Business Plan - Sneakers Export from China to the United States

BUSINESS PLAN - SNEAKERS EXPORT FROM CHINA TO THE UNITED STATES
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Business Plan - Sneakers Export from China to the United States
1 Product and Tariff Number
Sneakers refer to the type of shoes essentially meant for specific physical exercises and sports. These wears have become common as people currently use them as casual outfits in day-to-day life. Sneakers are available for all ages, whether males or females. They are essential in today‘s life day in day out. According to the ETCN (2020), Sneakers falls under exports characterized as footwear with outer soles of rubber, plastics, leather, and uppers made of textile materials whose tariff number is 6404.
2 Target Markets
Commonly known as the People’s Republic of China, the country has an estimated 1.4 billion people. According to the World Population (2020), China’s population will be at a peak in 2030. Currently, the country has over 269 million youths who are active in sporting activities. Economically China is the second-largest economy in the world. Hawley (2020) opines that the Chinese economy is the fastest-growing in the world, with a projected growth of 15.7 trillion dollars in the year 2020. When it comes to politics, China is headed by President Xi Jinping. Since taking over as the country’s president, he has concentrated power into his hands, turning away from the famously known traditional system of collective leadership. The Communist Party was changed in 2017 and 2018, making President Xi be an indefinite president. His administration is based on two primary pillars of a corruption-free republic and economic reform that is boosting China’s market forces.
3 Market Entry Requirements
Access to sneakers exports to developed markets such as the United States and the European Union countries requires quality requirements, which are generally set very high. Suppliers who do not have previous exports to the above markets are always deemed not to offer high-quality sneakers. The basic requirements that any exporter must pass through consist of Lab test reports such as REACH and ASTM. BSCI audit reports, Sedex audit reports, ISO 9001 certificates, and ISO 14001 certificates are also needed. In addition to the above requirements, a minimum order quantity ranging from 1000- 2000 pairs is preferred.
4 Export Penetration Strategy
In the economic market where international interdependence is on the rise, entry into an increasing sneakers export share is critical to the overall growth of China's economy. A good export penetration strategy, in this case, will require money, competition, regulatory and customs, use of the existing marketing channels, and the availability of customers. Therefore any strategy to be adopted must ensure productivity in the export process by beating the competition, meeting the requirements of the necessary export, and satisfy customers (importers). The best export penetration strategy will have both an agency type relationship and Joint ventures with other companies in the United States. Through a Joint Venture, companies in China will seek partnerships with their counterparts in the United States and develop a third party company. Profits made will be shared equally amongst the two companies in agreement. Also, the online selling strategy will be critical in penetrating the sneakers' export market. With this strategy, the company must produce quality at all times.
5 Export Marketing Strategy...