Categories
Consulting

Defining export markets in the time of COVID-19

RGX Consulting

Defining export markets in the time of COVID-19

In the context of the pandemic caused by COVID 19, the SMEs in the region need to make their best efforts to reach new export markets. As a contribution to meet this challenge, RGX recommends analyzing potential destination markets according to the variables below:

When trade agreements are in place, export opportunities increase because products can enter the market on a reduced or null tariff. This enables stronger price competitiveness against other origins.

We will examine the countries where the product of the exporting country is best accepted based on the product’s share of total imports by the country, using trade statistics of the previous year and also evaluating purchases from preceding years.

By analyzing the past 3 years, importing countries that have grown steadily and permanently in imports in general, and in the purchasing of the product under study in particular, can be identified. This “screening” technique will reveal what growing markets are more likely to accept import transactions.

Countries will be prioritized where the distance to the destination market is relatively short to enhance the exporter’s competitive advantage in terms of transportation costs and shipping times. In addition, geographic proximity reduces promotion costs and makes it easier to travel to the destination market, support the client or distributor, and stay closer to retail channels and end consumers.

Based on World Bank estimates, the average import tariff in the destination markets will be taken into consideration. Countries with a high tariff average will be left aside to avoid the impact on price competitiveness of the products shipped to these countries.

This indicator will identify the challenges and opportunities that can improve a country’s logistics performance. In addition, it will evaluate several logistics aspects based on the metrics of logistics efficiency. We will then prioritize markets where logistics performance can facilitate product distribution.

Based on World Bank data, customs clearance efficiency and speed is rated across countries, prioritizing formalities that are simple and predictable. Therefore, markets where customs clearance for imported products is more efficient will be weighed.

Given the current global pandemic, it is necessary to grant higher weight to international markets where the impact is less severe. Therefore, and using Google’s database, it is established that low impact will create a more favorable scenario for a country’s economic recovery.

Taking into account the current health emergency that is having worldwide impact, the major measures and precautions adopted at each recommended destination market will be weighed in terms of trade border operations (ports, airports, customs, bonded warehouse, among others) resulting from preventive actions against the spread of COVID-19.

The correct identification of an export market is an extremely important step to achieve business internationalization. For more information about our “Methodology to select export markets,” please send us an email to customerservice@rgxonline.com

Trade Intelligence

Trade Intelligence

We specialize in research and studies in international markets, focusing on demand (importers), identifying success factors for the development of industry exports to that destination and sector.

Buyer Recruitment for B2B events

Buyer Recruitment for B2B events

Through our constantly updated databases, our expertise focuses on providing validated buyer lists, and inviting importers to participate in b2b events.

Specialized webinars

Specialized webinars

Through our constantly updated databases, our expertise focuses on providing validated buyer lists, and inviting importers to participate in b2b events.

Categories
Marketing

Contributing with cross border e-commerce in the SMEs

RGX Marketing

Contributing with cross border e-commerce in the SMEs

Contributing with cross-border e-commerce in the SMEs

Driven by the reconfiguration of trade that the current COVID 19 pandemic has generated, RGX is starting an unprecedented study at the global level and divided by regions (Latin America, The United States, Europe, Asia, China, Africa, Oceania) on the state current of the transactions that small and medium-sized companies carry out through e-commerce.

The expected results are:

We invite foreign trade, e-commerce, logistics, and finance leaders to sponsor this initiative 2020/2021.

For more information please contact. 
Maria Sol Vilchansky
RGX, VP of Marketing
svilchansky@rgxonline.com

Market research in the Small and Medium Business segment

Market research in the Small and Medium Business segment

Local, regional or global market research for internal use, for brand positioning or to generate media exposure, portals and entities that group SMEs.

Strategy for lead generation and loyalty of SME companies

Strategy for lead generation and loyalty of SME companies

Tariff positions based reports.

Development of content, alliances and services for business portals and social networks

Development of content, alliances and services for business portals and social networks

Verified lists of importers, distributors and retailers.

Categories
Trading

Successful business meetings in Chile

RGX Trading

Successful business meetings in Chile

successful-business-meetings-in-chile

We are pleased to learn that one of our clients in Argentina has had positive results from its round of business meetings scheduled by RGX in Chile.

Abaco, an Argentine firm engaged in wristwatch production and marketing, approached RGX with the goal of positioning the brand in the Chilean market.

