2-day Workshop on Selecting SMEs for Participation in International Trade Fairs

Mercantile Athletic Club, Jakarta15 – 16 August, 2016

Program undertaken with the financial supportof the Government of Canada provided through

Global Affairs CanadaTPSA program is executed by

In partnership with

Workshop delivered by

© Trade Facilitation Office Canada 2014

This presentation is produced with the financial support of the Government of Canada provided through the Department of Foreign Affairs, Trade and Development (DFATD)

Training Workshop How to Select SMEs for

Participating in Canadian Trade Shows

JakartaAugust 15-16, 2016

Welcome!•Purpose and Objectives of the Training Workshop

•Benefits for the Participants

•Methodology and Workshop Overview

•Trainer Introduction

•Participant Introduction3

Preparatory Brainstorming Exercise

What do you know about Canada ???

General knowledge

Commercial aspects about doing business in Canada

Specific knowledge about trade shows in Canada

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Some possible answers… General: Big? Cold? Far? Small? Country of Immigration? French?

English?

Commercial aspects: similar to the USA? Strict? Demanding? Big quantities? Too far? Costly?

Trade Shows: Do not know much? SIAL?

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To situate you…

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Case Study no. 1

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Different Kinds of Shows in Canada

Retail shows directed at the general public:Examples: Home and Garden Show in Ottawa

Salon des Métiers d’Art in Montréal (crafts)The Outdoor & Adventure Show in VancouverCanada Blooms Flower and Garden Show (fresh flowers, garden supplies – Toronto)

• Trade shows directed at the trade: buyers at different levels in the buyingprocess Examples: SIAL, IIDEX, The Apparel/Textile Sourcing Show

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Different types of shows target different audiences/groupsin the buying process

Different Kinds of Trade Shows in Canada - continued

Categories of trade shows targeting buyers:

• Shows that target retailers or specific buying groups in Canada:Examples: The Montreal or Toronto Gift Fair (CGTA)

Main audience/visitors: retailers mostly in CanadaSIDIM (Salon International du Design de MontréalMain audience: Interior Decorators

• Shows that target wholesalers and that attract foreign exhibitors and are open to the trade:

Examples: SIAL – held in both Toronto and MontrealThe Coffee and Tea Show (Toronto)Main audience for both shows: wholesalers and retailers

• Shows that target wholesalers and retailers but are closed and requiremembership to the trade association:

Examples: CHFA Show in Montreal (health foods)Expo Prestige in Montreal (Jewellery) 9

Managing Expectations: Canadian Shows by Comparison…

SIAL Canada:

• 15,000 visitors

• 60 countries participated (exhibiting and/or visiting)

• 850 exhibitors

COFFEE & TEA SHOW CANADA:• 150 exhibitors

• 7 countries

• 2,200 trade visitors

Trade Shows / other countries:

• Anuga, Germany: 159,000 exhibitors; 108 countries exhibited and 7,200 exhibitors.

• MAGIC, Las Vegas, USA: 15 different shows under one roof

• Fancy Food Show, New York, USA: 2,400 exhibitors from 50 countries, 47,000 visitors.

• Gifts and Home China, Shenzhen: 9 exhibition halls, 150,000 visitors, 3,600 exhibitors from 10 countries (Asia)

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When Analyzing whether or not to Participate in a Specific Show…you must:

Do your homework:-Who is the audience?

-What kind of products are being showcased?

-The number of exhibitors? The number of off-shore exhibitors? The number of COUNTRIES that are exhibiting (and have pavilions)?

-The cost of attending? Is the visit worth it?

Tools available:

-The web, The show website, Trade associations, Your Trade Representative in Canada, TFO Canada…

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Example of Tools available: www.tfocanada.ca

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Further breakdown – TFO website

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Further breakdown – individual show site:

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Other sites to visit for preliminary research on trade shows in Canada:

-eventsinamerica.com (includes Canada)

-eventseye.com (world)

-tsnn.com (most complete)

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Exercise 1

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Some Benefits and Challenges / Pros and ConsBenefits

• Canada: an ideal size for SMEs

• Canada: a stepping stone before entering the larger US market

• Establish a strong name/brand for Indonesia - visibility

• Expand Indonesian exports to Canada, sales

• Experience, closer customer contact

• Visualizing the marketplace, face-to-face meetings

• Others?

Challenges

• Distance, climate

• Unknown market, strict requirements, highly competitive…

• Costly exercise

• There may be more attractive markets closer to Indonesia

• Others?

