Are You Ready to Export?

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Before trying to access export markets,  it is important your organization understands and is well prepared for the demands and opportunities of the global marketplace.  Exporting requires different products, service, pricing, marketing, production, shipping and financial resources than the domestic market.  Because competition in the global market is high, buyers may turn to alternate suppliers if you are not ready to meet their expectations in a timely manner.  Be well prepared!

Export Readiness

The following questions explore the major demands of exporting. Review these thoroughly before exporting so you will be prepared. Be sure you can confidently answer "yes" to these questions or you are taking actions to address these issues. The following is a detailed list of questions. You can also use the export readiness check-list as a reference tool during your preparations for export.

1.      Do you have an export product line or collection?  This would mean that you have researched a target export market and hve either developed a new product line for that market or determined your current product lines are sellable.

2.      Do you have a product development strategy for your business?  Continual product development is vital for sustaining sales in export markets.  A product development strategy includes a cross-functional team, an annual budget for prototypes and market research, and a calendar of product goals.

3.      Do you have sufficient production capacity to fulfill new orders?  On-time delivery is essential to keep your customer happy and encourage re-orders.  Be sure you have sufficient staff and supply of raw materials to produce orders on-time, and with consistent quality.

4.      Do you have a good quality control system?  Export orders usually require repeating a product exactly to the specifications of the original sample.  Maintaining consistent sizing, colors, patterns and quality is essential.

5.      Can you finance export orders?  The time between receiving an export purchase order and delivering it to your customer overseas (and then receiving payment) is considerably longer than domestic orders. Export orders can put a strain on your cash flow.  Be sure you have the financial reserves to buffer this strain or you have access to other financing.

6.      Do you have access to email on a daily basis?  Export buyers expect responses to their emails in 24-48 hours.  Email is the most common mode of communication for international buyers with phone, fax and Skype as secondary modes.

7.      Do you have staff members who speak international languages and can respond to buyers?  English is the most widely spoken language in international businessThe  language in your target export market would be an alternative.

8.      Do you have an export price list, export sales terms, and a product catalogue or product images?  Once you interest a customer in your company, the first thing they will request are prices and terms.  Having a price list, terms and catalogue ready will insure you can respond to them within 24-48 hours.

9.      Do you have an export license and a good understanding of export procedures and regulations?  There can be hidden costs and unexpected delays in the export process that you want to avoid.  Working with a freight-forwarder or export agent is often a good option for managing these risks.

10.  Do you have good packing and labeling materials?  Good packing materials are needed to prevent breakage during international shipping.  Labeling products with codes, country of origin, material content and other information relevant to the product category is required for importing into the destination country.  Your customer may also have custom packaging and labeling requests.

11.  Do you have a good understanding of global customer expectations and a solid knowledge of the "Universal Market Demands"? Do you have qualified sales and customer service staff? Communication, quality, delivery, design and price are the main concerns of global customers.  You and/or your staff must be able to keep customers happy and cultivate sales

12.  Do you have a budget for export marketing activities?  In rare cases your customer will come to you, but in most cases you must go find your customer.  Promotional materials, visits to buyers' offices and exhibiting at trade shows will help you to access buyers

13.  Do you have resources to invest in market research?  Time and a budget to do research on the internet, purchase trade publications, market reports and other references are needed to develop a good understanding of your target market, both in terms of products and marketing.

14.  Do you have the desire to sell for export?  Export marketing involves more risk and requirements than selling domestically; it also can hold more opportunity.  Good problem solving skills are essential, as are the energy and stamina to find solutions quickly and thoroughly.  Exporting is not easy; but for those who love challenges, it can be very rewarding.

If after reviewing this export readiness list you feel you are not quite ready for the export market, don't be discouraged! Use these questions as a guide to improve areas you are weak in, while you strengthen your local and regional markets.  You will find information on many of the points mentioned here in other areas of the ArtisanWork website.

While the global marketplace, and it's demands, may seem daunting, keep in mind it also holds great opportunities to increase your sales and - most importantly - develop long-term relationships with some very wonderful buyers.  Buyers are looking not only for a good product and excellent customer service; they are also looking for exceptional suppliers and partners with whom they can work with for years and years. They want to build relationships which allow them to solve problems together, collaborate on new product designs, tap into new markets, and increase sales for both your organization and their own businesses.

Market Research

Market Research - Foundation of successful marketing.

