Fear Factor Asia

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Presentation for small and medium sized businesses looking to sell into vs.import from Asia

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Fear Factor Asia

  1. 1. Fear Factor – Asia What you don’t know, you don’t know and why you should not fear going to market in Asia (or other emerging markets for that matter) Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  2. 2. What is so mysterious about doing business in Asia? Nothing And Everything Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  3. 3. What can you hope to gain from a few short minutes together? A brief idea of what you will need as a foundation to go to market. What type of learnings are necessary And what type of market intelligence is necessary so when you invest in going to Asia, you will know that there is a lot you don’t know… and you can begin to do something about that – from the get-go. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  4. 4. The first thing? We all think CHINA We all should think… Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  5. 5. We should all think….. Singapore Thailand Korea Malaysia Vietnam (safest country) Philippines (90% literacy – English primary language) Japan (in spite of aging market– want the best of the best India (world’s largest middle class) Indonesia Australia New Zealand China (Taiwan, Hong Kong) – great quality in goods …….and others. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  6. 6. What is the point of thinking Pan-Asia vs. China? Simple. Virtually all the countries are emerging as opportunities to conduct business in – either selling or buying. And many of them have an economic backbone of “middle class” consumers that are aspiration oriented Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  7. 7. This is what Carrefour has said (the biggest retailer in Asia) “We are expecting a great deal from this area. We have been doing business in Asia since 1989, and we are very familiar with local customs and trends. We believe the rapid changes in consumer patterns in the countries where we do business are promising. Asia is the continent with the greatest potential for long-term growth for the Group” Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  8. 8. This is what Wharton’s Professor Zang said (marketing focused on retail, pricing advertising,etc.) “The country is moving very fast. Never in my dreams could I imagine that a country this big with this many people could move so fast. It’s astonishing to me, and probably to most people in the world” Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  9. 9. But while it all may sound rosy, you need to understand the dynamics going on • Northern Asia: Politically expected to remain stable, and economic growth will be positive. – Korea: Middle class expected to grow, purchasing power of young, married adults will grow and convenience/fashion items will be attractive – China (PRC): Economic trends with eye on world-class political and financial clout married to “old way” networks (PRC estimated to have min 40% of total world textile business), and Olympic hosting will help drive purchasing power and interest in convenience food. But many foreign investors say China is already the most competitive market in the world, and it's likely to get tougher – Japan: Emerging from 17 year old recession, older married couples having first child, and dual incomes will help grow home product categories, but it is an aging market Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  10. 10. But while it all may sound rosy, you need to understand the dynamics going on •Southern Asia: Politically expected to remain unstable for ‘10. warnings signs are prevalent. –Philippines: 90mm population but 68% below poverty, political instability/terrorism/military build up, one of most dangerous places for journalists in world –Thailand/Malaysia: business environment predicated on unknowns that may effect shipping and manufacturing business - impacting on purchases of premium products but on the positive side, becoming a center for best of breed medical procedures Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  11. 11. But while it all may sound rosy, you need to understand the dynamics going on •Sub-continent –India continues to have high trade barriers for entry. –You definitely need a “guide” to navigate the waters of entry -- both financial and political –It is the largest middle class in the world, but there are few big stores for distribution of products and you need to rely heavily on strong distributors Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  12. 12. That not withstanding – each of you should examine the great potential of Asia •40%+ of all wooden furniture is now coming out of China to US •With China’s “almost fully executed” commitments to the WTO including most WFOEs (wholly foreign-owned enterprise), all the other Southeast Asian countries will grow by the “spill over” effect from China not keeping pace with the needs and production goals of manufacturers as global economincs improve. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  13. 13. The real question today is how do you go to market and where do you start. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  14. 14. To start, you can pay men and women like me from the to do all the work, or begin the education on your own Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  15. 15. Export.gov is the place to start • What is Export.gov? Export.gov is the portal to all export-related assistance and market information offered by the federal government. Whether you're looking for trade leads, free export counseling, or help with the export process, Export.gov is your first step in growing your international sales. Export.gov Newsletter • Register to receive monthly updates on feature articles, trade events and new market reports. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  16. 16. And you can go visit (hands on learning is the best learning – gives you all sorts of competitive intelligence) Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  17. 