This is a presentation slide deck used by WCC International team during the videoconference organized jointly by the American-Uzbekistan Chambers of Commerce in Washington DC and Chamber of Commerce & Industry of Uzbekistan in Tashkent. Topics included: - US Uzbekistan Bilateral Trade in Numbers - Market Entry Strategies for Exporters and Investors - Market and Customer Research techniques - International Marketing: Product localization and adaptation - Price Adjustment to local market demand - Customs Clearance, Logistics, Distribution and Fulfillment - Global E-Commerce for Entrepreneurs in Central Asia

1. WE HELP BUSINESSES BUY & SELL
ACROSS BORDERS HASSLE-FREE
Doing Business with the United States:
Opportunities for Uzbekistan
February 23, 2018
Washington DC, United States
American-Uzbekistan Chamber of Commerce
Hosted By:

2. Exporting: Direct vs Indirect
Licensing and Franchising
Joint Venture
Strategic Alliance
Direct Investment
WCC International, Inc. I 10411 Motor City Drive STE 750 I Phone (+1) 301.202.8586 I www.wccinternational.com I office@wccinternational.com
Foreign Market Entry Strategies

3. $690 mln
$570 mln
Source: The Observatory of Economic Complexity, MIT Media Lab https://atlas.media.mit.edu
KAZAKHSTANRUSSIA
$1,21 bln
$1,88 bln
$703 mln
The top export destinations of Uzbekistan (2015)
TURKEY CHINA SWITZERLAND
MAIN EXPORT COMMODITY:
- GOLD
- NATURAL GAS
- COTTON

4. IMPORTS FROM
UZBEKISTAN
$11,828,956
$30,620,498
$9,715,446
U.S.- Uzbekistan Bilateral Trade in Numbers
Source: Foreign Trade Division, U.S. Census Bureau
2017 YTD-SEP20162015
U.S. EXPORTS TO
UZBEKISTAN
2017 YTD-SEP20162015
$93,666,486
$317,880,066
$137,962,928

5. What did the United States sell to Uzbekistan?
2016
AGRICULTURAL
PRODUCTS
$470,783
CHEMICALS
$4,772,570
FOOD &
BEVERAGE
$411,071
ELECTRICAL
EQUIPMENT,
APPLIANCES &
COMPONENTS
$2,700,636
TRANSPORTATION
EQUIPMENT
$250,661,794
SPECIAL
CLASSIFICATION
PROVISIONS,
NESOI
$25,486,850
COMPUTER AND
ELECTRONIC
PRODUCTS
$16,657,309
MACHINERY,
EXCEPT
ELECTRICAL
$10,095,629
Source: Foreign Trade Division, U.S. Census Bureau

6. What did Uzbekistan sell to the United States?
2016
WORKS OF
ART,
COLLECTORS'
PIECES AND
ANTIQUES
$1,176,152
BEVERAGES,
SPIRITS AND
VINEGAR
$208,764
CARPETS AND
OTHER TEXTILE
FLOOR
COVERINGS;
APPAREL
ARTICLES AND
ACCESSORIES
$145,100
COTTON,
INCLUDING
YARN AND
WOVEN
FABRIC
THEREOF
$2,078
EDIBLE FRUIT
& NUTS;
CITRUS FRUIT
OR MELON
PEEL, CERTAIN
ROOTS &
TUBERS
$2,489,134
COFFEE, TEA,
MATE &
SPICES, OIL
SEEDS, ETC.
$1,636,578
MACHINERY &
PARTS
(REACTORS,
BOILERS, ETC)
$1,104,854
INORG CHEM;
PREC & RARE-
EARTH MET &
RADIOACT
COMPD
$21,902,892
Source: Foreign Trade Division, U.S. Census Bureau

7. Why Uzbekistan?
The Government of Uzbekistan aims to attract $30 billion of investments to
the oil and gas industry through 2021, thus, offering export opportunities for
gas extraction, transportation and processing technologies.
External demand for food products produced in Uzbekistan creates export
opportunities for suppliers of food processing and packaging technologies
Uzbekistan is developing its transportation infrastructure, including
interconnections with major transcontinental corridors. The national railway
company intends to modernize its fleet of locomotives.
Uzbekistan is open to look into business partnership opportunities with U.S.
companies in any sectors of economy, including energy & agriculture.