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 Market research might sound complicated, but it is simply the process of asking questions about the market, finding the answers, and using those answers to make decisions. Market research is an opportunity to organize market information to make better decisions regarding the direction of your organization. It builds the foundation for developing a successful marketing plan.

Successful market research will identify sales opportunities and the obstacles and challenges you may face. This allows you to reduce risks and develop an appropriate and targeted plan of action.

Market research should help you:

1. Determine Target Market - What types of customers are buying similar products?  Where are these customers located?  How do they live?  What other products are they interested in?  Where do they shop?  What are the prices of similar products?
2. Identify Customer Needs - What are these customers demanding from their suppliers in terms of the Universal Market Demands?  Do your products meet these needs as is or do you need to adapt your products to meet market demands?  Study other products in the marketplace.
3. Locate Marketing and Promotion Opportunities - How do you reach these customers and where do they buy - trade shows, personal visits, websites, catalogs?  How can you reach these markets?  What trade show or sales methods are attracting attention?

How to do Market Research

Market research can be done using many of the same resources used in the product development process.  Trade Publications, Retail Catalogs, and the Internet are great sources for information. Explore sources of information that don't have any cost, first. These include information on the internet, observing the local and regional market, and looking at consumer magazines or catalogs.

Market research will give you insight into current market trends that may give you new areas you can expand into it. One example is the current interest in green, ecological, and sustainable products. Market research can tell you how your products may fit into these high demand categories and where the best opportunities are for you to market to these consumers.

Comprehensive market research will help you determine if your products meet the needs of your target market or if they need adaptation and further product development to succeed. This research should address how your products meet the Universal Demands of the Marketplace and will allow you create a specific, targeted marketing plan. The more extensive and complete your understanding of the market the greater your chance of success.

Market research often starts with looking at general market information, and then getting more specific. This diagram from the Into the Market Manual, from IFAD and Traidcraft, helps to explain the different levels of market information:

Into the Market Manual, 2004, Traidcraft Market Access Centre and IFAD (International Fund for Agricultural Development). The complete Into the Market Manual offers additional information on Market Research and can be downloaded for free off the IFAD website: www.ifad.org

Distribution Channels

Distribution Plan: How Your Product Will Reach Its Customer

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Your market research instructs you about your end customer, what they buy and where they buy it.  To successfully reach that customer, you also need to determine how your product gets to this customer.  Who is involved in delivering your product from your workshop to your end customer?  This is called an export distribution channel or chain.  Defining this channel and the role you play in it are important components of your marketing plan.

By analyzing export distribution channels and comparing them to your organizations's resources, you will be able to determine which option is best for your organization:

-   producer selling to an exporter;

-   producer/exporter selling to a wholesaler:

-   producer/exporter selling to a retailer.

The marketing materials and venues used to sell to these different customers vary considerable.  Identifying who your immediate customer is will insure you design appropriate marketing materials and select practical marketing venues.

Export Distribution Channels & How They Are Changing

Traditionally, between five and seven entities are involved in delivering a product from an artisan's workshop overseas to the end consumer in the export market   A traditional export channel looks like:

The responsibilities of each entity in this channel vary slightly from company to company and transaction to transaction but it generally follows these guidelines:

• Artisan or Producer - responsible for production and maintaining quality, also a key player in developing new skills and materials for product development.
• Exporter - responsible for finding new buyers, buyer communication, negotiating orders, export logistics (paperwork, packing, shipping), and collecting payments from buyers.
• Export Agent (optional) - a commission-based service for generating new export sales or helping international buyers source products in a given country or region.
• Wholesaler - responsible for importing (customs clearance, duties) into the target market, maintaining inventory in warehouse, marketing to retail stores via trade shows, showrooms, catalogues and sales staff, and developing new products.
• Sales Representative (optional) - a commission-based sales partner for generating wholesale orders from retail stores in a particular region or market.
• Retailer - responsible for maintaining a brick-and-mortar store, online store, or mail-order catalogue, attracting customers and providing customer service.
• End or Final Customer - responsible for enjoying the product!

Distribution channels are changing in the global market place and a variety of new channels are being employed.  The new channels are shorter or flatter than the traditional channel.  Rather than five to seven entities at work there are only three or four.  A new distribution channel looks like this:

The responsibilities of each entity in this flatter distribution channel are different than the traditional channel outlined above.  The most notable difference is the reallocation of the wholesaler's responsibilities.  The product development, inventory, and sales responsibilities fall primarily on the producer/exporter while the direct-import retailer assumes the responsibilities of import logistics and some inventory stock.   The result:  A producer/exporter selling to a direct-importer retailer has more responsibilities, and therefore more operating costs, than an exporter selling to a wholesaler.

