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Export in saudi

  1. 1. INTERNATIONAL MARKETINGSAUDIARABIA<br />PROF. DILIP TELANG<br />1<br />Saturday, September 25, 2010<br />
  2. 2. GROUP MEMBERS<br />SANKET AROTE 04<br />ABBHIJIT BADGUJAR 06<br />NARESH GAIKE 23<br />NITIN SAKLA 80<br />ARVIND SONAWANE 100<br />PRATIK VARTAK 115<br />2<br />Saturday, September 25, 2010<br />
  3. 3. INTRODUCTION OF THE SAUDI ARABIA<br />The Kingdom of Saudi Arabia (Arabic: )المملكة العربية السعودية commonly known as Saudi Arabia, is the largest Arab country of the Middle East<br />It has an estimated population of 28 million<br />The kingdom is sometimes called "The Land of the Two Holy Mosques" in reference to Mecca and Medina, the two holiest places in Islam. <br />Capital - Riyadh<br />3<br />Saturday, September 25, 2010<br />
  4. 4. 4<br />Saturday, September 25, 2010<br />
  5. 5. Population  -  2010 estimate 27,136,977<br />GDP (PPP)  -  Total $618.744 billion<br />Per capita - $23,701.260  <br />GDP (nominal) - Total $438.009 billion<br />Per capita - $16,778.112<br />HDI (2007) - ▲ 0.843<br />Currency - Saudi Riyal (SR) (SAR)<br />INTRODUCTION OF THE SAUDI ARABIA<br />5<br />Saturday, September 25, 2010<br />
  6. 6. INTRODUCTION OF THE SAUDI ARABIA<br />Ports and Terminals: <br />Ad dammam, <br />al jubayl, <br />jiddah, <br />yanbu' al sinaiyah<br /><ul><li>Airports: 217 (2010)</li></ul>With Paved Runways: 81<br />With Unpaved Runways: 136<br />6<br />Saturday, September 25, 2010<br />
  7. 7. MARKET FOR HOME APPLIANCES IN SAUDI ARABIA<br />Market size for home appliances<br />Market growth<br />Future of home appliances in Saudi Arabia<br />7<br />Saturday, September 25, 2010<br />
  8. 8. Saturday, September 25, 2010<br />8<br />
  9. 9. FOREIGN TRADE POLICIES<br />The Saudi Chambers of Commerce and Industry located in the major urban centers of the Kingdom should be contacted, as a matter of priority, to find a representative, distributor, partner or agent in Saudi Arabia<br />The Saudi Chambers of Commerce and Industry publish trade directories of their respective business communities<br />9<br />Saturday, September 25, 2010<br />
  10. 10. In addition to its role as a part of the Kingdom's diplomatic mission to any foreign country, the Commercial Office of the Royal Embassy of Saudi Arabia in your country, provides the business community with information about Saudi business regulations and procedures, and means of doing business in the Kingdom<br />FOREIGN TRADE POLICIES<br />10<br />Saturday, September 25, 2010<br />
  11. 11. RELATIONSHIP BETWEEN A FOREIGN CONTRACTOR AND HIS SAUDI AGENT <br />The relationship between a foreign contractor and his Saudi Agent was regulated by Royal Decree No. M/2 of 21 Muharram 1398 H. (January 1978). <br />This regulation applies to both, the Saudi agent and the foreign contractor who is contracting with the government of Saudi Arabia.<br /> It also applies to all contracts and agreements to which the foreign contractor and the government of Saudi Arabia are signatories<br />11<br />Saturday, September 25, 2010<br />
  12. 12. SALIENT FEATURES OF THIS REGULATION <br />A foreign contractor who does not have a Saudi partner, should have a Saudi services agent. <br />The agent should be a Saudi national residing in the Kingdom of Saudi Arabia and should be registered in the Commercial Register of the Ministry of Commerce authorizing him to act as an agent. <br />The relations between a Saudi agent and a foreign contractor should be governed by an Agency Agreement defining the obligations of both parties. <br />12<br />Saturday, September 25, 2010<br />
  13. 13. SALIENT FEATURES OF THIS REGULATION <br />A foreign contractor is required to pay the Saudi agent fees in return for the services he renders to the contractor. Such fees as determined by an agreement between both parties should not exceed 5 percent of the cost of the contract executed by the foreign contractor. <br />A foreign contractor performing different types of work may have morethan one Saudi agent so as to match each type of work. <br />13<br />Saturday, September 25, 2010<br />