8. Why the United States of America?
The United States is world renowned for high-quality, innovative goods and
services, best business practices and superb customer service
The United States is a world leader in an industry-specific business problem
solving and launching turnkey business operations around the globe
The United States is known for excellence in education, training and
capacity building for public and private entities
The business ecosystem of the United States enables all businesses access
to investments and facilitates development of new products
United States is a world leader in product innovation, manufacturing,
branding and marketing, and a highly skilled workforce.

9. Access to industry-specific knowledge
Access to foreign capital
Freedom of Contract and Law
Access to business & political risk insurance
“Halo Effect” protection in domestic investments
Benefits and advantages of having U.S. business partner

10. International Finance Institutions:
U.S. Government financial Institutions: U.S. Accelerator & Incubator Programs:
Your Potential Business Partners in U.S. and beyond

11. OPIC’s presence in select businesses of Uzbekistan

12. • PESTEL factors
– Political
– Economic
– Social
– Technological
– Environmental
– Legal
• Individualistic Society vs Collectivist Society
• Differences in ways of doing business
• Culture, Language and Social attitude
• Intracompany culture
Marketplace: Opportunities and Challenges

13. Why You? & Why Your Product?

14. Supply vs. Demand

15. Supply vs. Demand

16. WCC International, Inc. I 10411 Motor City Drive STE 750 I Phone (+1) 301.202.8586 I www.wccinternational.com I office@wccinternational.com
Primary Market Research Secondary Market Research
- Interviews with potential customers
- Surveys and Focus groups
- Talks with prospective buyers
- Talks with intermediaries
- Statistics / Data
- Official & Scientific Publications
- Specialized database
- Internet Blogs, Books, etc.
Tools and Methods for Market Research

17. Atlas Media MIT Lab
https://atlas.media.mit.edu/
Useful Links for Market Research
http://databank.worldbank.org/
https://www.cia.gov/library/publications/the-world-factbook/
World Bank’s World Integrated Trade Solutions: http://wits.worldbank.org/
International Monetary Fund: http://www.imf.org/en/Countries/
http://www.nielsen.com/
http://www.eiu.com/
http://www.pewinternet.org/

18. Embassies,
Consulates
Government
Bodies
Buyers / Sellers
Distributors,
Agents
Trade
Associations
Research &
Marketing Centers
Diaspora / Ekspats
Suppliers and
Manufacturers
Who can help you to find a market for your products?

19. Trade
Shows
Government
Agencies
Internet presence
White Paper
Referrals
Webinars
Product demos
Search
Channels
Trade Missions
Social media
Where & How to find the Buyer?

20. Select International Trade Events in the U.S.

21. Organic and
Natural
RTD and RTE
food items
Fruit and vegetable
juice
Food condiments
and additives
Jams and preserves
Dairy
products
Summer Winter
Herbs &
Spices
Sweets and Pastries

22. 1
Source: The World Bank: https://data.worldbank.org
GDP per Capita / Country Comparison (2016 est.)
Tajikistan $2,985
Kirgizstan $3,557
Uzbekistan $6,525
China $15,559
Turkmenistan $16,908
Russia $25,331
Kazakhstan $23,162
European Union (ave.) $35,632
United States $57,638

23. USA $5.30 (0%)
Eurozone $4.47 (-15.8%)
China $2,92 (-45%)
Turkey $3,01 (-43%)
Russia $2,28 (-57%)
Ukraine $1,70 (-68%)
Last update: July 30, 2017
The Big Mac Index

24. Premium pricing
Penetration pricing
Value/Economy pricing
Psychological pricing
Geographical pricing
Product line pricing
Product / Service Pricing
PAY AS YOU GO
$0.99 vs $1.00

25. WholesalerSupplier Manufacturer Distributor Retailer Consumer
B2B
B2C
WCC International, Inc. I 10411 Motor City Drive STE 750 I Phone (+1) 301.202.8586 I www.wccinternational.com I office@wccinternational.com
Where are you along the supply chain?

26. Direct sale
Sales through retail channels
Retailer
B2B
B2B
B2C
B2G
Direct Business to Government sale
Sales & Distribution Options
Wholesaler
Supplier
Retailer
Consumer
Consumer
Government
Consumer
Supplier
Supplier
Supplier

27. Why You? & Why Your Product?

28. Freeze drying solution for small farms

29. U.S. businesses can help you find:
ü Machines, Components and Spare Parts
ü New, Used and Refurbished Equipment
ü Maintenance, Service and Tech Support,
ü Education and Training
Packaging and Processing Solution Providers

30. Value
Proposition
Right price
Right quality
Right quantity
Consistent
supply
Satisfactory
terms
What do foreign buyers expect from your offer?

