Start an EXPORT project?
IMPOSSIBLE, WITHOUT INVESTING
Export without investing? After analyzing the various ways in which we can sell our products on new markets, it is time to present our solution. Enter a new market with a minimum investment (equal to that of an international fair) and immediately sell, choosing strategies and maintaining control of your brand is possible. Let’s see how.
Export without investing? IT IS IMPOSSIBLE TO START AN EXPORT PROJECT WITHOUT INVESTMENT
Two general premises must be made:
1) An international action, if implemented correctly, involves costs: dedicated human resources, finding and managing contacts (phone calls, trade association, travel), customization / preparation of goods or samples, promotions at fairs, etc.
2) In the “mature” markets (those with the highest growth rate and the most receptive ones) there is already everything: you will not find anyone who welcomes you with an “I was waiting for you”. Your product must offer something more than the others.
THERE ARE ONLY TWO METHODS OF APPROACH TO FOREIGN MARKETS:
OCCASIONAL SALES: RESEARCH OF EXPORT OPPORTUNITIES THROUGH CONTACTS WITH LOCAL BUYERS THAT MAY BE INTERESTED
ORGANIZED AND SYSTEMATIC ENTRANCE OF OUR BRAND IN THE FOREIGN MARKET
Let’s look at the two solutions in detail, evaluating their pros and cons.
TRADITIONAL SOLUTION: OCCASIONAL EXPORT
The company has no control over Marketing and Sales in the Foreign Market, it does not hold certifications and licenses. No Asian distributor accepts to use marketing strategies imposed by a manufacturer. The problem is that nobody will tell you. You’ll notice it over time, probably too late …
The risk of a low turnover or strongly linked to the contacts of this channel, without guarantees of consolidation, is concrete. In practice, once the local distributor gets the control of your brand and licenses, he will use them as leverage for more discount and payment extensions. Any refusal will lead to the interruption of orders.
The reason? The Asian distributor will invest in your product will only in the event of a very high margin, and expect a short-time return.
With the traditional model (which I like to call “obsolete”), the balance between company and distributor is compromised, as shown in the figure below:
Is this what you’re looking for?
INNOVATIVE SOLUTION: ORGANIZED AND SYSTEMATIC ENTRANCE OF THE BRAND IN THE FOREIGN MARKET
In our model, the commercial organization is organized and systematic, has channel knowledge, acts on the basis of an outlined strategy and through management tools shared with the company.
The company has direct control of all processes, from certifications to customer care. The Manufacturer manages sub-distributors.
CRITICAL SUCCESS FACTORS – The approach to the new market, the study of the context, the understanding of habits and customs, the analysis of local demand and supply, are all activities that require investments of time, travel and tools, aimed at research studies whose research effectiveness increases if performed on site. In most cases the company is in the new market with little information, so is not able to perceive a complete picture and to define the best entry strategy.
ORGANIZED AND SYSTEMATIC ENTRANCE OF THE NEW BRAND IN THE FOREIGN MARKET
KHA GROUP EXPORT MODEL
ORGANIZED AND SYSTEMATIC ENTRANCE OF YOUR BRAND IN THE FOREIGN MARKET IN PARTNERSHIP WITH KHA GROUP, A STRUCTURE ROOTED ON THE REFERENCE MARKET, WITH DEEP KNOWLEDGE OF DISTRIBUTIVE CHANNELS AND LOCAL CULTURE.
KHA GROUP, AS YOUR OFFICIAL IMPORTER AND PARTNER PROVIDES:
- Certificate the products at THAI FDA
- Certify your warehouse as Registered Business Place for your products
- Keep Licenses (Compliance and Adverse Events)
- Perform Custom Clearance
- Manage Logistics, even the Last Mile
- Enroll and manage local sub-distributors
- Organize any Clinical / Technical Meetings
- Manage the Credit Collection
THE MANUFACTURER HAS A LOCAL SALES OFFICE, AS:
- Holds the ownership of FDA Certifications through Kha Group
- Manages price policies
- Defines the Market Strategies
- Decides the Marketing Activities
- Manages, through Kha Group, the network of Sub-distributors
DISTRIBUTORS ONLY HAVE TO DO THEIR JOB: SELLING AND MAKING PROFIT
HOW MUCH IS IT?
Here is a table of costs and timing of the “obsolete” model, the one where you let the distributor dictate times and rules.
COST / TIME TABLE
Compared to the above system, our costs, including the management of licenses for the first year, ARE IN MOST CASES LOWER THAN THIS. Part of the costs start to be paid after the sale activity has started, and CERTIFICATION COSTS ARE INCLUDED. In practice, you open the market IN SHORTER TIME by spending less. and you do it the best way.
Our timeline, which takes into account absolutely standard times, shows us that within 6 months you will start selling, and that the products enter the market in the third month.
Kha Group offers you to introduce your brand (your company!) in one of the fastest growing markets, at a cost lower than “do it yourself”, with a guarantee of control of the process, and in a very short time.