7 Key Steps To Selling Your Products In The USA

An Expert's View about Agents, Sales Rep in the United States

Posted on: 20 Nov 2012

Guide to importing to the USA

The 7 Key Steps To Selling Your Products in The USA 1 www.intltradeconsultants.com Overview 1. Introductions - Why The USA 2. Apparel & Textile Industry Data 3. The Seven Steps 4. About ITC 5. Summary 2 www.intltradeconsultants.com Introduction Why The USA?  Market For Apparel & Textiles in the USA = $500+ billion  Largest exporters of wholesale apparel and textiles to the USA = China, Vietnam, India, Indonesia & Mexico.  Turkey represents 0.8% at the wholesale level, and nearly 0% at the retail level - yet is a model for the new democracies in Africa & ME.  USA Retail Market is dominated by US & European brands. 3 www.intltradeconsultants.com Introduction  Why The USA? Oct. 2010 USA - Turkey Small and Medium-Sized Enterprise (SME) Collaboration: USA Small Business Administration (SBA) USA Department of KOSGEB Commerce USA Minority Business Dev Agency 4 www.intltradeconsultants.com Introduction Why The USA? - Population Statistics  311.4 M people ; over 50% are 18 – 55 years of age  Foreign-born population in USA approx. 43 million, or 13.5 % of total population.  Highest foreign-born percentages in Miami (60 percent), Los Angeles (40 percent), and San Francisco, San Jose, and New York.  Largest Cities – New York, LA, Chicago, Atlanta, Dallas/Ft. Worth  Highest Cost of Living – San Francisco, NYC, DC  Highest Annual Income/Person – California, NY, Mass, CT, DC  Nationwide median household income = $50,000/year  California has the largest economy; 8th largest economy in the world 5 www.intltradeconsultants.com Introduction USA Represents Almost 29% of the World’s Consumer Market 6 www.intltradeconsultants.com Introduction Why The USA? Education  27.7% citizens have 4 year college degree  Above that average: California, Colorado, Connecticut, DC, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New York, Vermont, Virginia, Washington 7 www.intltradeconsultants.com Introduction Tourism The USA is the second most visited tourist destination in the world (France is the first) Tourists spend more money in the USA than any other country when they do travel (partially due to significant inter-USA state travel by citizens) California, New York, Chicago, Seattle, Boston are popular destinations 8 www.intltradeconsultants.com Introduction Tourism 9 www.intltradeconsultants.com Introduction Tourism 10 www.intltradeconsultants.com USA Apparel & Textile Industry Data  Clothing & Accessories Retail Market = $500+ billion*  Value of Apparel & Textile Imports = $93+ billion*  54 of Worlds’ Largest Companies are Retailers from USA** ¥ 5 of the top 10 retail companies in the world (based on revenue) are U.S.A based. ¥ 82 of the retailers on the entire Global Powers list of 250 retailers call the U.S.A their home. They include names like Walmart, Costco, Target, Sears, Macy’s, TJX, JC Penny, Kohl’s, The Gap, Limited, Nordstrom * Plunkett's Apparel & Textiles Industry Almanac 2011 ** Fortune Magazine's 2010 "Global 2000" list 11 www.intltradeconsultants.com USA Apparel & Textile Industry Data 1 Includes sales of non-apparel and all other merchandise carried by these stores; clothing represents a significant portion of these sales. Census = U.S. Census Bureau ITA = U.S. International Trade Administration Plunkett's Apparel & Textiles Industry Almanac 2011 12 www.intltradeconsultants.com USA Apparel & Textile Industry Data Apparel Market is Growing, Fast November, 2010**  Apparel imports increased by almost 30% vs. November 2009, to $6.8 billion  Imports of textile products were up almost 20%  Holiday 2010 - Clothing Sales 10% higher than 2009 sales ** Apparelstrategist.com http://bit.ly/e45CyQ 13 www.intltradeconsultants.com The 7 Steps The 7 Key Steps To Selling Your Products in The USA 14 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA 15 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Quick list of Export Basics to USA - http://www.export.gov/ Export Basics Home Develop Your Export Plan Identify Your Market Prepare For Your Market Sell to Your Market Conduct Business Online Get Logistical Support Secure Financing Terms of Trade 16 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA USITC Registration & Getting Cleared To Export to USA:  Hire legal counsel  Review & comply with customs requirements  Register with USITC to ensure no import duties, restrictions or patent issues  Establish legal right to sell your products in the USA Source: http://www.usitc.gov/secretary/fed_reg_notices/rules 17 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Obtain Required Work & Business Visas Any of your staff that will be in the U.S. for an extended time period will need a Visa for Business Visitors. There are a number of different types of visas for working in the U.S.A.:  B-1  E-1  E-2 18 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Obtain Required Work & Business Visas B-1 Visa Most common - business visits of short duration to the U.S.A. Typically issued by U.S. Consulates abroad Temporary visits to United States for business purposes which do not involve full-time employment Permissible activities include: ¥ Investigating possible business opportunities ¥ Negotiating contracts ¥ Attending conferences & trade shows ¥ Consulting with colleagues ¥ Establishing initial contacts 19 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Obtain Required Work & Business Visas E-1 & E-2 Visas - Treaty Trader and Investor Visas  Persons entering U.S.A to establish a new operation because the application process is initiated and completed  Typically issued by U.S. Consulates abroad  Permits recipient to enter U.S.A. for renewable incremental periods of between one and two years per entry 20 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Obtain Required Work & Business Visas E-1 & E-2 Visas - Treaty Trader and Investor Visas  Applies when intent is to trade principally between the United States and the foreign state (E-1)  Or to develop and direct the operations of an enterprise in which he or his foreign employer has invested or is actively in the process of investing, a substantial amount of capital (E-2)  The spouse of an E-1 or E-2 visa holder can obtain work authorization 21 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Become Familiar With Duty & Tax Calculation Methods USA Tariffs and Duty Rates (Determining Duty Rates): The Harmonized Tariff System (HTS) provides duty rates for virtually every item that exists. Example: What is the rate of duty on a red wine import?  Did the grape come from Chile or France? - each country may qualify for duty-free or reduced duty treatment  Where was the wine produced?  Does it have any additives included? 22 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Become Familiar With Duty & Tax Calculation Methods The U.S. International Trade Commission - Tariff Database Interactive data base that will enable you to get an approximate idea of the duty rate for a particular product  Duty rate you request is only as good as the information you provide  The actual duty rate of the item you import may not be what you think it should be as a result of your research  Customs makes the final determination of what the correct rate of duty is, not the company importer Source : http://www.usaexportimport.com/duty_tax.php 23 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Understand USA Work Habits & National/Regional Holidays Dates when most businesses are closed:  New Year's Day = 2012-01-01  New Year's Eve = 2011-12-31  Memorial Day (Last Monday in May) = 2011-05-30  Independence Day = July 4 - every year  Labor Day (First Monday in Sept.) = 2011-09-05  Thanksgiving (Fourth Thursday in Nov.) = 2011-11-24  Christmas Day = 2011-12-25 24 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Understand USA Work Habits & National/Regional Holidays Dates Most Banks Are Closed:  Martin Luther King Day (Third Monday in Jan.) = 2012-01-16  President's Day (Third Monday in February) = 2012-02-20  Easter = 2012-04-09  Memorial Day (Last Monday in May) = 2012-05-28  Independence Day = 2012-07-04  Labor Day (First Monday in Sept.) = 2012-09-03  Columbus Day (Second Monday in October) = 2012-10-08  Veteran’s Day = 2012-11-12  Thanksgiving (Fourth Thursday in Nov.) = 2012-11-22  Christmas Day = 2012-12-25 25 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Become Familiar With Possible Restrictions on Your Products There is a long list of forbidden goods. Here are just a few interesting ones to give an idea: Knockoff Brands : Throw away that bag of coffee you bought in the Bucksstar Coffee joint in China. Chicken Soup : Any prepared food containing meat products, including soup mixes are not allowed in the U.S Blank Tapes & CDs From Iran Dog and Cat Fur Products Flavored Cigarettes : Anyone entering the U.S. is prohibited from importing these cigarettes. However, the one big holdout was cigarettes that are menthol flavored - these are allowed. 26 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Product Liability Insurance: will protect you against claims resulting from a personal injury or damage to property caused by your product or services to another person or business. Warranty: USA consumers expect a specific level of performance and a guarantee that it will be achieved. Arrange warranty service locally with the assistance of a representative or distributor. Servicing: Service after the sale is critical for some products. Generally, the more complex the product's technology, the greater the demand for pre-sale and post-sale service. 