Global Markets become Local
In theory, being able to exchange economic units efficiently with our trading partners should allow for the kind of distribution of wealth that is essential for growth. Many nations export to grow.
How does a Brazilian liquor company or a Portuguese bottled water company go about entering the United States market? Overseas companies will explore the U.S.A. to find new markets for their goods and services. First, you have to consider whether there is a market for your product or service? The United States has a huge market of consumers with buying power, but you will have to evaluate and profile your market to determine how to best approach the local market. What changes will have to be made to the physical product before exporting i.e., packaging, labeling, branding and image. What legal and regulatory conditions exist and how should they be handled. What are the characteristics of your market: demographics etc.
How you will study the market? Should you contact a marketing research company or make your own assessments after visiting the country. You will need to contact someone locally who has expertise in the industry. You must then decide how you want to do business i.e., strategic alliance – joint venture – independent direct or through a manufactures rep/agent.
Companies will have to do some significant groundwork and make the right contacts to find out what they need to know: will an import license be necessary? Is the product/commodity dutiable? Will special taxes be assessed? Will it require specific certificates for entry into the U.S.? Logistics – How will they handle the transportation - use the services of a freight forwarder and customs house broker? Will they do business on open account, letters of credit etc? Of course, everything mentioned should be considered during the preliminary feasibility study, but most importantly the company will want to know what the cost will be to enter the market and what are the profit expectations.
Here are some of the agencies, associations and resources available to assist: Freight Forwarders and Transportation Companies, U.S. Customs, Dept. of Commerce, Consulates (Commercial Section) and Chambers of Commerce, Economic Development Agencies, Local Universities and International Trade and Business Associations.
The key is becoming local in your understanding of the market by doing the right research initially. This way when you finally decide to start-up your business in the U.S., you will have a strategic plan and a solid understanding of what you want to do.
The writer, Gerard P. Santini, a resident of Pelham, started his own business with an associate in 1998, d.b.a., Marketeers & Associates International, to provide commercial support, business development and a practical marketing approach to existing and start-up companies.