1. HOW TO SURVIVE AND THRIVE IN
EMERGING MARKETS
ALBERTO QUIROZ, CITP
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
2. • Introduction
• Case studies – We will present some case studies that will help you see different
methods of accessing the market and their relative success.
• At the end of this Webinar you will:
• Understand the importance of knowing your business in the context of
international trade
• Realize the importance of preparation and focus when taking your business
abroad.
• Learn about assistance, training and educational programs available in Canada
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
WEBINAR OBJECTIVES
3. FOUNDATION FOR A SUCCESSFUL MARKET
ENTRY
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
• What SMEs need to have before taking a step into fast-growth
emerging markets.
1. SWOT analysis
2. Plan
3. Market Study
4. Marketing Plan
5. Logistic Analysis
6. Financial Plan
7. Legal Analysis
4. HELP ALONG THE WAY
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
• Tools available for SMEs before going into fast-growth
emerging markets.
• Right People in the right places- The Trade Commissioner Services.
• https://www.tradecommissioner.gc.ca
• Export Knowledge – Forum for International Trade Training
• www.fit.ca
• Regulations – Canada Border Services agency
• www.cbsa-asfc.cg.ca/export/menu-eng.html
5. HELP ALONG THE WAY
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
•Tools available for SMEs before going into fast-
growth emerging markets.
• Finance- Export Development Canada, Business Development Canada
• www.edc.ca www.ccc.ca www.bdc.ca
• Lessons learned, cultural tips- Freight forwarders and other Cultural
Associations.
• www.cme-mec.ca www.ciffa.com
6. SUCCESS STORIES 1
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
• Outcomes from SMEs that have gone to emerging markets
Successful results of small companies that have gone global,
Power Measurements in BC, which was eventually purchased by
Groupe Schneider after becoming a global player in the energy
measurement field
7. SUCCESS STORIES 2
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
• Outcomes from SMEs that have gone to emerging markets
Successful results of small companies that have gone global,
Power Measurements in BC, which was eventually purchased by
Groupe Schneider after becoming a global player in the energy
measurement field
8. INDIRECT EXPORT - DISTRIBUTION
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
• Allanson International is Canadian manufacturer of lighting components,
transformers, ballasts and LEDs products price range is relatively small ($20 to
$400 per piece) but with high volumes.
• Although the company had a successful distributor in Europe for lighting
components a study showed barriers to entry in Europe.
• Focus changed to Countries in Latin America that enjoyed similar standards as
the US. (Mexico, Central America, Colombia, Venezuela and Ecuador)
• Ideal model for a distribution network in the target country.
• Key in finding distributors with right coverage in the target country, with
financial stability, technical capability, ability to import, knowledgeable sales
force.
9. DIRECT EXPORT - REPRESENTATIVES
• A Canadian manufacturer of Electrical Power products –Ground fault protection
relays. A product of a relative medium value and relatively medium sales
volume per order ( $3,000 to $100,000).
• Not a mass-distributed product used in targeted industries- Mining, Power
generation, Oil and gas
• Ideally suited for a network of sales representatives in the target country.
• Key in finding a reliable representative with the right relationships and the right
coverage in the selected industry.
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
10. DIRECT EXPORT- DIRECT SALE
• A Canadian Designed product for a small niche market Supermarket Chains.
• A product of a relative high value and relatively small sales volume per order
($50,000 to $150,000).
• Not a mass-distributed product, not high volume, The market study
reflected that five customers would represent 85% of the market share.
• Ideally suited for a direct sale approach.
• Key in understanding local market needs, customs and practices of potential
customers.
• Key in developing the right relationships with the end customer.
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
11. OTHER TYPES OF MARKET ENTRY
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
•Licencing
•Franchising
•Partnering
•Acquisition
12. TIPS AND RESOURCES FOR ENTERING THE
EMERGING MARKETS WITH SUCCESS
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
• Know and understand your business
• Capabilities in equipment, plant, Human Resources
• Product adaptation – Be flexible
• Prepare a comprehensive export Plan
• Set reachable objectives and set the direction
• Ensure commitment – Exporting is long term
• The only thing you can export are your successes
• Keep your focus
13. TIPS AND RESOURCES FOR ENTERING THE
EMERGING MARKETS WITH SUCCESS
6/9/2014
ALBERTO QUIROZ CITP, P.ENG.
• Market Study
• Environment; Political and Economical
• Size of the market
• Industry, standards, regulation, trends
• Competition
• Non tariff barriers
• Intellectual property
• Risks
14. TIPS AND RESOURCES FOR ENTERING THE
EMERGING MARKETS WITH SUCCESS
6/9/2014
ALBERTO QUIROZ CITP, P.ENG.
• Marketing Plan
• Promotion in local language (web-print)
• Presentations-Cultural barriers
• Relevant testimonials
• Samples
15. TIPS AND RESOURCES FOR ENTERING THE
EMERGING MARKETS WITH SUCCESS
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
• Logistic Analysis
• Packaging- Packing
• Cargo and transport
capabilities
• Brokerage, tariffs and duties
• Licences
• Insurance
• Financial Plan
• Total costs
• Securing payment
• Banking
• Currency transfers
• Currency Hedging
16. TIPS AND RESOURCES FOR ENTERING THE
EMERGING MARKETS WITH SUCCESS
6/9/2014
ALBERTO QUIROZ CITP, P.ENG.
• Legal Analysis
• Contracts (with customers and suppliers)
• Jurisdiction
• Exit Strategy
• Social Responsibility
• Corruption
• Rights if un-paid.
17. PITFALLS TO AVOID WHEN ENTERING
EMERGING MARKETS
6/9/2014ALBERTO QUIROZ CITP, P.ENG.
• Planning is crucial, most of the work is done before getting on the plane to
visit.
• Commit to a long term strategy
• Be Culturally prepared
• Don’t believe everything the locals tell you
• Learn from others’ mistakes
• Use the multiple resources available in Canada
18. DIAGNOSTIC TOOL
• Already buying, selling, investing, sourcing or manufacturing beyond your
own borders?
• We created an interactive online tool to help you assess which international
trade competencies you or your business already developed and which you
can start focusing on right now.
• Make sure you have what it takes to compete and succeed!
Take the FREE assessment here: www.fitt.ca/diagnostic-tool
ALBERTO QUIROZ CITP, P.ENG.
