How to Start a Grocery Export Business | 6 Easy Steps

Starting a grocery export business is one of the most profitable business ideas. It requires some initial investments and generally has no low season.

 

All you need is the right product for the foriegn market and some really good marketing skills.

 

Generally, a grocery export business sells premium and uncommon grocery products from a country of origin to foreign markets. 

 

As a result, it increases profit margins, gives access to new markets, and makes higher quality products locally available.

 

6 Steps to Start a Grocery Export Business

 

Step 1 : Market Planning

Step 2 : Prepare a Business Plan

Step 3 : Register your business

Step 4 : Apply for mandatory licenses

Step 5 : Set up your supply chain

Step 6 : Create a Website

 

Step 1 - Market Planning  

 

It is important to know what customers want and how they want it.

 

The first step in starting a grocery export business is identifying the product-market fit.

 

If you already have a product, consider making the following changes to make it fit for exports :

 

• Most important is Improving the product quality.
• Improve the packaging quality.
• Work on the packaging design. Bring on something innovative.
• Customize taste as per the target country.
• Price it according to the market.

 

You need to research the market, which would include talking to potential customers, doing surveys or focus groups, or even surveying competitors in the area. 

 

Accordingly, you need to know what products are popular overseas, how much they cost in the country you want to sell them, and their demand.

 

Also, find out what other companies are exporting those products and how they are doing it.

 

You also need to know about any customs regulations for importing goods from your home country.

 

It is important to know the competition and understand that you are not the only one doing this. It will help you with your marketing, your pricing, and other aspects of your business.

 

After that, identify the target customer for your product.

 

• What are their needs? 
• What do they want? 
• How much can they afford to spend?

 

Moreover, find out what the competition is doing better than you are. This will help you identify where you need to improve in order to win over customers from them.

 

To get more ideas on products, you can check out these grocery exporters from India.

 

• Fabstor
• P.J. Exports
• Mesha Exports
• HDL

 

You can find out what products they are selling. what price they are selling it for, which countries they are exporting to, what is their supply chain and how much they are charging for shipping.

 

Step 2 - Prepare a Business Plan 

 

In this step, you basically have to finalize everything, such as:

 

• Business Name
• Business Structure
• List of Products
• Suppliers and Wholesalers
• Product Price Catalog
• Supply Chain
• Shipping Charges
• Export Route
• Investment
• Target Market
• Marketing Plan
• Financial and Business Goals 

 

You do not need to put it formally, but it should be clear in your mind and on paper.

 

In fact, it can also be used to convince potential investors and customers that your company has a good chance of success.

 

Once you have a business plan, you must be able to answer the following questions:

 

• Who are my competitors?
• What is my niche?
• What am I going to sell?
• Where do I want to sell it?
• How much money do I need for the first year?
• How long will it take me to get to this point?
• What are my goals ?
• What drives me to do what I do?

 

Step 3 - Register your Business 

 

Business registration is an important step to take if you want to start a grocery export business in India. 

 

You can register your business as:

 

• Private Limited Company
• One Person Company
• Limited Liability Partnership (LLP)

 

However, the most preferred business structure for export is private limited company registration because:

 

• It will help you build the credibility of your business. 
• You can avail many tax benefits. 
• Have better access to loans, grants, and subsidies from the government and private bodies.

 

Get in touch with our experts by filling out the form on the right to get your business registered.

 

Step 4 - Apply for Mandatory Licenses

 

The three main licenses and certificates you need for grocery export are as follows:

 

• IEC (Importer-Exporter Code)
• GST Registration
• FSSAI License

 

IEC (Importer Exporter Code)

 

It is the most important license, without which you can not export even a needle from India.

 

It helps in verifying your business and allowing your items to be shipped from India. Moreover, it is also necessary for customs clearance.

 

GST Registration

 

Having a GST number to export anything from India is mandatory, regardless of your aggregate turnover.

 

FSSAI License

 

As the grocery export business will include exporting edibles, you will need an FSSAI certificate. The validity of the FSSAI License is 1 to 5 years, depending on the period you selected while applying.

 

Step 5 - Set up your Supply Chain

 

Setting up the right supply chain is crucial for products to actually reach your customers. 

 

This is why it is important to choose the safest route. 

 

Also, as the grocery items have an expiry date, you need to make sure to pick the fastest exporter as well.

 

Select an Exporter

 

You can export your grocery with the help of ExportersIndia. 

 

They are the largest B2B exporters marketplace. You can list yourself as a seller on their website and even buy international products at wholesale prices.

 

You can get in touch with their team and ask for the quote as per your requirements.

 

Step 6 - Create a Website

 

The last step is to go online. For this purpose, make a website where you can post information about your product and shipping.

 

After that, target your customers by going social. Find, follow and share your products with foreign customers. 

 

Accordingly, redirect them to your website and allow them to place the order on the website directly.

 

Things you Must Know before starting a Grocery Export Business

 

The basics for starting a grocery export business are as follows:

 

• Develop a strong understanding of their circumstances.
• Identify the most profitable and viable products that can be exported by analyzing their strengths (e.g., they grow well in certain climates), their relative value abroad compared to at home, and the quantity they can produce annually, it may be limited by climate or natural resources. 
• Prepare these product(s) for export by establishing breeding programs and distribution networks.
• Export these goods by establishing distribution networks abroad, licensing agreements with local distributors, and marketing and advertising campaigns.
• Monitor their export markets to learn if they are experiencing any changes that could affect future exports (e .g., changes in their weather, new laws, new taxes that reduce demand for their product).
• Investigate any local market shifts that may affect future exports (e.g., major natural disasters, changes in immigration patterns) and keep abreast of the economic developments in these sectors.
• Examine how the competition is changing concerning domestic and international markets.
• Evaluate the risk and cost implications of investing in any new markets or regions.

 

It is not an easy task to start a grocery export business. One has to identify a market and then research the market before one can start with the business. 

 

We recommend talking with other exporters who have experience in your industry or visiting trade shows, conferences, and reading trade journals.