Navigating Global Market Access (GMA) for Success

In today’s globalised world, expanding into new markets has become an integral part of a business’s growth strategy. As your company grows, it is important that you gain access to new markets in order to boost sales and brand notoriety. However, venturing into international markets with a product, especially electronic products, can be a daunting task, with numerous regulatory challenges. This is where Global Market Access (GMA) steps in as a vital component of your business strategy, ensuring that your products comply with international regulations and standards.

In this article, we will delve deeper into the world of Global Market Access, providing valuable insights into the certification requirements, addressing common questions, and guiding you through the intricate GMA process. 

Navigating the World and GMA:

GMA encompasses a comprehensive set of processes and requirements that businesses must navigate to gain entry into foreign markets. It involves understanding the diverse regulatory frameworks, product standards, and certification processes imposed by different countries or regions. For example, the FCC, Federal Communications Commission, in the United States of America, regulates electronic products. FCC certification may have different standards than CE, Conformité Européen, certification. By effectively managing GMA, businesses can streamline the path to market entry, minimise costly delays, prevent revenue loss, and safeguard their brand reputation from potential legal ramifications associated with non-compliant products.

Navigating the landscape of GMA requires a keen understanding of the regulatory intricacies and technical requirements set by each country or region. From safety and electromagnetic compatibility, also known as EMC, standards to environmental regulations and labelling requirements, each market may have its own unique set of compliance obligations. While some countries may accept a certification from another as proof of a product’s regulation, this is not true for all countries. For example, CE certification is accepted by Switzerland even though it is not a European Union member. However, it is not accepted in the United States. Therefore, GMA is important if you want to ensure your brand meets certification standards in multiple countries. By successfully obtaining the necessary certifications and approvals, you can demonstrate that your products meet the safety, quality, and performance standards expected by consumers and regulators worldwide. 

The Benefits of GMA:

GMA serves as a vital framework for businesses aiming to expand their operations beyond their national borders. By proactively addressing compliance issues and streamlining the GMA process, companies can achieve several key benefits:

1.  Market Expansion: GMA opens doors to new markets, enabling businesses to tap into the immense potential of global consumer demand. For example, their electronic product may not be common in a country yet, leading to high demand for that product. This enables a company to come in and take a large market share immediately. It is necessary that you comply with international regulations, which demonstrate a company’s commitment to quality and safety, fostering trust and customer loyalty.

2.  Cost Efficiency: Through proper GMA management, businesses can identify and rectify compliance issues early in the product development stage. Through proper market research, issues with branding, marketing, and consumer appeal can be resolved early on versus after entering the market. This proactive approach minimises redesigning or reengineering efforts, saving both time and resources.

3.  Competitive Advantage: Adhering to global regulations puts businesses at an advantage over non-compliant competitors. By demonstrating a commitment to meeting international standards, companies can differentiate themselves and gain a competitive edge in the marketplace. For example, compliance with regulations means you have access to more distributors in an area, as distributors do not want to risk selling non-compliant products. 

The Complexity of Global Market Access:

Global market access encompasses several aspects, from trade barriers to regulatory compliance. Some of the key factors involved in GMA are outlined below:

Regulatory Compliance:

Businesses need to understand and comply with the laws, regulations, and standards set by foreign governments and regulatory bodies. Whether it is the radio frequency your product operates at or its structural integrity, it is important to meet these standards. Generally, product safety, quality control, labelling requirements, and environmental regulations need to be met before you can enter a market. It is important you  meet compliance standards, or you risk being unable to enter a market at all.

Certification and Testing:

Depending on the industry, products may need to obtain certifications, undergo testing, or meet certain standards before gaining market access. This can include certifications for product safety, its environmental impact, or quality control. For example, in China, you must obtain China Compulsory Certification, CCC, in order to sell your product. Without obtaining CCC Certification, manufacturers are prohibited from importing or selling their products in China.

Tariffs and Trade Barriers:

Different countries impose tariffs, import duties, quotas, and other trade barriers to protect their domestic industries or regulate imports. These are generally done in order to promote the purchase of local products and brands. If a country has a heavy tariff imposed on foreign electronic goods, you may want to choose a different market to target first. From a financial standpoint, it is critical to understand the impact of tariffs in your target market in order to obtain GMA. 

Market Research:

Before entering a new market, companies need to conduct market research to understand consumer preferences, cultural nuances, the competitive landscape, and local business practices. This information helps tailor products, marketing strategies, and business models to the specific market. For example, you would not want to include imagery perceived as offensive on your packaging. Additionally, certain services or products your company provides may be able to capture a larger market share if no comparable goods are available. 

