6/26/2014. Why Export? Incremental Business? Out to Conquer the World? Corporate Goals? Vision? IBC 101: International Essentials IBC 101 IBC 101

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1 : International Essentials Why Export? Incremental Business? Out to Conquer the World? Corporate Goals? Vision? 1

2 Customer Review Who & where are your current customers? What channels are they in? How large or small are they? Mass Merchants, Department Stores or Independent Specialty? Customer Review Prepare and Prioritize: Descending country list with Descending account list Take care of what you ve got! 2

3 Product Review What do you have to sell? Why would it sell (or not) in a foreign market? What needs to be modified? Product? Color, design, features, etc. Material Compliance (plastics, silicone, electrical) Packaging? Language, metrics, etc. Instructions? Warranty? Product Review Prepare and Prioritize: Descending Product list (by sales or units) 3

4 How to go to Market Channels: Retailer Distributor Export Management Company (EMC) Supply Chain: Ex US Warehouse FOB Foreign Factory Port Branch Office Warehouse All of the above Pricing Start with Domestic Modify as appropriate for international Review International Pricing Strategies Presentation 4

5 Pricing Develop Pricing Grid Variables: Local Market Pricing Country Competitiveness Retailer or Distributor Model Order Size Shipping Point Credit Terms Multi-National Issues (Walmart) Payment Terms & Conditions Cash in Advance Net 30/60/90/ Letters of Credit Credit Checks 5

6 Export Mechanics INCO Terms updated in 2010 Export Mechanics International rules accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most commonly used international trading terms. Reduce or remove uncertainties arising from differing interpretations of such terms in different countries. 6

7 Export Mechanics Freight Forwarder Arrange international shipments Prepare and process documentation Commercial Invoice Shipper s Export Declaration Automated Export System Bill of Lading Export Mechanics International Quotations Quotation Form Proforma Invoice 7

8 Export Mechanics Product Returns / Warranty % allowance % discount Settle when required Local Service Center Company Infrastructure Senior Management (Corporate buy-in ) Category Management International Sales Team / Reps Order Department Credit Department Export Logistics Warehousing & Distribution 8

9 Sales Channels Sales Representatives Exclusive? What is the territory? What are the terms? % commission, samples, expenses Distributors Exclusive? What is the territory? What are the terms? % markup, samples, expenses Direct to Retail What service is needed? Merchandising? Who provides? Who pays? Budget: Unique Export Costs Product: Patent & Trade Marks Product Testing & Compliance Certifications (CE Mark, etc.) Packaging Market Specific 9

10 Budget: Unique Export Costs Market Selection IHA Membership Export Survey Sales: Travel Trade Shows Trade Missions Collateral Material 10

11 Market Selection For whom are your products best suited? What are your best opportunities? Where should you focus? Pick three markets Don t try to tackle the globe What are your budgets? What are your travel plans? How often can you return to the market? Market Selection TARGET MARKET = Market Size x Market Attractiveness x Suitability of Products to Market 11

12 Example Only Adapt chart to your specific products & situation Market Selection MARKET Product / Category 1 Product / Category 2 U.K. Pan Europe Japan Immediate Markets Mexico Australia Brazil CIS (former Soviet states) South Korea Mid Term Markets ASEAN (SE Asia) Argentina GCC (Middle East) C. America Longer Term Markets S. Africa China India Business Plan What are your objectives for each market? How will you enter the market? Trade Missions Trade Shows Prepare Lead Sheet IHA Retailer Reports Distributor Search 12

13 Pavilions & Trade Missions Trade Shows Pavilion & Retail Tour China Sept Trade Mission South Africa Sept 28 - Oct 3 Trade Mission United Kingdom Nov

14 Distributor Search IBC Networking Trade Missions Trade Shows Retailer recommendation US Department of Commerce Gold Key Program Business Plan What budget is available? Trade Missions / Trade Shows Which? Travel How often? In-house support Order entry, customer service, etc. In-country support Merchandising, marketing, etc. Samples / Collateral Material 14

15 Export Compliance Product Compliance Materials Used Plastics Silicone Electrical Packaging Language Metrics Import Labels Export Compliance Shipping Compliance Dangerous Goods Aerosols Pressurized products Alcohol Chemicals cleaning solvents Glues Effects on Packaging & Labeling 15

16 Export Compliance Customer Compliance Lists to Check Denied, Debarred, etc Customer Compliance: Export Compliance Restricted Country List Restrictions vary from country to country Some restricted destinations are embargoed countries: Cuba, Iran, North Korea, Sudan, Syria 16

17 Questions? 17

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