how to identify potential international markets for your products and services?
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How to Identify Potential International Markets for Your Products and Services?. Doug Barry [email protected] U.S. Department of Commerce 1-800-USA-TRAD(E) September 22, 2009. Basic Facts. U.S Exports in 2008 reached $1.287 trillion U.S. Exports to 198 countries - PowerPoint PPT PresentationTRANSCRIPT
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How to Identify Potential International Markets for Your
Products and Services?
Doug [email protected]
U.S. Department of Commerce1-800-USA-TRAD(E)September 22, 2009
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Basic Facts
• U.S Exports in 2008 reached $1.287 trillion• U.S. Exports to 198 countries• 97% of U.S. exporters are SMEs• U.S. sells more to its neighbors (Canada and Mexico)• Exports accounted 25% of economic growth• Exports brings growth to U.S. companies• When U.S. economy slows more and more U.S.
companies look for overseas markets
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Challenge
• 264,000 Exporters • 54% export to only one market• Many more companies could but don’t
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Major export markets
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230 Major destination
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Where U. S exports?
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Partner 2004 2005 2006 2007 2008
World Total35,949,
35737,848,
62740,499,
79244,555,
34945,135,
506
Canada21,811,
75022,850,
57723,910,
13125,817,
28624,073,
012
Mexico4,172,6
494,219,8
954,656,2
095,206,4
736,414,5
71
Germany1,009,0
951,058,1
011,178,8
951,267,2
861,562,0
70
Japan1,068,8
841,072,2
971,104,5
521,308,1
701,437,6
61
China 608,845 699,2451,015,9
691,313,6
831,287,6
02
Saudi Arabia 306,060 397,139 441,944 544,960 840,512
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Trade Snapshot 2007
Top Michigan Exports
• Transportation Equip $23B
• Machinery Manu $4B• Chemical Manu
$3.5B• Primary Metals $2B• Oil and Gas Extract $1.9B
Top Michigan Export Markets
• Canada $25,631,162• Mexico $5,206,617• China $1,313,226• Japan $1,308,230• Germany $1,267,110
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Top Five export locations
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Benefits of Exporting
• 95 % of consumers are outside the United States• Increase in sales and profits• Use excess product capacity to sell abroad• Gain information on foreign markets• Improve product quality and features• Improve management and marketing
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What do you need to know about the country?
– Demographic, distribution of population by age and income– Economic, per capita income, rate of economic growth,
stages of economic development– Political stability, rule of law, regulations, ease of doing
business– Cultural understanding the culture and business practices– Market access: how easy to enter market, taxes duties,
import license, inspection etc. – Infrastructure: How easy to move products, communication,
roads, ports and airports
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Developing a Global Awareness
To be globally aware is to have:To be globally aware is to have:
1. Tolerant of Cultural Differences, and
2. Knowledgeable of: (a) Culture, (b) History, (c) World Market Potential,(d) Global Economic, Social and Political Trends
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Export Counseling
• Counseling /market assessment (1-800-USA-TRAD(E)• Market research• Tariff and Non-Tariff barriers to entry can exist • The U.S. Commercial Service global network
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Steps to follow
• Obtain export counseling (1-800-USA-TRAD(E)• Get in-depth knowledge of that market and the ability
to create and cultivate business relationships • Understanding the culture is key to developing that
market knowledge• Read the Basic Guide to Exporting
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• Create and develop partner relationships with distributors and customers
• Understand the culture and business practices of a target country is important; however, nothing is better than actually having spent time in a country in terms of understanding the business climate and building relationships
•
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• Make the commitment• Design plan for flexibility• Plan for 5-10 years• Target specific markets• Understand target culture• Keep quality a continuous goal
Before you export
Becoming a Exporter
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• Explore need for modification• Research ISO standards• Study effects of tariffs & VAT• Construct pricing strategy• Protect yourself legally• Determine if export license is needed
Becoming a Exporter
Before you export
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Resources
• Where You will Find Help?
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Trade information center (TIC) Export Counseling
• General and country-specific export counseling.• International market research and trade leads.• Documentation requirements for specific markets.• Import tariffs/taxes and customs procedures.• Advice on Export Licenses and Controls. • Information on all U.S. government export assistance
programs.• Referrals to local USEACs.
