EXPORT MARKETING

Vietnam Ceramics Export

Vietnam Bamboo & Rattan Export

WHY EXPORT

• MORE PROFIT• MANY MARKETS• UNIQUE PRODUCT• SELLING IN US$ CURRENCY• MANY BUYERS IN THE WORLD

Port Rotation: Le Havre - Hamburg - Rotterdam - Zeebrugge - Southampton - Jeddah – Port Klang - Qingdao - Ningbo - Xiamen - Chiwan - Yantian Highlights: Fast transit times from North Europe to Ningbo

Port Rotation: Istanbul - Constanza - Odessa - Constanza - Istanbul – Damietta - Jeddah - Singapore - ShanghaiHighlights: Provides fast transit times from the Black Sea to the Middle East, Southeast Asia and China with direct connectivity from Odessa, Istanbul and Constanza

Port Rotation: Genoa - Barcelona - FOS - Damietta - Jeddah - Port Klang - Singapore - Chiwan - Shanghai

Highlights: Speeds your cargo from West Meditteranean to Middle East, China, South East Asia and provides industry transit times from FOS

Port Rotation: Hakata - Kwangyang - Pusan - Kaohsiung - Hong Kong - Singapore - Rotterdam - Hamburg - Thamesport

Highlights: Fast transit time out of Southeast Asia to Rotterdam - the first port of call in Europe

Port Rotation: Ningbo - Shanghai - Chiwan - Hong Kong - Balboa - Manzanillo - Jacksonville - Savannah - New York - Norfolk

Highlights: Direct link between the manufacturing areas of Central and Southern China, including a port call at Ningbo, and four U.S. East Coast ports

Port Rotation: Shanghai - Shekou- Yantian - Hong Kong - Kaohsiung - Manzanillo - New York - Norfolk - Savannah

Highlights: Hong Kong to New York in only 24 days; Fast, all-water service from North Asia to U.S. East Coast

Port Rotation: New York - Charleston - Savannah - Norfolk - Jebel Ali - Port Klang - Singapore

Highlights: Suez gateway service direct to Singapore offers significantly faster transits for U.S. East Coast shippers to Southeast Asia

Port Rotation: Singapore - Westport - Fremantle - Brisbane - Sydney - Melbourne - Adelaide - Fremantle - Singapore

Highlights: One of the fastest routes that connects the major ports of Australia to Southeast Asia via Singapore

Port Rotation: MCX: San Pedro - Lazaro Cardenas - Acajutla - Puerto Quetzal MC2: San Pedro - Lazaro Cardenas - Puerto Quetzal - Acajutla

Highlights: Direct all-water port call to Acajutla and Puerto Quetzal; Direct connections provide quicker access to Central American markets from Asia

WorldWorld TradeTrade CentreCentre Network

BBS .... Offers to BUY,SELL & other Opportunities

ADVERTISE Your Requirements Worldwide Instantly

306 WTC ‘S Covering more than 92 Countries

PREPARING PRODUCT EXPORT

• Preparing Products for Export   Your bestseller• Different products for different customers• Quality comes first• Different products for different customers• Do not copy from others but develop unique

products• Add value to your products• Understanding the product sales periods

 

CONTACT POTENTIAL BUYERS

• Identifying purchasing agents of large retailers that already operate in Indonesia or in the region e.g. IKEA, Wal-Mart, Tchibo, Otto, Habitat, etc.

• Attendance at national or international trade shows and participation in trade missions abroad

• Launching mailing campaigns to buyers that you may find through their websites, trade directories, trade fair catalogues and websites etc.

• Assessing websites with large databases with international coverage, including ITC Index to Trade Information Sources (www.intracen.org), European Business Directory, World Trade Center Association (www.wtca.org)

CONTACT POTENTIAL BUYERS• Registering as a user of global B2B on-line trade portals such as

www.ecplaza.net, www.alibaba.com, and find buyers by searching these databases

• Assessing sources from government or trade associations (Trade Centers in New York, Dubai, Japan etc.)