27 www.intltradeconsultants.com The 7 Steps Step 1: Understand the Basic Rules for Exporting to the USA Understand Anti-Diversion, Anti-Boycott, and Anti-trust Requirements of US Government Anti-diversion : Regulation that prevents exported goods from going to destinations not approved by the USA government. The destination control statement and anti-diversion clause must appear on invoices and ocean bills of lading or air waybills that accompany exported goods. The statement also certifies that to the best of the shipper's knowledge, the shipment is headed to its stated destination. Anti-boycott : In general, these laws prohibit exporters to the USA from participating in foreign boycotts or taking actions against countries friendly to the USA. Anti-trust : “Fair Competition”. Intended to foster the efficient allocation of resources by providing consumers with goods and services at the lowest price that efficient business operations can profitably offer. 28 www.intltradeconsultants.com The 7 Steps Step 2: Ensure There Is A Market For Your Products 29 www.intltradeconsultants.com The 7 Steps Step 2: Ensure There Is a Market For Your Products and Brand There are several ways to evaluate the export potential of your products and services in the American market:  The most common approach = examine the success of your products domestically. How is your domestic consumer similar to the USA consumer? Is there a current demand for your product in the USA?  Another means = assess your company's potential in exporting by examining the unique or important features of your product. Does the USA have any products with similar competitive advantages?  Finally, your product may have export potential even if there are declining sales in your own market. Trends take time to work their way from one culture to another. 30 www.intltradeconsultants.com The 7 Steps Step 2: Ensure There Is a Market For Your Products and Brand Market Feasibility Study & Competitive Market Assessment VS 31 www.intltradeconsultants.com The 7 Steps Step 2: Ensure There Is a Market For Your Products and Brand Typical Market Feasibility Study & Competitive Market Assessment:  Description of the industry  Competition  Current market analysis  Market trends and size, overall marketability of your product(s) & retail niche  Anticipated future market potential  Market entry requirements, regulations, product standards and registration  Potential strategic partners, agents or distributors  Potential buyers and sources of revenues  Sales projections 32 www.intltradeconsultants.com The 7 Steps Step 2: Ensure There Is a Market For Your Products and Brand Typical Market Feasibility Study & Competitive Market Assessment:  Average Cost : $7,000 - $10,000  Average Time For Completion : 30 to 60 days 33 www.intltradeconsultants.com The 7 Steps Step 3: Find the Right Trade Shows for Your Products 34 www.intltradeconsultants.com The 7 Steps Step 3: Find the Right Trade Shows for Your Products o Each show has a different kind of audience and a target market. It is critical to exhibit at carefully chosen trade shows and avoid unnecessary expenses. Choosing the wrong shows can be very costly and may even lead to your complete failure in entering the US Market. 35 www.intltradeconsultants.com The 7 Steps Step 3: Find the Right Trade Shows for Your Products You need a long-term strategy for trade shows that dovetails with the rest of your corporate marketing :  Evaluate which industry shows are worth your while each year & build a calendar to track dates and preparation  Seek out only those shows with audiences likely to buy or resell your products  Set specific trade show goals with quantifiable objectives  Pre-show planning, review of attendee list and events 36 www.intltradeconsultants.com The 7 Steps Step 3: Find the Right Trade Shows for Your Products You need a long-term strategy for trade shows that dovetails with the rest of your corporate marketing (cont.) :  DO NOT wait until the show to contact your target customers.  Develop show direct-mail or email that include a teaser or offer to attract traffic to your booth, or that makes your product distinctive.  Make sure there's a backup plan for staff, marketing, displays and anything else you'll need.  Consider hiring a PR firm to manage your trade show appearances, beginning some months ahead and kicking in during shows. Will allow your company to concentrate on business and still benefit from a successful show. 37 www.intltradeconsultants.com The 7 Steps Step 3: Find the Right Trade Shows for Your Products You need a long-term strategy for trade shows that dovetails with the rest of your corporate marketing (cont.) :  Complete the training of your sales staff BEFORE the show.  NO PREPARATION = NO SALES • Every employee must = articulate company ambassador with a consistent message. • Test its effectiveness by tallying the sales leads you get at the show. Then refine the script accordingly for the next show. • Teach them how to ask questions; don’t push. Leads to a longer relationship, rather than a one-time purchase. 