Dhl Export Indicator

Exchange Rate: Comprised of the stability of exchange rates, and the value of the local currency.

Trade Atmosphere: Includes export/import policies, competition in a particular market, export taxes, management, and difficulty in customs.

Economic Conditions: Consists of capital demand for raw material purchases, payment procedures, size of the market increasing/decreasing, a weak or strong economy, market demand increasing/decreasing, and fluctuating interest rates.

Political Conditions: Includes political relationships, government rules and regulations, political stability, and GATT results.

Cultural Issues: Good relationships with customers, credibility and reliability in business.

Infrastructure: Comprised of technology, transportation and distribution, and logistics of shipping.

Product: Includes quality of export goods, the stability of the product, production and value of products.

Sales and Marketing: Comprised of new markets and customers, sales activity, efficiency of market research, advertising, customer service and representation in a given country.

Labor: Availability of skilled workers and labor expenses.

Southeast Asian countries: Malaysia, Singapore, Thailand, Indonesia, the Philippines, Vietnam, and Brunei.

Optimistic: Top two box responses (i.e. excellent and good)

Pessimistic: Bottom two box response (i.e. fair and poor)

What are your expectations for export orders for your company over the next 12 months in comparison with the last 12 months?

A majority of exporters in 12 of the 15 countries surveyed had optimistic expectations (good or excellent) for export orders over the next 12 months. Specifically, four-fifths of respondents in both India and Malaysia responded optimistically. In contrast, nearly one half the exporters in Australia (47%) expect orders to remain the same during the next year, while Japanese respondents were the least optimistic with nearly one-third citing either fair or poor expectations for future orders.

What are the most important factors affecting your export sales performance over the next 5 years?

The majority of exporters mentioned sales/marketing and product as the most influential factors affecting export performance over the next five years. Economic conditions and cost were also cited as key factors to export performance in the future. As in the short term outlook, exchange rate was the most important factor for Japanese exporters during the next five years (73%); the single largest percentage reported by any country.

To which of your existing export markets do you expect to increase exports over the next 12 months?

At least two-fifths of exporters in seven of the 15 countries expect their export markets to increase in Southeast Asian countries during the next 12 months; in particular 76% of respondents in Japan cited expectations for growth. A noticeable number of exporters also expect an increase in growth in either the US or European markets during the next year. In addition, more than half of respondents in Thailand (68%) and Vietnam (56%) indicated expectations for growth of Japan as an export market during the next 12 months, while 37% of New Zealanders cited Australia for growth.

Which of your existing export markets did you see as the best growth market in the last 12 months?

Southeast Asian countries were indicated by the majority of respondents as the existing export market that experienced the best growth during the past 12 months. The US was mentioned the second most often for best growth markets in the past year, especially by Filipino (48%) and Thai (45%) exporters. Mentioned third most often as a best past growth market, Europe was indicated by a majority of Vietnamese exporters this quarter (57%).

Thinking about the obstacles in your industry, what are the biggest obstacles for greater export success?

Trade atmosphere and cost were each indicated as primary obstacles for export success by most countries. Specifically, trade atmosphere was viewed as a difficult obstacle by three-fourths of respondents in Vietnam (76%). More than two-thirds of exporters in Singapore (69%) consider economic conditions as a primary obstacle to export success, while two-fifths of those in both Singapore and Australia cited sales/marketing as a large barrier.

Now, thinking about new business, what country is your number one target market in the next twelve months?

The majority of exporters cited Europe or Southeast Asia as their number one target market in the next 12 months. Specifically, nearly one-fourth of exporters in Vietnam and Sri Lanka named Europe as a target market, while more than one-third of exporters in Singapore cited Southeast Asia. North America was also considered a primary target market for many exporters this quarter.

What are your expectations for export orders for your company over the next 12 months in comparison with the last 12 months?

One half of exporters in India (51%) indicated good expectations for export orders over the next 12 months, declining a noticeable 19 points from the previous quarter. Increasing 11 points from April, more than one-fourth of exporters cited excellent expectations for export orders during the next year when compared to the previous year (29%); reversing a downward trend. Only 10% of Indian exporters expect orders to remain the same during the next year (up 4 pts) while 5% cited fair and 3% indicated good expectations this quarter.

What are the most important factors affecting your export sales performance over the next 12 months?

Trade atmosphere was mentioned by 30% of exporters in India this quarter as an influencing factor in sales performance. More than one-fourth of respondents cited economic conditions (27%) as important, while infrastructure and product were each cited by 26% of exporters this quarter. Other important factors mentioned included sales/marketing (23%) and cost (22%), both decreasing noticeably from the previous quarter (9 pts & 13 pts respectively).

What are the most important factors affecting your export sales performance over the next 5 years?

Declining 8 points this quarter, more than one-fourth of exporters in India attribute future export performance to trade atmosphere (28%) this quarter, while 26% mentioned sales/marketing (up 2 points). Product and cost were cited by 24% and 23% of Indian exporters respectively, while one fifth cited infrastructure as a primary factor affecting export performance.

To which of your existing export markets do you expect to increase exports over the next 12 months?

This quarter, one half of exporters cited the Middle East (51%) as export markets expected to grow during the next 12 months (up 8 pts). Two of five exporters indicated Europe (43%), and the US (40%) as holding the largest potential for growth in the next year, the later increasing 17 points from April. Southeast Asia and Other Asia, both cited by 29% of exporters for potential growth, declined 15 points and 14 points respectively this quarter, while 27% mentioned the UK.

Which of your existing export markets did you see as the best growth market in the last 12 months?

One-fourth of the exporters surveyed considered the Middle East (24%) as a top export growth market over the past 12 months, while one fifth cited the US (22%), and Europe (22%), all three increasing versus the previous quarter. Southeast Asia was mentioned by 21% of Indian respondents for top growth in the past year, while 17% mentioned Other Asia.

Thinking about your best growth market last year, what were the top three reasons for being so?

When considering their companys best market for exports last year, two of five exporters in India mentioned product (46%) and sales/marketing (46%); an increase of 11 points and 5 points from April. Economic conditions, mentioned by 28% of exporters as a top contributor to export growth remained relatively the same in mentions this quarter, while 17% attribute cost and trade atmosphere to growth, the latter increasing 11 points this quarter.