Conducting Market Research Thank you for joining us, the Webinar will begin shortly While you are wai2ng please check out the Upcoming Webinars on www.wipp.org Women Impacting Public Policy September 8, 2015 U.S. Department Interna2onal of Commerce Trade Administra2on Industry & Analysis (I&A)
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Conducting Market Research Presented by Women Impac2ng Public Policy (WIPP) in partnership with the, Interna2onal Trade Administra2on 3
U.S. Department of Commerce ITA Market Research Interna2onal Trade Administra2on Presenters Patrick Kirwan Director, Trade Promotion Coordinating Committee (TPCC) International Trade Administration U.S. Department of Commerce Ryan Mulholland Senior Advisor, Industry & Analysis International Trade Administration U.S. Department of Commerce 4
Why should you conduct market research? The purpose is to iden2fy marke2ng opportuni2es and constraints abroad, as well as to iden2fy prospec2ve buyers and customers. The largest markets for your product and the fastest- growing markets Market trends and outlook Market condi2ons and prac2ces Compe2ng companies and products 5
Types of Market Research Primary Market Research collect data directly from the foreign marketplace through interviews, surveys, and other direct contact with representa2ves and poten2al buyers Secondary Market Research data from various sources, such as trade sta2s2cs for a country or a product. 6
Methods of Market Research Keep abreast of world events that influence the interna2onal marketplace, watch for announcements of specific projects, or simply visit likely markets. Analyze trade and economic sta2s2cs. Trade sta2s2cs are generally compiled by product category and by country. Obtain advice from experts. 7
Step- by- Step: Screening Potential Markets Step 1: Obtain Export Sta2s2cs: census.gov/ foreign- trade Step 2: Iden2fy Poten2al Markets: Iden2fy 5 to 10 large and fast- growing markets for your company s product. Step 3: Target the Most Promising Markets 8
Step- by- Step: Assessing Targeted Markets Step 1: Examine Product Trends Step 2: Research the Compe22on Step 3: Analyze Marke2ng Factors Step 4: Iden2fy Any Barriers Step 5: Iden2fy Any Incen2ves 9
Sources of Market Research General Informa2on about Expor2ng: Export.gov Sta2s2cal and Demographic Informa2on: usatrade.census.gov, Trade Stats Express - tse.export.gov, UN - unstats.un.org/unsd/syb, IMF Data and Sta2s2cs - Imf.org/ external/data.htm, Industry Canada, Export Opportuni2es at Development Agencies: Mul2lateral Development Banks - export.gov/advocacy, MCC MCC.ORG Regional and Country Informa2on: Doing Business Series - export.gov/china, Market Research Library - export.gov/mrktresearch, Trade Barriers USTR.gov/ reports; Industry Informa2on: U.S. Department of Agriculture Foreign Agricultural Service (www.fas.usda.gov), Tex2le and Apparel Database www.otexa.ita.doc.gov Company Informa2on: Amchams, UK s www.applegate.co.uk, Industry Canada, hkp://www.europages.co.uk Customized Market Research 10
Industry and Analysis Delivering Sector Expertise to Drive, Policy, Promotion, And Investment Industry Engagement Intelligence Gathering Market Intelligence Intra- and Interagency Colleagues Global Engagement Industry Expertise Industry & Analysis (I&A) staff of industry, trade, and economic analysts devise and implement international trade, investment, and export promotion strategies that strength the global competitiveness of U.S. industries. Industry & Analysis Industry Analysts, Strategic Partnerships, Advisory Committees, Trade Promotion Programs, Trade Policy & Analysis Data Products and Other Analytics to Drive Decision-Making Examples: Top Markets Reports State Export Reports Metro Export Reports Strategy Development and Implementation Actionable Programs to Support Exporters Examples: Trade Missions Trade Negotiations Environmental Solutions Toolkit 11
Top Markets Series A Market Assessment Tool for U.S. Exporters and Policy- Makers I&A s published internal USG Top Markets Reports on 21 different sectors in Spring 2015 and recently released public versions of 19 reports for clients and exporters. Feedback thus far has been extremely positive. Helps exporters determine their NEXT market by comparing opportunities across borders Helps prioritize export promotion and trade policy objectives by focusing on areas of largest opportunity Ranks future export markets for U.S. firms, rather than investment potential, allowing more impactful USG efforts Promotes strategic export promotion and trade policy targeted at markets and sectors most supportive of exports Each report is based on a unique detailed, sector-specific methodology for projecting exports. Public versions of Top Markets Reports are available at www.trade.gov/topmarkets. Internal USG versions available upon request. 12
An Example: 2015 Renewable Energy Top Markets Report The 2015 Renewable Energy Top Markets Report ranks 75 different markets in terms of projected U.S. exports. It includes projec2ons of overall clean energy exports and sector- specific projec2ons, providing the analysis our stakeholders look to for guidance on priori2zing export promo2on and trade policy objec2ves. Support from Stakeholders These help write our annual plan. U.S. Trade and Development Agency Top Markets reports help us to say no to bad ideas and yes to good ideas. U.S. Department of Energy 13
