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EXPORTATION

- INTRODUCTION AND MEANING

- TYPES OF EXPORTATION BUSINESS

- THINGS YOU CAN EXPORT WITH LITTLE OR NO CAPITAL

- HOW TO START YOUR OWN EXPORTATION BUSINESS

- THINGS YOU NEED TO START UP YOUR OWN EXPORTATION

- CHALLENGES IN EXPORTATION BUSINESS

- BRANDING

INTRODUCTION
Exportation is the activity of sending goods from one country to another in order to sell them there which it can be done on a small scale. Most people are of the belief that only big companies are engaged in exportation, this is only a myth as exportation can be done by small companies who wish to showcase their product to the global market. However depending on the kind of company you run. It can be operated in different capacities. It is important to note that in exportation business there are different countries to deal with, the requirement of each of these countries differ from one another in exchange, regulatory policies and requirement etc.

TYPES OF EXPORT BUSINESS
You can either engage in exportation as a full time exporter, part time exporter, arm chair and brokerage which will be further discussed below:
A full time exporter is involved in the planning, financing and in the sourcing of the product, the documentation, the haulage to warehouse, port of loading, warehousing and inspection, freight forwarding. He/she is fully involved in all the phases in the exportation process while the part time exporters usually depend on other firms/companies and freight forwarding to carry out this export operations and are done mostly by small scale exporters who are into other businesses or cant be involved in the full process of the export process. The Arm Chair Exporter is only involved in the export, financing, planning, documentation of both pre export and post export, they also depend on consulting firms, local agents, freight forwarders to carry our their exportation process. While the export broker is someone who links foreign buyers with local sources for a fee or commission, he is simply a match maker, he knows the foreign buyers, all he does is to link you up at a fee. Whether you are a large scale exporter or small scale exporter, It is important that any products you are exporting must be easily accessible, available, well sorted and properly packaged, you must also be able to work well with your finances either on a small /large scale. However as an Exporter there are wide range of commodities you can export which in turn brings a large return on investment most importantly whatever you are exporting it should be accessible and available. You can buy from local sellers or produce them as your own. All you need is to package them in their appropriate manner, you may choose to send samples to the foreign buyers to evaluate the product and the package before exporting in large quantity. The requirement for proper packaging differ from country to country but are almost the same as long as commodities are properly packaged.

TYPES OF COMMODITIES YOU CAN EXPORT
In as much as countries depend on one another for different commodities, Exportation and Importation cannot be far fetched. Also the need for people to move from one country to another doing Bilateral and Multi-lateral trading is however encouraged. Most of these people who move from one country to another needs products they have in their country either for consumption or production in their new settlement which has encouraged Exportation.
These things range from Agricultural produce (Food), Art & Craft, Electronic & Electrical products etc.

Export commodities however include: AGRICULTURAL PRODUCE which are sometimes used for the production of other items in beauty and pharmaceutical products and are sometimes used in the production of food they include Bitter kola, Cocoa, Gum Arabic, Sesame seed, Palm kernel oil, Coconut oil, Shea butter, Ginger.

GINGER
This commodity is commonly found in the North and is used as spice in most homes because of its nutritional and medicinal benefits, it serves as raw material in the production of food and medicine, we have the Ginger oil, Ginger drink etc, it however doesnt cost much in Nigerian local market but when exported because of its large demand and usage it results to a huge sum of money as companies and individuals are ready to purchase.

ESSENTIAL OILS
They are used in production of perfumes, cosmetics, paints, beverages and medicines. People around the world depend on it for the production of their products which means there is a high demand for it both locally and internationally. Countries who doesnt have resources such as plant which are used in making them depend on other countries to supply it to them. The need for this oils are in large quantity as they are used in the production of other materials, they are however gotten from leaves, vegetables, foods such as coconut, avocado, carrot etc. it is usually packaged in bottles for exportation reasons.

SHEA BUTTER
This is used in the production of beauty and pharmaceutical product, it is gotten from the shea fruit and are used in the production of cosmetics, such as lipstick, cream and body lotions, make up, sunscreen, formulations and toiletries such as soap. It however requires a process to making them and shea kernel can also be supplied by local farmers or already made ones by local sellers when properly packaged, it is on high demand in the international market. Nigeria is the largest producer of shea nut and they can be packaged also in plastic bottles.

PALM KERNEL OIL gotten from palm kernel and are used in the production of cosmetics, pharmaceutical and confectionery products etc.

SESAME SEED
Commonly found in the North.
Other Agricultural products are Cocoa butter, Sesame seed, Gum Arab, Bitter kola etc. These Agricultural products are essential for the production of other materials in the beauty, pharmaceutical industries. They are usually packaged in bottles, plastics etc.

COCOA
It is used in the production of confectionery products like dairies, ice cream, chocolate, biscuit, beverage and beauty product such as cream etc. There is a high demand for cocoa mostly because of the usage in confectionery products and are hereby exported to other countries who need them to produce other product.

