How to Survive and Thrive in Emerging Markets 2

HOW TO SURVIVE AND THRIVE IN

EMERGING MARKETSALBERTO QUIROZ, CITP

6/9/2014ALBERTO QUIROZ CITP, P.ENG.

• 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


WEBINAR OBJECTIVES

FOUNDATION FOR A SUCCESSFUL MARKET ENTRY


• What SMEs need to have before taking a step into fast-growth emerging markets.

1. SWOT analysis2. Plan3. Market Study4. Marketing Plan5. Logistic Analysis 6. Financial Plan7. Legal Analysis

HELP ALONG THE WAY


• 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

https://www.tradecommissioner.gc.ca/

http://www.fit.ca/

http://www.cbsa-asfc.cg.ca/export/menu-eng.html

HELP ALONG THE WAY


•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

http://www.edc.ca/

http://www.ccc.ca/

http://www.bdc.ca/

http://www.cme-mec.ca/

http://www.ciffa.com/

SUCCESS STORIES 1


• 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

SUCCESS STORIES 2


• 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

INDIRECT EXPORT - DISTRIBUTION


• 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.

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.


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.


OTHER TYPES OF MARKET ENTRY


•Licencing

•Franchising

•Partnering

•Acquisition

TIPS AND RESOURCES FOR ENTERING THE EMERGING MARKETS WITH SUCCESS


• 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


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


6/9/2014


• Marketing Plan

• Promotion in local language (web-print)

• Presentations-Cultural barriers

• Relevant testimonials

• Samples



• 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



• Legal Analysis

• Contracts (with customers and suppliers)

• Jurisdiction

• Exit Strategy

• Social Responsibility

• Corruption

• Rights if un-paid.

PITFALLS TO AVOID WHEN ENTERING EMERGING MARKETS


• 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

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


http://www.fitt.ca/diagnostic-tool

THANK-YOU

www.fitt.ca


AND

How to Survive and Thrive in Emerging Markets 2

Documents

Transcript of How to Survive and Thrive in Emerging Markets 2