The responsibilities of each entity in this flatter distribution channel will look something like this:

• Producer/Exporter - responsible for production and maintaining quality, developing new products, all export logistics, communication with buyers, stocking inventory, marketing to retail buyers via trade shows, showrooms, catalogues, and providing customer service.
• Export or Sales Agent (optional) - paid either by the exporter or the retail buyer, this commission-based sales agent assists in linking buyers to suppliers, negotiating orders, and tracking production and quality control.
• Direct-Import Retailer - responsible for importing logistics and costs, maintaining a brick-and-mortar store, online store, or mail-order catalogue, attracting customers and providing customer service.
• End or Final Customer - responsible for enjoying the product!

This flattening was caused initially by the growth of large, mass-market retailers such as Wal-Mart, Target and TJ Maxx, who bypassed wholesalers in search of low prices and bought directly from manufacturers.  This was possible due to the enormous resources of these large companies.  Now, with improved communication, diverse shipping options, increased international travel, more regional trade shows, and growing sophistication of overseas producers, even the small and medium sized retail stores in the mainstream and high-end markets are importing directly from overseas.

Selecting the Best Distribution Strategy for your Company

Producers and exporters have the advantage of choice in today's market.  You may decide to focus exclusively on production and leave export logistics to an exporter.  A producer may decide to develop exporting services and become a producer/exporter; or an exporter may decide to invest in their own production and also become a producer/exporter.  An exporter may sell to a wholesaler or to a direct-import retailer.  All of these are options.  The important factor is to BE INTENTIONAL!  BE STRATEGIC!

Selling to multiple types of customers is possible when managed carefully.  For example, if you are selling ceramic vases to a wholesaler for $10 the wholesaler will sell the vase to a retail store for $20.  If you sell the same vase to a retail store for $10 then the retail store will stop buying from the wholesaler and only buy from you.  Your wholesale customer will eventually find out you are selling to his customer and will stop buying from you.  You lose one of your customers.

There are two ways to avoid this situation:  1.  Sell the vase at different prices to the wholesaler than the retailer; or 2. Sell different products to each customer, for example sell ceramic vases to the wholesaler and sell ceramic tabletop items to the retailer.  Be intentional, be strategic.

Selecting the distribution channel for your product and identifying your target customer requires analyzing several components of your business and products including products, prices, shipping, marketing, communications and sales terms.  Use the attached table to determine what distribution channel your product will take and what type of customer (wholesaler or retailer) you company wants to target.

Note:  There is increasing interest and excitement for producer/exporters to sell directly to the final customer.  Payment terms, shipping costs, customer service, order returns and marketing make this too risky for most producer/exporters.  If this is the strategy that your organization wishes to take, it is highly recommended that you work with an existing sales platform such as eBay.

Developing a Marketing Plan

The Marketing Plan

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Creating a good marketing plan and allocating the resources to insure that you can implement it are essential first steps to being successful. A good plan is educated, simple and flexible. It helps you identify opportunities, set goals for your organization, and make concrete plans on how you will achieve them.

An export marketing plan defines the following:

Who is your target customer?  Defining this customer involves identifying the end customer of your products as well as the distribution strategy, or how your product will reach the end customer.

What is your target market?  Product categories and market segmentation, defined during the Product Development process, focus your marketing activities, particularly in selecting trade shows.

The marketing and promotional materials you need. Marketing materials do not need to be expensive or complicated but they should be thorough, anticipating the information that a buyer will want from you.  They include price lists, sales terms, catalogues (online, CD or printed) and organization profile.

Where you will meet your customer and generate orders. One venue for approaching your buyer and generating sales is trade shows.  Select trade shows based on your target customer in the distribution chain and your product category and make sure you prepare for them carefully and weigh the costs of participating vs. the benefits. Buyer visits to your showroom and visits you make to your buyers' offices compliment your marketing efforts.

Market research

Market research educates your marketing plan. Research and analysis of your competition helps you differentiate your organization. Research highlights growth areas in the market, such as product categories, distribution channels and sales venues, and guides you in how to make the most of those trends.  Educating yourself about market trends should be an ongoing part of your business, not a one-time effort when developing a new marketing plan.