31. • Channel
• Inventory
• Logistics
• Distribution
• Advertising
• Sales Force
• Publicity
• Sales promotion
• List Price
• Discounts
• Credit terms
• Bundling
• Brand
• Packaging
• Functionality
• Services
PRODUCT
4
PLACE
PRICE
PROMOTION
The Marketing Mix Concept - 4Ps

32. Value to Your
Customer
Value to End
Customer
Price
Accessibility
Service
Intellectual
Property
Novelty
Unique features
What do you need to show to your customers?

33. Consumer eye-tracking research shows that
the STANDCAP Pouch performs significantly
better than rigid packaging in attracting and
keeping shoppers’ attention.
Product Innovation and Product Appeal
A leading brand experienced a sales
increase of 69.7% when offering an
existing product in the STANDCAP Pouch.
A Package Can Increase Sales by 69.7%?

34. Unique U.S. Products: Export of Goods and Services

35. Unique U.S. Products: Export of Energy Solutions
POWER STORAGE
5 FULL HOURS
25 KW MODULES · 20 YEARS

36. Unique U.S. Products: Export of On-Demand Training
Governments I Libraries I Universities I Corporations I Business Associations
LEARNING
SOLUTIONS
FOR:

37. Unique Products: Export of Goods
GREAT FOR:
- SMALL FARMS
- BREWERIES & WINE CELLARS
- DAIRY, POULTRY & MEAT
- RESTAURANTS & GROCERY STORES
- FLORAL, PLANTS, NURSERY, ETC.

38. Export of Services vs. Export of Goods
Export of Services
Construction, design, and engineering
Banking and financial services
Insurance services
Legal and accounting services
Computer and data services
Educational Services
Services in support of Product exports
Export of Goods
Food & Beverage
Durable Goods
Nondurable goods
Agriculture
Computers & Electronics
Oil Gas and Minerals

39. Distributor/SF
Support program
New Account Discounts
Participation at trade shows
and advertising programs
within their network
Quarterly, Semiannual &
Annual Discount programs
(pass-onto-consumer)
Support to sales agents and
sales brokers within
distributors' network
Retailer/Rep
Support program
New Account Discounts
Participation in In-store and
online sales promotions
Participation at special
programs/events, CSR
fundraising projects, etc.
Organization of In-store and
Out-of-store demos and other
promo activities
Marketing & Sales Support for Distributors / Retailers

40. Distributor Support Program (Sample)
•Offer free goods or cash equivalent necessary for a new
distributor;
•The amount is negotiable (assumptions should be
included)
New Distributor
Allowance
•Distributor Ad Program
•Trade Show Program: Distributors may require you to
participate at their trade shows 1 or 2 times a year
Advertising
•Plan once a quarter for a O/I program with 15-25% off
and request that it be passed on to the retailer.
Off Invoice
Allowance Program
•Some sort of contest or "spiff" for the salesmen
•Depends on what distributor will allow you to do.
Distributor Salesmen
Placement Program
•When distributor accepts your products you hire sales
brokerage firm that works with a retail company where
your products have been presented.
Sales Broker Fee

41. Retailer Support Program (Sample)
•Slotting as this is sometimes called. Once you are a
vendor in any part of a chain operation, you are a
vendor in all of their regions.
New Vendor
Allowance/Free Fill
•You should have a website for your product or service you
offer to consumers and digital advertising program
Website and Internet
Marketing Program
•Very effective means of attracting attention to a product
in a crowded category. Other options include shelf
signage and pieces that define your shelf position
Ads: Special Retailer
Designed
Communication Device
•Price reduction to "club" or "special" members
Scan
Program/Promotions
•In-Store Demos to reach potential consumers by offering
samples. Discount Coupons (digital and paper-print
coupons) and In-Store Advertising, Club Card Programs,
Customer mailer program, etc.
In-Store Demonstrations

42. Direct Mail Campaigns
Retractable Banners
Sale SheetsProduct Demos
Booth Setup Product demo stand
Marketing Collateral for Trade Shows and In-Store Promos
Shelf danglers,
tags, etc

43. Product Localization & Adaptation
Product Naming
Text and Graphics
Culture
Region
Language
Symbols, icons and colors
Numeric, date and time formats
Container size (if applicable)
Legal and other requirements

