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How to Identify Potential International Markets for Your Products and Services? Doug Barry U.S. Department of Commerce 1-800-USA-TRAD(E)

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Presentation on theme: "How to Identify Potential International Markets for Your Products and Services? Doug Barry U.S. Department of Commerce 1-800-USA-TRAD(E)"— Presentation transcript:

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2 How to Identify Potential International Markets for Your Products and Services? Doug Barry U.S. Department of Commerce USA-TRAD(E) September 22, 2009

3 Basic Facts U.S Exports in 2008 reached $1.287 trillion U.S. Exports to 198 countries 97% of U.S. exporters are SMEs U.S. sells more to its neighbors (Canada and Mexico) Exports accounted 25% of economic growth Exports brings growth to U.S. companies When U.S. economy slows more and more U.S. companies look for overseas markets

4 Challenge 264,000 Exporters 54% export to only one market Many more companies could but dont

5 Major export markets

6 230 Major destination

7 Where U. S exports?

8 Partner World Total 35,949, ,848, ,499, ,555, ,135,5 06 Canada 21,811, ,850, ,910, ,817, ,073,0 12 Mexico 4,172,64 9 4,219,89 5 4,656,20 9 5,206,47 3 6,414,57 1 Germany 1,009,09 5 1,058,10 1 1,178,89 5 1,267,28 6 1,562,07 0 Japan 1,068,88 4 1,072,29 7 1,104,55 2 1,308,17 0 1,437,66 1 China608,845699,245 1,015,96 9 1,313,68 3 1,287,60 2 Saudi Arabia306,060397,139441,944544,960840,512

9 Trade Snapshot 2007 Top Michigan Exports Transportation Equip $23B Machinery Manu $4B Chemical Manu $3.5B Primary Metals $2B Oil and Gas Extract $1.9B Top Michigan Export Markets Canada $25,631,162 Mexico $5,206,617 China $1,313,226 Japan $1,308,230 Germany $1,267,110

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11 Top Five export locations

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15 Benefits of Exporting 95 % of consumers are outside the United States Increase in sales and profits Use excess product capacity to sell abroad Gain information on foreign markets Improve product quality and features Improve management and marketing

16 What do you need to know about the country? –Demographic, distribution of population by age and income –Economic, per capita income, rate of economic growth, stages of economic development –Political stability, rule of law, regulations, ease of doing business –Cultural understanding the culture and business practices –Market access: how easy to enter market, taxes duties, import license, inspection etc. –Infrastructure: How easy to move products, communication, roads, ports and airports

17 Developing a Global Awareness To be globally aware is to have: 1. Tolerant of Cultural Differences, and 2.Knowledgeable of: (a) Culture, (b) History, (c) World Market Potential, (d) Global Economic, Social and Political Trends

18 Export Counseling Counseling /market assessment (1-800-USA-TRAD(E) Market research Tariff and Non-Tariff barriers to entry can exist The U.S. Commercial Service global network

19 Steps to follow Obtain export counseling (1-800-USA-TRAD(E) Get in-depth knowledge of that market and the ability to create and cultivate business relationships Understanding the culture is key to developing that market knowledge Read the Basic Guide to Exporting

20 Create and develop partner relationships with distributors and customers Understand the culture and business practices of a target country is important; however, nothing is better than actually having spent time in a country in terms of understanding the business climate and building relationships

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22 Make the commitment Design plan for flexibility Plan for 5-10 years Target specific markets Understand target culture Keep quality a continuous goal Before you export Becoming a Exporter

23 Explore need for modification Research ISO standards Study effects of tariffs & VAT Construct pricing strategy Protect yourself legally Determine if export license is needed Becoming a Exporter Before you export

24 Resources Where You will Find Help?

25 Trade information center (TIC) Export Counseling General and country-specific export counseling. International market research and trade leads. Documentation requirements for specific markets. Import tariffs/taxes and customs procedures. Advice on Export Licenses and Controls. Information on all U.S. government export assistance programs. Referrals to local USEACs.