Export marketing timeline

Developing a new export market takes time, patience and resources. Developing a profitable relationship with a wholesale customer takes, on average, 18 months to two years.  However, once established these relationships often last many years.   Establishing a relationship with a retail buyer takes less time because they usually do not invest in custom product development.  Relationships with retail buyers are not as long lasting as those with wholesale buyers.

The following is a sample timeline for establishing a profitable relationship with a wholesaler.  Be sure that your marketing plan includes a budget that supports marketing activities throughout this 18-month to 2-year cycle.

Marketing Materials

Communicating Your Product & Company: Marketing Materials

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Marketing materials provide the essential information about your products, your organization and how you do business. Good marketing materials will help your buyer place an order or initiate a relationship with you quickly and easily.

Marketing materials do not have to be expensive, but they should provide complete information to be seen as professional. Marketing materials include a price list, terms sheet, a catalogue or images of products, and a company profile.

Recommendation:  Print these four documents separately. Price lists and catalogues tend to change more frequently than terms and company profiles.  Also, you may find that your prices change or you want to quote different prices for different types of buyers.  By keeping the price list separate from the catalogue, you can change the price list without reprinting the catalogue. Marketing materials should be in the language of your target market.

Price List

A price list communicates detailed information about your products and how to order them. The following is a checklist for price lists:

1. product code - a letter or number code distinct to each item
2. product name & description - include material, color, motif, etc
3. product size - note whether in inches or centimeter/metric units
4. price -indicate the unit, for example if it is per item, for set of 6, etc
5. currency - most buyers look for prices in US$ or Euros; if you quote in your currency, it is helpful to list an exchange rate with the date of the rate quote
6. price terms - ex-factory, FOB, CIF or landed and the location
7. minimum quantities per item (if applicable)
8. note how products are packaged & labeled (particularly if they are packaged in sets, or a certain number of units per shipping carton)
9. organization's logo
10. organization name
11. organization contact information - address, telephone, fax, email, skype
12. contact person for export orders - including that person's email, telephone or skype
13. date - when price list was printed
14. duration of prices - usually 6 months

Be sure to list the name of the person who handles export sales inquiries.  Buyers like to write to a specific person with a personalized email address rather than sending an email to a general company email.  For example, a buyer would rather send an email to Mr. John Burns at john@beautifulcrafts.com than send an email to Dear Sir or Madame at info@beautifulcrafts.com.

Also, remember to date your prices lists and indicate the duration of those prices, for example, "June 2008.  Prices valid for six months."  This helps you avoid misunderstandings with your buyers who find old price lists and expect those prices to be valid.

Terms Sheet

A terms sheet communicates how your company does business and the requirements of export orders.   A terms sheet will include the following information:

1. minimum for export order - a price list indicates the minimum quantity per item and the terms sheet indicates the minimum overall value of an export orders; it is usually indicated in currency, for example, "$2,500 minimum order"
2. production lead time - the time between receiving a purchase order and shipping the order; these times are difficult to quote because they depend on the size and composition of the order;  however, it is helpful to give an estimated lead time on average minimum orders, for example "6-8 week lead time for $2,5000 minimum orders"
3. payment terms - terms might include, "payment on delivery", "net 30 terms", "deposit required, balance due on receipt", or "terms negotiable"
4. payment methods - international wire transfer, PayPal, credit cards, letter of credit, etc
5. shipping options - list the different shipping options you use, such as, "FedEx for samples, orders shipped by airfreight and sea", or "sea container shipping only"
6. shipping costs - some buyers like to know the approximate costs of shipping a 20-foot and 40-foot container to a major international port, such as Miami, FL or New York, NY and approximate air freight rates for minimum volumes
7. product development policy - if your organization has a product development policy, it is helpful to state it here, such as "custom product development available; all samples to be paid by buyer at twice normal FOB price; 6 week lead-time for custom designs"
8. packaging and labeling resources - indicate the type of packing materials you use and any custom labeling resources you have available, for an additional cost to the buyer, of course
9. "references available on request" - some new buyers like to check out your references to better understand your performance as a supplier;  if you have a few customers or colleagues who can attest to your export abilities you can offer them to new customers, only upon their request, and only with the consent of the existing customer
10. organization name
11. organization contact information (address, telephone, fax, email, Skype)
12. contact person for export orders (name, email, telephone)
13. you may also want to list the president or owner of the company
14. business affiliations and memberships (member of local chamber of commerce, member of IFAT/WFTO, etc)
15. company's mission statement
16. company logo

Catalogue

A catalogue shows your product lines and collections with photos.  The goal and content of catalogues vary based on your target customer.  Retail customers want to see images of all items in a product line or collection.  They will be also be interested in seeing some detail photos illustrating techniques and materials.  Wholesale customers are less interested in seeing every item in a product line or collection; they want to know what product categories, materials, techniques and motifs are available with a supplier.  Wholesalers will often use this information on capabilities and capacities to develop their own custom designs.