44. • Purchase potential in foreign markets
– Customer segment: B2C, B2B, B2G New P2P
– Demography: population, age, gender,
– Spending power, PPP
– Foreign government as a Buyer
– Foreign Government as a Business Partner
• Infrastructure for product shipping, warehousing and delivery to customer
– Geography
– Logistics
– Technical parameters: electricity (220V vs. 110V)
– Differences in packaging, size and weight
– (1 Litr / 33.8 Fl.oz. / 1 LBS / 540 Gr)
Marketplace: Opportunities and Challenges

45. Food Safety Certificates and Standards

46. Ingredients, Packaging, Labeling and Dating Requirements
Best if Used by:
September 12, 2017
Sell by:
September 12, 2017
Best if Used by:
09/12/2017
Not Recommended
Two Piece
Wine Label

47. Ugly Product names

48. Common mistakes companies always do in exporting

49. The Federal Alcohol Administration Act (FAA Act)
l State laws and regulations
Laws & Regulations on Food, Beverage and Alcohol
l US Code of Federal Regulations, Chapter 19 CFR
l US Tariff Act of 1930
The Bioterrorism Act of 2002
The Federal Food, Drug and Cosmetic Act
Fair Packaging and Label Act
Nutritional Labeling Education Act
The US Harmonized Tariff System (HTSUS)

50. Limits on sales at grocery stores, online or direct
Restrictions as to mailing, importation, marketing, distrib.
l Sales and Excise Taxes, Duties, etc.
Laws & Regulations on Food, Beverage and Alcohol
The three-tier system of alcohol distribution
Federal Basic Permit (plus ABC license)
Certificate of Age and Origin (Natural Wine Certificate)
Certificate of Label Approval Requirements (COLA)
Proper marking for products
Manufacturer and Importer Registration with FDA
Prior Notice with FDA

51. Landed Cost of Imported Products
Shipping Customs Risk Overhead
Landed
Cost
Crating
Packing
Handling
Freight
Duties
Taxes
Tariffs
Brokers fees
Harbor fees
Customs bond
Insurance
Compliance
FDA Exam Fees
Quality
Safety
Purchasing staff
Due diligence cost
Travel
Exchange rates
L/C charges
Bank Interests
– Certificate of Origin
– GSP Certificate (if applicable)
– Other documents (depends on goods entered)
• Import/Export Documents
– Power of Attorney (CBP)
– AWB / Bill of Lading
– Commercial Invoice / Consular Invoice

52. GTİN
General (Product) Liability Insurance, UPC and Bar Codes
UPC EAN

53. Intellectual Property Rights in Exports
(TM, SM, Trade Secret, Patent, ®)
l Types of Intellectual Property
l Product Design, Trade Secret (Formula)
ü Company’s brand image expressed via its trademark
Export plan and strategy as a “trade secret”
Brand Confusion and Brand Dilution
Hard to enforce if it is unprotected
P

54. Private Label vs Brand Name
Brand owned
by
• Producer
• Manufacturer
Private brand
owned by
• Retailer
• Supplier

55. Brand Dilution vs Brand Confusion

56. Geographic indicators: Cognac vs Brandy

57. Open account
Other forms
of payments?
Cash in advance Letter of Credit Progress paymentsEscrow payments
Export credit insurance Export factoring
Forms of Payment in International Trade
- Pay-As-You-Go
- Mobile phone (SMS)
- Scratch cards, etc.

58. • What distribution and delivery medium do you use?
• Work experience, capacity and client base of the intermediary?
• Product sales via e-commerce platforms: Direct-to-Consumer, Fulfillment and Dropshipping
B2B: B2C:
Product distribution and delivery to a customer
E-Commerce platforms
Distribution and delivery platforms

59. Merchant Account Solution

60. Merchant Account Solution
Merchant Account allows:
ü Accept local and global
payments
ü Connect your local bank
account
ü Track expenses, bills and
sales taxes
ü Customize and create
unlimited invoices and
estimates
ü Add partners, investors
and other collaborators
ü Prepare accounting and
bookkeeping reports
ü Integrate various
payment options like
PayPal and Stripe

61. TIME TO ASK
QUESTIONS
Q/A
WE HELP BUSINESSES BUY & SELL
ACROSS BORDERS HASSLE-FREE
WCC International, Inc.
10411 Motor City Drive, STE 750
Phone (+1) 301.202.8586
office@wccinternational.com
www.wccinternational.com

62. WE HELP BUSINESSES BUY & SELL
ACROSS BORDERS HASSLE-FREE
Thank You for Your Attention!
WCC International, Inc.
10411 Motor City Drive, STE 750
Phone (+1) 301.202.8586
office@wccinternational.com
www.wccinternational.com