Landscape of Opportunities and Challenges for Export Business in 2024

29 January 2024

Imagine you’ve started a business, and want to expand it from country to country. For this, your business needs a product with demand in another country. What should be the name for this whole process? The supply of goods and services from one country to another country is known as export business. 

What is new in 2024?

The new resolution is the hope of all, for commitment regarding growth, personality, and overall development of the person itself.

The same applies to businesses to harness the energy of the New Year to drive transformative growth, seizing the untapped market opportunity with a global roadmap of success.

With this vision, the year 2024 comes with a golden opportunity for businesses to expand their boundaries from country to country. The base of expansionism for companies has been built in the core base of the year 2023.

Let’s explore how the core base of the year 2023 builds a strong upward momentum for business in 2024 with the help of our platform.

The year 2023- A year of diversification

·       Post-Pandemic – the year after COVID-19 and the proper drive of vaccination, registered a decline in the number of COVID-related cases and built confidence in the market for demand and supply. This confidence in the market narrowed down the gap between supply and demand. Let’s understand this with the total trade value of exports across the world from 2018-2022.

·       Green Economy- The G20 declaration at Delhi and other climate summits moved the direction of the world economy from fossil fuel to a renewable resource-based economy with zero carbon emission production.

·       New and emerging trade routes – Growing uncertainties of the supply chain in the era of conflict, countries started making trade blocks to ensure an all-weather supply of goods, for instance, QUAD, I2U2 and IMEC.

·       De-dollarisation – continuous threats of sanctions by Western countries and by the UN, created a sense of losing reserved money (FDI) to zero or of no use, for instance, the ongoing Russia-Ukraine conflict, turned more than 500$ billion into a non-useable fund. Due to these sanctions’ threats, countries started to trade in local currency.

Above mentioned points define the mood of the world economy in the year 2023, and the potential area of expansionism of business and investment.

Let’s explore how the journey in 2023 has prepared a plinth for success in 2024.

·       Strong indication of demand and supply – The success of any business depends upon the generated volume of demand. and this is directly proportionate to the growth of a business. For instance, Demand for Li-ion batteries has registered a double-digit growth.

·       Diversification of supply chain – Rapidly increase in uncertainties in Export business with conflicts like Israel-Hamas, Russia-Ukraine, China-Taiwan, etc. Forcing the market to ensure their source of the supply chain to a new country, for free flow of movement of export goods.

·       Increasing trade with local currency- De-dollarisation accelerated the concept of export through the country’s currencies or by working on common currencies like BRICS nation is working on the concept of trading with BRICS currencies.

·       Rising economies- Several countries registered positive growth whereas advanced economies faced negative growth or a growth of 1-2% only, for instance, Japan, Italy, Greece etc. experiencing negative growth. At the same time, countries like India, China, the US etc. experienced positive growth.

Now, you are aware of how the year 2023 prepared a proper roadmap for 2024. However, this information may not be sufficient to give you a view of the challenges and opportunities associated with export business.

Challenges in Export Business 2024

·       Volatile market demand- Demand for new goods is in a very volatile situation, for instance increase in oil prices after the Russia-Ukraine conflict and an increase in cargo fare due to piracy-related cases in the Indian Ocean.

·       Losing creditability of the Dollar against regional block currency – With rising demand for using local currency for trade purposes, sowing the seeds of distrust among investors for saving any currency for future purposes.

·       Rapid push for the carbon-neutral market- Almost all the global platforms are forcing the major market players toward using Renewable sources and creating fear for fossil fuel-based companies, for instance, oil and petrochemical-based industries.

·       Global warming and climate change – The increase in natural disasters like the recent earthquake in Turkey, the Tsunami in Japan, and Heatwave in the UK and the Flood in China and India, put investors in a dilemma before investing any initial money.

·       Sense of Product nationalism- Destruction and casualties caused by COVID-19, hinted the countries to frame their economic policy nation-first, for instance, Vaccines stored by the US for its citizens and ban on rice export by India because of a shortage of supplies.

Despite the challenges, there are numerous available opportunities for export business, which are mentioned below.

Export Business Opportunity – An Unrefined Gold in Mine

·       New Source of Revenue- With the rising demand for goods, the company is looking for a strong base in the consumer-centric market with its variability of goods to generate new sources of revenue, for instance, Smart TV has accelerated the demand for an OTT platform and data consumption provided by data telecom companies.

·       Ease of doing business – The theory of “Survival of the fittest” propagated by Charles Darwin well suits 2024, with the rapidly competitive environment, countries have started policies of attracting business with ease in the logistic environment. For instance, India’s Atamnirbhar Bharat, China’s BRI project etc.

·       Expansion of Business beyond a boundary – Attractive offer to businesses by countries to set up their manufacturing plant, gives a chance to expand business reach, for instance, around $10 Billion PIL scheme for Semiconductor proposed by India.

·       Scope In Renewable Resources – The change in the market direction from a fuel-based economy to an electric-based economy glorifies the market need for the newly evolved sector of renewable energy. This amplifies the opportunities for export business.

Now, I am wondering how businesses get to know about the available opportunity for export business, what are the sectors where export potential is high and which kind of goods are in demand in the country? Get essential data to study all market aspects and grow export business.