Table of Contents
Why Market Research Matters
Once you’ve shortlisted your products and classified them with HS codes, the next step is to identify the right international markets. Without proper market research, SMEs risk:
Exporting to low-demand markets
Facing high competition with low margins
Missing opportunities in untapped regions
Using official trade data, you can make data-driven decisions, reduce risk, and focus your resources on the most profitable markets.
Understand the Key Trade Data Sources
1. DGFT Export-Import Data Bank (MEIDB)
Provides official Indian export/import data
Allows filtering by product (HS code), country, year, and quantity/value
Official link: or read Sumvaad Blog on MEIDB, here.
2. ITC Trade Map
International trade data from UN Comtrade
Provides country-wise demand, import volumes, and growth trends
3. UN Comtrade Database
Global trade data for all countries
Useful for benchmarking and identifying emerging markets
4. B2B Trade Portals & Market Reports (optional)
Alibaba, IndiaMART, GlobalTrade for preliminary demand signals
Actionable Tip: Use at least two official data sources to cross-verify trends.
Define Your Market Research Objectives
Before diving into data:
Identify your target product(s)
Set clear objectives:
Find top importing countries
Analyze growth trends over 3–5 years
Identify seasonal demand spikes
Compare import duties, compliance requirements, and logistics feasibility
Example Objective: For organic spices, identify top 5 countries importing spices from India in the last 3 years, track growth, and assess margins.
Using HS Codes for Accurate Data
Always use the HS code assigned in Post 6
Example: Organic Turmeric → HS Code 09103010
Filter data by product HS code, not generic product name
Why: Generic searches can give misleading results; exact HS code ensures accurate demand and import volumes.
Analyse Export Data
1. Identify Top Importing Countries
Filter by HS code → Export value → Importing country
List countries with highest import volumes
2. Check Market Growth Trends
Analyze year-on-year export value
Identify countries with consistent or increasing demand
3. Assess Competition
Look at other exporters to the same country
Identify product differentiation opportunities
Example:
Turmeric exports: US, Germany, UAE top importers
US shows 15% YoY growth, Germany flat, UAE stable
Action: Prioritize US & UAE markets first
Evaluate Market Feasibility
Regulatory Requirements
Check product-specific certifications (USDA Organic, EU Organic)
Verify labeling, packaging, and quality standards
Logistics & Shipping Costs
Distance, freight charges, customs clearance
Delivery timelines to ensure competitiveness
Payment methods: LC, advance, DA/DP
Currency stability for profit margin planning
Actionable Tip: Only consider countries where your SME can meet compliance, shipping, and payment requirements reliably.
Export Market Shortlisting Matrix
Prioritize countries with highest scores
Focus resources on top 2–3 markets first
Examples
Product: Organic spices
HS Code: 09103010
Stepwise Market Analysis:
Data Sources: MEIDB, ITC Trade Map
Top Importers: US, UAE, Germany
Market Growth: US +15% YoY, UAE +5%, Germany flat
Compliance: USDA Organic (US), ISO 22000 (UAE), EU Organic (Germany)
Logistics: US shipping cost moderate, UAE low, Germany moderate
Decision: Prioritize US → UAE, explore Germany later
Tip: Pilot small shipments to confirm assumptions before scaling.
Continuous Monitoring
Markets evolve; track demand, competitors, and regulations annually
Update your product-market matrix regularly
Use data to identify new opportunities and phase out unprofitable markets
Pro Tip: Keep a Google Sheet dashboard with columns: Product, HS Code, Country, Import Volume, Growth, Compliance, Shipping, Total Score.
Common Pitfalls to Avoid
With suppliers identified and verified, the next step is planning your first export operations: