The importance of NAICS and NACE codes for market analysis
Besides the statistical purposes we have mentioned, there are other reasons to know the NAICS and NACE codes.
One of these is the need to carry out market analysis.
Knowing how an industry is structured is a vital step in increasing sales through new distributors, developing joint ventures with industrial partners, expanding your supply chain and more.
To achieve these goals, it is important to know the codes for the sectors you want to explore.
One factor that distinguishes them is their specificity: even the smallest market niches have their own NAICS or NACE code, and the example of citrus production demonstrates this. This makes it possible to carry out very accurate analyses, identifying even companies that a shallow search might miss.
Often we rely on tools such as search engines or social networks, where not all companies are present or where the results are too scattered.
Knowing the industry codes and related activities allows you to focus on the target of your search, concentrating only on specific market segments. Business data providers usually offer databases based on these divisions.
However, even these solutions have limitations. It is necessary to go through the websites of the companies within them, checking one by one which features are important to us.
Let’s clarify with an example related to citrus fruits. An agri-food distribution company is interested in locating producers of Diamante citron abroad.
To do this, it might choose to purchase a database of citrus producers in a specific country, or it might carry out online searches without the certainty of finding all producers. Either way, it would be a time-consuming process to manually select those who grow the variety of fruit.
But digital technologies offer an alternative: the possibility of automating this task, reducing the time and cost of identifying companies that meet the goals of our distributor.