• Identifying representatives or trade promotion organizations of foreign countries in Vietnam like JETRO, KOTRA etc.

• Your website with special key words like “Indonesia Handicrafts”

MARKETING• How do you reach potential customers?

• What are your marketing instruments?

• Do you have stable partnerships with key customers?

• Do you know their requirements?

• First focus on existing customers before targeting new ones.

• Do you have more than one customer?

MARKET DEVELOPMENT AND OPPORTUNITIES

• Market size,

• sales channels,

• major importers, agents, distributors and retailers?

• What are customer preferences

• what is the price level?

• Who will want to buy what you can make and why?

• What colours are in fashion?

• What new designs are popular?

 

MARKET ANALYSIS

• Screen Market Potential• Obtain trade statistics about imports in various country

• Identify 5 to 10 large and fast-growing markets for your products. Look at them over the past three to five years.

• Target three to five of the most promising markets for further assessment.

• Consult with experts, the Trade Promotion Agency .

Special difficulties in international marketing

1.Difficulty of Distances, 2.High Cost of Transport, 3.Diverse Languages, Customs, Traditions and National Laws, 4.Currencies, Weights and Measures, Marketing Methods, 5.Risks and Uncertainties, 6.Customs Formalities, Exchange Control, 7.Payment of Dues, 8.Shipping and Insurance, 9.Foreign Trade Quotations , 10.Multiple Chain of Middlemen.

TRADE FAIR PREPARATION

• What is the overall character of the show: design, quality, price level? What kinds of

products are being shown? What kinds of businesses are exhibiting?

• Product and design trends

• What kinds of booths are heavily frequented?

• How are products displayed, how are booths arranged?

• What networking services are provided by the show management (buyers contacts, sales reps), what services are provided for exhibiting: storage, lighting, carpeting, booth displays, exhibitor directory?

• Costs and logistics, which become an important issue once you have decided to actually participate in the show (visit the show management office).

TRADE STATISTICShttp://www.wtcmumbai.org/impex_databank.htm

– IMPORTS&EXPORTS– DATA OF COUNTRIES

– QUANTITY & PRICE– BUYING & SELLING

IMPORTS&EXPORTSDATA OF COUNTRIES

QUANTITY & PRICEBUYING & SELLING

World Import & Export Database

http://www.piers.comPIERS maintains the most comprehensive database of timely, accurate, import and export

information on the cargoes moving through ports in the U.S., Mexico, Latin America, and Asia. PIERS collects data from over 25,000 bills of lading everyday — then translates the raw data into the kind of meaningful intelligence that companies

around the world use to: Find new suppliers, new markets and new business opportunities• Benchmark performance against the competition• Defend intellectual property against infringement and counterfeiting• Understand international trade trends and forecasts• Support strategic decision-making• Arbitrate trade disputes

ASSESS TARGETED MARKET

• Identify importers

• Identify the market segmentation

• Examine price level

ASSESS TARGETED MARKET

• Check market entry barriers

• Identify incentives

• Examine shipping costs

TRADE FAIR PREPARATION

• The show: design, quality, price level

• What kinds of products are being shown

• Product and design trends

• Costs and logistics.

SOURCES

• Trade associations;

• The General Statistics Office of Country or other national statistic offices;

Trade journals and trade press;

International research agencies like Euromonitor (www.euromonitor.com), KeyNote, Datamonitor (www.datamonitor.com) and Mintel (www.mintel.com), where you can find a lot of information on markets, consumers’ lifestyle etc.

SOURCES• Trade agencies,

– Japan External Trade Relation Organization (JETRO),

– the Center for Promotion of Imports from Developing Countries (CBI, the Netherlands),

– the International Trade Center (ITC), Chambers of Commerce and Industry etc.. Here you can find information on market surveys (segmentation, consumption, competitors, entry requirements), market trends, statistics etc. websites see Appendix No.6.