17. Nor is it expensive to go Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  18. 18. There is a wealth of information here Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  19. 19. There is a wealth of information here Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  20. 20. There is a wealth of information you can link to Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  21. 21. And other sites that are just as comprehensive as the “dot gov” site. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  22. 22. But you need to take the first step • Export Phobia Fear comes naturally to anyone new to exporting. Fear of the unknown, or lack of information, is one of the reasons that many businesses that are doing well nationally are reluctant to engage in exporting. • Fear of the unknown encourages deeper thinking. By thinking and careful planning, the risk of failure in exporting can be reduced. Never allow fear to impede exporting. Exporting is vital to the growth and prosperity of the company and the country. • The process of exporting is not like a walk in the park. Neither is the process like mastering Beethoven's piano sonatas and concertos. Exporting is never easy but it can be learned and can be done well. The process of exporting is challenging! (from Export911) Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  23. 23. And steel yourself for a rollercoaster experience • Export Mindset The business ground is a battleground. Exporting, like any other business, involves risks. It is necessary to prepare for the challenges and the consequences. Engaging in exporting is akin to engaging in a war. It is a war of price, quality, delivery and service. It is a battle for the business orders. It is a fight for the company's survival---profits and growth. In practice, rough strategies are often used by some exporters in order to win contracts. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  24. 24. It won’t be easy Overnight export success will not happen. Short-term export profits rarely occur. Exporting requires long-term commitment from management and employees. Dedicating long hours to the business is necessary, especially for the fledgling exporter. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  25. 25. Remember, it’s a rollercoaster ride not a trip in a Mercedes • New exporters will usually encounter lots of unanticipated problems. • Problems cannot be solved by panicking. • There is always a solution to a problem. • Learning from experience is indispensable. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  26. 26. And that’s where a plan comes in • Here is the way I would go about the first 90 days after biting the bullet and saying I want to jump into business in Asia Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  27. 27. 100 day action plan I. Gain Understanding of Country Sales and Distribution Practices Detail Current Sales & Distribution Practices from Strategy Development/Account Specific Plan Implementation to Management Controls among competitors, if any Document Sales Planning practices related to sales volume, goal setting and attainment to key business drivers (Distribution, Shelving, Merchandising, & Pricing) Evaluate Criteria being used to capture key learnings influencing past business performance and support future planning. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  28. 28. Develop Competitive Knowledge Base Gain Marketplace Insights to Trade and Supply Chain Practices, and Retail Conditions Evaluate Wholesaler and Distribution Networks Develop Criteria for Wholesale and Distribution Partners Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  29. 29. About that “Distributor” Ask how they will: • Do Sales Planning from Volume Goal Setting to Budget Establishment • Work with you on Account Planning with respect to Distribution, Shelving, Merchandising, and Pricing • Agree to Trade Terms and Conditions of Sale • What they will do on their own for Instore Promotional Activity (Push Girls, Slotting fees, Extra Display, etc.) • What are the Key Account handling systems, practices, and competencies • Run your Sales Management Team • Manage in country logistics • Distribution by Trade Type • Distribution by Account • Controls, Controls, Controls and Reporting Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  30. 30. Sales Development Action Plan Develop Competitive Knowledge Base Gain insights into who is doing what Marketplace Success Retail Clout Trade Relationships Wholesale/Distribution Network Sales Go-To-Market Strategy Sales Force Profile/Size Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  31. 31. Sales Development Action Plan (continued) Perform Comprehensive Marketplace Assessment Trade Assessment Conduct Trade Interviews in HQ of Global and Key Local retailers to probe and gain insights into: Development Strategies Management Styles Economics Supplier expectations and supplier best practice Wholesaler-Distributor Assessment Interview principals and sales managers of Prospective Wholesalers Probe current capabilities, and development potential Develop criteria for the selection of suitable wholesaler partners by region/city Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  32. 32. Sales Development Action Plan (continued) Formulate a Best Effort Sales Plan Work closely with in-country team to develop comprehensive Sales Plan Develop Sales Planning Process Develop ‘Go-To-Market’ Strategy Identify Trade Terms and Conditions Margin Strategy Price Lists Discount and Rebate Plan Provide Criteria for Distribution / Wholesaler Selections Key Requirements Decision Selection Template Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com
  33. 33. Thank you… and welcome to the world of doing business in (Pick a country, almost any country that’s an “emerging market”) . You’ll love it. Trade Harry Falber Area 203.557.4150 (office) Marketing 203.858.0279 (mobile) Group harry@tradeareamarketing.com hfalber@gmail.com

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