Distribution and Supply Chain:

Building an efficient distribution network and managing the global supply chain are critical for successful global market access. This includes identifying reliable partners or distributors, navigating import logistics, and ensuring timely delivery of products or services. By ensuring the availability of your product, you are increasing your exposure in target markets, your sales, and your market share.

The process of navigating global markets with electrical and electronic products is far from straightforward. From locating reliable distributors to conducting market research, the GMA process is difficult. Each country has its own set of regulations and standards that govern product safety, electromagnetic compatibility, environmental impact, and more. However, if you can effectively address the aspects listed above, you can expand your reach, tap into new customer bases, and gain a competitive edge. GMA is critical for companies seeking to expand beyond their country of origin into new markets.

The Importance of GMA in International Trade:

Expanding their presence in international markets is a strategic goal for many manufacturers. However, before their products can be imported and sold in foreign countries, they must navigate product certifications and approvals. To facilitate this process, manufacturers often collaborate with companies specialising in GMA services. Such services may include language translation, market research, type approval certification, testing, and regulatory strategy. These GMA consultant services help take the burden off the brand in the process of expanding into new markets. 

GMA and Product Approval:

Understanding the importance of mandatory approvals is crucial for manufacturers seeking to expand into specific countries. Compliance with regulatory type approvals is necessary to import products, clear customs, and meet country-specific regulations. The approval process can vary in complexity, ranging from basic self-declaration to more intricate types of approvals.

Obtaining product approval requires a comprehensive understanding of each country’s regulatory framework and associated requirements. Manufacturers must adhere to legal obligations, such as incorporating specific product labels, translations, and statements in user manuals. Some countries also require the presence of in-country local representatives or certificate holder services, which GMA companies can provide if needed.

Additional requirements may include factory inspections, such as ISO9001 or CIG023, and pre-import inspections of each shipment in certain countries. While some countries accept CE/FCC test reports as part of the approval process, many require testing to be conducted at approved or accredited test labs within their own jurisdiction.

Given the constantly evolving approval schemes and the lack of consistent standards in many regions, it is crucial to partner with a GMA company that possesses the expertise to stay abreast of changing requirements. By engaging with a reputable GMA service provider, manufacturers can navigate the complexities of global product certification more efficiently, ensuring compliance with regulations and accelerating market access for their products.

Regulatory Type Approvals: Streamlining Compliance Processes

When it comes to GMA, regulatory type approvals are a crucial aspect of ensuring compliance with differing standards across the globe. These approvals can be broadly classified into three main categories: in-country tests, type approvals, and mutual recognition agreements. Understanding these categories and their differences is vital for businesses seeking to navigate the complexities of global markets effectively.

1. In-Country Tests:

Some countries, such as China, Brazil, and South Korea, have regulations mandating testing and certification must be conducted exclusively within their borders. In-country test approvals require manufacturers to send their products to accredited testing laboratories located in the respective countries. These labs conduct rigorous testing to evaluate product compliance with local standards and regulations and are critical to the certification process. It can be beneficial to collaborate with in-country experts who can help streamline the testing process and ensure that products meet the necessary compliance standards. 

2. Mutual Recognition Agreements (MRAs):

Mutual Recognition Agreements (MRAs) offer a pathway to streamline testing and certification processes by leveraging existing agreements between countries. Under MRA test approvals, manufacturers can seek compliance based on mutual recognition of test reports conducted in accredited laboratories.

For example, widely recognized MRAs include the Federal Communications Commission (FCC) in the United States, the Conformité Européene (CE) in the European Union, and the Ministry of Internal Affairs and Communications (MIC) in Japan. These agreements enable products tested and certified in one country to be accepted in other countries that have established MRA partnerships. This approach saves time and resources by avoiding duplicative testing procedures while ensuring compliance. Therefore, it is critical that a company seeking GMA research MRA partnerships.

3. Type Approvals:

Type Approvals, also known as certificates of conformity, are granted to a product that meets a minimum set of regulatory and safety requirements. Generally, type approvals involve leveraging existing test reports, typically obtained through testing performed according to international standards such as CE or FCC, to gain certification in a specific country. However, this process can require collaboration with a local representative (LRP) who has the necessary expertise and familiarity with the local regulations.