26 Country-Specific Counseling for: –NAFTA –Western Europe –Africa –Latin America –South Asia

27 gov

28 Market research

29 Market Research Library

30 List of Countries

31 Market Research Reports (1559) on India

32 Country Commercial Guide and Best prospects

33 Monthly trade magazine that lists U.S. products and services Distributed free to more than 400,000 buyers from around world A proven track record of high-response rates and sales results Advertise in Targeted Markets With Our Commercial News USA Check out for more information

34 Promote Your Company in International Markets With Our Catalog Exhibition Shows We find the catalog exhibition shows are an economical way of getting our message out, which we feel is the secret to developing new business" Du-Co Ceramics Company, Saxonburg, PA Youll get: Your products promoted at events worldwide without having to travel Translation of key information about your firm for foreign visitors Full trade leads presented to you at the end of the show Provide us with product literature, videos and other visuals and well promote your catalogs to hundreds of business visitors at selected trade shows and embassies around the world

35 Global Business Trends 1.The rapid growth of the World Trade Organization and regional free trade areas,, FTAs, NAFTA and the European Union. 1.The rapid growth of the World Trade Organization and regional free trade areas,, FTAs, NAFTA and the European Union. 2. General acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe 2. General acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe 3. Impact of the Internet and other global media on the dissolution of national borders, and 3. Impact of the Internet and other global media on the dissolution of national borders, and 4. Managing global environmental resources 4. Managing global environmental resources

36 Internationalization of U.S. Business Increasing globalization of markets Increasing globalization of markets Firms face competition on all fronts Firms face competition on all fronts Many U.S. companies are in foreign countries Many U.S. companies are in foreign countries U.S. firms seeking foreign markets to increase profits U.S. firms seeking foreign markets to increase profits

37 BuyUSA BuyUSA is a unique e-marketplace that provides trade opportunities for U.S. exporters and international companies. Qualified International Trade Partners User-Friendly Web Design Locate your local U.S. Commercial Service office in 107 U.S. cities and 140 U.S. Embassies and Consulates

38 U.S. Export Assistance Center(USEAC) Part of a network of over 1700 international trade specialists located throughout the world With 165 offices in 82 countries, the U.S. Commercial Service USEACs can: –Help your company identify and evaluate international partners –Provide counseling and advocacy through every step of the export process –Assist in developing market entry strategies –Help you learn information about trade events that promote your product or service to qualified buyers

39 International Partner Search Utilizing Commercial Service Trade Specialists in over 80 countries to find the most suitable strategic partners We use our strong network of international contacts to interview potential partners and provide you with a list of up to five pre- qualified partners Obtain high-quality market information on the marketability and sales potential for your products and services. Receive complete contact information on key officers at each potential partner which is interested in your company along with information on their size, sales, years in business, number of employees, and a statement from the each potential partner on the marketability of your product or service.

40 U.S. Exporters Yellow Pages offers a free directory that includes information on more than 17,000 U.S. companies interested in exporting. This popular directory includes trade contact data on U.S. manufacturers, export trading companies, and business service providers.

41 tse.export.gov National trade data –U.S. merchandise imports, exports, trade balances State export data –State and regional exports of merchandise Product profiles of U.S. merchandise trade with a selected market Visual representations of market breakdown by products exported or imported

42 Dun & Bradstreet D&B is the worlds leading source of commercial information and insight on businesses D&B provides solution sets that meet a diverse set of customer needs globally Customers use D&B Risk Management Solutions to mitigate credit and supplier risk, increase cash flow and drive increased profitability D&B Sales & Marketing Solutions to increase revenue from new and existing customers

43 FITA Fosters international trade by strengthening the role of local, regional, national and global associations that have an international mission 450 association members and 450,000 linked company members dedicated to the promotion of international trade, import-export, international logistics management, international finance and more. Source for international import/export trade leads and events Country profiles

44 MANUFACTURING EXTENSION PROGRAM

45 Falcon Water Free Future = making + selling more stuff

46 The Beginning Contact U.S. Commercial Service Michigan


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