An Example: Key Findings 2015 Renewable Energy Top Markets Report Near-Term Export Opportunities (2015-2016) 1. Canada 2. Japan 3. China 4. Brazil 5. Mexico 6. Kenya 7. India 8. Chile 9. Indonesia 10. Saudi Arabia Medium-Term Export Opportunities (2015-2016) 1. Canada 2. China 3. Japan 4. Saudi Arabia 5. Brazil 6. Mexico 7. Thailand 8. Chile 9. India 10. United Kingdom The next two years will very likely be as transforma2ve as any two- year period in the history of the clean energy sector. Falling fossil fuel prices, an abundance of natural gas in the United States, and the decreasing cost of renewable energy equipment will combine to make the sector s future far different than what was predicted just a few years ago. China is expected to account for more than one- third (35%) of all non- U.S. capacity installa2ons over the next two years. Its renewable energy investment is expected to be split rela2vely evenly between solar, wind, and hydropower through 2016. Other key developers of new capacity outside the United States will be Japan, India, Brazil, and the European Union (par2cularly, Germany and the United Kingdom). The sector s growth is now global, strongly taking root in Asia, La2n America, and Africa. Over the remainder of the decade, this trend should con2nue. Unfortunately, U.S. exporters are largely ill- posi2oned to benefit from rising demand globally. According to ITA s projec2ons, exporters will capture just 3.2% of the global import market. U.S. exporters are the most compe22ve in the geothermal sector (38% market share) though that sector remains far smaller than other renewable energy opportuni2es. U.S. exporters are expected to capture just 5.2% of the world s solar imports, 8.0% of its wind imports, and barely 1.0% of its hydropower imports. 14
An Example: Understanding Markets 2015 Renewable Energy Top Markets Report The most las2ng impact of the 2014 Renewable Energy Top Markets Report the categoriza2on of markets into four types remains an important aspect of this year s version. Depending on the market type, different ac2ons are recommended. Large Market; Large Share Large Market; Small Share Small Market; Large Share Small Market; Small Share If a market is large and U.S. firms enjoy considerable market share, then exporters should focus on making as many connec2ons as possible. USG Ac2vi2es: Tradi'onal trade missions Gold Key Service Remove remaining trade barriers Interna'onal Buyers Program trade shows Consider whether the lack of market share is based on insufficient compe22veness; or, whether U.S. products are kept out of the market by protec2onism. If a barrier exists, report it.; otherwise look for niche opportuni2es. USG Ac2vi2es: Protect exis'ng market share Find niche opportuni'es Exporters should par2cipate in market development ac2vi2es and posi2on themselves for early success. USG Ac2vi2es: Trade policy missions Technical capacity building Reverse trade missions Development assistance Finally, some markets are neither large nor support significant U.S. market share. Understand that opportuni2es could be sparse and expect few other American companies to succeed. 15
Available Now 19 Top Markets Reports Available Online Now for Exporters Available Top Markets Reports: AircraL Parts Agricultural Equipment Autoparts Building Products & Sustainable Construc2on Civil Nuclear Cloud Compu2ng Cold Chain Educa2on Environmental Technologies Health IT Media & Entertainment Oil and Gas Recrea2onal Transporta2on Renewable Energy Renewable Fuels Semiconductors and Related Equipment Smart Grid Tex2les and Apparel Travel and Tourism hkp://www.trade.gov/topmarkets 16
Available Now All Public Top Markets Reports Are Available Now hkp://www.trade.gov/topmarkets 17
Additional I&A Tools I&A Offers Several Data and Analytics Tools for Exporters and Policy- Makers Industry & Analysis provides unique sector expertise and tools to internal and external clients in support of U.S. industry competitiveness. More information on the resources listed below is available upon request. Resources for Exporters Trade Sta2s2cs Main Page Trade Policy Informa2on System (TPIS) FTA Tariff Tool Look South Tool Environmental Solu2ons Tool- Kit Trade State Express Industry- Specific Market Research Resources for Policy- Makers Metropolitan Export Reports Exporter Database State Import Database State Factsheets FTA State and Industry Reports FTA State Opportunity Reports Trans- Pacific Partnership Reports Travel and Tourism Resources 2014 Travel and Tourism Sta2s2cs (Inbound) 2014 Travel and Tourism Sta2s2cs (Outbound) The Na2onal Travel and Tourism Office TINews Jobs Supported by Exports Na2onal es2mate of jobs supported directly and indirectly by exports, including es2mates by export des2na2on and es2mates by goods exports from individual states. 18
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Thank You for Participating! Following this call you will receive links to the podcast of this session, or you can Qind the links on www.wipp.org under Export NOW For questions, please contact Ivana Aschmannova at Iaschmannova@wipp.org 20 20
Thank You! www.wipp.org (415) 434 4314 Trade Promo2on Coordina2ng CommiKee (TPCC) Secretariat T: (202) 482-5455 Patrick.Kirwan@trade.gov Ashley.Zuelke@trade.gov 21 21
The Na2onal Export Ini2a2ve/ NEXT coordinates United States Government resources to help more U.S. firms compete globally by improving programs and services designed to make expor2ng easier. Since 2010, the Obama Administra2on has focused on increasing exports so U.S. businesses can grow, succeed, and support well- paying jobs. In 2014, U.S. exports supported 11.7 million American jobs. Agencies providing export assistance and informa2on under NEI/NEXT are members of the Trade Promo2on Coordina2ng CommiKee (TPCC), chaired by the U.S. Secretary of Commerce. The TPCC Secretariat can be reached at 202-482- 5455. Go to export.gov to get started For more on NEI/NEXT, please visit www.trade.gov/ neinext 22