By Daniel Karibwij
You are excited about a product but does the market feel likewise? International market research is your answer.
It is important to review and assess demand for your product in a given market.
One should evaluate factors in the target market linked to culture, religion, seasonality, among others. Comparisons can be made across two to three markets before zeroing on one.
An exporter should be aware of the tastes and preferences of different consumers. Exporters from Uganda can take advantage of markets that offer duty-free and quota-free access.
Uganda as a least development country is in a bracket that opens many strategic opportunities to access lucrative markets. This is a low hanging fruit for exporters.
The East African Community presents great opportunities to sell products and services. The grass is green where you are.
There is no specific formula to identify market opportunities. You might shake hands with a buyer after a church service and the rest is history.
Your old boy or old girl in the school WhatsApp group can share an opportunity which changes business forever. There is an ancient proverb: “When the student is ready, the teacher will appear.”
From a business and exporters standpoint, when you take action on an idea and put in the time, opportunity will strike.
Ugandan farmers who laboured planting coffee and persisted during the difficult years are now reaping rewards. It is never too late to join the coffee party.
Scan the internet for opportunities, speak to Ugandans in the diaspora, get in touch with your former classmate working in Turkey. Go visit Nairobi, Kigali and Arusha. Move. Find out which countries are buying a product such as yours. How large is this potential market?
Will you be able to meet the demand requirements of specific buyers? Who are your competitors and how big are they? There is always room at the top. What are the required standards and certifications? Does the product require any changes to be accepted in the specific market? Matooke flour is a good innovation; however, does the diaspora community want the powder or actual fingers?
What would be the final price compared to your competition in the supermarket shelves? Do you have an idea how the product will be distributed?
Some products might attract an import duty and all this should be calculated in the final cost. All costs must be tabled as you navigate through the market research and planning process.
Since the final product will be sold in dollars, it is advisable to have cost versions in the same currency. Change the Uganda shillings into dollars so you have an idea of profit margins and absorb exchange rate fluctuations.
If you plan in shillings and execute in dollars, you might get a mismatch and suffer the consequences. Yes, we operate in a shillings economy but your final product will be sold in another currency.
Skilled accountants will have books in Ugandan shillings but incorporate another column or work sheet in dollars for export costs and plans. Freight comprises a big percentage cost in export planning.
Uganda is landlocked. Study market trends and outlook. Engage in primary and secondary research. The latter is a good starting point while the former needs to be cost effective.
This is when Uganda’s foreign mission and embassies must get to work. Embassy commercial attaches are the eyes and ears of Uganda abroad. Connect with the market. The grass is greener where you water it.
The Writer is an Export Trade Specialist; dankarib@gmail.com