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The Canadian MarketMarket Characteristics and Trends in the Markeplace

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Exercise 2

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General Market CharacteristicsSome Characteristics:• Large country (area) but relatively small market (36

mi.), divided into 6 main regions

• Slow but stable economy (G7)

• Two official languages: English (dominant) and French (25%)

• Demanding and competitive market

• Proximity to the USA market, although different laws and regulations

• Urban market

• Well-educated consumers (product knowledge)

• Highly computer savvy consumers

• A country largely based on immigration

• 4 distinct seasons

• Very high Imports per capita

Implications:• Good size for SMEs

• Bilingual Packaging on consumer products throughout the country

• Regulations must be clearly understood in the preliminary stages of the export process, stringent

• Canada a stepping stone probably possible once market has been established

• Market highly concentrated, Toronto, Montreal and Vancouver being the 3 largest markets (and majority of buyers in these cities)

• Easy access to information. Therefore product information must be accurate and relevant

• Ethnic components in many products highly relevant (ethnic food, new flavours, away from the traditional Canadian palate)

• 4 shorts seasons: very well defined – time constraints – products not the same as in Indonesia – cold weather: extremely different clothing required

• Imports from all over the globe: highly competitive marketplace 20

General Market Characteristics and Demographic TrendsMajor Trends:• Health conscious consumers

• Organic: a way of life

• Fair Trade: gaining grounds

• Environmentally conscious consumers

• Sustainability

• Time is precious, fast-paced

• Social media influences

• Population is getting older

• Increasingly informal (much like the whole of North America)

• Greater exposure to multi-culturalism

• Corporate Social Responsibility (CSR)

• Gender Equality

• OTHERS???????

Implications:• Healthy foods, healthy ingredients, healthy snacks,

organic products, certification required

• Recycled products, recycled packaging, biodegradable substances

• Products based on convenience: quick to cook, wrinkly free clothing, individual portions, easy to cook

• Easy to open products, health-related products

• Relaxed clothing as opposed to formal wear

• Increase in ethnic foods and ingredients

• Companies caring about community (social programs for youth and other)

• Employment of women in all levels of workforce

• Products, processes, plants that are developed to be sustainable.

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Relatively new concepts that are becoming mainstream quickly…

• CSR:• Corporate Social Responsibility (CSR) is defined as “the voluntary activities

undertaken by a company to operate in an economic, social and environmentally sustainable manner” – Global Affairs Canada

Examples:• At the company level: helping youth education programs in the community; • At the government level: important component in a bilateral trade agreement with

another country;

• Gender Equality:• Gender equality refers to the equal rights, responsibilities and opportunities of women and

men and girls and boys. Equality does not mean that women and men will become thesame but that women’s and men’s rights, responsibilities and opportunities will not dependon whether they are born male or female. Gender equality implies that the interests, needsand priorities of both women and men are taken into consideration, recognizing thediversity of different groups of women and men – UN Entity for Gender Equality and theEmpowerment of Women.

• Implications at both the government and corporate/company levels22

Tools to access general information to evaluate the market?

Different sources available: TFO Canada (www.tfocanada.ca) Access Canada: A Guide on Exporting to Canada Market studies:

-Apparel & textiles -Organic, ethnic & fair trade foods-Beverages -Processed foods-Dried food, nuts and spices -Furniture-Fishery & seafood products -Footwear-Home Décor, housewares and handicrafts -Manufactured foods

Trade Statistics (www.ic.gc.ca/tdo) – Trade Data Online – or Statistics Canada (www.statcan.gc.ca) – Imports by product, imports by country, by province…

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Tools to access general information to evaluate the market? - continued

Different sources available:

Global Affairs Canada (www.international.gc.ca) – information on trade agreements, trade restrictions…

Canadian Food Inspection Agency ( www.inspection.gc.ca) – AIRS database to get import requirements for specific food products (including labelling, marking…)

Canada Border Services Agency (www.cbsa-asfc.gc.ca) – Tariff and other entry requirement and restrictions

Competition Bureau (www.competitionbureau.gc.ca) – Marking and labelling – non-food products (clothing and textiles…)

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Search for Sector-Specific Information:How to access sector-specific information:-Trade association publications and magazines:

-Examples: -Canadian Organic Trade Association (COTA)

(www.ota.com/canada-ota)

-Canadian Produce Marketing Association (www.cpma.ca)

-Canadian Coffee Association (www.coffeeassoc.com)

-Actual show sites of the trade shows – can provide valuable input on what products are showcased and competitors whoa re exhibiting – even from the previous year…

-Examples: - SIAL Canada (www.sialcanada.com)

- The Canadian Coffee and Tea Show (www.coffeeteashow.ca)

-Your Indonesian Trade Representatives in Canada (Embassy, Consulates…)-Internet searches on buyers in Canada 25

Case Studies no. 2,3 and 4

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Exercise 3 – Ranking in terms of importance…

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Some Positive and Negative Points Case Studies 2,3 and 4

Positives:• Can meet export capacity

• Export Experience

• Good communication skills

• Environmentally friendly

• CSR considerations

• Good Product evaluation

• What else???????