38 www.intltradeconsultants.com The 7 Steps Step 3: Find the Right Trade Shows for Your Products You need a long-term strategy for trade shows that dovetails with the rest of your corporate marketing (cont.):  Have a plan in place to follow up with prospects & booth visitors after the show: • Studies show that most trade show leads are never re-contacted or activated = wasted money & time • Trade show follow-up should happen within five days SUMMARY: To get a good return on your trade show investment means you need to plan, prepare and then follow up. 39 www.intltradeconsultants.com The 7 Steps Step 3: Find the Right Trade Shows for Your Products The best shows for the apparel industry in our opinion are: SF Show Name? Location? Cost ? Timing ? Cost ? Magic Show ? Las Vegas? $42.50 ? Low ? Annual? New York, Bi- NY Fashion Show ? $56.25 ? Medium ? NY? annual? New York, International Apparel Sourcing Show 2011 ? $62.50? High ? Annual? NY? Find the right time to show your products Most shows are bi-annual ( twice a year ) and it is critical to chose the correct timing. Winter shows generate more sales for the 6 – 8 months following the show. Spring and summer shows typically focus on sales for the following year. 40 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow 41 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow It is essential to contact tradeshow attendees & buyers BEFORE each show - either through direct print mail or email. Ideally, both. The following are a few examples of how this can be done: NOTE - this is an e-mail example 42 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow It is essential to contact tradeshow attendees & buyers BEFORE each show - either through direct print mail or email. Ideally, both. The following are a few examples of how this can be done: NOTE - this postcard example includes a schedule of events 43 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow It is essential to contact tradeshow attendees & buyers BEFORE each show - either through direct print mail or email. Ideally, both. The following are a few examples of how this can be done: NOTE - the Symphony example entices visitors using a Smart Car give-a-way. 44 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow Invest time and money to make your booth / showroom great. To the right is a typical, standard booth. Notice dimensions are listed in feet, not meters! It is a 10’ x 10’ cubicle (3m x 3m). It is wise to use every square inch of it. However, that does not mean the space should be cluttered or filled to the top with merchandise. 45 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow Invest time and money to make your booth / showroom great. Some experts recommend loud, bold displays that no one will miss from across the hall. 46 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow Invest time and money to make your booth / showroom great. Some experts recommend loud, bold displays that no one will miss from across the hall. 47 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow Invest time and money to make your booth / showroom great. Others suggest the opposite: Developing an attractive counter-programming presentation geared to one- to-one interaction with the personal touch. 48 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow Invest time and money to make your booth / showroom great. In our opinion the following are examples of poorly designed booths 49 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow Invest time and money to make your booth / showroom great. In our opinion the images below show examples of poorly designed booths 50 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow Design a booth with efficient visual merchandising elements - avoid a cluttered look?  You have very limited time to make a “first” impression on a customer  It is important to show them as much as possible within a few minutes.  Much of your initial messaging is in visual form. Everything must look perfect as if this is your only chance to show products to the customer  The customer will be constantly scanning your showroom when you are giving your sales pitch  Less Is More 51 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow GOOD PRACTICES  Professional Display Units. Nothing makeshift.  Nothing should be in the booth unless it is necessary. Include out-of-the- way storage area for sales team’s personal items.  Must have carpet or another form of comfortable flooring. Buyers avoid spending much time in showrooms without carpet flooring.  At least 3 -4 signs with your company name.  An attractive hand out page in full color or a catalog ( CD is ok, USB Flash Drive is better for legitimate prospects )  Well designed, heavy paper stock Business Cards  Nice looking, easy to read name badges 52 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow GOOD PRACTICES ( your sales team ) :  Making eye contact & saying “Hello” with a smile  Script the First Fifteen Second Introduction or “Elevator Pitch”  State your benefits Boldly in your display area  Move longer conversations out of the flow of booth traffic  Provide visitors with value-added take-a-ways, not just a brochure  Have an effective Post-Show follow up program (more on that later in this presentation) 53 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow BAD PRACTICES ( from the beginning until the end the show ) :  No Eating or drinking ( except water of coffee ) in the booth  No sitting in the booth (it makes you look bored and that is not good)  No personal phone calls in the booth  No arm crossing in the booth ( hostile posture )  Acknowledge visitors immediately - conversations with your colleagues must cease immediately when a visitor enters your booth 54 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow BAD PRACTICES ( your sales team ) :  Scanning Badges Without Context  Failing to Qualify - know their role & their buying objective first  Visually Scanning for Someone Better  Ignoring Loiterers - make them feel welcome  Checking Your Email  Even when last night’s drinking was fun, never brag out loud about your escapades or hangover. And do something about your breath - there’s nothing worse than the reek of too much alcohol from the night before Source: http://bit.ly/j3UKal 55 www.intltradeconsultants.com The 7 Steps Step 4: Marketing - Making Smart Decisions Before, During & After Each Tradeshow There is an old saying in our world of trade shows : “ THE SHOW IS NEVER OVER UNTIL THE FAT LADY SINGS “ Which means you should never risk shutting down early or not showing up on the last day of the show. Some of our best orders in the past have been written during the last half of the final day of trade shows. Plus it’s a great time to sell your tradeshow display samples - one less thing to have to ship back to the office. 56 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ the Best People You Can Find 57 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People You have already invested in your tradeshow admission, showroom and all other related expenses; now, you must find the best salespeople. 58 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People You have very limited time to make a “First Impression” on a customer. It is very important that you have the right person to make that impression.  Not too pushy but not timid either  Professionally dressed, well groomed & good breath (yes, we’re talking specifically to smokers & people who never floss their teeth)  Multi-lingual if possible  Good looking if possible (Sorry, but it is true - everyone likes to spend time with attractive, well presented people ) 59 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People It is important to show / tell the buyers as much as possible within a few minutes. Therefore :  The sales team must be very knowledgeable about your products  The sales team must know the industry and be able to gauge the caliber of buyers from their badges (company, title)  The sales team must also be well versed about current events as many buyers want you to be able to relate to them 60 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People Much of your initial messaging is in visual form. Everything must look perfect as if this is your only chance to show products to the customer.  The salesperson is what completes the first impression  Buyers come in because they like what they see from the isle, but they stay only if they also like the people selling the product  Employ appropriate & current uniform or fashion practices 61 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People Employ appropriate & current uniform or fashion practices (cont.) - these are not good examples of “appropriate” or “current” 62 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People The customer is constantly scanning your showroom when you are giving your sales pitch.  Know when to stop pushing the sales pitch  Let them go with a business card and your best pitch: “We make money only when you make money.” 63 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People Empower your sales people with additional incentives to offer buyers so they will stay longer at your booth or go away with something to remember your brand.  Have lots of fresh coffee, soft drinks & water to offer in branded cups or thermal carafes that include your Web address and phone number.  Offer online services that let delegates interact with your product or offerings  One simple draw is to hold a lottery; with an attractive prize. Collect business cards during the show and then draw one on the last day for the winner  More creative giveaways target the specific traffic you want by appealing to a special skill or taste. Example: A company that sells computer servers developed an online puzzle that attendees could complete & qualify for a prize only after they returned home. That led target customers to register on the company web site after the show was over. 64 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People In addition to your own sales team at the trade shows during the shows, it is also important to consider creating a proper channel of distribution throughout the US. These channels include sales representatives, agents, distributors, retailers, and end users. Sales Representatives : A representative usually handles many complementary lines that do not conflict. The sales representative usually works on a commission basis, assumes no risk or responsibility, and is under contract for a definite period of time (renewable by mutual agreement). The contract defines territory, terms of sale, method of compensation, reasons and procedures for terminating the agreement, and other details. 