A catalogue can take many formats.  A catalogue can be a full-color multi-page printed catalogue.  A catalogue can also be a website or online catalogue.  A catalogue can be a series of digital photos.  A collection of postcards can also be a catalogue.  A catalogue can be put on a CD.  If using a CD, be sure to package the CD in clever packaging or labeling with images of products to remind buyers of your company (otherwise CD's tend to get lost on desks).

Catalogues, no matter what format, should include the following information:

1. images of products
2. product codes (so that buyers can reference the price lists for pricing information, sizing, etc)
3. product name
4. a brief description of each product line or collection
5. organization name
6. organization contact information
7. contact person for export orders

Tip:  Good quality photos are important!  Invest the time and money into a good quality digital camera and learn how to take product photos.  Use an appropriate background, include objects that give reference to the products' scale, insure that the lighting shows off the detail of the products.  Good quality photos can make the difference in whether a product sells or not.

Company Profile

A company profile is your opportunity to tell your customers about your company, how your company began, what your mission is, where you work, the ethics of your business, how products are developed, etc.  The information in a company profile helps your customer sell your products - it provides the story behind the products.  Your customer may use the information from your company profile in their own marketing materials or they may use it to educate their own staff in who makes the products and how they were developed.

There is no check-list of information to include in a company profile but the following is a list of things buyers are generally interested in:

1. how long have you been in business
2. why you started your business
3. what is the mission of your business
4. where are the products made - give some idea of the people who make them, where they live, what are their traditions
5. what techniques are used in your products, are they unique to your country or region
6. what is the inspiration for the designs and motifs, what is the history of those designs and motifs
7. what is the environmental impact of your products and production
8. what is the social responsibility of your company
9. what is your experience in exporting - to what countries, what types of customers
10. what organizations are you affiliated with and why

Trade Shows

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At this point, you have a profile of your target customer (wholesaler or retailer; product category; and mass, main, or high-end market) and you have marketing materials ready to present to buyers.  You are now ready to approach buyers! 

In most cases, relationships with buyers are established with face-to-face meetings.  You may introduce yourself to a buyer by email, fax or phone and open a dialogue about your company, but most orders and custom product development projects take place when you meet in person. 

The most common places to meet a buyer are at a trade show, when your buyer visits you in your showroom or workshop, or when you visit your buyer in their offices. The internet (email and websites) is an excellent communication tool but it does not replace making personal contact with a buyer.

Are Trade Shows Right for my Organization?

Trade shows can be a valuable way to meet potential new buyers. They also require a substantial investment in terms of time and costs to participate. It is extremely important to consider the advantages and disadvantages before deciding to participate in a trade show. If you decide to participate in a trade show, a great amount of organizing and preparation is required. Successful trade show participation requires careful planning to ensure that the benefits will outweigh the costs.  Experienced trade show exhibitors say that it is necessary to participate in the same trade show three consecutive times before receiving substantial orders.

Here are some questions to consider if you are thinking about attending or exhibiting at a trade show:

1. Is a trade show the rights sales promotion channel for your business?
2. Will your product stand up to the competition?
3. Is your business able to meet the expectations of the buyers at the trade show?
4. Do you have the resources to prepare and participate in a trade show and do sufficient follow-up afterwards?
5. Can you afford to participate in the same trade show at least 3 times?

Advantages and Disadvantages to trade show participation:

Adapted from How to make the most of trade fair participation - a toolkit by IFAD and Traidcraft

Choosing the Right Trade Show

There are different types of trade shows and different ways of using them.  Selecting your trade show(s) and determining how to participate in them are important decisions. Your target product category and customer will guide your selection of trade shows.