SOURCES– Information about upcoming trends and colors in the EU, Japan and US market

can also be taken from the “Trend Forecast” of CBI (www.cbi.nl), the Swiss Import Promotion Programme SIPPO (www.sippo.ch), Japan Fashion Association (www.japan fashion.or.jp), Trend Curve’s (www.trendcurve.com). 

– The Google search tools ‘froogle’ and ‘catalogues’ are extremely useful for product design and pricing. ‘Froogle’ shows photographs of products and their prices ‘Catalogues’ is a directory of over 6000 scanned catalogues with images

of products and prices (http://froogle.google.com; http://catalogues.google.com).

SOURCES• JETRO, www.jetro.go.jp,

• Kotra Korean Trade Investment Promotion Agency, kotrahan@fpt.vn,

• AMCHAM - American Chamber of Commerce,

• JICA - Japan International Cooperation Agency, www.jica.go.jp

• Consulates, Trade Centers in foreign countries

• Discussion with forwarding agencies or shipping companies

• Trade fair visits in your target markets or other trade fairs

• Store visits in your target markets to check trends, prices

 

MARKET DEVELOPMENT AND OPPORTUNITIES

• What are the prices and margins at each distribution level?

• What are the most important requirements of the identified sales channels (quality, packaging, etc)

• which sales channel is most suitable for your range of products?

• What are the major trade shows where your types of products are sold?

• How about cultural factors in doing business in the selected markets?

COMPETITION• Is there much competition in these markets?

• Who are the main competitors?

• What products compete with yours?

• Who are the suppliers or manufacturers of those products?

• What can you make that is different and better?

• Who are the main clients of your competitors?

• What are the strengths and weaknesses of your main competitors?

• How many competitors from your own country are active in the target market?

 

The advantages and disadvantages of payment terms

Method of payment Timing of payment Goods availability Seller’s risks Buyer’s risk

Cash in advance Before shipment At destination arrival

None 100% reliance on seller

Letter of Credit Presentation of documents aftershipment

When L/C is paid Minimal, Issuing/ confirming bank obligation to pay if documents conform to L/C

Assurance of shipment, but depends on seller to supply goods ordered

D/A collection When accepted Trade Draftmatures

At time Trade Draft is accepted

Non-payment of draft, even though buyer has the merchandise

Minimal, may refuse to pay draft at maturity

D/P collection When documents received at thepresenting bank

When payment is made

Non-payment of draft Assurance of shipment,but depends on seller tosupply goods ordered

Open Account Buyer's discretion Upon arrival 100% reliance on buyer None

EXPORT COSTCost components Cost (US$)

/Mark-up (%)Price (US$)

1 Factory price or producer costs of making the products (labor, materials, packing, overhead...)

1.0 1.0

2 Profit of the producer 20% 0.2

Producer’s price/Ex-works (1+2+3) 1.23 Inland transportation (e.g. to port) incl. loading

and unloading0.3 1.5

4 Customs declaration/export clearance, export agent fees

0.1 1.6

5 Port receiving charge (usually CFS) 0.1 1.7

FOB Haiphong port 1.76 Ocean freight & Insurance 0.2 1.9

CIF Destination port 1.97 Charge in destination port (DDC-destination

delivery charge, AMS-Advance Manifest System...)

0.1 2.0

Landed price to importer 2.0

LANDED PRICE TO IMPORTERLanded price to importer 2.0

1 Import duty (10% of landed price)

0.2

2 Price upon arrival at the port 2.2

3 Wholesaler mark up (warehousing, distribution, marketing, profit)

80%

4 Wholesale price 4.0

5 Retail mark up (store, personnel, advertising, profit etc.)

100%

Final consumer price 8.0

NO ITEM CODE

PICTURE ITEM NAME

SIZE(CM)

PACKING

Q’TYIN 40’’CONT.(PCS)

CIF

(USD)

TOTALAMOUNT

(USD)

1 BS01 Sea-grass basket

56x35x24

52x32x20

28x20x18

17x9x17

2PCS/ CTN

1,212 10.5/PC 12,726

TOTAL 1,212 12,726

GREEN WORLD CO., LTD.No.20 Lane 192 Giap Bat Str., Hoang Mai Dist., Hanoi - VietnamTel: 84.4.6642866 Fax: 84.4.6642983 E-mail: greenworld@fpt.vn

QUOTATIONRef: Inquiry No.: QUO61/06.LP Date: June 27, 2004 To: DECO IMPORTS

3-2-22 Higamitsu, Saitama-Tokyo, Japan.

