REQUISITOS DE COMPRADORESFlores Exóticas

Part II: Export guidelines – diversifying markets

• Going East – Czech Republic caseWhy to venture into new markets Trade channels Existing and future opportunities

• Business practices Product marketing Delivery, payment, services

• Unexplored and unexploited

• Alternative to saturated markets

• Smaller companies targetting smaller buyers

• Pioneering

• Expanding markets, finding new clients

• Framework of Free Trade Agreement with the European Union

Venturing into new markets

• Main East-European destinations for exotic fruits:

Czech Republic

Bulgaria

Poland

• Segmentation

Large retail chains are the main segment

The catering industry

Small retailers are losing ground

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0 5 10 15 20 25

NETHERLANDS

FRANCE

BELGIUM

GERMANY

ITALY

UNITED KINGDOM

SWEDEN

CZECH REPUBLIC

BULGARIA

POLAND

AUSTRIA

SPAIN

PORTUGAL

LUXEMBOURG

DENMARK

LITHUANIA

Going East – main markets

Colombia European market

Czech retail market

Colombian exporters

West -European

specialisedimporters

Small retailers

Large retailers

Main distribution flow

Secondary distribution flow

West-European mainstream importers

Czech mainstream importers

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2

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Czech wholesalers

Catering industry

Colombian exporters supply Northwest European mainstream importers, which re-export the products to the Czech market.

DIRECT SUPPLIES: POSSIBLE?

Colombian exporters supply Northwest European specialised importers, which re-export the products to the Czech market.

Direct supplies – Possible?

Colombian exporters supply Czech mainstream importers, which supply the Czech market.

Opportunities

– Czech buyers are interested in consolidated orders of different exotic fruits

(Colombia’s competitive advantage)

– Growing market due to increase of disposable income

– Holiday season provides window of opportunity to establish trade relations

(stepwise approach)

Challenges

– Small demand Lack of scale required for cost-efficient transport of exotic fruit

– Underdeveloped infrastructure (lack of good flight connections from South

America to the Czech Republic)

Heavy promotion is required for the realisation of sufficient demand for direct imports

• Promotion at the retail level

Store promotions – tasting, explanation of use, recipe ideas in Czech language

Colombian week?

Specialty shelves

Promotion in cooking programmes / Internet / Social media

Trade fairs

QR-codes on product label unification of technologies

Promotion – crucial step

Promotion – crucial step

• Promotion at the wholesale level

Accurate product description

(EU or UN standards) - www.codexalimentarius.org

Photos of the product and packaging

Delivery capacity per year per product

(supply calendar)

Possible delivery dates

Information about the available storage and processing facilities

Branding (company’s logo, revealing reputation)

Export references

Quality certificates (e.g. GlobalGAP, HACCP ,BRC, etc)

Contact details (on brochures, website)

Example of a supply calendar:

January February March April May June July August September October November December

Product

• Website – doing good, and causing no harm

High-quality websites are associated with modern, professional approach

Website should include:

o well-defined product characteristics

o strenghts of your company, such as certificates, specific story, quality and delivery systems, etc.

History and track record

Product presentations, catalogues, brochures (thus also saving printing costs)

Product marketing - website

Good example: Frutierrez

@

Important events

• Fruit Logistica - www.fruitlogistica.de - world's leading fresh fruit and vegetable trade fair. Takes place every year in Berlin, Germany.

• Biofach- www.biofach.de - most important international exhibition for organic food and fair trade products held every year in Nürnberg, Germany.

Product marketing – trade fairs

Interesting sources – Internet databases & marketplaces

• FreshPlaza - www.freshplaza.com

meeting place for the international fresh produce industry.

• Foods for Trade - www.foodsfortrade.com

leading B2B marketplace for the food industry.

• Greentrade - www.greentrade.net

online marketplace with the worlds’ largest database of the organic farming industry.

• Zipmec - www.zipmec.eu

largest search engine for fruit and vegetable companies in Europe

Information sources: Eurofruit Magazine, Fresh Info

How else to find potential buyers?

• Sampling

Rare

Buyers assume traders are familiar with the product standards

Not willing to pay for samples

• Terms of delivery

Lead time: 3 days (air transport)

Incoterms:

o quote your prices Free-On-Board (FOB) in the case of sea transport and CFR/CIF in case of air transport.

o pay attention to strict contract fulfilment regarding contingencies during export procedures, transport, etc.

• Insurance: costs are approximately 4 %

Valuable when product quality is compromised during transport

Costs cannot be reimbursed if damage results from factors which cannot be controlled, e.g. volcanic ash

Make sure there are thermometers installed on board or on the pallets

Terms of delivery and payment

If required…

Pesticide control!

Samples which represent what you can deliver:-Quality-Quantity -Time - Packaging material

• Contracts

Buyers prefer open accounts

Communication serves as a formal agreement(e.g. e-mails)

Non-compliance

Contract example: International Trade Centre

• Terms of payment

Trade of small quantities- fixed prices

Trade of large quantities - on the basis of consignment.

Price-fixing more common in the holiday season

Pre-financing is more common for partners who already did business together

Payment documents (involving 3rd parties) are often avoided in the fresh fruit trade

Payment takes place within 2 weeks

Every delivery should be accompanied by an official customs invoice for customs declaration

Terms of delivery and payment

Not to forget…

Gustavo Ferromail@ThisIsProFound.com