How To Use Trade Data and Insights To Your Leverage?
Trade insights are an important tool for businesses importing and exporting beyond their national boundaries. It helps you in identifying the potential export markets. Furthermore, it also gives you additional data, which will help you make decisions best for your business.
Trade data is highly valuable if you can draw the right strategy from it. A global trade data company like Trademo can help you leverage it in the correct way. But before coming to how you can benefit from this data, let’s understand the concept of global trading first.
What is Global Trade?
International trading or global trading is importing and exporting products and services across the country’s boundaries. This helps meet the requirements of a country’s demands by importing the scarce goods and growing economically stronger by exporting products in abundance and required by other nations.
Advantages of Global Trade
There are several advantages of international trade that will convince you to expand your business if you haven’t done it yet.
- Lower Market Risk
Domestic trading might involve some risks like- increased downturns in the economy, political factors and other threats. However, by expanding your business, you can target the audience interested in your product and, therefore, become less dependent on a single market.
- Increased Revenues
One of the leading advantages of global trading is that you will increase your potential clients. As a result, you will be able to collect even more revenues. With the addition of each country in your business, a new pathway to your success opens.
- Benefit in Currency Exchange
When there is a currency drop in a particular country, you can export more as foreign customers benefit more from the favourable currency rate drop.
- Decrease in Competition
There might be a crowd in a domestic market, and your product has to compete against the other products. However, when you start selling your products in the global market, the crowd concentration decreases and hence the scope for your business’s expansion shoots high.
- Longer Lifespan of The Product
Selling a product in the domestic market can drop sales as people might stop buying it and move to a better version. However, by introducing the good in the global market, the chance of your product surviving in the market increases.
What is Trade Data?
Trade data solutions, also known as import and export statistics, comprise statistical data regarding international trade. It is organised as per the different factors like the shipment arrival/departure time, country, commodity type, HS codes, etc.
It also comprises the names and addresses of the parties involved in reading, the importer and the exporter, product information, price, shipment data, the quantity of product shipped, etc.
How Can You Use Trade Data and Insights?
Manufacturers, corporations, government, law firms, trade associations and international organisations can use trade data solutions to monitor the market of the products that they are interested in. The best ways to do so are:
- You can use it to know the demand and supply of a particular product in specific countries. This data is useful for analysts along with companies that are searching for suppliers and customers.
You can improve your supply chain by finding suppliers and buyers of your product worldwide. Doing market research on your product will scout you through the global buyers and find the best one.
- You can study trade data to reveal the current trends in the global market and their impact on a particular industry or region. It will help you to know about international trade’s response and the effects of world events like the Covid-19 pandemic and the China-United States trade war.
- Governments learn about the national trade partners and government regulatory decisions regarding international trade. In addition, it allows the government to know about illegal trade activities happening.
- Law firms can prepare better case files and defend their clients based on trade data.
- Trade data also helps you in identifying the demand for a particular product in a region. Therefore, you can use this information to target the market of the area to sell your product. You can use trade data to predict the response of the market when you launch a certain product.
- A better analysis of the market can prevent you from making decisions that will damage your business insights. Therefore, your profit margin increases with a decreased market risk.
- With the help of all your import and export data, you can identify the amount you’re spending on your products and adjust your budget accordingly.
- Trade insights give you an overview of your opponents and their trading activities in the global market.
- You can keep track of important shipments of your current suppliers, competition or products.
A global trade data company like Trade can provide you with accurate and authentic trade data.
Information is The Oil of The 21st Century.
The importance of data has been proven to be highly beneficial during decision-making. For example, if you own an import/export business, having your hands on accurate trade data will allow you to create new business opportunities and grow the revenue by protecting and analysing the current market trends.
Data is only valuable when you have a great analysis tool. Trade is one of the best databases that you can use to grow your business ecosystem for the next several years. If you are looking for expansion opportunities, then you can make use of this powerful tool. Trade data can be a massive asset to your success if used correctly.