimation of products modification because of contrast in evaluation, weight and quality. Last sums are typically sure after regard and investigation of the merchandise the bank does fund against the undrawn parity if the undrawn equalization is in congruity with the ordinary name of offset left undrawn is specifically line of fare. Subject to a greatest of 10% of the estimation of fare and it undertaking is get from the exporter that he feel inside 6 months surrender the offset returns of the shipment.
Export under differed payments
Exporters are read to obtain permission from the reviser bank through authorised decision in the event of non-realisation of export proceeds within the prescribed period. However releasing the special needs of export engineering’s goods and projects, reserved bank has formulated special scheme permitting deferred credit arrangements. The will unable realisation of export proceeds over a period acceding six months. Hence contract for export of goods and services contract for export of goods and service against payment to be secured partly or fully beyond 180 days are treated as deferred payment export.
Foreign exchange Foreign exchange since outside cash all stores credit and offset payable and outside coinage that is any drafts, voyager checks l/c. Furthermore bill of trade communicated or attracted Indian money however payable in outside coin fet.
Foreign trade transaction:
Is at last the buy or offer of one national money against an alternate? Emerging out of import or fare of products and administrations remote lessening systems for upkeeps, and outside travel both internal and outward. The products allude to crude materials, capital merchandise, embodying the unmistakable things of a nations outside exchanges, administrations allude to sending air travels,insurance,banking,supply of specialized knowledge,constancy,transfer of capital by method for arriving or venture enthusiasm on such capital,dividence on such speculations, traveler wages abroad or remote understudies in India all together contain the imperceptible thing of a nations for in exchange .A remote trade transaction is this of exchange of obtaining force.
Exchange control:
Since official intervention with the foreign exchange of a country.
Foreign exchange management fema1999
It is to consultant and amends improving the law relating to foreign exchange with the objective of facilitating external trade and payments for promoting the orderly development and maintenance of foreign exchange market in india.
1) Dealing in foreign exchange
2) Holding of foreign exchange
3) Current account transaction
4) Export of goods and services
Foreign currency account
Person resident in India, including exporting are allowed to open and mention foreign currency accounts in India or change currency foreign currency account in India. Foreign currency accounts but side India is also allowed by on exporter who is exporting goods or time limits deferred payment terms. This facility is also extended to the term key project or civil construction.
Contract aboard
Exchange control applies to all the rules and regulations designed to regulate transactions involving foreign exchange. The basic objective of foreign exchange control is conservation of foreign exchange resources control and their proper utilization intendancesnof economic development country. Exchange contract is govern by the FEMA 1999.the law provides foreign exchange related to the export goods or services must be in full and with at most promptness export are requires to give declaration for all exported to release export proceeds which the pressured period the regulation of foreign exchange concerning export, holding a foreign exchange current account transaction export of goods and service. The forms on which exports are deplored include G.R..forms P.P Forms sale tax form.
CHAPTER 5
Labelling, Packing And Marking
labelling: the motivation behind marking is to advise the buyer about the quality and quality now and then remote purchaser demands finding upon especially. The exporter ought to certain the marking require for the outside purchaser and limit contrast and them.
Forms of label: label on the product can take any of the following forms:-
1) stripes of the clothes
2) card label
3) sticker
Check the list of information on a label
1) legal requirements
2) care of products
3) size of the product
4) material used
5) country of origin
6) information about the people and the people who made it. It is useful if the product is a classic art piece.
Cultural/historical background in brief, about importance of the product is also welcome. It adds to the promotional value of the product.
How to make a good quality label
A good quality label can be prepared if we keep in a mind the following aspects:
1) include only relevant information
2) use the language of import centre if impossible
3) check spelling information given on the label. An error can lead at the conclusion that the exporter is careless.
4) use appropriate labels for example, one should not use adhesive label on leather of handicraft item these would lead mark on the leather, wood and stone handicraft.
Export packaging and packing
Packaging consider as one of the most important element. Packing means packing of the products in same container to react the ultimate the consumer and packing mean productive converging used for transport and shipment of goods.
Packing fullfill a vital role in helping to get the export product with market in the best condition as well as in presenting goods overseas buyer in an attractive way. In other ward packing of a product performs the role of silent salesman as it:
Improves presentation of the product
Protect the product during distribution and make holding and redial display the product this year.
While packing quality would not be compromise merely to cut down the cost, saving or cost reduction in packing cost can usually be made an any pacing operation by studying the entire packaging process carefully. Standard for suitable packing of several important export product have been lead down an enforced by export inspection council under the export quality and inspection act. Often packing material and printing thereon is also suggested and prescribe by overseas buyer. Good packing is one suggested and prescribes by overseas buyer. Good is one which protects its contents against hazards like dampness rough handling,stacking,improper storage, insect infestation, pillage tampering and pilferage.
Product which are not adequately package, and if there is danger to damage, goods may not be accepted for inspection and the bill of leading will be endorsed as packaging unsatisfactory.
In the latter case, the bill of leading would become clause and that will be a sufficient ground for the rejection of documents by the exporter. The choice of suitable package is primarily determined by the significant characteristics of the products like physical and chemical properties, and also by density, weight, distance to be shipped, trans-shipment etc.
Type of packaging
Packaging and exporter can use the following containers for packaging the product.
Polythene bags
Box made of card paper
Box made of fibber board/plastic sheet
Packing
The following types of boxes can be used for packing of the package meant for export
Wooden boxes
Fibber board boxes
Steel drums
Wooden boxes:
Are most useful forms of packing as these are strong enough to withstand bear the loads placed at the top of it without posing damage of standard box showed not exceed 100kg.
Fibber board boxes
These boxes are useful for shipment of non fragile goods. Its use is very common develop country.
The boxes should be cube shaped each box should not exceed 25-25 kg in work. These boxes are light which saves in shipping cost with a good deal of strength, of assistance to exporter, compression etc. Cousins material like suborning hair, plastic material polythene from sheets, wood dust and paper cutting. This helps in protecting the packaging from damaged caused by bumping in the boxes during vibration within on aircraft or rough weather in the sea.
Steel drums
Are used for sending for liquid in bulk. A drum should meorethin.
Pack knot and packing list:
Pack knot is detailed distain of package placed in a box. Such knots’ are very useful reference point whenever the part of cargo is misplaced damaged and export is required to replace them. Packing list is the statement of various boxes in each box.
Packed knot is used by the exporter for his in house management and backing list in on the pre shipment export document.
6. Product Identification
The success in export business depends upon selecting the right product with high demand in the overseas market. Selecting the products the following criteria:
. Trends in export
. Production capacity and product availability
. Product adaptability
. Demand for the product aboard
. Profitability
. Restrict, if any on the product in the country import as well as export
. The indicates offered by the government the export of the product.
The export may obtain some information about the manufactures from the publications of the export promotions council’s director general of commercial organization, chambers of commerce/trade associations, and forms various other sources such as advertisements in newspapers.
Among the 14 sectors identified by the government of india as the export thrust sectors, handicrafts, leather and leather manufactures, and readymade garments fit the prominent place.
1 Handicraft
Handicrafts have been applied described as the material symbols of the unique cultural heritage. They are essential products o old artistic skills the creative imagination of indian craftsmen spanning over the centuries.
2 Leather products
The most outstanding change in the universal business sector for leather products items in the late year had been the methodology of eliminating of assembling units by the created nations because of the issues associated with pollution and high cost of work.
The calfskin in India throughout the late years has turned into a quickly developing fare division. This conversion has occurred fundamentally a record of enormous development, modernization and enhancement in this industry. The cowhide business in India throughout has accomplished real development on its fare front after unanimous suggestions of the working gathering set by the service of trade to eliminate completed calfskin, fares and concentrate on worth expansion.
3 Garment exports
Garment industry is one of the leading foreign exchange earners for the country. The industry developed randomly in 1960 but established itself firmly by 1980. Since the importing world of the garments is divided among the quota and the non-quota countries, an important role is played by apparel export promotion council in countries the garments exports of quota countries.
Presently the, quota countries the major share in garments export but we have reached a stage when the quota levels would be fully utilized and therefore the future both of the industry will largely depend upon seeking new destination and developing new products lines.
The quota countries that are the most important importing countries are:
1) Usa
2) Canada
3) eec member state (germany, france, italy)
4) Norway
7 Export order
It means that there should be an agreement, which is mostly reduced in a documentary form, between the exporter and the importer before the exporter can start making arrangements for production or procurement if goods and their shipment.
Generally an export order may take the following forms:
Performa invoice accepted and signed by the importer
Purchase order accepted and signed by importer.
Letter of credit opened by the importer in favour of the exporter.
Examination and confirmation of export order
As soon as an export order has been received, the exporter must first acknowledge its receipt by intimating the importer through telephone, telex, fax, etc. Though not legally necessary this step is helpful in creating business goodwill for the exporter. The exporter must carefully examine the contents of the order to see that there is no contract. Thus, the accepted preformed invoice, buyers purchase order or the letter of credit opened in favour of the exporter must be examined. Items to be examined particularly.
Pre-shipment inspection
Government of India notifies, from time to time a number of goods who’s export is subject to compulsory quality control or pre-shipment inspection.
Consequently, the Indian customs authorities will require the submission of an inspection certificate issued by the designated agency before permitting the shipment to take place. The basis of inspection is usually the importer’s specification except in the case of export of goods involving safety or health hazards, where notified minimum standards are enforced
Inspection of export goods may be conduct under
Consignment-wise inspection
In-process quality control and
Self-certification
Let us discuss consignment ‘wise inspection. Before the excise authorities seal packs, the process of pre-shipment inspection must be completed. The production department is to apply inspection agency for nominating an inspector for conducting examination of the export goods.
7 Merchandising mix for casual brands
Brand apparel market in India
The apparel market India is largelydivided as Ready ‘to-wear and tailored segments. Traditionally, tailor-made garments have found favour with the Indian masses but the trend has largely bent towards the ready-to-wear now.
Category
Ready-to-wear Tailor-made
Men
63% 37%
Women
79% 21%
Kids
88% 12%
Total 73%
27%
Proportion of Ready-to-wear in different customer segments
Within the readymade segment there are branded as well as branded players. The branded segment is one wherein manufacturer or marketer or marketer makes a conscious effort to promote the brand name of the offering through advertising and other means .such players can be national brands like pepe,spykar and so on or local brands with limited regional presence.
There are various foreign brands that have successfully established their presence in the country. These players may have come in tie-up with domestic concerns or via the license route. Some brands like levi’s, Adidas,and Nike compete on their own Tommy Hilfiger,Marks &Spencer, etc. Are retailed through franchise channels.
Besides that there also exists a category of private labels in large format stores. Some the successful names include John miller, Bare , Stop, and Splash.
Proportion of branded in different categories:
Category Share of branded Share of unbranded
Men 33% 67%
Women 22% 78%
Kids 10% 90%
Growth drivers for casual brands
The branded segment is growing at 18-25% annually from 1998 onwards .
These figers simply mean that the Indian consumer is showing an increasing fascination for branded wear.The reasons are clear-
1) The increased disposable income of Indian households
2) The fast paced changes in the ready-to-wear industry.
Today’s customers are fussier than ever before- they are more aware of current trends, are totally in sync with the latest in fashion and demand the best products as well as service at an affordable price. And manufacturers and retailers are going all out to keep them happy. Defnitely , the ready-to wear business is in vogue.
The growth in the branded wear category can aldo be attributed to the fast paced changes in the retail scenario. The evolution of reatail channels in India is being driven by the evolving preferences of the consumerism are all high. A significant positive shift is taking place in Indian consumer’s buying behaviour and expectations that no longer follow traditional reatail practices.
This can be attributed to:
1)Changes in lifestyles
2)Entry of leading international brands.
3)Greater awareness and exposure to international media.
4)Foreign travel
New retail formats that are more consumer friendly and offer a significantly enhanced ambience and overall shopping experience have also contributed greatly. Today the retail structure in India, as it moves from disparate and unorganized sectors to a more concentrated system, has many players getting inspired and drawn to the reatails magnet.
CHAPTER 6
BIBLIOGRAPHY
BOOKS
Philip Kotler & Graw Armstrong – Principles ofMarketing
Philip Kotler – Marketing Management: Analysis, Planning, Implementations and Control
Beri – Marketing Research(Tata McGraw-Hill)
References
www.eastmanimpex.com
www.wikipedia.com
www.foreigntrade.com
www.ecgcindia.com
www.investopedia.com
www.economictimes.com
www.financialexpress.com
www.hindubusinessline.com