  14. 14. There are very good prospects for Foreign companies who want to export their products to the Saudi Arabian market <br />Exporters' contacts with importers in Saudi Arabia should be direct and regular. <br />the Saudi Arabian Standards Organization has regulations about the precise implementation of Saudi Arabian Standards pertaining to their exported products to the Kingdom<br />MARKETING AND SALES STRATEGY <br />14<br />Saturday, September 25, 2010<br />
  15. 15. MARKETING AND SALES STRATEGY <br />Products to be exported should be properly branded and labeled both in English and Arabic <br />Exporters to Saudi Arabia should display their products regularly in the major commercial urban centers of the Kingdom<br />Necessary permission is obtained by writing or contacting directly the Director, Exhibitions Department, Ministry of Commerce.<br />15<br />Saturday, September 25, 2010<br />
  16. 16. Saturday, September 25, 2010<br />16<br />
  17. 17. KEY GOVERNMENT AGENCIES, FINANCIAL INSTITUTIONS AND PARTNERS AFFECTING FOREIGN INVESTMENT IN THE KINGDOM OF SAUDI ARABIA <br />17<br />Saturday, September 25, 2010<br />
  18. 18. MINISTRY OF INDUSTRY AND ELECTRICITY:<br />Foreign Capital Investment Committee<br />Foreign Capital Investment Bureau, FCIB<br />Engineering and Projects Department<br />Industrial Protection and Encouragement Department<br />Industrial Cities Department<br />18<br />Saturday, September 25, 2010<br />
  19. 19. INVESTMENT FUNDS<br />The Saudi Industrial Development Fund (SIDF) <br />The Public Investment Fund<br />The Real Estate Development Fund <br />the Saudi Arabian Agricultural Bank<br />19<br />Saturday, September 25, 2010<br />
  20. 20. OTHER IMPORTANT AGENCIES<br />Saudi Consulting House<br />Ministry of Commerce<br />20<br />Saturday, September 25, 2010<br />
  21. 21. CUSTOM DUTIES<br />According to Royal Decree No. M/13 dated 10/5/1408 H., corresponding to 12/30/1987, and to the Saudi Council of Ministers order No. 86 dated 10/5/1408 H. (12/19/87) the following customs duties' rates have been in effect since 13/5/1408 H. (corresponding to January 2, 1988)<br />21<br />Saturday, September 25, 2010<br />
  22. 22. CUSTOM DUTIES<br />Customs duties of 20% are imposed on some imported commodities for the purpose of protecting the national infant industries. <br />Customs duty on other items is 5% (Reduced to 5% recently)on the total cost value CIF (cost+ insurance+ freight). <br />A limited number of items are subject to customs duties calculated on the basis of metric weight or capacity, rather than ad Valorem. However, the rates for these items are fairly low. <br />22<br />Saturday, September 25, 2010<br />
  23. 23. CUSTOM DUTIES<br />Members of the Arab League who are signatories to the Agreement to Facilitate Trade and Exchange and to Organize Transit between the Arab League States are granted special concessions. <br />Imports from the Arab states with which Saudi Arabia has bilateral trade agreements are entitled to further reductions of duty. <br />23<br />Saturday, September 25, 2010<br />
  24. 24. IMPORTED ELECTRICAL APPLIANCES, EQUIPMENT, AND ACCESSORIES INTO SAUDI ARABIA<br />There are two types of certificates:<br /> a) Certificate of Conformity for electrical appliances and equipment.b) Certificate of Conformity for electrical accessories.<br />24<br />Saturday, September 25, 2010<br />
