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REQUISITOS DE COMPRADORES Flores Exóticas Part II: Export guidelines – diversifying markets Going East – Czech Republic case Why to venture into new markets.

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Presentation on theme: "REQUISITOS DE COMPRADORES Flores Exóticas Part II: Export guidelines – diversifying markets Going East – Czech Republic case Why to venture into new markets."— Presentation transcript:

1 REQUISITOS DE COMPRADORES Flores Exóticas Part II: Export guidelines – diversifying markets Going East – Czech Republic case Why to venture into new markets Trade channels Existing and future opportunities Business practices Product marketing Delivery, payment, services

2 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

3 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 Going East – main markets

4 Colombia European market Czech retail market Colombian exporters West - European specialised importers Small retailers Large retailers Main distribution flow Secondary distribution flow West-European mainstream importers Czech mainstream importers 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.

5 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)

6 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

7 Promotion at the wholesale level Accurate product description (EU or UN standards) - 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: JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember Product

8 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:

9 Important events Fruit Logistica - - world's leading fresh fruit and vegetable trade fair. Takes place every year in Berlin, Germany.www.fruitlogistica.de Biofach- - most important international exhibition for organic food and fair trade products held every year in Nürnberg, Germany.www.biofach.de Product marketing – trade fairs Finding potential buyers

10 Interesting sources – Internet databases & marketplaces FreshPlaza - meeting place for the international fresh produce industry. Foods for Trade - leading B2B marketplace for the food industry. Greentrade - online marketplace with the worlds’ largest database of the organic farming industry. Zipmec - largest search engine for fruit and vegetable companies in Europe Information sources: Eurofruit Magazine, Fresh InfoEurofruit MagazineFresh Info How else to find potential buyers?

11 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

12 Contracts Buyers prefer open accounts Communication serves as a formal agreement(e.g. s) 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 3 rd 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

13 Not to forget…

14 Gustavo Ferro


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