What Market Information Should You Know About A Target Market?

Before developing the target market, we need to have a general understanding of the "profile" of the target market, which requires in-depth investigation and analysis of the target industry market, the local brand of the product, and the competitors. Only with the support of various data and information, can we better predict the future development trend of products and industries. Seize market opportunities in advance while improving the competitiveness of their products to meet the core needs of customers. So what market information should we know about a target market?

Political and economic situation

First, the political and economic situation of the target market countries is very important. The environmental conditions of the market, like the storage environment of the "cake" affecting whether we can get benefit or not. Countries such as Iran and Iraq, for example, are not suitable for market development during periods of political turmoil and economic depression. Second, is the industrial policy of the target market country encouraging imports or curbing it? Not encouraging import is bad for our development market.

Market scale

There are many factors that affect market size and the criteria for measurement, such as population size, level of economic development, level of per capita income, consumption capacity, etc., which are closely related to market size. We can tell from this whether the market has the potential, whether it is worth developing. For example, European countries such as Slovakia and Macedonia, with a small size and a smaller population, will not be particularly large in the corresponding market size. These countries, whether geographical location, or trade activity, etc. are not dominant, the value of development is not high, then can only be back in the row.

Secondly, to a certain extent, the large population has a certain impact on the size of the market. The larger the population is, the larger the potential consumer group is, and the more demand there will be. At this time, you enter the market, and fully tap the diversity of these consumer demands, and can adopt product differentiation to segment the market to win more market share.

Market product structure

What is the product structure of the target market country and whether it is complementary. For example, Russia imports textiles, clothing, bags, light industrial products, mechanical and electrical products and other commodities from China all the year round, while China mainly imports fuel, mineral and chemical products from Russia. The volume of sino-russian trade is very large. Chinese exports to Russia are gradually shifting to technology-intensive products, while imports from Russia are mainly some energy. Although Russia belongs to Europe, it still has a large group of people with lower incomes. The Russian market needs both high-quality products such as the European and American markets and low-grade products such as the Chinese market. In fact, the products and market structure of the two countries are complementary.

Currency exchange rates and tariffs

Are currencies and exchange rates stable? It directly affects the import behavior of local market. For example, if the local currency in the market appreciates too much against the US dollar, the buyer's import cost will change a lot, which will correspondingly inhibit the import in the local market. Second, there are tariffs on target market countries. Many trading countries that sign reciprocal agreements are tariff-free in import and export. For example, Vietnam, as a TPP member, exports many products to the United States with zero tariff. In some countries that discourage exports, many products have high tariffs. So to some extent, the tariff will also directly affect the situation of imports.

Trade activity

The degree of trade activity in target market countries is usually related to the geographical location of the trading market and shipping, such as whether there are ports in the area, several ports, whether transit is required, whether the route is convenient, etc. For example, a country like Chile, which is a narrow strip on the map, is small in size, but the country is home to many ports from which goods can easily reach trade countries such as Brazil and Peru in South America, and the trading area is very developed. Therefore, the geographical location of the target market also determines its degree of trade development.

Local brands and retail prices

In doing product market information survey, the first is certainly to consider these well-known brands. These brands and manufacturers in the market play a benchmark role generally, and have a strong research significance and value. And as a channel of understanding, we can more intuitively understand the price of retail.

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