65 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People In addition to your own sales team at the trade shows during the shows, it is also important to consider creating a proper channel of distribution throughout the US. Agents : The widely misunderstood term "agent" means a representative who normally has authority, perhaps even a power of attorney, to make commitments on behalf of the firm he or she represents. It is very important that any contract state whether the representative or agent does or does not have legal authority to obligate the firm. 66 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People In addition to your own sales team at the trade shows during the shows, it is also important to consider creating a proper channel of distribution throughout the US. Distributors : A foreign distributor is a merchant who purchases goods from an exporter (often at a substantial discount) and resells it for a profit. The foreign distributor generally provides support and service for the product, thus relieving the distributor company of these responsibilities. The distributor usually carries an inventory of products and a sufficient supply of spare parts and also maintains adequate facilities and personnel for normal servicing operations. Distributors typically handle a range of non- conflicting but complementary products. 67 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People In addition to your own sales team at the trade shows during the shows, it is also important to consider creating a proper channel of distribution throughout the US. Foreign Retailers : A company may also sell directly to foreign retailers, although in such transactions, products are generally limited to consumer lines. The growth of major retail chains in America has created new opportunities for this type of direct sale. This method relies mainly on traveling sales representatives who directly contact foreign retailers, although results might also be achieved by mailing catalogs, brochures, or other literature. 68 www.intltradeconsultants.com The 7 Steps Step 5: Your Sales Team - Employ The Best People In addition to your own sales team at the trade shows during the shows, it is also important to consider creating a proper channel of distribution throughout the US. Direct Sales to End Users : A foreign business may sell its products or services directly to end users in U.S. market. You should be aware that if a product is sold in such a direct fashion, your company is responsible for shipping, payment collection, and product servicing unless other arrangements are made. This approach will only work if your products are warehoused at a distribution facility in the continental USA. The cost of incurring these services must be built into your export price and revenue calculations when you assess the feasibility of such an approach. 69 www.intltradeconsultants.com The 7 Steps Step 6 Submit All Tradeshow Applications On Time or Early 70 www.intltradeconsultants.com The 7 Steps Step 6: Submit All Tradeshow Applications On Time or Early This will ensure you get the space / showroom / booth of your choice. There are many savings and discounts & early bird specials:  Up to 25% discount on all trade show services  Up to 40% discount off the tradeshow space cost  Up to 60% discount on hotel accommodation and flights 71 www.intltradeconsultants.com The 7 Steps Step 6: Submit All Tradeshow Applications On Time or Early There are many losses and penalties for procrastinators:  You will end up getting a bad location with less traffic  You pay more for everything  You miss all the free advertising usually offered by the show promoter and pre-show marketing campaigns 72 www.intltradeconsultants.com The 7 Steps Step 7 Have a Great Post Show Follow-Up Sales Program 73 www.intltradeconsultants.com The 7 Steps Step 7: Have A Great Post Show Follow-up Sales Program This is where things can get tricky. Many companies achieve all of the previous objectives but still go home with no sales or real prospects. In order to make it a success story, after you have completed all the steps we’ve covered so far, you still need to be able to provide the following to your retailer customers in America :  Logistical support for shipping and delivering their order  Post sales support  Customer Service for product issues  Product Liability Insurance / Warranty 74 www.intltradeconsultants.com The 7 Steps Step 7: Have A Great Post Show Follow-up Sales Program Completing all of these necessary tasks can be very difficult and costly; therefore it is nearly impossible for companies that don’t have knowledgeable staff/brokers and budget to enter the US Market. The bigger barriers to entry for companies from outside of the USA :  How to negotiate and afford an office and warehouse location in the United States.  