1. Product categories:  Select the trade show or location in a trade show that relates to your product categories.

Trade shows are organized around standard market categories. (See explanation in Product Development section for detailed information about these categories).  Some trade shows are dedicated entirely to one category.  For example,  "Accessories - The Show" held in New York, NY and Las Vegas, NV is dedicated entirely to fashion accessories and jewelry.  The Tabletop Market Week in New York, NY specializes in tabletop products including ceramics, home textiles and table lighting.  Other trade shows might combine multiple categories.  The High Point Market in High Point, NC is the leading furniture show in the US and offers furniture, accent furniture, lighting, home textiles, and rugs and floor coverings.  The NY International Gift Show is an especially diverse show representing multiple product categories.  This show is organized into different sections that focus on different products categories (tabletop, stationary, home accessories, bath & scents, children's, and museum collections) as well as different market segments (General Gift, Handmade, and Accent on Design).

2. Target customers:  Select your trade show based on the types of buyers attending and types of companies exhibiting

There are three main type of trade shows: retail, wholesale, and export or FOB, and each show has a different profile of companies that exhibit at the show and companies that attend the show as buyers.  Research your trade shows well to identify these characteristics.

*Some trade shows, for example Ambiente in Frankfurt, Germany, have multiple sections of the show for different customers and terms.  At Ambiente, the majority of sections are for European wholesale companies selling at European wholesale prices.  However there are 2 halls where overseas exporters and manufacturers exhibit at FOB country of origin prices.  In the U.S., most trade shows are wholesale shows although increasingly we see overseas exporters and manufacturers exhibiting at either FOB or wholesale prices.

Regional shows, such as the India Handcrafts Gift Show held in Delhi, India, the  Hong Kong Gift Show or smaller shows such as the Peru Gift Show, focus both on local, regional and export customers. 

** Be careful when exhibiting a wholesale shows:  A common mistake is for an artisan group to want to exhibit at a US wholesale trade. During the show they exhibit at FOB country of origin prices and take orders from retail stores who assume those prices are wholesale prices and they include international freight, customs clearance and import duties.  When the shipment is sent to the retail buyer they are invoiced for the order plus international freight, customs clearance and duties, an amount they did not expect and do not want to pay.  They may either not pay for the shipping or decide to return the order.

Preparing for a Trade Show

Learn all you can about a trade show before attending. Study the trade show's website to learn about the product categories featured at the show, how the show is organized, what types of buyers attend the show, and profiles of exhibitors.  Ask the show management about product categories, buyer and exhibitor profiles.  It is also useful to talk to exhibitors or buyers who have attended the show in the past to get their opinions and insights.

Here are some questions to keep in mind when choosing a trade show that is right for your organization.

1. What types of products are exhibited?
2. Is it a trade or consumer show?
3. What sector of the market is represented - mass market, high end, specialty, etc?
4. Is the show well established?
5. What services do the organizers provide?
6. What volume of sales is typically achieved?
7. How many visitors attend? Are they retailers, importers or wholesalers? Do they come to buy or to just look?
8. How many exhibitors are there? Who has exhibited in the past?
9. What do past exhibitors have to say about the show?
10. What is the cost of stand space? What are the costs of other services? What are the costs of airfare, accommodation, local transport?
11. How and when do you have to apply?

Adapted from How to make the most of trade fair participation - a toolkit by IFAD and Traidcraft

Attend or Exhibit:  Deciding how to participate in a trade show

There are two ways to use trade shows to approach your customers:  exhibit or attend.   Most companies do a combination of both exhibiting and attending trade shows.

Exhibiting at a trade show generates more sales orders and buyer contacts than attending but is also more costly and time consuming.  Exhibiting entails renting a booth/stand, constructing display fixtures, exhibiting your products, and taking orders from attending buyers.  Selecting the trade show and location in the show based on your product category and target customer are important.  Your target customer is the buyer attending the show.  If you want to sell to end consumers, select retail shows.  If you want to sell to retailers, then exhibit at a wholesale trade show and offer US wholesale prices, or attend an export or FOB trade show and sell at FOB country of origin prices.   If you want to sell to wholesalers, exhibit at an export or FOB show and sell at FOB price terms.

Attending a show is a good marketing activity, particularly for cultivating relationships with existing customers.  When you attend a show you are targeting the companies exhibiting at that show --- an exporter at an export show, a wholesale company at a wholesale show, or a retail company at a retail show. To do this, you must make yourself available to hold meetings with those buyers in their booths, usually in the hours before or after the show (as during the show they are focused on selling!).  This is a great time to show them new samples you are working on, to see what products are selling well in their collection, and to plan out new product development projects and order schedules. 