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• Country-Specific Counseling for:– NAFTA
– Western Europe
– Africa
– Latin America
– South Asia
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http://Export. gov
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Market research
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Market Research Library
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List of Countries
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Market Research Reports (1559)
on India
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Country Commercial Guide and Best prospects
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• Monthly trade magazine that lists U.S. products and services
• Distributed free to more than 400,000 buyers from around world
• A proven track record of high-response rates and sales results
Advertise in Targeted Markets With Our Commercial News USA
Check out www.export.gov/cnusa for more information
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Promote Your Company in International Markets With
Our Catalog Exhibition Shows
“We find the catalog exhibition shows are an economical way of getting our message out, which we feel is the secret to developing new business" Du-Co Ceramics Company, Saxonburg, PA
You’ll get:
• Your products promoted at events worldwide without having to travel
• Translation of key information about your firm for foreign visitors
• Full trade leads presented to you at the end of the show
Provide us with product literature, videos and other visuals and we’ll promote your catalogs to hundreds of business visitors at selected trade shows and embassies around the world
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Global Business Trends
1. The rapid growth of theWorld Trade Organizationand regional free tradeareas,, FTAs, NAFTA and theEuropean Union.
1. The rapid growth of theWorld Trade Organizationand regional free tradeareas,, FTAs, NAFTA and theEuropean Union.
2. General acceptance of thefree market system amongdeveloping countries in LatinAmerica, Asia, and EasternEurope
2. General acceptance of thefree market system amongdeveloping countries in LatinAmerica, Asia, and EasternEurope
3. Impact of the Internet andother global media on thedissolution of nationalborders, and
3. Impact of the Internet andother global media on thedissolution of nationalborders, and
4. Managing globalenvironmental resources4. Managing globalenvironmental resources
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Internationalization of U.S. Business
Increasing globalization ofmarketsIncreasing globalization ofmarkets
Firms face competition onall frontsFirms face competition onall fronts
Many U.S. companies are in foreign countriesMany U.S. companies are in foreign countries
U.S. firms seeking foreignmarkets to increase profitsU.S. firms seeking foreignmarkets to increase profits
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BuyUSA www.buyusa.com
• BuyUSA is a unique e-marketplace that provides trade opportunities for U.S. exporters and international companies.
• Qualified International Trade Partners• User-Friendly Web Design• Locate your local U.S. Commercial Service office in
107 U.S. cities and 140 U.S. Embassies and Consulates
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U.S. Export Assistance Center(USEAC)
• Part of a network of over 1700 international trade specialists located throughout the world
• With 165 offices in 82 countries, the U.S. Commercial Service USEACs can:– Help your company identify and evaluate international
partners – Provide counseling and advocacy through every step of the
export process – Assist in developing market entry strategies– Help you learn information about trade events that promote your
product or service to qualified buyers
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International Partner Search
• Utilizing Commercial Service Trade Specialists in over 80 countries to find the most suitable strategic partners
• We use our strong network of international contacts to interview potential partners and provide you with a list of up to five pre-qualified partners
• Obtain high-quality market information on the marketability and sales potential for your products and services.
• Receive complete contact information on key officers at each potential partner which is interested in your company along with information on their size, sales, years in business, number of employees, and a statement from the each potential partner on the marketability of your product or service.
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www.exportyellowpages.com
• U.S. Exporters Yellow Pages offers a free directory that includes information on more than 17,000 U.S. companies interested in exporting. This popular directory includes trade contact data on U.S. manufacturers, export trading companies, and business service providers.
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tse.export.gov
• National trade data– U.S. merchandise imports,
exports, trade balances• State export data
– State and regional exports of merchandise
• Product profiles of U.S. merchandise trade with a selected market
• Visual representations of market breakdown by products exported or imported
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Dun & Bradstreetwww.dnb.com
• D&B is the world’s leading source of commercial information and insight on businesses
• D&B provides solution sets that meet a diverse set of customer needs globally
• Customers use D&B Risk Management Solutions™ to mitigate credit and supplier risk, increase cash flow and drive increased profitability
• D&B Sales & Marketing Solutions™ to increase revenue from new and existing customers
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FITAwww.fita.org
• Fosters international trade by strengthening the role of local, regional, national and global associations that have an international mission
• 450 association members and 450,000 linked company members dedicated to the promotion of international trade, import-export, international logistics management, international finance and more.
• Source for international import/export trade leads and events
• Country profiles
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MANUFACTURING EXTENSION PROGRAM
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Falcon Water FreeFuture = making + selling more stuff
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The Beginning
• Contact U.S. Commercial Service Michigan