The physical distance from their primary country of business  Navigating the cultural and legal nuances of leasing a warehouse  The inability to find and negotiate the logistics of transporting products to and from that warehouse 75 www.intltradeconsultants.com International Trade Consultants Feeling Overwhelmed? We Can Help: 76 www.intltradeconsultants.com International Trade Consultants OUR MISSION International Trade Consultants mission is to enable Turkish companies to attend trade shows in the United States and facilitate new business opportunities with US buyers and distributors, as well as consult with each Turkish company on how to import, warehouse and distribute their products in and throughout the USA. 77 www.intltradeconsultants.com International Trade Consultants Aaron Bakken: Co-Founder  Opened and managed franchise retail stores  Founded and operated 4 companies in the USA  Has been a Member of the San Francisco Chamber of Commerce  Has worked closely with San Francisco Travel Association  Has ties to the San Francisco Center For Economic Development  Worked at the US Embassy London as an international trade specialist 78 www.intltradeconsultants.com International Trade Consultants Muammer Kaya: Co-Founder  General Manager of wholesale supplier accounts at Unique Arts for 10+ years  Deep experience negotiating international container shipments & import licensing  Consultant & sales trainer to international vendors from Middle East & Asia  Multi-lingual  Dual citizen of Turkey & USA 79 www.intltradeconsultants.com International Trade Consultants How We Can Help You Our plan is to allow each of our clients to list one or both of our offices in Madison, Wisconsin and Oakland, California as their USA office location. This will lend their company an increased level of legitimacy when dealing with USA based buyers, as well as give each manufacturer both the pride and bragging rights that come with having an “Office” in the USA market. 80 www.intltradeconsultants.com International Trade Consultants How We Can Help You Warehousing : We will be leasing warehouse space in approx. 100 sq.ft. increments (or whatever is available in the market at the time), along with shipping and receiving services at a standard per sq.ft. lease rate. As our international clients send over inventory for use in trade shows or for direct distribution to our USA based buyers, we anticipate the ability to increase or decrease our utilization of this warehouse space on a monthly basis. 81 www.intltradeconsultants.com International Trade Consultants How We Can Help You Our team specializes in helping companies like yours turn the dream of selling in the US market into real profits and success. Our services include :  Researching and writing market feasibility studies that assess if your product will sell in the USA and what it’s competitive advantages will be  Navigating the import/export licensing, customs requirements with the US government  Negotiating contracts for your involvement in multiple wholesale tradeshows  Representing your company at trade shows to major retail companies Applications & related paperwork Coordinating the design & creation of display graphics and hardware Service orders, Freight, Booth Set-up, Sample selling 82 www.intltradeconsultants.com International Trade Consultants How We Can Help You  Training your sales people on how to sell to North American buyers, close new sales and perform the necessary follow up tasks to ensure sales contracts are fulfilled  Negotiating warehouse storage and distribution contracts  Selecting the right retail space for your first USA retail location  Negotiating retail space leases, managing the build out of the sales space and hiring and training management and staff  Making what was once a very complicated process, now a relatively easy set of tasks  We also know how to leverage your government’s export assistance programs (KOSGEB) to help offset up to 70% of the costs of bringing your products to the US market 83 www.intltradeconsultants.com International Trade Consultants With our help, your opportunity for success in America is very high, and the ultimate costs will be very low. Contact Information : International Trade Consultants 7814 Outlook Ave. Oakland, CA Oakland, CA 94605 U.S.A. Phone: 608-213-3904 | Fax: 415-738-8110 www.intltradeconsultants.com Principals : Aaron Bakken : abakken@intltradeconsultants.com Muammer Kaya : mkaya@intltradeconsultants.com 84 www.intltradeconsultants.com International Trade Consultants Quick Summary In summary, we have talked about all the difficulties of entering the USA Market, but we would like to conclude with our promise to help you every step of the way. Even if it is just giving you some good one-on-one advice after our presentation. There are also many companies that have entered the American Market and became a success story in a relatively short time. Their stories follow this page: 85 www.intltradeconsultants.com Turkish Case Studies Success Stories This section will cover four striking examples of Turkish firms that clearly made their way to become a recognized brand and a truly global firm. These four case studies demonstrate that there are Turkish firms, among many, which are fashion and brand minded and cast an example of the increasing awareness toward capturing new markets and growing demand for their specific trade brands. 