exporting to canada - tpsa · 2017-04-11 · british columbia, alberta, and manitoba as well....

Step-by-step Guide for Indonesian SMEs to Export to Canada

Jakarta, Indonesia26-27 April 2016

Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)

Introduction• Why export?

• Why export to Canada?

• Opportunities for exporting from Indonesia to Canada

• 03 stages of export preparation

2


Introduction• Why Export?

• Increased sales & revenue

• Increased competitiveness in Indonesia

• Reduced vulnerability

• Higher profits

• Higher economies of scale

• Improved global competitiveness

• Enhanced national and regional development

• Why Export to Canada?• Import-oriented market

• Diverse consumer tastes

• Strong economy

• Increasing exports from South-east Asia to Canada

• Strong Canada-Indonesia partnership

3

Introduction (continued)

• Opportunities for exporting from Indonesia to Canada

4

Agri-food Clothing Other

Coffee

Pepper

Coconut oil

Sugar

Coats, jackets and blazers

Dresses and Shirts

Wooden furniture

Footwear


• Export process

5

6. Entering the Market

7. Completing the Sale

8. Export Requirements

9. Import Requirements

10. Transportation and

Logistics

1. Export readiness

2. SWOT Analysis

3. Export Plan

4. Market Research

5. Marketing Strategy

Month 0-3 Month 3-6

1 YEAR PLAN

Month 6-12

BUSINESS

PREPARATION

MARKET

DEVELOPMENTMARKET ENTRY

STAGE ONE STAGE TWO STAGE THREE


• 03 stages of export preparation

Stage 1: Business Preparation

• Step 1-Assessing Export Readiness

• Step 2-Conducting SWOT analysis

• Step 3-Preparing an export plan

7


Stage 1: Business Preparation• Step 1-Assessing Export Readiness

• Export readiness checklist (please see handout 1)

• General, About the firm, About the product/service

• Interpreting the score

• Step 2--Conducting SWOT analysis

8

Internal External

Management support

Unique products

Value-added services

Track record

Financial position

Qualified staff

Business plan

Certifications

Expertise

Available time

Market research

Selling skills

Domestic sales

Quality standards

Access to capital

Marketing materials

Website

Language skills

Foreign contacts

Ability to travel

Relevant technologies

Risk factors

Others

Global economy

Growing industry

Competition

Currency valuation

Distance to market

Language

New trends

Others

Stage 1: Business Preparation• Step 3-Preparing an Export Plan

• Why is Export Plan so important?

• Define target market, purpose of business activities

• Identify SWOT and financial/other resource demands

• Financing

• Elements of an Export Plan (please see handout 2)

• Executive summary

• Introduction

• Firm overview

• Products and services

• Export objectives and goals

• Canadian market overview

• Market entry strategies

• Regulatory and logistical issues

• Risk factors

• Implementation plan (including financial plan)9

Reminder

Before the development of

an Export Plan, the

Indonesian firm will need a

current and comprehensive

Business Plan. IETC and

other resources in

Indonesia can help

Indonesian firms in

preparing business plans aswell as export plans.

Stage 2: Market Development

• Step 4-Market Research

• Step 5-Developing a Canadian Marketing Strategy

10


Stage 2: Market Development• Step 4-Market Research

• Conducting market research

• Primary and Secondary research

• Things to remember (please see handout 3)

• Time & resources

• Multiple research methods

• Incorporate information into Export Plan

• Canadian market research checklist (please see handout 4)

• Political and economic highlights

• Consumer trends

• Business information

• Partnering options

• Support for market-entry strategies

• Cultural considerations

• Travel tips

• Canadian market information

• Annex 611

A great source for Canadian

Market Information!!

TFO Canada’s website

(www.tfocanada.ca) is a great source

for Indonesian firms to access market

information for dozens of sectors in

Canada, including agri-food, textiles

and apparel, footwear, and furniture.

http://www.tfocanada.ca/mip.php?

http://www.tfocanada.ca/mip.php?

http://www.tfocanada.ca

Stage 2: Market Development• Step 5- Developing a Canadian Marketing Strategy

• 5 Ps (Product, Price, Promotion, Place, People)

12


• Product

• Design

• Packaging

• Requirements

• Trends

• Labelling

• Language

• Special requirements

• Materials

• Manufacturing process

• Product attributes

• Others

• Competition (price, quality, design)

• Standards

13


• Place

• Canadian consumer preferences (design, quality, exclusivity, social and environmental impact, customer service, price)

• Retail outlets/distribution channel choices

• Price

• Buying influences

• Consumer taxes

• Price list

• Pricing checklist (please see handout 5)

Source: Retail News Magazine, Market Pulse 2014

14

What Influences a

Retailer?

