5 keys for internationalization

Speaker: Pablo O. Gómez

Director OFTEX

pgomez@oftex.es

1.- Are we prepared to export?

2.- Selection of foreign markets

3.- Selection distribution channels

4.- Five Risks

5.- Where to find information? Tools.

1.- Are we prepared to export? The Company.

– Financial means, solid national market

– Production Capacity.

– Fulfillment of commitments.

– Training of the personnel.

– Involvement of the Directive Board.

1.- And our product/service/business model?

Is it prepared to be exported?

Is it competitive? (Did the sales volume / return increase

within the last 3 years? Does it have added value? Does it have

something special that makes it different?)

- Can it be adapted to the Target Market? (product,

price, distribution channel y promotion)

Adaption to make it simple to the customer!

Logistics. INCOTERMS.

Customs duties.

Languages and Culture.

Promotion.

Payment terms.

Personal contact.

Samples.

First orders.

2.- Selection of Target Markets by:

- Proximity in kms (transport costs).

- Cultural Proximity.

- Language.

- Size and Growth (Population and consum)

- Wealth per inhabitant (per capita GDP)

- Tariff barriers

- Non-tariff barriers

2.- Selection of Target Markets by (cont.):

- Spanish Export Volume to the Target Country.

- Export Volume to the Target Country from foreign

competitors.

- Risk quote of the country: Cesce, The Economist,

Coface rating.

- Number of Spanish banks in the country

- Number of trade fairs for our sector.

- Number of state-owned commercial offices and

chambers of commerce.

3.- Selection of distribution channel.

- Importer - Distributor

- Final customers

- Commercial Agents

- Piggy-back

3.- Selection of distribution channel.

Profile of the Importer-distributor (partner): Experience in the sector. Age of company.

Size of the company: Volume of turnover. Number of employees. Number of persons in the commercial staff (intern + extern).

Covered Territory.

Products that are distributed.

Type of customer (wholesaler, retailers or final customers).

Segmentation of customers.

Margins to work with.

Solvency.

3.- Selection of distribution channel. Profile of Agents:

Experience in the sector.

Age.

Sales Volume. Number of subagents.

Number of products/brands that he/she represents (national or foreign). Names. Are they complementary to ours?

Covered territory.

Type of customers (wholesaler, retailers or final customers).

Some names.

Segmentation of customers.

Commission basis he/she works with.

4.- Risks of exportation (CDTRI):

Payment

Currency

Transport

Civil Responsability

Non-fulfillment of comitments

5.- Tools. Where to find information?

-Survival Kit for exporters.

5.- Tools. Where to find information?

aduanas.camaras.org statistics ex-im Spain

www.icex.es Market Research

www.icex.es (all our services, foreign trade, addresses of interest) Market Researchs, statistics, trade fairs, public organisms, sectorial asociations, etc.

www.icex.es (red exterior) ofcomes

www.el-exportador.com (search) sectorials notes

www.camaras.org (plan cameral) commercial missions

www.export.gov (market research library)

5.-Tools. Where to find information (cont.) www.kompass.com data base of companies

www.hemscott.com data base of companies RU

www.iucab.nl/nl commercial agents comerciales

www.camaras.org (internationalization, information for internationalization) online Guides

Futher: (converters, translators, maps, time zones,

temperature, logistics, Economy newsletters, etc.)

Thank you!

Pablo O. Gómez

pgomez@oftex.es