Using trade data to validate market demand

Any new business is created by one question. Will people actually buy this?
Most businesses don’t fail because the product is bad, but because there was no true demand in the market. Hunches, assumptions, and guesswork usually result in bad decisions. This is where trade data comes in handy.
Trade data allows you to see what goods are already crossing international borders. It’s a look at what buyers are buying, how often they’re buying and from where. Rather than relying on guesswork to measure demand, you can see real activity. This blog demystifies how trade data can confirm market demand and is written in plain English with simple examples.
What Is Market Demand in layman’s terms
Market demand is how many people want a product and are willing to pay for it.If a product is being bought repeatedly by many buyers, demand is high.
If only a few buyers are sampling it at any one time, demand may be weak or uncertain. Validating demand is a way to verify proof before you invest time, money, or effort.
For example
You need a market to sell cotton bags abroad. You believe that some people will buy them. But how do you know.
If nothing else, trade data can reveal how many cotton bags are already in transit, how regularly they make their way into shipments and which countries are purchasing them with frequency.
That is the demand that exists in the real world, not our imaginations.
Why Guessing Demand Is Risky
Most people get in business because it’s trending or from social media hype.
But trends can be misleading.
Here is what often happens
• A product appears to be in demand on the internet
• Not many people are buying it in bulk
• Sellers face slow sales
• Inventory gets stuck
• Money is blocked
Trade data eliminates that risk by providing a look at what is actually being purchased in bulk.
What Trade Data Really Tells You
Trade data isn’t hard, if you think about it the right way.
It shows simple things like
• What item is being shipped
• Which country is buying it
• How often shipments happen
• Among those selling and buying
It’s this information which enables you to answer one vital question
Whether such article is already in movement in commerce or not.
How Trade Numbers Validate Market Demand
Shows Real Buying Activity Trade data lists real shiploads, not interest or inquiries.
Example
If a product comes up in shipment records every single week, there is demand. If it shows up even once in six months, demand could be soft. You are not going on hearsay. You are observing true buying behavior.
Helps You Spot Consistent Demand
One-time orders are not indicative of strong demand.
Return Purchases Shipments arriving twice signify yes, buyers are returning.
Trade data allows you to notice trends.

Are shipments happening every month.
Are the quantities growing?
Consistent movement means stable demand.

It allows you to Compare Products Before Purchasing Them So let’s say you’re interested in selling either kitchen supplies or fabric products.
By using trade data, you can compare
• Which item tends to ship more commonly?
• Which one has more buyers
• The one that spreads to more countries
But rather than pick at random, you pick what’s already working.
Aides in Finding Countries Where There is High Demand
Demand is not uniform across the board.
A certain product sells and does not sell in one country or another.
Trade data shows
• Countries importing the product
• Frequency of imports
• Volume trends
This way you can concentrate in markets where demand is already proven.
Helps You Avoid Oversaturated Markets
High demand is good. Too much competition is risky.
Trade data can show
• The number of sellers who already offer a product
• Whether demand is rising or stagnant
When many sellers must compete for the same buyers and demand is not growing, it’s hard to gain entry.
Helps Validate New Business Ideas
Trade data is a latter-day reality check before taking the next product leap.
Ask simple questions
Do they ship this yet?
Are buyers ordering it regularly
Is demand increasing or declining

If the answers are affirmative, your idea is market supported.
Easy to grasp example for this extremely helpful feature:
For instance, let's say you wish to export eco-friendly notebooks.

Without trade data
You use either trends or personal belief.
With trade data

You see, there are notebooks sent out on a regular interval to three countries
The buyers repurchase the same orders
Quantities increase every quarter
This is proof that demand is real and rising.
That is validation.
Trade Data and the Decrease of Business Risk
Every business decision has risk.
Trade data chips away at it by substituting assumptions with evidence.
It helps you
• Invest in the right product
• Enter the right market
• Steer clear of items with low demand
• Plan inventory better
There’s no guarantee of success, but it increases your odds.
Testing Demand Before Going Big With Trade Data
Scaling too soon can be bad for business.
Being easily traders, you can test demand such in small portions.
First - Check if shipments exist

Second-Check how often they occur
Third-Watch for volumes either holding steady or increasing
You should only scale after this.
Combining Trade Data With Basic Research
Trade data is most effective when married with straightforward checks.
For example
• Compare prices online
• Check local buying habits
• Understand packaging preferences
Trade data gives direction. Basic research adds clarity.
Why Small Businesses Want Trade Data as Well
Lots of people assume that trade data is something for big companies. That is not true.
Small businesses fare even better since
• They have limited funds
• Wrong decisions cost more
• They need faster clarity
Trade data aids smaller firms in competing smartly, not blindly.
Typical trade data mistakes people make without access to the Trade Data.
• Picking products based on trend for its own sake
• Entering markets without proof
• Overestimating demand
• Ignoring buying patterns
• Following competitors without data
Trade data can help steer clear of such blunders.
How Siomex is Helpful in Validating Market Demand
Siomex is import export data suppliers which use to inform you the real market movement.
With Siomex, you can
• Check the latest on which products are trading most actively
• Identify countries where there is steady demand
• Track buying patterns
• Know who’s buying and selling
Since Siomex is not just guessing but actually providing you with real shipment data to make better choices.
Siomex makes it easier and more transparent for anyone who wants to validate demand before entering a market.
Trade Data Isn't All That Complicated
Many people are scared off by data; they perceive it to be complex.
But maybe trade data is more about the simple questions

What is selling
Where it is selling
How often it is selling

You don't need to be an expert to understand demand if data is reported clearly.
Why You Should Start With Demand Validation
The majority wait to validate demand once they have launched. That is risky.
Demand validation should come before
• Production
• Marketing
• Hiring
• Expansion
Trade data allows you to “test before investing large,” Mr. Rosenberg said.
Conclusion
You know it's the market that makes or breaks any business.
Trade data gives you evidence rather than hope.
It actually shows real buying behavior, it mitigates risk and helps you select markets wisely. A new seller or an experienced one, you make better decisions when validating demand using trade data.
Products such as Siomex makes this data convenient, available and actionable for companies to scale confidently instead of guessing.
Frequently Asked Questions
Does new business benefit from trade data?
Yes. It helps nascent companies steer clear of products that have little demand and focus on established markets.
How frequently trade data needs to be verified
It’s a good idea to re-cap on it every once in a while, especially before venturing into a new market or when releasing new products.
Can trade data substitute for market research?
No. It supplements basic research by demonstrating actual buying activity.
How does Siomex help businesses
Siomex offers its customers Import Export Data which can be utilised to verify demand, understand market movement and make decisions.
Is trade data expensive
Pricing is provider, but the value you get in mitigating risk more than pays for itself.