Before Abaco representatives traveled to Chile, they received RGX expert guidance. In particular, RGX specialists focused on topics regarding the presentation of an export brochure that would attract potential interested parties, including a detailed description of the proposed franchise model they wished to internationalize, particularly highlighting:

  • Key issues in Chile as the company’s franchise target marketplace
  • Target franchisee profile
  • Shipping and logistics solutions, warranty and replacement policies
  • Flexible payment terms for importers
  • Support, after-sales services and initial assistance for the franchisee
  • Tariff headings of exportable products
  • Aspects regarding containers and packaging for exporting, such as preparation and stowage of wristwatches in each shipment.

Based on these considerations, RGX initially identified potential importers-franchisees in the Chilean market. Along the meeting scheduling process, we noted that the market presented opportunities for the entry of new products, although the sector was not used to working on the basis of franchise agreements. However, with 5 meetings arranged by RGX, the exporter traveled to the marketplace and was able to sell the franchise, achieving its original goal.

We thank Abaco for trusting RGX team and wish the company roaring success in the Chilean market.

Markets definition

Using our Market Selectivity Methodology, we identify potential markets for your products.

Importers List

Verified lists of importers, distributors and retailers.

Meetings with buyers

This service includes confirmed meetings with prospective buyers, distributors or partners in the target market.

Categories
Trading

Online business meetings: 5 keys to success

RGX Trading

Online business meetings: 5 keys to success

Online business meetings: 5 keys to success

The context of the current pandemic has hit trade borders in most countries worldwide, closed airports, delayed port operations and even shut down some work spaces in bonded warehouses. This scenario is clearly a new barrier to foreign trade that is slowing down delivery schedules and will require carefully detailed planning. However, reality is showing that the virtual modality is here to stay.

At RGX, we have been conducting online business meetings since 2016 as an alternative to in-presence sessions. Nowadays, meetings can just be held electronically, although at first the tool was developed for exporters without sufficient financial resources to travel to the destination market and conduct face-to-face discussions. Below are the success keys to online meetings with potential buyers:

Selling on the international marketplace requires considering different strategic decisions for each particular exporter; the export destination market is precisely an important step that is weighed by RGX. Through our “Methodology to select export markets,” we identify what markets will offer more selling opportunities to our clients. This selection takes into account the following components:
  • Current trade agreements
  • Share of the preselected destination market in global imports and the imports of the country of origin
  • Geographical and cultural proximity
  • Impact of COVID-19 (to what extent trade borders will remain open as a consequence of COVID-19)
  • Ease of doing business index
  • Logistics performance index
  • Incidence of freight from origin to destination
  • Efficiency of customs clearance
  • Import tariff for the tariff heading under analysis
  • Average time to import a product

Due to the abundance of information on virtual platforms, we need to be crystal clear about the meeting’s objective and about our offerings. We frequently see long e-mails laden with attachments, but these will go straight into the importer’s recycle bin. Keep your message short, stir up interest and then follow-up on your e-mail over the phone to arrange a meeting.

We recommend having the documents you would like to share with your potential customer open and ready some minutes before the meeting starts. Beyond the technical aspects typical of any virtual session, a brochure or presentation targeted to an international buyer should show a professional design, along with topics and information on:
  • Quality certifications: of the business or export products.
  • Shipping logistics solutions: importers will value more the exporters that are ready to move forward across a larger number of links along the international marketing chain, that is to say those that are ready to sell beyond the Incoterm FOB; some marketplaces even prefer to buy DDP, such as the US and Europe.
  • Flexible payment terms: buyers seek payment terms in excess of 30 days and paying through bank transfers or credit card.
  • After-sales services: a brochure will be more attractive if it describes the actions the exporter is willing to do in the destination market after closing a transaction. These may include promotional support to the importer in fairs, free samples to visit clients, joint ATL or BTL actions to advertise the importer’s products, among other initiatives.

A critical step for the exporter is to start the call that would launch the meeting and make sure that its counterparts have decision-making power to buy or import the product or service under discussion. The first presentation of the exporter’s business should not exceed 25 minutes to pave the way for a subsequent negotiation phase based on a specific proposal tailored to the interviewed potential customer.

When the meeting ends, follow-up actions must have surely been arranged, such as sending a quote or a business proposal. Therefore, the exporter needs to act quickly and neatly to send the importer the information it is expecting to receive. In addition, if there is no response after a few days, you may ask whether something should be adjusted or changed. The idea is not to lose direct contact with decision-makers and keep the created connection going. We see multiple export companies that follow-up weakly on each interviewed potential customer.

At RGX, we continue to work with these new digital tools in an attempt to link exporters with importers and generate international business transactions in the context of the current COVID-19 outbreak. To do this, our team is ready to assist you. Just send us an email to customerservice@rgxonline.com and a consultant will contact you within 48 hours.

Markets definition

Using our Market Selectivity Methodology, we identify potential markets for your products.

