Why Go Global?
Go Global, but Go Smarter
Global Trade is growing fast. International trade has grown from $9 trillion in 2005 to $16 trillion in 2009. World trade is predicted to grow 7-9% annually. That would result in trade volume reaching $70 trillion by 2025. The global economy is the new reality, and businesses of all sizes can benefit from selling internationally. Now is the time to go global.
You may be surprised to learn that the United States only accounts for 11.85% of global imports. Do you know where the demand for your products is in the remaining 88.15% of the global market?
International eCommerce
The fourth quarter of 2011 was great for online retailers. International ecommerce raked in $49.6 billion in sales, up 14 percent from the same period in 2010. It's the fifth consecutive quarter of year‐over‐year growth. Is your company enjoying incremental growth from eCommerce? Are your competitors?
What you need to know to Go Global
Entering or expanding into the international market can be daunting because of the customs compliance requirements of each country. The first step to selling your product globally is to determine its HTS code.
The description and coding system of global tariffs is an internationally standardized system of names and numbers for classifying products. Importers and Exporters the world over must classify all goods moved across international borders using the Harmonized System of the country of import. Every item you sell must be assigned an HTS code according to the Customs tariff schedule of the country to which you are selling.
Classification research is often a daunting task to overcome if you want to go global. The Harmonized Tariff Schedule is organized into 21 sections and 96 chapters, accompanied with general rules of interpretation and explanatory notes. And there’s a different tariff schedule for all 200 countries with different duties and taxes assigned to every code.
Predictive Analytics
Predictive analytics can help you outsmart your competition by making better, smarter investment decisions and making them faster. Predictive analytics can pinpoint the countries throughout the world with the highest demand for your company’s specific products.
To properly predict global demand for your product, you must start by gathering information about your products. You should have three things:
- parts master file with the item number
- description
- total sales volume by item.
Once you have compiled this information, you can determine which items are creating the majority of company sales. The 80/20 rule usually applies here. You'll find that 80% of your sales comes from 20% of your products. Save time by only focusing on the top 20% of your products when attempting to sell globally. Assign these products an HTS code according to the USHTS.
Using your coded products, you can compare the demand for your products (by HTS code) worldwide.
Two Sets of Data
You should consider analysis based on two different sets of data.
- The first data set provides predictive analytics based on global purchases of your specific products from US‐based companies. An analysis done at the 10‐digit HS level can provide the dollar value exported fromthe US to all countries in 2009, 2010, 2011 and forecasts 2012.
- A second set of data can provide predictive analytics based on global purchases of your specific products from every country in the world. This analysis must be done at the 6‐digit harmonized level and will provide the global value exported from all countries to all countries in 2009, 2010, 2011, and forecasts 2012.
More information
For more information, and to see how CiGDM can help you go global with our International solutions, I invite you to view our latest webinar on the subject. The webinar goes into more detail about the types of reports you can use to power decisions. It also will walk you through an example of how predictive analytics can be used to gain a competitive advantage.
Contact Us
If you don't have the time to view the recorded webinar, or if you want a more personal touch, feel free to contact us directly.
