Common Sense Strategies in International Sales

Lauren D. Rachlin, Esq. Partner, Barclay Damon, LLP

Michael Krause Director of Business Development, Complemar

June 18, 2015

What You Need to Know About Selling and Doing Business Internationally.

Lauren D. Rachlin, Esq.

Partner, Barclay Damon, LLP

Barclay Damon, LLP • Hiscock & Barclay and Damon Morey merged

on June 1 to create Barclay Damon, LLP – Founded in 1853 – Largest Upstate Law Firm with 275 Attorneys – Major Offices in Rochester, Buffalo, Syracuse,

Albany – Also in Elmira, New York City, Boston, Newark,

Washington, D.C. and Toronto. – 33 Practice Areas

Selling Successfully

If you are selling your product successfully in the U.S. you can sell it successfully in other countries: • Reactive

– Customer Demands • Proactive

– Desire for sales expansion

The Process

Let’s start by demystifying the process:

• There is a lot of help out there • Identifying potential markets

– World Trade Center, Buffalo, NY – GRE Trade Council – Private Consultations – U.S. Department of Commerce

The Process

Different countries have different rules and requirements:

Range from very simple: • Canada

– Labeling – Language

To very complex:

• European Union – These can be very different depending upon your product

The Process

Not daunting - Many sources of available help depending upon the issue.

• Local agent, Distributor or Strategic Partner • Lawyer knowledgeable in International Trade issues • Brokers and Freight Brokers • Bankers • WTCBN • GRE Trade Council • FL Global NY Work Group • U.S. Department of Commerce, AND MOST IMPORTANT, YOUR OWN

LOCAL, NATIONAL AND INTERNATIONAL TRADE ASSOCIATIONS and the traders you meet at their meetings

The Process

Selling into the Foreign Country • Hire your own sales force and employees

– Not unless you are very experienced and substantial company

Sales Representatives, Distributors—STRATEGIC PARTNERS • Provide much knowledge and assistance with navigating

local requirements • Best identified by U.S. Department of Commerce and

then vetted through trade associations and local contracts

The Process

Agency and Distribution agreements are easy to enter but expensive to terminate • Require very careful drafting • Unlike most state in the U.S., termination in many other

countries is a matter of public policy • Anti-corruption and anti-bribery statutes

Licensing • Good choice where product is large, difficult to ship or is otherwise

appropriate

The Process

Joint Ventures • An excellence choice with the right partner which is well-

established in the local market

Arbitration vs. Litigation

The Process

Other concerns • Selection of local counsel especially important when

drafting a contract subject to the laws of another country: – Common law – Civil law – Islamic law

• U.N. Convention on Contracts for the International Sale of Goods

• Export Controls • Intellectual Property Protection

Common Sense Strategies in International Sales

Michael Krause, Director of Business Development, Complemar

Director of Business Development at Complemar

Over 20 Years of Professional Selling Author of: SMART Prospecting That Works

Every Time! McGraw-Hill and Sell or Sink Strategies, Tactics and Tools EVERY Business Leader Must Know to Stay Afloat!

Michael Krause

Headquartered in Rochester, NY 4 locations – East & West Coast Over 300,000 sq.. ft.. Smart

Warehouse Shipping to over 30 countries Handle over 45 million packages

annually

About Complemar

International Growth Getting Started International Sales Process Are You Ready? Valuable Resources Questions and Answers

Agenda

Global Business is Booming B2C ecommerce hit $1.5 trillion in 2014

(eMarketer.com) Asia-Pacific consumers outspent NA on ecommerce;

46% of all ecommerce purchases Brazil, Russia, India and China (BRIC) – emerging

economies joining forces, similar to European Union Global economy to grow ~3% in 2015, average 3.3%

through 2017 (World Bank Global Economic Prospects 1/15)

International Growth

The 80/20 Rule: Spend 80% of your time on research, analysis & planning Investigate: Culture Values Attitudes Safety Political risk/stability Technology level Network (LinkedIn, social sites) with US and in-country

contacts to understand business realities Develop marketing, export/import strategies Sales force and management plans Shipping and order fulfillment

Getting Started

The 80/20 Rule, continued 20% Implementation Move cautiously but DO go where it can profit you Work only with people & companies you trust Make frequent on-site visits – nothing beats seeing it for

yourself Align with a company experienced in the countries you

target – learn from their past Every country presents different issues – research and

thorough vetting pays off

Getting Started

Sales team structure & pay Direct hires Sales brokerage Distributor/Channel representation Independent sales people

Local sales management Prepare sales training and

marketing materials in the local language

Use Web conferencing to stay connected

International Sales Process

Does your product “make sense” in their country? Have you studied on how to present your

product? Do you understand their culture? What will be your follow-up process?

Are You Ready

Export.gov – wealth of trade data, analysis, tools and links to resources

Trade Stats Express (tse.export.gov) – quarterly and annual export trade data

USA Trade Online (usatrade.census.gov) – current export and import statistics, detailed info on product categories in various countries

FL Global NY Work Group

Valuable Resources

Questions and Answers