Question

You are a Canadian manufacturer of mining equipment which is used for underground coal mines. You are selecting a potential market for export. How would you find the right market? Preliminary export market research indicates the following countries as potential markets: Australia, China, England, India, Indonesia, Kazakhstan, Russia, Ukraine and South Africa. Assess these markets in order to determine (select) the best market for your mining equipment.

Answer 1

In 2018 Asia-Pacific region contributed highest amount of mining equipments to the world. According to Mining Equipments Market Analysis Asia-Pacific Region will grow to the top in the case of Mining Equipments when it comes to 2025.

So we can avoid the markets which are not in Asia-Pacific region and consider the markets only in Asi-Pacific region.

That is, we can avoid England,South Africa , Kazakhstan,Ukraine, Russia and consider only India, Indonasia,Australia and China

Countries like China now had reduced the usage of fossil fuels inorder to reduce pollution, which inturns increased the need for coal in the market which catalyses the growth of the mining market in the region. China had established and became the leaders in these markets. India, Australia and Indonasia have their market smaller than china since they have less mining sites and the cost of production and cost of mining is higher than that of china due to high labour cost in these countries. China produces products in different qualities, both high end and low end qualities which reflect in the pricing also. That is China can give products in cheaper price than other countries because China has less labour cost and high human capital.

Since China had reduced the usage of fossil fuels China are back to coal mining and Shale gas mining. This increased the need for more mining equipments in China which in turns a best required potential market.