Attending shows is also an excellent opportunity to do market research and observe trends in the market.  It can also help to prepare you for exhibiting at the show in future years.  There is a lot you can learn from attending a show, here are just a few examples:

1. Market trends and competition
2. Products available in the market
3. Quality expectations
4. Prices
5. Buyer behavior
6. Packaging and presentation of products
7. Promotional materials
8. Stand designs and display methods
9. How to interact with potential buyers

Timeline  for trade show success

Planning for a trade show should start 12-18 months before the show to make sure that products, booth, logistics, and promotional materials are well prepared.

Trade shows do not give immediate results in increased sales. You must often exhibit in three consecutive trade shows to reach your maximum sales.  The first time exhibiting, most buyers are meeting you for the first time.  Buyers are wary of placing orders with a new company so they might comment on your products and take a catalogue.  The second time you exhibit (and bring back new and expanded product lines), the buyer is reassured to see you there again and impressed by your new products.  They will place a small order to test your products in their market.  The third time you see the buyer at a trade show they have tested your products and know they sell well.  It is at this point that they may begin placing significant orders.   Throughout this process you must continue to implement good market research, product development, and customer service.

More Information on Trade Shows

Entire manuals have been written on preparing for trade shows.  If you are considering attending a trade show, consult the following resources for more information:

From Contacts to Contracts by the Swiss Import Promotion Program (SIPPO): to download the 130 page manual in pdf format, click here   It will take several minutes to download the manual.
 
Guide to Successful Trade Show Participation by The West Africa Trade Hub - an accessible guide with checklists and practical information.

Another great guide is How to Make the Most of Trade Fair Participation - a Toolkit. It was published through a collaboration between IFAD and the Traidcraft Market Access Center and is one of the most practical, step-by-step guides for preparing for a trade show. It used to be available to download for free from the IFAD market access website, but we can no longer find it mentioned. If you find a copy of this manual, make sure to check it out.

U.S. Trade Show Information - this document gives information on some of the main trade shows held in the United States as well as websites to get listings and calendars of trade shows.

Buyer Visits and Marketing Missions

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The most common places to meet a buyer are at a trade show, when your buyer visits you in your showroom or workshop, or when you visit your buyer in their offices.   The internet (email and websites) is an excellent communication tool but it does not replace making personal contact with a buyer.  Buyer visits to your workshop and showroom yield the highest sales results of any marketing activity but are also the least frequent.  Visiting your buyer in their offices is another sales activity that solidifies your relationship and is especially instructive about their business, products and needs.

Buyer Visits (your buyer visiting you)

The most successful marketing activity is when your buyer visits you and spends time in your showroom and workshops.  When a buyer invests the time and money to make a visit it usually means they are serious about working with you and want to place orders or develop new product lines during their visit.  It is common for you to meet a buyer at a trade show and then have them come visit you after you have sent them catalogues, samples and proven yourself. 

To make buyer visits productive, you can set up a showroom of your products.  You may have an existing showroom or you may select a room in your workshop or even rent a room in a hotel or business center.   Select a wide range of products within your buyers' interests and display them in an organized, attractive way.  This is the most efficient way to show your buyers your production capabilities and available designs. 

Buyers are usually interested in visiting local museums, craft markets and specialty retail stores to get inspiration for products and ideas.  They may want to also visit your workshops and the workshops of artisans to see what other materials and techniques are available or just to get a sense of the production conditions.  When a buyer visits you it is a great time to meet with shipping companies to negotiate rates and work on any special packaging and labeling needs of your buyer.  This is an opportunity for you to educate your buyer on how your company works and any specific needs you have to better serve them.

Sales Visits (you visiting your buyer)

Paying a visit to your customer in their office is a sales activity used less frequently than all others.  Visiting your customer can be educational by allowing you a chance to see their business in action, how their warehouse works, considerations to make when packaging and paperwork, and also getting to meet other staff who are not regularly at trade shows or making buying trips.  Visiting your customer impresses upon them how serious you are about working with them.  If you encounter problems with you buyer, a visit in person to your buyer can sometimes help find solutions that email, phone or fax cannot.  If you are traveling near the location of your customer for another purpose, it is always professional and courteous, and can often boost your reputation, by visiting them.

There is no equation for what combination of marketing activities work best for selling.  This will depend on your company and your customers.  The following is an example of how a cooperative used a variety of methods for cultivating relationships with four wholesale buyers.