By working with an LRP, businesses can navigate the complexities of local regulatory frameworks and facilitate the acceptance of their existing test reports. This approach can significantly streamline the certification process and expedite market access while maintaining compliance with the specific country’s requirements.

Best Practises for GMA:

To effectively navigate the complexities of GMA, businesses should adopt the following best practices:

1. Early Engagement: Engage GMA experts and consultants during the product design phase to ensure compliance requirements are considered from the outset. This proactive approach minimises the need for costly modifications later on. By consulting a GMA expert, a business can save valuable time and money in the long run as they are not risking non-compliance. 

2. Regulatory Intelligence: Stay informed about the latest international regulations and standards relevant to your industry. Regularly monitor updates and changes to ensure ongoing compliance and to adapt quickly to evolving requirements. Not all countries operate on the same regulatory standards, and some may require re-certification of products. Therefore, it is important to stay up to date on regulations and changes to them.

3. Documentation and Testing: It is vital to maintain comprehensive documentation of product specifications, certifications, and test reports. Products should go through rigorous testing to validate compliance with applicable standards, ensuring that the necessary documentation is readily available for market access. As stated above, it is important to know if the testing or documentation requirements change in case a product needs to be re-tested. 

4. Collaborative Partnerships: Building partnerships with entities such as testing laboratories, certification bodies, and local representatives familiar with international markets is critical in the GMA process. These partnerships can provide valuable guidance and support throughout the GMA process.

The Benefits of a GMA Consultant Service:

GMA involves outsourcing the homologation or type approval processes to dedicated management companies. These companies possess the necessary expertise and resources to manage the certification requirements for multiple countries efficiently. By partnering with a GMA company, manufacturers can streamline the approval process, which results in a faster time to market.

One of the primary advantages of working with an experienced GMA company is their comprehensive knowledge of global regulations and requirements. These companies conduct thorough research to identify the specific certifications and standards that apply to each country. They possess an in-depth understanding of country-specific regulations, ensuring that manufacturers comply with all necessary mandates. Additionally, a GMA consultant may have local representatives in your market of interest who have relationships with local distributors. By having relationships in your country of interest already, it becomes easier for your brand to enter the market versus having to find distributors on your own.

Responsibilities of the Consultant:

GMA companies take on various responsibilities, including coordinating regulatory testing services, providing local representative and certificate holder services, and establishing direct contact with global regulatory agencies. GMA companies likely already know what documents one needs to prepare for authorities in their market of interest in order to become certified. They act as a central point of contact and manage the entire process of obtaining international type approval certificates.

Choosing to partner with a GMA company offers significant benefits, saving manufacturers valuable time, effort, and resources. It allows manufacturers to focus on their core competencies while leveraging the expertise of professionals who specialise in navigating the complex certification landscape. This approach is akin to hiring a tax expert for corporate taxes, as it eliminates the need for manufacturers to allocate dedicated personnel to keep up with evolving certification requirements. This may save a company time, money, and energy in the long run.

Conclusion:

Navigating the intricacies of regulatory type approvals is essential for businesses pursuing global market access. By understanding the distinct categories of in-country tests, MRA tests, and type approvals, companies can adopt a strategic approach to compliance. Engaging with local experts, leveraging mutual recognition agreements, and collaborating with trusted representatives will enable businesses to streamline their compliance processes, minimise delays, and effectively access international markets. By proactively addressing regulatory type approvals, companies can position themselves for success in the global marketplace and seize new growth opportunities.

At Tradesnest, we work with hundreds of consumer electronics brands that want to enter new markets. One of our partners, 360Compliance  is a dominant player in the product certification market, and they can guide and support you when it comes to GMA. Obtaining certifications is often a challenging process, and therefore, having a valuable partner can shorten the time to market (TTM).

If you have an innovative consumer electronics product and are looking to enter the global market, sign up today on Tradesnest.com. On Tradesnest, you can connect directly with the best pre-vetted distributors and introduce your product in over 100 markets around the world. 

How to find distributors for your product

How to find distributors for your product

While you are building your business, it is essential to have the right distribution partners to work with. In addition to providing the right products at the right price, the ideal distribution partner will also be able to offer essential services such as warehousing and logistics to help you accelerate business growth. In order to find distributors for your product, you need to follow a number of steps that will help you to find the right one. Let’s first look at the benefits of working with distributors.

Benefits of distributors

In fact, distributors offer much more than only facilitating warehousing and logistics.