Importers List

Verified lists of importers, distributors and retailers.

Meetings with buyers

This service includes confirmed meetings with prospective buyers, distributors or partners in the target market.

Categories
Consulting

How to conduct online business meetings with importers?

RGX Consulting

How to conduct online business meetings with importers?

How to conduct online business meetings with importers?

The new international scenario poses a serious challenge to traditional businesses dedicated to promoting international trade among countries. A change of paradigm is just round the corner, and this new situation is forcing businesspeople, governments and chambers of commerce to continue to drive exports, but using digital tools.

Before the current stage, a “business trip” was common practice and involved a tremendous coordination and planning work: schedules for businesspeople, business meeting agendas with interested importers, and creating links with industry business chambers, associations and other key stakeholders.
While we wait for the new normal conditions to settle down, the current challenge means offering our businesspeople an incentive to go virtual little by little.

Within this framework, online business agendas are one of the services for which RGX is receiving the greatest demand, although we have been supporting this initiative before the pandemic. For example, we have been using this modality with businesses from the Bogota Chamber of Commerce since 2017. In addition, we developed virtual business agendas in cooperation with the Government of the City of Buenos Aires for companies enrolled in the Despega Talento [Talent Take-off] program in 2018 and coordinated a B2B virtual meeting with the Export and Investment Promotion Agency of El Salvador (PROESA) in 2019.

From the lessons learned over the past 3 years, we have selected the following recommendations for the entities that would like to perform well in online business meetings:

Our first recommendation is to identify export markets where the company is in a truly good position to export. Thanks to our proprietary “Methodology to select export markets” and based on key foreign trade variables (among which at present we are including the extent to which trade borders will remain open during the COVID 19 pandemic), we can weight the countries offering easier accessibility for the sector under analysis to sell its products. This is clearly the path to follow if you would like to find international market clients and invite them to an online meeting.

International buyers will ask to see the internationally tradable goods and services offered by the sector under study before deciding to participate in a business round. Therefore, these should be accessible and displayed online at least 30 days before the event. Efforts should be made so that exporters/exhibitors include the following components in their descriptions:

  • Shipping logistics solution including, ideally, a delivery solution.
  • Financing offered.
  • After-sales service.
  • Available quality certifications.
  • Support to international buyers.
International buyers will ask to see the internationally tradable goods and services offered by the sector under study before deciding to participate in a business round. Therefore, these should be accessible and displayed online at least 30 days before the event. Efforts should be made so that exporters/exhibitors include the following components in their descriptions:
  1. Shipping logistics solution including, ideally, a delivery solution.
  2. Financing offered. 
  3. After-sales service.
  4. Available quality certifications.
  5. Support to international buyers.

Meetings will have different outcomes, and the resulting requests for information and quotations may vary. Therefore, the organizer should follow up on exporters so that they do not delay their responses to the questions and demands identified during the meetings.

In addition, a few weeks after the meetings have been held, the organizer may continue to follow-up on exporters in order to become aware of the final results and any aspects that can be improved, and detect any process errors that could avoid the wasting of future resources.

Upon completion of the round of business meetings, it is advisable for the organizer to ask exporters how they feel about the process and organization of the business meetings in order to evaluate two large dimensions separately:
  1. Meeting organization: evaluations should consider the agenda-building process, schedule coordination, connectivity, advise on internationalization, orienting the importer to the target profile, time to meeting status reports, number of meetings held, relevance of proposed leads and willingness to re-schedule meetings that may have been frustrated.
  2. Closing of export business transactions: Exporters may or may not close an agreement with the proposed leads for several reasons, including the competitiveness of the internationally tradable goods and services, the way negotiations were conducted, prices, payment terms, support to customers, and offered Incoterms. Therefore, this evaluation is based on an internal analysis of the company’s export capabilities.
Intermediate entities, chambers of commerce, governments, export agencies and organizers of international fairs are turning to online meetings between exporters and importers. RGX can offer a specialized service mainly focusing on the best balance between the return on investment in international promotion and actual export results.
Trade Intelligence

Trade Intelligence

We specialize in research and studies in international markets, focusing on demand (importers), identifying success factors for the development of industry exports to that destination and sector.

Our reports include in-depth interviews with importers, retailers, and key informants, and are presented to the client with analysis of export opportunities.

Buyer Recruitment for B2B events

Buyer Recruitment for B2B events

Through our constantly updated databases, our expertise focuses on providing validated buyer lists, and inviting importers to participate in b2b events.

Specialized webinars

Specialized webinars

Through our constantly updated databases, our expertise focuses on providing validated buyer lists, and inviting importers to participate in b2b events.