86 www.intltradeconsultants.com Turkish Case Studies Silk & Cashmere is a Turkish brand, which figured out that the world of cashmere was dominated by either very high end and expensive brands or discounted knock-off brands that offered a very low cashmere fiber content in their products. Having completed strategic assessments of the local markets they wanted to enter, and observing a market niche at the right time, they formed a joint venture abroad in 1992, and are now on target to become a world brand. Currently there are 57 Silk & Cashmere points of purchase world wide including exclusive shops and corners in Barcelona, St. Moritz, Zurich, Moscow, Belgium, Austria, and in a number of other European cities. This is an important figure for their high end concept given that even their competitors, most of whom are 80 year old cashmere brands, have only around 30 locations each. http://bit.ly/knDBnF 87 www.intltradeconsultants.com Turkish Case Studies The success story of Mavi Jeans is a striking example of the increasing transformation of the Turkish Textile and Apparel Industry from commission manufacturing to selling trade brands. Mavi Jeans has established itself as the domestic market leader and a global player for quite sometime. Mavi is known for high quality, great fitting and fashionable denim. Founded in Istanbul in 1991, Mavi Jeans designs a full collection of jeans wear for young women and men. Mavi sells 7.000.000 units each year and is now sold at over 4000 outlets located in specialty stores, better department stores and specialty chain stores in 50 countries including the USA, Australia, Canada, Germany, England, Denmark, Italy, France and the Netherlands. Mavi has flagship stores in New York, Vancouver, Istanbul, Berlin and Frankfurt. They entered into the market with a unique angle: offering an opening price point for designer brands that can be afforded by teenagers and college students, who loved the fit, the quality and the price. Every step they have taken was based on the philosophy: “You cannot become a global brand if you are a poor local brand”. http://bit.ly/iNXYfQ 88 www.intltradeconsultants.com Turkish Case Studies Although Bil’s (www.bils.com) sounds like an English name, it is, in fact, a famous Turkish white shirt brand created by Bilsar (www.bilsar.com). Bil’s surely is not a very large global company but it is a fast growing, flexible, innovative, and new company that responds successfully to their customers needs on a global scale. They seem to be taking serious steps to be a global player. They both produce for, and under the license of, the world famous shirt labels Brooksfield, Arrow, Rodier and also market under their own brand, namely Bil's, which was originally created for the U.S. market. Bilsar is the leading shirt producer in Turkey and has consistently increased the value of it’s exports to the USA since 2004. Mr. Selman Bilal, the owner of Bilsar, comments: “ “This increase did not stem ?om an increase in production but ?om an increase in high value added products. We created a superior service that utilized information technology to create a flexible production model. This model helped this exporter, who is racing against time with zero-fault tolerance, to have an advantageous service. It is this area of service culture that countries like China wi? never constitute a threat.” (Milliyet, 20 November 2004) 89 www.intltradeconsultants.com Turkish Case Studies Bizim Collection is a small family-owned-and- operated company based in Northern Virginia, USA. The company provides high quality, distinctive items made by master artisans in Turkey (and Central Asia). They started out with handbags and shoes made from wool and leather, and have evolved over time to include various product lines: jewelry, hand-painted decorative ceramics, Ottoman-style lamps, furniture, oriental rugs and other home accessories. They also offer services, such as carpet cleaning, repair and restoration. Their secret to success is understanding the local market and adapting their entire product line accordingly. http://www.bizimcollection.com/index.html 90 www.intltradeconsultants.com The End Conclusion Lastly, we would like end with our mission statement: We strive to enable Turkish companies to attend trade shows in the United States and facilitate new business opportunities with USA based buyers and distributors, as well as consult with each Turkish company on how to import, warehouse and distribute their products in and throughout the US. 91 www.intltradeconsultants.com The End Teşekkür Ederim Questions? 92 www.intltradeconsultants.com
Posted: 20 November 2012

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