5 International markets for handmade products

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5 International markets for handmade products

  1. 1. Interna'onal  Markets  for   Handmade  Products   Presented by Karen Gibbs Nov. 3, 2010 Ouagadougou, Burkina Faso
  2. 2. International Markets for Handmade Products
  3. 3.  Different  types  of  markets  &  trade  shows    Trends  in  interna'onal  trade  shows    Factors  in  selec'ng  the  best  show  for  you  
  4. 4. •  Increasing  number   and  size  of  trade   shows   •  Decreasing  travel   budgets  for  buyers   •  Growing  role  of   internet  based   sales   Result = Select trade shows strategically!
  5. 5. Marke&ng  Strategy  =   •  Iden'fies  target  market   •  Specifies  target  customer   (not  end  consumer)   •  Defines  market-­‐driven   products   •  Establishes  realis'c  'meline   and  budget  
  6. 6. •  Furniture  &  Home  Décor   •  Home  Tex'les   •  Fashion  &  Accessories   •  GiM     •  Children  &  Toy   •  Sta'onary     •  Green/Eco/Fair  Trade   •  Gourmet  &  Tabletop   •  Folk  Art  &  CraM  
  7. 7. •  Export   •  Wholesale   •  Retail   Some  trade  shows  have   sec/ons  dedicated  to   different  types  of   ac/vi/es.    
  8. 8. Regional:   •  Guatemalan  New     World  CraMs   •  Peru  GiM  Show   •  India  HandicraMs  GiM   Fair  (IHGF)   Interna&onal:   •    Ambiente  
  9. 9. •  Orders  wriSen  at  FOB   country  of  origin   prices  &  terms   •  Buyers  aSending  show   are  importers  (direct-­‐ import  retail  stores  or   wholesalers)   •  High  minimum  orders   ($2,000+)  
  10. 10. Pros       •  Longer  Rela'onships  with   Customers   •  Wider  Variety  of  Products  &   Vendors   •  Government  Support  of  Shows   Cons     •  Long  Term  Development  Plans  of   Customers   •  Lower  Margins   •  Fewer  Customers  
  11. 11. TRENDS   •  Growing  popularity  of   regional  export  shows,   especially  among  small   to  medium  retail   stores  moving  to  direct   import   •  Increasing  number  of   US  buyers  aSending   overseas  export  shows   instead  of  US   wholesale  shows  
  12. 12. Gi@:   •    New  York  Int’l  GiM  Show   •    California  GiM  Show   Home:   •    High  Point  Furniture  Fair   •    ICFF   •    MACEF   •    Maison  &  Objet   •    Ambiente   Fashion:   •    The  Accessories  Show   •    Designers  &  Agents  
  13. 13. Specialty Shows: •  Ethical Fashion Show •  Natural Products Shows •  Fair Trade Show
  14. 14. •  Wri'ng  orders  at  US  or   European  wholesale   terms  (landed  prices)   •  Selling  primarily  to   small  to  medium  sized   US  retail  stores     •  Lower  minimum   orders  ($500  average)  
  15. 15. NYIGF:   •   30,000  Buyers   •   50  States   •   75  Countries   •   2,900  Exhibitors   Maison  &  Objet:   •   65,000  Visitors   •   33%  Interna'onal   •   2,700  Exhibitors   • 25%  Interna'onal  
  16. 16. Pros       •  Higher  Sales  WriSen  at  Show   •  Larger  Customer  Base   •  Higher  Margins   Cons     •  Higher  Product  &  Merchandising   Expecta'ons   •  Higher  Costs  of  Par'cipa'on   •  US  Distribu'on  Requirements   •  Smaller  Orders    
  17. 17. TRENDS:   •  Move  towards  more  specialty  shows  (away  from   “general  giM”)   •  Return  tradi'onal  “staple”  shows  (High  Point)   •  Growth  in  size  and  number  of  trade  shows  is   slowing  
  18. 18. US:   •  Santa  Fe  Int’l  Folk  Art   Market   •  Green  Fes'vals   •  Smithsonian  Folklife   Fes'val   Globally:   •  Import  Shop  Berlin   •  Foire  de  Paris   •  SIAO  
  19. 19. •  High  Concentra'on  of   Buyers   •  Low  Satura'on  of  Qualified   Buyers   •  High  Cost  of  Inventory   •  High  Cost  of  Par'cipa'on  
  20. 20. Santa Fe Int’l Folk Art Market: • 24,000 attendees • 123 exhibitors • 46 countries • $1.95 mil sales • $12,900/exhibitor Import Shop Berlin: • 42000 attendees • 540 exhibitors • 60 countries • $7.7 million sales • $14,000/exhibitor
  21. 21.        Pros •  Immediate  Cash  In.lux  at  time  of   sale •  Higher  Margins •  Reduction  of  Old  Inventory  or   Overstocks Cons •  Inventory  Cost •  One-­‐time  Sale
  22. 22. How  to  select  a  trade  show?   •  Based  on  your  target  market   •  Based  on  your  target  customer  
  23. 23. •  Cash  Sales   •  Wri'ng  Orders     •  Customer  Contacts     •  Press  Contacts  &   Rela'ons   •  Market  Research  
  24. 24. •  Exhibit  at  Show   •  Visit  Show  to   Network  with   Importers   •  Visit  Show  to   Research  Trade   Show  &  Market  
  25. 25.     How  many  Buyers?       Who  are  they?       Retail/Wholesale/Export?       How  many  Exhibitors?       Average  Price  Points?       Types  of  Products?       Es'mated  Sales  per  Exhibitor?       Cost  of  aSendance?  
  26. 26.   Identify  shows  of  interest   Visit  show,  select  best  location,   meet  with  management   Develop  products  &  marketing   materials   Apply  for  show   Make  samples,  print  marketing   materials   Design  booth  display   Ship  samples   Set  up  &  participate  in  show
  27. 27. 1.  Customers  see  you  for   the  .irst  time  &  are   impressed. 2.  Customers  place  a  small   order  to  test  your   delivery  and  products.   3.  After  successfully   selling  your  products,   customers  are  now   ready  to  place  full   orders! It  takes  three  times  exhibiting  at  a   trade  show  to  realize  the  full  sales   potential!
  28. 28.  Select  shows  based  on  your  marketing  strategy    Anticipate  the  results  of  the  shows    Remember  trade  shows  are  a  part  of  ongoing  sales  strategy   and  are  not  a  stand-­‐alone  activity.    

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