Tips To Maximise SMES' Export Potential

In 2010 SMEs were contributing 19 percent to the country’s exports and was targeted to contribute 25 percent in 2015 under the SME Masterplan 2012-2020.

- Keng Teck Yap

However, over the last eight years, SMEs’ export contribution has dropped while its’ contribution to the GDP has been increasing at a low rate.

BIZSPHERE has been consulting many SMEs and found that most of them have high quality products which are on par if not better than other countries. However, they have been focusing too much on improving and increasing productivity, trying to be competitive in pricing, that most of them neglected the importance of branding and marketing globally.

I can confidently say that eight out of 10 SMEs do not have a business plan, not to mention an export marketing plan. Here are some tips on what SMEs can do to increase its export potential.

EXPORT MARKETING PLAN

SMEs are strongly urged to develop a business plan in which export marketing plan should be a key section. Some of the best practices that SMEs should adopt include:

• Identify your focus markets – Go to the ground and conduct market visit personally. Get a feel of the market condition without overly relying on your foreign partners or buyers.

• Market most relevant products over best products – The best products that you have may not be the product that the market needs or wants.