The purpose of the document is to prepare an export plan for XYZ trading company. The location of the company will be in Ohio. The company will import products from China as cheap labour is easily available there. After the products are produced in China, they will be exported to XYZ Ltd within a time period as mentioned by the company. The company, after receiving the products, will apply top class packaging and labelling and export them to India. The company’s aim is to establish itself as the leader in sales of sunglasses as well as earn a strong foothold in the market in long run. The export plan will cover summary of the subject that will include details about the product, target country, social differences, customer types, export and import regulations, safety regulations, cost assumption, export price, terms of sales, landed cost, local pricing policy, format, question and citation. Therefore, these aspects will be covered under the plan.
The product category, that is chosen, is a range of sunglasses (“Product description”). The product supplier will be China as it produces goods at cheapest possible price. The suppliers selected for this purpose are ready to manufacture the product and timely deliver them as per the contract. They have a good collection of designs, already prepared by their designers, which acts as an advantage. The aviators are given an absolutely new look and hues by these designers. There is also a new line of unique shades of mirrored aviators. The tea shades and shutter shades are shaped in a new form and design. The oversized glasses are designed to have a revivified look. In totality, the product range is quite refreshing and a welcomed change from the old formulated designs. They are impressive and notable. The concerned products will be exported to India, where there is a prodigious appeal for sunglasses, considering the hot and humid climate (“Make Up + Face”). Every other person in India, especially those residing in urban areas, are interested to purchase sunglasses and wear it whenever they move out of their home; so as to avoid excessive heat of the sun. Sunglasses are a source of relief for nearly all the people in India, regardless of age groups. Hence, exporting the products in India will be an assured way to success, as per the research made on the country.
The target market is India as the product experiences a huge demand in this market. The population of India is 1.27 billion, which is a positive indication for high sales volume. Although most Indians claim their national language to be Hindi, yet, in reality, their de-facto language is English. India’s GDP per capita is 4.9% (“Trade”). India imports a lot of products ranging from apparels to minerals, metals and agricultural products from other countries. India’s currency is rupees (Rs.) and there is lack of stability in Indian currency. Currently, as per the exchange rate in India, 1 USD is equivalent to 62.36 of Indian rupee.
Although India has low GDP and no currency stability, yet the product is easily marketable in India as the population here is known to be very high and the company can tap huge number of customers in that sense. The company has a huge range of sunglasses, varying from high to extremely low prices. This will be another feature of attraction for the buyers. Language will not be a barrier as the product will be sold by Indian sales personnel itself. The product will be sold in all urban cities of India and few shops in the rural areas as well. As can be interpreted from the data, the product will have a profitable business in India.
India is a developing country. Although the literacy rate of India is low, yet it is significantly growing with time. People in India across all age groups are using sunglasses more often because of increase in health awareness among them. Most of the people regard sunglasses as an effective source of protection for their eyes. Sunglasses are used by almost everybody in India. The rate of usage in Indian rural areas is low, as compared to the urban ones, where people are increasingly opting for sunglasses. USA, in that respect, is a developed country and people residing in both urban as well as rural areas here make full usage of sunglasses. The literacy rate of USA is also definitely higher in comparison, which accounts for the higher awareness among them. Whether they belong to the rich or poor sector, they know that sunglasses help to protect the eyes from harmful ultraviolet rays of the sun. Both urban as well as rural individuals make use of sunglasses, not as a fashionable stance, but mostly as a preventive measure. Whereas, in India, people residing in rural division are hardly found to be wearing a sunglass in their daily lives. The basic reason behind this is that they consider sunglasses as a means of portraying a fashionable lifestyle. Secondly, due to lack of awareness, even if they purchase a sunglass, they opt for local shops that sell the product in cheapest quality. The price of the product is another important factor considered by the rural individuals in India. The company will, thus, try to grab this sector with their low priced, high quality sunglasses, exclusively made by keeping in mind the needs of the same. So, these are the only factors which have a role to play in creating social difference between USA and India.