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International market research: what it is, how it works, opportunities and benefits

Importing goods, inputs, equipment, or machinery from abroad can be very interesting when you want to save money and add value by bringing to the country technologies that are not yet available in Brazil.

Finding good suppliers is essential in planning an international purchase, but locating them can be extremely complex and challenging. Who hasn't been afraid of importing goods and being "cheated" by the international supplier? Just as in Brazil, in the foreign market there are serious and professional as well as "opportunistic" companies. Finding the ideal partner within the first group is the role of the international market research service, about which we will now comment.

After all, what is international market research for?

As the name itself explains, the international market and supplier research serves to search, within the market of interest of the importer, the best option among many that may appear. It is common to find several sellers of the same product, but knowing how to identify the best conditions for each specific buyer and validate serious suppliers is a big challenge. As much as it may seem, the best price is not always the key to a successful deal, and that is why it is necessary to gather information, make checks, deepen the negotiations, and commercial analysis before closing an international purchase agreement.

For whom is international market research indicated?

The international market and supplier research is indicated for all companies that are going to start importing and for companies that already import regularly.

Companies that already import find two great opportunities in market and international supplier research: one is to renew their acquisition possibilities, increasing the range of possible suppliers; and the other is to compare the commercial terms of the current vendors with those that are being applied in the market at that moment, avoiding keeping outdated conditions by the simple lack of time to negotiate with the current supplier.

What are the main benefits of international market research?

As you can already see, conducting a careful search for international suppliers brings many advantages to the company. We list below the main ones:

1.Avoiding wrong hires

Finding a serious and professional company, in a world where it is so easy to create a beautiful website that shows a company that may not even exist, is not a task for those without deep knowledge of foreign trade. Qualified professionals, with specific tools, are able to select the professional companies and search only among these, the one that best meets the specific requirements of the importer / buyer. Deciding to import based on price alone may not make sense in certain situations. Finding the best trade conditions is an activity that demands technical knowledge, but the work is compensated by the return in product quality and favorable trade conditions.

2. Find manufacturers, not middlemen  

Companies in the international market may call themselves manufacturers, but in fact only act as a reseller for a certain company. Study the background of suppliers takes time and requires knowledge and in-depth analysis tools, but it ensures that the purchase is made with the best possible conditions, i.e. with no increase in values due to the commercial resale service.

3. Decrease the insecurity caused by distance

China is an important trading partner for Brazil and really has a plethora of opportunities. It is no wonder that most importing companies choose to look there for their potential suppliers. Although information technology has considerably shortened the distances, there are relevant cultural issues when negotiating with other countries. We have our own office in Shanghai and Chinese personnel, with experience in different countries and excellent conditions for international negotiations. Besides, our staff has the expertise to be the "eyes of the client" in case a in-loco visit is necessary at the time of the search for new suppliers.

4. Optimization of time and resources

A company that buys from international trade, but does not have importing as its main activity, ends up spending an important amount of time looking for partners. This time could be used focusing on what really matters to it: its business, its clients, its sales, for example. Leaving this task in the hands of a company that is specialized in the search and development of new suppliers is a very smart decision and considerably reduces the operational time of the importing company in this activity.

5. Compare values and commercial conditions between suppliers of the same product

When you only have one validated supplier, it is difficult to know if they have the best commercial conditions. However, it is not wise to exchange a negotiation with trust built up for discounts that sometimes may not be so significant. When you have options, you can compare the conditions and then either negotiate with the old supplier or opt for the one that best suits the demand at that moment.

6. Increase validated supplier options

Having a well-developed supplier for a key product is all well and good, but imagine if that single source one day cannot deliver what you need, in the time you need, and at the value you need. That wipes out the company's purchasing planning in a matter of minutes! Having more than one validated, trusted, and approved supplier is a valuable strategy if you don't want to go through the headache of running out of inventory.

How long does it take to conduct international market research?

As the level of depth to find a good supplier is high, the estimated time for the service with the expected result is around 30 days, for the study of up to three products. During this time, supplier approval is carried out by means of a document analysis of the company, its licenses, current capacity and financial situation, and a remote check of the facilities. If necessary, it is possible to count on the in-loco visit is necessary to get to know the supplier better and validate it as an option. For specific projects, such as industrial plants or customized projects, the timeframe will probably be longer and needs to be analyzed on a case-by-case basis.

What do I receive after completion of the international market research?

Once the research service itself is completed, we prepare a final report and pre-calculate the import of the desired item(s).

In the report, the companies with the highest degree of identification with the client's demands are listed and, along with the supplying company's data, the technical data of the product of interest and the quotation received are presented. In addition, the estimated nationalized values of the items, that is, already including taxes and nationalization expenses, are summarized at the end of the report, showing the total value of the operation with each company indicated, in a comparative way.

In a more explanatory way, the pre-calculation shows all the expenses and taxes estimated for the import operation. The current tax rates, port costs, the need for import licenses, and the requirements for registration with regulatory agencies will be indicated in this document, and it is with this information that the importer will verify the feasibility of the project.

Finished the research, what now?  

Once the research stage is concluded, the importing company is equipped with enough information to choose among the approved options of new suppliers. Once the import viability is confirmed through the pre-calculation presented, we can request samples to be sent, or start an import immediately, with the guarantee of dealing directly with a quality exporter that fulfills the most important requirements of that specific demand.

The international market and supplier research service is ideal for all companies that want to have efficient results during the purchasing process from abroad. Counting on a company that has expertise in searching for the ideal suppliers is of utmost importance and will aggregate in better results during all phases of the process. We can help you with this demand, count on us.

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