In my previous article, "What is Trade Data", I talked about what types of trade data exist and what types of information can be found using different data sets. There are two main types of trade data from the United States government:
Both types of data contain useful information and can help importers and exporters learn more about their markets. How to use the information is a more complicated question because many companies use the data in different ways. If you are considering adding trade data to the decision making process at your company, it is important to understand both the general uses of the information and how it can be used to answer specific questions.
What Questions Can Trade Data Answer? Regardless of an organization's role within the international trade arena (manufacturer, distributor, retailer, law firm, transportation service provider, etc.), there are many different types of questions that trade data can help answer.
The answers to these types of questions may come in aggregate form (U.S. Census data) or be incredibly detailed (U.S. Customs data). Trade data ensures that organizations have the information needed to be aware of their ever changing marketplaces.
General Uses of Trade DataTrade data provides much of the fundamental information global organizations need to effectively and efficiently complete their market intelligence efforts. There are many ways that companies take data provided by U.S. Census and U.S. Customs data providers and turn it into actionable, value based initiatives.
Market Analysis- Companies cost effectively develop market evaluations and explore new market opportunities by examining both detailed and aggregate information. Great insights about the impacts of future scenarios lead to more accurate forecasting and strategic planning. Market share analysis can be performed by examining the total imports for specific companies using U.S. Customs data and comparing it to the totals for products in U.S. Census data.
Competitive Intelligence- Organizations use U.S. Customs data to expand and protect their revenue bases by anticipating and reacting to competitive tactics and strategies. They can gain insights into competitors' supply strategies, preempt new initiatives, and uncover potential opportunities and threats. U.S. Census data can be applied if it is known that a company is the sole importer/exporter of a product from or to a specific country to determine the costs/prices of their imports/exports.
Lead Prospecting- Companies who sell products and services to the international trade community reduce sales expenses and drive revenue by developing new leads and gaining insights into existing prospects with the uniquely detailed, targeted U.S. Customs data set.
Supplier Sourcing- Manufacturers reduce supply chain development costs by finding what countries export their products and qualify sources by using a combination U.S. Customs and U.S. Census data. They leverage their contract negotiating position by verifying their standing with suppliers with U.S. Customs data.
Legal and Brand Protection- Brand holders can save millions in lost revenue due to brand infringement, gray market trade, and counterfeit imports by proactively protecting their supply chains, routinely monitoring their product's imports. In essence, they can use the counterfeiter's own import data against them by utilizing U.S. Customs data.
Without accurate and timely trade data, companies may face an uneven playing field and potentially make poor decisions. After the implementation and execution of strategic and tactical decisions, the intelligence cycle and the need for trade intelligence continues. Companies should compare results to original objectives, industry averages, or specific competitors. This information can then be used in modifying existing objectives or creating new ones.