In words: In US dollars Twelve thousand seven hundred and twenty six only.Time of delivery: FOB Haiphong seaport, Vietnam Place of delivery: Tokyo, Japan – 45 days after receipting your first

remittanceTerm of payment: T/T remittance. 30% advance right after signing contract. The balance (70%) will be paid up upon the readiness and final inspectionValidity of the quotation: By 27 September, 2004Green World Co.,Ltd.

TERMS OF SALE

• In any sales agreement, it is important that a common understanding exists regarding the delivery terms. Confusion over terms of sale can result in a lost sale or a loss on a sale. For this reason, you must know the terms before preparing a quotation or a pro forma invoice. A complete list of important terms and their definitions is contained in INCOTERMS 2000, which are grouped in four categories E (EXW, ex-works, formerly ex-factory), F (including FCA, FAS, FOB), C (including CFR, CIF, CPT, CIP) and D (including DAF, DES, DEQ, DDU, DDP).

INTERNATIONAL TRADE FAIR

• AUMA – Association of German trade fair organizers :lwww.auma.de

• Trade Show News Network :www.tsnn.com

• Database with listings of trade fairs world-wide. Search filters include product group, country, trade fair name and keyword. Free of charge.

•  

• Exhibitions-World :www.exhibitions-world.com

• Database with listings of trade fairs worldwide, including trade fair news. Registration is free of charge.

•  

• Eventsource :www.eventsource.com

• Contains a database of 55,000 trade shows, events and seminars.

•  

• Expo Base :www.expobase.com

• Offers a multilingual directory of 15,000 trade fairs and over 25,000 service providers

•  

• Trade Show Centre :www.tscentral.com

• Covers 20,000 trade shows, 35,000 conferences and seminar and 500 vendors.

•  

HANDICRAFT TRADE FAIR• EU market GERMANY :

• Ambiente (February)

Table art, kitchen and housewares, gourmet shop, table decoration and

– accessories, interior design, giftware, jewelry, accessories. www.ambiente-frankfurt.de

• Tendency (August)

• Table art, kitchen and housewares, gourmet shop, table decoration and

• accessories, interior design, giftware, jewelry, paper ware, perfume, accessories.

• www.tendence-frankfurt.de

• Heimtextil (January)

• Specialised trade fair for home textiles

• www.heimtextil-frankfurt.de

• UNITED KINGDOM Spring Fair Birmingham (February)

• General giftware, jewelry, watches, china and glass, fashion accessories, leather, frames and fine art. www.springfair.com

•

EXPORT DOCUMENTATION AND SHIPPING

• Bill of lading: Bills of lading

• Commercial invoice

• Packing List

• Certificate of Origin

• Health Certificate

• Inspection certification

• Insurance certificate

• Phytosanitary Certificate/Fumigation Certificate

No. Category

H.S. Codes Description

1 Bamboo, rattan, rush and leaf

4601.20 Mats, matting and screens of vegetable plaiting materials.

Basket ware, wickerwork and other articles made directly to shape from plaiting materials or made up from goods of heading No 46.01; articles of loofah

4602.10 Of vegetable material

4602.90 Made up from other plaited materials

6504.00 Hats and other headgear, plaited or made by assembling strips of any material whether or not lined or trimmed.

9401.50 Seats of cane, osier, bamboo, or similar materials

9403.80 Furniture of other materials (including bamboo)

2 Pottery 6912.00 Ceramic tableware, kitchenware, other household articles and toilet articles (other than porcelain or china).

6913.90 Statuettes and other ornamental ceramic articles (other than porcelain or china).

6914.90 Other articles of ceramics