  25. 25. CERTIFICATES<br />The relevant certificate (the standard form is available at any Saudi consulate) must be issued by the manufacturer on their official letterhead, notarized by a notary public, certified by a local chamber of commerce, and then sent to SASO in Riyadh, Saudi Arabia at least two months before shipment date, to be verified.<br />Upon approval, the certificate will be returned to the manufacturing company which must attach a stamped copy with each shipment to Saudi Arabia of the commodity mentioned therein. <br />These certificates are only required for commodities mentioned in the List of Imported Electrical Products issued by SASO.<br />25<br />Saturday, September 25, 2010<br />
  26. 26. Saturday, September 25, 2010<br />26<br />
  27. 27. DOCUMENTS<br />The head office, bureau, or company must be licensed in the same work.<br />The bureau or company must have at least ten years of experience in its field.<br />The head office, bureau or company must submit an endorsed certificate pledging to support the bureau or company to carry out work in its name in the Kingdom. It must also agree to assume all responsibilities and commitments as indicated in the relevant rules and instructions in the Kingdom.<br />A certificate from a bank acceptable to the Saudi Arabian Monetary Agency testifying to the company's capabilities, financial reputation, and commercial dealings must be submitted.<br />27<br />Saturday, September 25, 2010<br />
  28. 28. DOCUMENTS<br />A certified statement on work performed by the company outside the Kingdom of Saudi Arabia in the project area which the company proposes to undertake in the Kingdom should also be submitted.<br />A photocopy of the company's balance sheet and profit and loss statement for the last two years duly certified by an accredited accountant must be submitted. <br />Certificates showing the company's performance in relation to its operations inside or outside the Kingdom are also required.<br />28<br />Saturday, September 25, 2010<br />
  29. 29. ARRANGEMENT OF SHIPPING DOCUMENTS<br /> Shipping documents must be presented to any of the Saudi Arabian Consulates in the following manner or they will be rejected: <br />Commercial Invoice<br />Certificate of Origin<br />Insurance Certificate<br />Bill of Lading (or airway bill)<br />Steamship (or airline company certificate)<br />Packing List <br />Special documents<br />29<br />Saturday, September 25, 2010<br />
  30. 30. OUR NAME & LOGO<br />HOME APPLIANCES PVT. LTD<br />30<br />Saturday, September 25, 2010<br />
  31. 31. OUR AIM<br /> Our aim is to foster a change in the electronic world, through distributing and marketing new innovative models, which are better in each & every aspect & are cost effective in nature.<br />31<br />Saturday, September 25, 2010<br />
  32. 32. OUR APPROACH<br />We follow strict business ethics while serving our customers. We make our products available at the leading market prices which are not heavy on anyone’s pockets. As a potential importer and exporter, we believe in transparent deals between us and our clients.<br />32<br />Saturday, September 25, 2010<br />
  33. 33. QUALITY<br /> "Quality" has always been the defining factor of our immense success.Toachieve premium quality, we conduct various quality assurance tests at our level as well. Therefore, ensuring the distribution of highly durable & qualitative electronic products that are sure to provide hassle free functioning for a longer duration of time.<br />33<br />Saturday, September 25, 2010<br />
  34. 34. PRODUCTS<br />34<br />Saturday, September 25, 2010<br />
  35. 35. PRODUCT FEATURES<br />All of our products are technologically sound so as to make life easier and comfortable.<br />Less power consumption is the attribute of each of the products which focuses on conservation of power resources<br />An environment-friendly approach lets us supply only those products which are not hazardous to the surroundings by means of producing waste. So, resort to us for a healthy cooking in the smartest way.<br />Our products have sent a wave across the market because of their sound technological base<br />35<br />Saturday, September 25, 2010<br />
  36. 36. Saturday, September 25, 2010<br />36<br />PACKAGING<br />