1. Distributors have a strong network through the relationships they have built over time with retail buyers.
2. Distributors know how to negotiate and close a good deal for your product with retail buyers.
3. Distributors can get your product in front of the right buyers easier and faster because of the trusted relationships they have built.
4. Distributors usually buy larger volumes as they sell to multiple retailers in the market.
5. Distributors take care of marketing and often in their local language.
6. Distributors handle product returns from retailers. This is a huge benefit for retailers, not to return products overseas.
7. Distributors know what product certifications are needed for your type of product in their local market.

Finding the right distributor for your product can be one of the most frustrating and time-consuming tasks for a brand. It’s true, there are many excellent distributors out there but at the same time, substandard service exists everywhere and within distribution, it is no different. With this in mind, the right distributor can significantly grow your business in the target market or stall it.

What many brands don’t realize is that 85% of retail sales occur in-store. If you do not prioritize getting your products on retail shelves, you limit your potential sales significantly.

But how can you find the right distributors to get your product out there?

We wish distributors and retailers would come knocking on our door wanting to carry our product in their assortment, but unfortunately, that is not likely to happen. The reality is that you have to put in hard work to stand out with your product and convince buyers to select your product.

Set your business goals 

In order to find a great distribution partner, you should first determine what you are looking for in a partner. Also, you need to determine what your short-term and long-term goals are. More specifically, you need to identify in which category your product belongs. After that, you have to find who are the distributors within this category. Probably your product falls into multiple categories. Thus, you can collaborate with several distributors in the same market but in different sectors.

For example, imagine you have a smart door lock that can be sold to smart home buyers. However, a smart door lock could also be a fit in many more different sectors, such as security companies, the hospitality sector, etc. You can even target restaurants and gyms where employees need access to certain personnel facilities easily. So, try to broaden your spectrum and do not focus on just one distributor in one country and subsequently limit your sales.

So, now let’s look at how to identify the right market.

How to identify the right market

One of the mistakes companies make is to start by targeting the largest markets first. For instance, the US, UK, Germany, Japan, Spain, and France. However, that is not the best strategy, as usually, it is not a one-fit-for-all approach.

In order to evaluate if a market is suitable for your product you need to research:

1. Price competition in that target market.
2. What are the problems your product solves and who your end users are.
3. What certifications are needed in that market.
4. GDP per capita for the country you are targeting.

For example, imagine that your product is a high-end mobile accessory product and you are targeting less wealthy countries, such as Portugal or Greece, where the product will be perceived as too expensive.

Once you have a clear idea of what you are looking for and which is the right market for your product, you can begin the process of finding a distribution partner. 

Where to find distributors

1. You can research online potential partners that are specialized in the industry of your interest and learn about their experience and expertise in your target markets. 

2. Search distributor directories based on location, industry, product categories, etc.

3. There are several agencies out there that can assist in connecting you with distributors. This is usually an expensive solution since the standard commission is around 7% to 10% for each product they sell to distributors or retailers.

4. Ask for references from other brands that have worked with the potential partner, and reach out to those references to learn about their experiences. 

5. You can attend trade shows and industry events to expand your network, make your product visible and meet potential distributors. However, they are costly and you usually need to invest months in preparation for one show. It is only recommended to do this when your company has a lot of traction and high sales growth.

6. You can register at Tradesnest which is a global B2B platform where brands present their products to distributors and retailers directly. In addition, companies can get professional advice with their sales strategies and they can optimize their trade agreements, pricing, and presentation of their products.

Finding the Right Distributor for Future Success

 At Tradesnest we can assist your business to find trusted distributors in over 80 countries around the world within different industries.  

Tradesnest offers brands and distributors the right tools to connect with each other in a very timely and cost-efficient way. Our team of experts has created an environment where it’s easy to communicate with potential partners and quickly take your business relationship to the next level.

If you want to grow your business internationally fast and without spending much money, you can simply register directly on the Tradesnest platform where you can find distributors and connect directly with them. Here are some benefits you can gain by using the platform:

-Discover distributors at a global scale, see their general company profile and decide if they are a fit before reaching out to them.

-Grow fast in new markets and save time researching and pre-vetting distributors – we do all the work for you. 

-Post your products for free and be visible to our pre-vetted distributors’ network.

-Get orders through the platform and get paid easily and securely from 180 countries.

-Use Tradesnest to validate your product before spending a significant amount of time and money on international trade shows.

The best part is that the registration takes 3 minutes, it’s free and once your profile is accepted by our team your company and product profiles will be visible to our pre-vetted distributors’ network.

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