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Maximizing the Benefits of Trade
            Mission Participation
                      - Lessons for suppliers




Bernard Swiecki
Assistant Director, Automotive Communities Partnership
Center for Automotive Research
Two Constituencies

   Communities
    – New investment
    – Purchase of existing facilities


   Suppliers
    – Export sales
    – Collaborative agreements
        • Marketing
        • Distribution
        • Joint product development


In all cases, CAR seeks to create or retain jobs –
   thereby economically benefitting the region.
Why Participate in a Trade Mission?

   Trade missions provide structure that prevents participants
    from being overwhelmed by unfamiliar
     – Business practices
     – Language barriers
     – Industry structure
   Mission organizers weed out low-probability prospects, saving
    participants many potential wrong turns
   Supporting organizations (U.S. Commercial Service,
    consultants, marketing firms) provide intelligence not available
    to firms who are not part of a mission – or available at a cost
   In spite of the emergence of email, teleconferencing, and cheap
    international phone calls, there is still no substitute for going
Mission Objectives for Suppliers


   Generate sales by
    – Selling directly to foreign customer firms
    – Securing an agreement with a marketing/distribution firm
    – Opening an overseas sales office

   Scout a potential new market
   Make connections with other mission participants
    and exhibitors
The Trade Mission as a Scouting Trip


   Inexpensive but effective way to evaluate a country
    as a potential market through
    – Mission participant selection process
    – Market briefings from local experts
    – One-on-one meetings with potential customers


   2008 Russia mission example: participant decided
    Russia was not yet mature enough a market for their
    high-tech product and postponed market entry – an
    inexpensive and informed decision
Anatomy of a Typical International Trade Mission


   Pre-mission selection process and preparation
   Market briefing from local experts
   One-on-one meetings with potential customers
   Attendance of a trade show or parts expo
   Attendance of concurrent events
     – Receptions
     – Conferences
   Visits to key local suppliers
     – Meetings
     – Facility tours
   Potential to add visits and meetings of your own before/after the
    mission
   Mission follow-up
Previous Missions
Recommendations to Suppliers
                 Participating in Trade Missions

   Pre-mission homework
     – Destination country
     – Companies of interest
   Prepare appropriate marketing materials
     – Focused on products likely to sell in destination country
     – Most effective if translated
   “Work” the expo (if applicable)
     – CAR usually provides each company with a “target list” of expo participants
       to visit
   Prepare as well as possible for one-on-one meetings – they are the
    heart of the mission
   After coming home
     – Follow up with companies from one-on-one meetings
     – Maintain contact with other mission participants (their experiences may hold
       useful lessons for you)
     – Some meetings yield fruit soon, others take time
Assembly Line – Where and When?
Living History in India
    - Some facilities are world class, some not. But emerging market consumers are
increasingly less willing to tolerate obsolete product and government regulations grow
               increasingly more stringent. American suppliers can help.
Thank You
bswiecki@cargroup.org

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14 Export Research Tools and Solutions Bernard Swiecki

  • 1. Maximizing the Benefits of Trade Mission Participation - Lessons for suppliers Bernard Swiecki Assistant Director, Automotive Communities Partnership Center for Automotive Research
  • 2. Two Constituencies  Communities – New investment – Purchase of existing facilities  Suppliers – Export sales – Collaborative agreements • Marketing • Distribution • Joint product development In all cases, CAR seeks to create or retain jobs – thereby economically benefitting the region.
  • 3. Why Participate in a Trade Mission?  Trade missions provide structure that prevents participants from being overwhelmed by unfamiliar – Business practices – Language barriers – Industry structure  Mission organizers weed out low-probability prospects, saving participants many potential wrong turns  Supporting organizations (U.S. Commercial Service, consultants, marketing firms) provide intelligence not available to firms who are not part of a mission – or available at a cost  In spite of the emergence of email, teleconferencing, and cheap international phone calls, there is still no substitute for going
  • 4. Mission Objectives for Suppliers  Generate sales by – Selling directly to foreign customer firms – Securing an agreement with a marketing/distribution firm – Opening an overseas sales office  Scout a potential new market  Make connections with other mission participants and exhibitors
  • 5. The Trade Mission as a Scouting Trip  Inexpensive but effective way to evaluate a country as a potential market through – Mission participant selection process – Market briefings from local experts – One-on-one meetings with potential customers  2008 Russia mission example: participant decided Russia was not yet mature enough a market for their high-tech product and postponed market entry – an inexpensive and informed decision
  • 6. Anatomy of a Typical International Trade Mission  Pre-mission selection process and preparation  Market briefing from local experts  One-on-one meetings with potential customers  Attendance of a trade show or parts expo  Attendance of concurrent events – Receptions – Conferences  Visits to key local suppliers – Meetings – Facility tours  Potential to add visits and meetings of your own before/after the mission  Mission follow-up
  • 8. Recommendations to Suppliers Participating in Trade Missions  Pre-mission homework – Destination country – Companies of interest  Prepare appropriate marketing materials – Focused on products likely to sell in destination country – Most effective if translated  “Work” the expo (if applicable) – CAR usually provides each company with a “target list” of expo participants to visit  Prepare as well as possible for one-on-one meetings – they are the heart of the mission  After coming home – Follow up with companies from one-on-one meetings – Maintain contact with other mission participants (their experiences may hold useful lessons for you) – Some meetings yield fruit soon, others take time
  • 9. Assembly Line – Where and When?
  • 10. Living History in India - Some facilities are world class, some not. But emerging market consumers are increasingly less willing to tolerate obsolete product and government regulations grow increasingly more stringent. American suppliers can help.