Rating out

of 10

Excellent profit margin 8.6

Exclusivity in my area 8.2

Previous sales success 8.1

Availability 8.1

Cost 8.0

Design 7.9

Supplier's reputation 7.9

Good suggested retail

price point 7.8

https://www.cangift.org/upload/marketpulse2014.pdf


• Promotion

• Advertising

• Promotional materials (business cards, customer testimonials, brochures, media pieces, website, videos, exhibits….pls. see handout 6)

• Listing and shelving fees

• Media

• Trade shows and personal visits

• Trade publications

• Others (contests, direct mail, gift cards, coupons, give-aways, store demos, special events etc.)

• Canadian advertising laws

• People

• Staff

• Partners 15

Please see handout 7 for Checklist for 5 Ps and handout 8 for Exporting Services

Stage 3: Market Entry• Step 6-Entering the Canadian Market

• Step 7-Completing the Sale

• Step 8-Meeting Indonesian Export Requirements

• Step 9-Meeting Canadian Import Requirements

• Step 10- Shipping goods from Indonesia to Canada

16


Stage 3: Market Entry• Step 6- Entering the Canadian Market

• 04 ways to enter Canadian market

• Direct or Indirect export

• Incorporating business or opening a subsidiary in Canada

• Direct/Indirect export

• Margins

• Direct vs. Indirect

• Things to consider (please see handout 9)

• Knowledge of Canadian market

• Key contacts

• Distribution methods

• Canadian culture/language

• Additional investment required or not17


• Intermediaries (please see handout 10 for how to choose intermediary)

• Importers/distributors

• Agents/brokers

• Trading house

• Retailers

• Chains

• Independents

18

Example of Major* Canadian Importers in 2013

Product # of Canadian

Importers

Location

Pepper (HS 090411) 13 All of them are located in Ontario

and Quebec.

Men’s and boy’s

woven cotton shirts

(HS 620520)

86 While most are located in Ontario

and Quebec, some are located in

British Columbia, Alberta, and

Manitoba as well.

Wooden Furniture for

bedroom (HS 940350)

109 located in 9 provinces across

Canada.

* 'Major Importers' comprise those which collectively account for up to 80% of

all imports (in terms of $ value). This list does not include individuals or

importers whose importer numbers are unavailable. Source: Canadian

Importer Database

Finding Contacts

The Canadian Importer

Database contains a list of

Canadian importers by product

Canadian Company

Capabilities provides a list of

Canadian wholesalers by

product

30%Loblaw's

25%Sobeys

7%Metro

7%Independents

32%Other

Supermarkets & Grocery Stores$80 billion market (2014)

https://www.ic.gc.ca/eic/site/cid-dic.nsf/eng/home

http://www.ic.gc.ca/eic/site/ccc-rec.nsf/eng/00040.html


• Market snapshot (Apparel)

19


• Market snapshot (Home décor includes furniture)

20


• Market snapshot (Footwear)

• Footwear

• Valued at CAD 4 billion

• Low level of market share concentration (04 largest players control < 20.0% industry revenue)

• Most shoe stores operate as non-chain retailers

• Overwhelming majority of industry operators (99.4%) are small-scale.

• Low barriers to entry: Many aspiring operators enter industry and induce greater competition

21


• Spotlight on Indonesia

22

Who are some of the major buyers of Indonesian goods in Canada?

