Risks are opportunities

If an exporter occupying a certain niche in the international market passes from suppliers' view for some time, this exporter may lose this market. How can you maintain existing international markets and attract new customers?
Now it is extremely difficult to make any forecasts. Humanity, that created a connected global economy, has never faced such a collapse. Experts named the epidemic a "black swan" comparing it with the global financial crisis in 2008.

Speaking of potential economic risks for domestic companies, it is possible to predict losses for the manufacturers that depend on component imports. However, experts suggest that this fact should be considered as an additional incentive for developing the import substitution program in Russia!

The pandemic effects on the Moscow producers' export can be discussed no earlier than at the end of the first half of 2020. After all, export activities are deferred. Now companies are executing current contracts and elaborating newly concluded contracts. But the pandemic will somehow affect all the sectors of the global economy because of the close interconnection of those.

APROPOS

The analysts of the Center for Support and Development of Industrial Export and Product Export at APK Mosprom note, that the FMCG* products are in high demand in such countries as Germany, Italy, Belarus and Kazakhstan. This demand will still be there, even after some of the restrictions are raised.

FEA in the New Reality

We should not be afraid of risks. They need to be correctly identified, assessed, and, accordingly, combated.

As a rule, the foreign economic activity department functions in Russian companies are limited by the fact that employees need to find transport, a broker, and agree on certification. But in reality, a full-fledged department should perform many other tasks, for example, increase the products competitiveness on the global scene, analyze market changes, create or update an export strategy.

Now, manufacturers have the opportunity to see their weaknesses and begin working on them. They have time to seriously think about the effectiveness of the foreign economic activity departments. Those might be a mess and some functions had better to be outsourced.

Today, the main task of our exporters is to improve the service quality and ensure more flexible pricing (deferred payments, lower prices, loyalty programs, etc.), to maintain an existing client base, and to be ready to discover new regions and markets.

*Food, cosmetic and household products.
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