FOOD PRODUCTS
Food Products that you can export include Garri, Honey, Smoked Fish, Beans Flour, Melon, Ogbono, Bitter kola, Chilli pepper, Palm oil, Okro, shrimps, Plantain flour etc. Most of this food products are produced in the Northern part of the country but are also found in the Nigerian markets. Foods dont require much in packaging as they can be sorted in nylons, plastics etc. They are also needed to go through some assessments by NAFDAC because this product need some processing before packaging them ready for exportation, they are making sure that it meets international standards. Foodstuffs are a basic necessity and is on usually demand by foreign countries and immigrants who need them for their daily survival. To export foodstuffs you can start with N100,000 and above as there are lots of Nigerians and Africans who sells them in food markets, restaurants, grocery stores who are ready to buy them from you. All you need is to meet the requirement and standard of the Food and Drug Agency, the market is unlimited as there are ready buyers to buy from you.

GARRI
If you want to start as a small scale exporter you can do it in low quantities and can be packaged in 1kg, 2kg bags and so on. You can package them in a Ghana must go bag and send via NIPOST, EMS, DHL and so on, it requires a low capital to start up.

HONEY This can be gotten from local sellers and it is sold between N600 N2,800 per bottle in the Nigerian market while it is priced between $13 and $20 per kg in the international market. Mostly advisable to package in bottles.

SMOKED FISH
Fishes that have been smoked are naturally preserved without any preservatives needed asides salt, Foods such as Ogbono, Bitter leaf, Okra, Shrimps, Melon (Egusi), Chilli pepper can be packaged in small nylons and plastics all you need to do is sort them out well and sun dry them while you repackage them ready for export. For small scale exporters you can package in a Ghana must go bag and export them.

PALM OIL
It is gotten from palm tree and are packaged in kegs and drums usually in different litres. It is important that they are packaged in kegs and they will be ready for the market locally and internationally. You can buy from local farmers.

SHRIMPS
Can be packed in 2kg bags after drying them. Nigeria produces more than 10000 metres tons of shrimps annually. And it is used in Nigerian delicacies which are on high demand in both the local and international market.

PLANTAIN FLOUR
Gotten from plantain. All you need is to sun dry after cutting into small pieces and grind after some days. Process it and package in plastic sachet bags and send, it is a Nigerian delicacy for Nigerians living abroad and are usually on high demand for this.
Among others are Bitter kola, Hibiscus flowers, Beeswax etc. also are Arts and Crafts items such as textile, Garments, Leathers, Fashion items as shoes, bags etc. Most of the things used in producing the above are also produced in Nigeria, all you need is proper training on them, make them, brand them and sell abroad.


OTHER COMMODITIES INCLUDE: Metals, Batteries, Electronic wastes etc.

CHARCOAL The use of charcoal is an ancient advent used in the oldies by local communities especially in Africa, it is mostly used in cooking by this communities. However, the use of charcoal is not limited to cooking alone it is also used in the production of beauty products and pharmaceuticals. Before charcoal can be exported certain standards must be met e.g the content, the fix carbon, the ash contents and several others needs to be right and based on buyers specification. As any inadequacies could lead to rejection of a full shipment, if they need to meet the required standards. They can be packaged in small sizes or in bulk and in different sizes and placed in containers for shipments. Charcoal just as food as a huge return on investment if done in a large scale. It is however important to note that, whatever you intend to export, send a sample to the buyer before exporting in large quantities let them criticize and give a feed back before the actual exportation process takes place. However some regulatory bodies are also in place to look into this.


HOW TO START EXPORTATION BUSINESS
In starting an exportation business, money is not the most important thing but plays a fast role. All you need is to have the knowledge, the right ideas and the markets needed, when starting one. It is important that you choose a country that you want to export to, do your findings about exporting to such countries before proceeding. It varies from country to country, if you are a beginner it is important to ask families or friends who live abroad to help in finding out the procedure to be followed, the packages to be used and also to help to find buyers who may be willing to buy your products. It is more advisable to use them. However there are agents who also do this i.e The Broker who will link you up with prospective buyers at a fee or commission, you can also make use of Internet research these are many foreign buyers on different sites that you can present your product to and be willing to buy. However, it is important to take precautions, you will need to have someone either a family member or a friend abroad to help you monitor the whole process, your goods, payments, transactions if you are doing it in large scale. Payments do take time, so as not to be left out in your own shadows, hire someone or a family member to do that for you.

