Before you build a business that targets the European Union market, ensure to have the answer to some of these questions. The products you have, are they restricted or banned from the market? Are there custom expenses in importing the product? How is the market ready for your product? Who is your competitor, is your product better than the one in the market? And what are the preferences of the customers?
To answer all these questions, you need detailed research, market research to effectively answer these questions. In this article, we are going to provide you with information that answers your questions.
- Are the products subject to any restrictions or bans?
The EU market has expansive regulations and the kind of products you supply to the market. There are some products completely restricted in the market, while others need to undergo RoHS testing to ensure they do not pose any threat to human health or the environment. This is especially if your business deals with electronics and electrical products. This will call for compliance with bodies like REACH (Regulations, Evaluation, Authorization, and Restriction of Chemicals) and ECHA (European Chemical Agency) to ensure your product is safe for consumers.
- The quality of the product.
A product is placed in the market with a price worth its value. There are ways in which to calculate the value of a good. Of course, you must also consider the alternative to your products, the products your competitors provide, their prices, etc. This will prepare you for competition and the ways to face your customers.
- The custom expenses.
For product importation and exportation, there are custom expenses that will incur. There various fees to be paid depending on the type of good and the country it is registered. Beware of the fees and the ways in which to pay them. Do the calculation and find out the impact they will have on your business. Sometimes these fees may reduce the profit margin to become very thin.
The EU market is large and needs a good understanding of the participants in the market. A thorough understanding of your product especially if you are new in the market. If your products are of good quality and have a reasonable price. There is a higher chance of thriving. But with the poor market understanding, you might fail terribly.