Furniture

Artemano

Barrymore Furniture

Canadian Tire Corp

Cantrex Nationwide

Group Inc

Ikea Supply

Indo Asian Carpet

Jordans Interiors

Pier 1 Imports

Footwear

Adidas

Nike

Asics

Converse

Apparel

GAP

Pld Navy

Mexx

Lululemon

Express Fashion

Apparel Canada Inc

Columbia Sportswear

Under Armour

Canada

Coffee

RGC Coffee

Café Vittoria

Royal Coffee Incorporated

Metro Logistics

Inc

Costco

Bridgehead


• How to find Canadian buyers

• Attending tradeshows (Canadian and International)

• Consulting Indonesian trade representatives and other entities in Canada (TFO Canada)

• Consulting Canadian embassy and other entities (TPSA office) in Indonesia

• Obtaining list of buyers

• Enhancing online presence

• Using search engine optimization

• Using Social media and E-markets

• Checking E-leads

23


• Major trade shows in Canada

(please see handout 11 for tips on

how to prepare for attending a

trade show in Canada)

24


• What Canadian buyers are looking for

• Good value and competitive pricing

• Reliability of product quality, continuous supply, and delivery times

• Good relationship and regular communication

• Competent & experienced staff

• Follow-up service

• Innovative products

• Communication

• Email

• Skype

• Reputation

25

Stage 3: Market Entry• Step 7- Completing the sale

• Sales contract process• Receiving an inquiry

• Quoting a price

• Tips• 1st impression

• Sending samples

• Trial orders

• Negotiating a deal• Import terms

• Payment terms

• Delivery date

• Communication

• Dealing with risk & non-payment

• Incoterms

26

Stage 3: Market Entry• Step 8- Meeting Indonesian export requirements (please see Annex-6)

• Requirements for all Indonesian exporters

• Legal entity

• TIN

• License

• Types of Indonesian exporters

• Manufacturer

• Non-manufacturer

• Tax procedure

• Export controls

• Export-free, Export-Controlled and Export-Prohibited goods

• Customs clearance

27

Stage 3: Market Entry• Step 9- Meeting Canadian import requirements

• Border Inspection

• Canadian Border Services Agency (CBSA)

• Canadian Food Inspection Agency (CFIA)

• Other Canadian government departments

• Laws & Regulations

(please see handout 12 for import regulations)

• Federal, Provincial, Municipal

• Organic product requirements

• Automatic Import Reference System (AIRS)

• Intellectual Property Rights (please see handout 13 for types of IPR)

• Canadian International Property Office

• Combating Counterfeit Products Act

28


• Classification of goods

• HS Code

• Determining HS code

• Tariffs and duties

• Tariff determination

• Rates of duty

• Duty-free & quota-free imports

• Rules of origin

• Tariff rate quotas & seasonal tariffs

• Anti-dumping and countervailing duties

29

Indonesia is eligible for the Most

Favored Nation Tariff (MFN) rate

The tariff for exporting hiking footwear from

Indonesia to Canada will be the MFN tariff

(16%), while exporters from LDCT countries

– such as Cambodia – will have a tariff of

0%.


• Import documentation

• Releasing goods at the border

• Types of documents (see handout 14 for list of documents)

• Import control list

• Agri-products

• Firearms

• Steel

• International Import Certificates

• Prohibited goods

• Transshipment

30

Stage 3: Market Entry• Step 10- Shipping goods from Indonesia to Canada

• Getting Indonesian goods to Canada

• By ocean

• By air

• By train and truck

• Canadian Port of Entry and Distribution within Canada

31

Canada is larger than you think!

2nd largest landmass in the world,

Canada encompasses nearly 10

million square kilometers.

Up to eight hours to fly across the

country, and travelling by road or

train takes several days.

Stage 3: Market Entry• Step 10- Shipping goods from Indonesia to Canada

• Transportation intermediaries

• Freight forwarders

• Consolidators

• Customs brokers

• Packing the goods (please see handout 14 for Canadian import documentation checklist)

• Outer packaging

• Wooden crates

• Labels and marks

• Next steps• Start with the Business Plan then export readiness assessment then Export Plan

• Use the annexes

• Register with TFO Canada and implement the Export Plan

32

Annexes• Annex 1: Useful resources & Contacts

• Annex-2: Trade Publications

• Annex-3: Canadian Business Associations

• Annex-4: Canadian Market Information

• Annex-5: Incoterms

• Annex-6: Indonesian Export Requirements and Processes

33


Zaki Munshi, Project Manager-Asia

TFO Canada

130 Slater Street, Suite 1025

Ottawa, ON Canada

K1P 6E2

T: +1 1613 233 3925

T: +1 800 267 9674

E: [email protected]; [email protected]

www.tfocanada.ca

Thank You!

Contact us:

@TFOcan

linkedin.com/TFOCanada

54


mailto:[email protected]

mailto:[email protected]

exporting to canada - tpsa · 2017-04-11 · british columbia, alberta, and manitoba as well....

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