  37. 37. OUR PACKAGING<br />Primary packaging<br />Secondary – packaging instructions <br />Tertiary packaging<br />Instructions<br />Reasons for such packaging<br />37<br />Saturday, September 25, 2010<br />
  38. 38. PRIMARY PACKAGING<br />BUBBLE WRAP<br />38<br />Saturday, September 25, 2010<br />
  39. 39. SECONDARY PACKAGING<br />CORRUGATED ROLLS & BOX<br />39<br />Saturday, September 25, 2010<br />
  40. 40. TERTIARY PACKAGING<br />CRATES, SHRINK – WRAP & PALLET<br />40<br />Saturday, September 25, 2010<br />
  41. 41. PACKAGING<br />Woodwool, Glasswool, shredded paper or plastic foam packing<br />Wooden pallets/ fibre cartons<br />Fumigation of containers<br />Silica gel packets for moisture less packaging<br />41<br />Saturday, September 25, 2010<br />
  42. 42. LABELLING<br />Proper labelling are critical to a product's acceptability and marketability in a foreign country<br />Country of origin must be indicated on the label<br />Multilingual labels are permitted especially in Arabic<br />42<br />Saturday, September 25, 2010<br />
  43. 43. HANDLING INSTRUCTIONS <br />Keep away from water<br />This Way Up<br />Do not use hand hook<br />Fragile <br />Centre of Gravity<br />Clamp as Indicated<br />Do not clamp as indicated<br />43<br />Saturday, September 25, 2010<br />
  44. 44. <ul><li>Full-range Supplier for Shrink wrapping and Stretch hood Packaging and Conveying
  45. 45. Hood shrink wrapping, pass-through shrink wrapping and stretch hood packaging for safeguarding appliances during transportation
  46. 46. Optimum Packaging for Excellent Load Stability
  47. 47. High-value appliances of different product dimensions with under packing of expanded polystyrene or wood elements demand a high degree of safeguarding for transport and this to be done as cost-effectively as possible. </li></ul>44<br />Saturday, September 25, 2010<br />
  48. 48. For these reasons the film that is selected and the load stability that results from there are of decisive importance. <br />Then product and packaging form individual stable units which can be stacked and transported one on top of the other.<br />In contrast to conventional packaging methods, high quality, transparent surfaces generates an optimum display effect. <br />Barcodes under the film can be scanned without any problems. The fact that the product is visible all the time has been proved to reduce transport damage to a detectable degree<br />45<br />Saturday, September 25, 2010<br />
  49. 49. DISTRIBUTION<br />Saturday, September 25, 2010<br />46<br />
  50. 50. BENEFITS OF OUR PACKAGING<br />Transport Worthy<br />Product Worthy<br />Shelf Appealing<br />Easy To Carry<br />Easy To Handle<br />Eco Friendly<br />47<br />Saturday, September 25, 2010<br />
  51. 51. DISTRIBUTION<br />Foreign individuals or firms contemplating doing business in or wishing to export their products to Saudi Arabia are required to look for a<br />Saudi Arabian partner, <br />an import agent or<br />local representative in close proximity to the Saudi Arabian market<br />48<br />Saturday, September 25, 2010<br />
  52. 52. DISTRIBUTION<br /><ul><li>Distributor
  53. 53. Agent
  54. 54. Salaried Representative
  55. 55. Finding a Partner
  56. 56. Establishing an Office 
  57. 57. Franchising
  58. 58. Direct Marketing
  59. 59. Joint Ventures/Licensing</li></ul>49<br />Saturday, September 25, 2010<br />
  60. 60. DISTRIBUTION<br />50<br />Saturday, September 25, 2010<br />
  61. 61. PROMOTION- SPECIFIC<br /> CONSERVATIVE ADVERTISING<br />PROMOTION DURING RELIGIOUS FESTIVALS<br /> MECCA – THE HOLY HAJ PILGRIMAGE<br />USE OF ARABIC LANGUAGE<br />51<br />Saturday, September 25, 2010<br />
  62. 62. PROMOTION- GENERAL<br /> MARKETING<br />ADVERTISING<br />LOCAL PROMOTION<br />52<br />Saturday, September 25, 2010<br />
  63. 63. Thank You<br />53<br />Saturday, September 25, 2010<br />

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