Steps to success
Export Mexican jeans to United States.
1. Evaluate export potential.
We already know that Mexico is a good exporter of jeans, and also the production in UnitedStates is more expensive, the quality of our product is very good, and also prices are competitive. We have enough resources to export to United States because we’re near the border.2. Do country market research.
There are some Mexican companies that export jeans to United States; we have a lot of competence, but our product is competitive, also an advantage isthat we’re near the border so the costs of transportation are cheaper. In North America most of the people wear jeans in a daily life, from children to adults, so this is a very goodopportunity. Also United States is a very big country, and there are many stores, and also brands that can buy our product. Jeans can be easily exported by land, because we have theadvantage that both countries are together.
3. Determine entry strategy and pricing.
Our product will be shipped by land; it’s cheaper and easier. The price to final consumers will bedetermined by the retailer, or brand. Our product will be around 20 dlls x jeans. Including, insurance, shipping, tariffs, and taxes.
4. Plan on operating environment.
This depends onretailer or brand that buys our product.
5. Decide the appropriate export procedure.
The product will be delivered by direct exporting. We prepare all documents, package theproducts that we export, also we mark it, and transfer the products to the destination.
6. Arrange financing.
We work with own capital, but we also consider to ask for loans to banks.Banorte is the bank that offers the best options and facilities of payments. Also to our customers we take cash in advance, promissory notes, and also we have open account payments.
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