Negatives:• No promotional material

• No website

• Does not speak English

• Lack of dedicated resources to export

• No export plan/price list and other requirements

• Little or no follow up

• Takes forever to reply – lack of respect?

• Any more????? 28

Which Criteria are Essential? Which are “good to have” ???

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Question to ask ourselves: will the ranking change from show to show or can it be used

across the board

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Scoring• Is it always necessary? Certainly a Best Practice in many countries…

• What criteria should be part of the scoring system? Essential ones? Non Essential ones too? Just one group?

• Ask yourselves: Will this scoring system be universal or just for certain shows? Good for exhibiting in other countries?

• KEY: KIS!!!!! – Keep it Simple

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Exercise 4 – Scoring

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Scoring…

Essential Criteria:

• Is scoring needed?

• Why? Why not?

• Back or white?

Non Essential but “Good to have” Criteria:• Is scoring needed?

• Why? Why not?

• Grey area?

• Needed for ranking?

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Option:

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Criteria: Weighting Score: CompanyAssessment

Score:

Total Score (Weighting Score

multiplied by Company

Assessment Score

A-Has website 5 5 25B- CSR Program in place

3 0 0

C- … 3 4 12D-… 1 1 1

FINAL SCORE: 38

Weighting: from 1 to 5, where -5 is extremely important-4 is very important-3 is important-2 is an asset-1 is somewhat important

Company Assessment, from 1 to 5, where:-5 is “exceeds” -4 is “definitely meets”-3 is “meets”-2 is “somewhat meets”-1 is “meets with difficulty”-0 is “does not meet at all”

Different Scales

Exercise 5 – Scoring the Case Studies (If time permits)

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Creating an Application Form• Essential to get the same type of information for every candidate

• Gives you possibility to do comparatives

• Easier to score and evaluate potential/participation

• What style should the form have? In what language?

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Exercise 6 – Creating an Application Form

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Do’s and Don’ts to ensure success in selecting the right exhibitors and in having a great show:

What to do• Plan ahead!!! Both in the show

selection and in participant selection –the earlier the better!!!!

• Target: work 9 to 12 months in advance. Not always doable but…

• Use the available resources (mentioned earlier) in Indonesia, on the internet and in Canada

• Establish a constant communication flow with the selected participants to create a good working relationship before the show…(skype or other)

• DGNED to take leading role with SMEs – not the other way around.

What not to do

• Avoid last-minute wonders

• Don’t jeopardize quality for quantity. Best to have fewer excellent participants than more participants but who do not correspond to targets

•What else?

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Exercise 7 – The Planning Process

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The Planning Process – Before the Show (12 mo to 1 mo):

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Secure Booth Space

•Make down payment

• Select booth location

•Determine exhibit concept and requirements

• Select booth designer

•Get show kit

Plan Promotion

•Determine how you will promote your exhibit: in show guide? TFO? Other?

•Determine sequence of promotion

•Decide on printed matter

OrganiseLogistics

•Make detailed budget•Make hotel

arrangements• Secure freight forwarder

for samples•Get detailed information

on companies and products

•Determine booth requirements (electrical needs…)

•Determine booth staffing needs (students?)

•Organise a reception?

Get Exhibitor Information

• Company & product descriptions

•Write promotion pieces and press releases

•Get Travel details

• Information requirements: price list, pictures, promo material…

Make it happen

•Make appointments with buyers at the event (specific meeting times at the booth or at their booth)

• Send promotion pieces

• Prepare briefing and individual agendas for participants

• Prepare evaluation

The Planning Process – During and After the Show:

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Introducing the Market

•Give a short briefing (market intro, logistics, hours (be on time!!!)

•Do a retail tour• Ensure early arrival and

daily clean up of stand with participants

•Give show kits and individual agendas

•Organise booth set up

At the booth

• Ensure each participant goes to pre-set appoint-ments

• Participate in networking events and seminars

• Ensure the booth is manned at all times

• Try to walk the show to get additional trade contacts

Towards the end…

• Plan a de-briefing to determine overall success of the event

• Plan the dismantling of the stand

•Determine what the results of the show were in terms of short term and medium term – get an indication of how the participants fared

Follow up

• It is your role as well as that of the participants to do follow up ASAP to capitalise on the momentum gained form participating in the show…

Recapitulation

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@TFOcanlinkedin.com/TFOCanada

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Marc B Germain, MBAAssociate and Regional Representative for QuebecTFO Canada130 Slater Street, Suite 300Ottawa, ON Canada K1P 6E2marcbgermain@tfocanada.ca

T: (01) 514-397-0113

Terima kasih

www.tfocanada.ca