There are however several documents that you will need before you start your exportation business, so as not to have legal issues with your exportation business. As a mini exporter you may not need to go through all these processes but you will have to export in lower quantity of goods ranging from 1kg to 7kg packets which will be packed into cartons but not exceed 50kg through courier companies, such as NIPOST, EMX, UPS etc. they are usually labeled as gift items to avoid unnecessary search or scrutiny and will not be seen as exportation business by authorities. You can only use this method if you have people abroad who will accept them as gift items. However it is important that you legalize your business because foreigners like to deal with already existing companies and businesses so as to have easy and quick transaction with them. To commence foodstuff business on a small scale, company registration is not compulsory and all that you need is between N100 N150,000 to start with and you are mandatory own the following:

A Bank Account preferably (A Domiciliary)
E-mail
Your Phone Number

Your Email will be used both by your shipping company and your foreign buyers and Account to pay all monies and A phone number to be able to reach you. A lot of Nigerians are operating a mini-exportation from their home based export company and are constantly making between N150,000 and N300,000 daily, monthly. However, if you intend to go into the exportation business fully then you need to go through the appropriate channels. You will be needing the following:

* Business Registration i.e with the Corporate Affairs Commission as the level of fraud by Nigerians is high so a Registered business is of utmost importance.

* Registration with Nigerian Export Promotion Council Procedures are as follows:
(i) Limited Liability Company

(ii) Co-operative Societies registered by State Ministry of Commerce and FCDA

(ii) Government and Non-Government Organization registered by CAC.

You are also to take a NXP (Nigerian Export Proceeds) form and pay the mandatory levies. However, the export document for the product needed differ from country to country also the Quality Documents
* ISO Certified
* Certificate of Quality by (SON)
* NAFDAC
* Phyto Sanitary Certificate
* Certificate of Quality and Fumigation
* Transport documents Bill of Lading Airway bill/Roadway bill National Maritime Authority Form Single Goods Declaration Tariffs
* Form EUR 1
* GSP Certification
* ECOWAS TLS Certificate of origin

Commercial Documents
* Proforma Invoice
* Commercial Invoices
* Consular Invoice
* Certified Invoice and
* Parking list

However there are lots of challenges in Exportation business which you need to know.

* Rejection of product in foreign market
* Illegal Documentation
* Problem of Packaging
* Difficulty in finding reliable agents However, you will still be needing a proper training by going for seminars on work for an exporter.
* Start with a country and with few product
* Look for reputable agents

With hardwork and dedication, Exportation can make you a consistent profits.

In Exportation, selling of goods from a country to another doesn't just involve in the sales. Before a customer will buy from you they want to know the Brand. So if you are creating a new product. The first thing you should have in mind is BRANDING. How can I make my product different from other? What uniqueness can my product have to make it marketable? How can my customer easily recognize my product? In foreign countries your brand is very important, it is what sells your product, it is what gives you a market share, it is what separates you from your competition. Your brand should be able to register its image in the mind of its customer. Your customer must be able to recognize it. In the international markets, they wont buy your product if your product is not branded because brand has to have its own recognition in its name, its logo, its colour, its benefits and so on. In that immediately a customer sees it he/she is able to recognize that this is the particular product.

THINGS THAT MAKE UP A BRAND.
THE NAME
THE LOGO
THE COLOUR
THE SOUND
THE MESSAGE
THE PACKAGING
THE EXPERIENCE

CASE STUDY
MILO and BOURNVITA are family beverages known to the Nigerian families and are made of cocoa. The reason why shade prefers Milo to Bournvita is because of its smoothness while PRISCA prefers Bournvita to Milo is because of its crunchyness. The reason why a customer prefers a product to another is because of it uniqueness either its taste, nutritional value, its packaging or its recognition. This brands are the 2 most popular brands when it comes to beverages but they create their own uniqueness. In that its because of its uniqueness that the customer prefers it to the other i.e the experience. The Milo has a green packaging while Bournvita has a blue like packaging in a plastic bottle while the identity is different. However, it is important to note that you are not the only one producing/selling a particular product. So when thinking of making a product, also think of its branding, what makes it unique from others, give your customers the reason why they should buy from you and not from the competition, all that should be in your product. However, here are the things you must do if creating a brand.

THE NAME - The name should be short and easy to remember - It should suggest benefits derived from the product - The name should not be limited to a particular region. It should be able to cut across boundaries. - It should not share the same name with other brands.

2. It should have a logo, in that it should create an image that relates to your brand, it is usually a small graphical representation of a product or its benefits.

3. A product should not carry different color, different logo at different times. It should be themed the same way all the time in that when a customer sees it, recognize it.

4. Make sure that whatever logo, name or color you intend using on your product, it should be for a long term. Many Nigerians produce great product but they find it difficult building a brand. The brand itself its as important as the product itself. Most, just put their products out there without considering the brand itself which however affects sales both locally and internationally. Most exporters today take the issue of branding seriously because they now understand that the branding of a product itself could lead to an increased sale in the product. Most exporters of Garments & Textiles today have a recognized name abroad which increases their daily sales. Once you have built a brand that works for your small business. It can transform your business from a small player into a successful competitor, thereby increasing your profits by commanding a higher price.

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