In a COVID-19- impacted world, policies and market conditions are constantly evolving. Economic lockdowns are resulting in falling demand in traditional markets, supply chain disruptions, and unprecedented operational challenges for firms across the globe.
These challenges have been felt particularly by SMEs, who might not have the financial or structural security that bigger companies do. Twill is built to help SMEs by levelling the playing field and making logistics simple and accessible. Alongside our platform and expertise, tools like the Global Trade Helpdesk – a multi-agency project from the World Trade Organisation, International Chamber of Commerce, African Development Bank, and more – can help SMEs get valuable insights. In this blog, we explore just how it can work, through a real-world example:
Danilo and his journey to an expanded business
Danilo – a dried coconut flake producer and vendor based in the Philippines. He is looking for opportunities to expand his exports beyond the traditional markets (the United States and the Netherlands) to diversify some of the market risks in uncertain times.
Given that the pandemic has hit different regions and countries at different times, exporting to several markets could provide greater certainty and stability in income over time, as well as present new opportunities for growth – which is good news for Danilo!
So, what are some of the key elements Danilo needs to consider and compare in order to gain these new opportunities?
Making it happen, with a little help…
Using the Global Trade Helpdesk, Danilo can achieve all this and access an integrated source of crucial trade, market and business information. He begins by selecting the Philippines as the exporter and entering desiccated coconuts in the product line (HS 080111). By placing the cursor within the target market box, he can compare potential across markets before selecting a market.
Danilo decides to explore the German market with an estimated annual export potential of $35.9 million in the coming years and looks at the summary provided in the Market Overview.
Imports have been growing 4% on average in the last five years and while last year’s imports were over $16 million, export potential estimates indicate that there could be considerable room for growth in the next 4 years, reaching a total potential of over $35 million. With nearly $20 million in export growth over the coming years, this makes it larger than the estimated potential for growth in the Canadian market ($5 million).
Finally, Danilo can also get further information on potential partners to help him reach this new market including businesses, trade finance providers, and export promotion agencies.
Now, he is ready to dig deeper, explore competition in Germany, and prepare his market entry strategy.
Could you tackle a new market like Danilo? With Twill’s platform, taking your products to a new market is simpler than ever – and thanks to tools like the Global Trade Helpdesk, it is more accessible too.