becoming a successful exporter to china
Post on 16-Apr-2017
Embed Size (px)
AgendaExporting as an IdentityExporting to China Market ResearchMarket EntryCustomer OversightExpansionSelf-Evaluation
Who We Aim to Reach
Wisconsin business owners C-Suite executives Trade associations Financial, Legal, and Private Equity professionals State and local policy makers EducatorsWisconsin ranked 19th in the nation for total value of exports in 2012
Wisconsin Dept of Agriculture, Trade and Consumer Protection4
What It Means to Export
Successful exporters possess: Strong, forward looking leadershipAn entire organization that understands the importance of the global economyA desire to minimize weaknesses and strive for continual improvement
Opportunity for Growth
In 17 product categories in the United States, the market leader in 1925 remained the number-one or number-two player for the rest of the century.
Capturing the Worlds Middle Class. Court, David;Narasimhan, Laxman
Potential ramifications:Increased pricing competitionIncreased barriers to entry in ChinaRipple effects felt across all markets
From Theory to Action
Internal Business Assessment
Product Evaluation-Is your product unique? -Do you have specific IP concerns with your product? -Is your product easily and affordably shipped by vessel? Customer Evaluation-Do any of your current customers intend to establish a physical presence in China?-Do industry trends point towards China being a vital market in the future?Current Export Activity-Do you currently export to any other emerging/ high growth markets?-What areas do you excel in as an exporter?-What areas do you struggle with as an exporter?-Do any of your competitors export to China?Available Resources-Have you identified your capital and manpower constraints?-Does your organization possess the intellectual capital needed to succeed in China?
External Market Assessment
Current and projected demand for your goods in the marketplace-What is the size of your industry in China?-Is your industry growing or contracting in China, and at what pace?Players currently operating in the marketplace-Who are the major players operating in the marketplace?-Are your competitors active in China?-How are these players currently reaching and servicing consumers?Pricing competitiveness-Can the demand for your products withstand increases in costs due to overseas shipping?-How competitive are your prices with domestic labor costs?
Has your company received unsolicited business inquiries from Chinese buyers?
What sales channels does your company utilize in other markets to engage new customers?
Payment terms should be structured to protect your interests-Industry standards vs Company standards-Emerging markets vs Mature/Domestic markets-Means of enforcement Terms & Agreements to frame commercial business-Must take product life-cycle into consideration (one-time sales vs recurring business) Quality Agreements-Prevent fraudulent claims-Protect all parties-Claim verification/testing procedures Conflict resolution
Self-Evaluation Is exporting to China essential to meeting your long- term business goals? Does your company have the qualified personnel need to meet your goals in China? Are you prepared to potentially become a Made in China for China manufacturer? Are key personnel in agreement with your companys long-term China business plan?