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Find the markets with the greatest opportunity for your company.

RGX Trading

Find the markets with the greatest opportunity for your company.

To sell a product or service, you need a market for it. In export, this is a country or countries with demand for your product. So, how does an exporter to find this market?
With market research and product analysis.

However, it is not enough to know in which countries the demand for the product is located, but also, in which countries the company and the product, turn out to have a greater possibility of being competitive. Knowing these data is essential for the opening of a new market.
In order to understand the countries in which your company and its products have greater opportunities to compete, RGX has a “Market Selection” methodology. This methodology identifies, for each company, the market with the greatest potential for export growth.

This methodology is based on 14 weighted criteria:
1) FTA (free trade association currents)
2) Share of the preselected destination in world imports
3) Trend of preselected destination in world imports
4) “Volume match” (size of economies)
5) Trend of the trade balance between countries
6) Geographic proximity
7) Cultural proximity
8) Impact of COVID-19
9) Degree of opening of commercial borders with respect to COVID-19
10) Logistics performance index
11) International freight costs from origin to destination
12) Efficiency of customs clearance
13) Import tariff of the HS code under study
14) Average time to import products
For the development of this methodology we have a specialized team of consultants that works specifically to analyze these 14 criteria for each company in particular.
Once this analysis is finished, RGX presents the requesting company with a “Market Selection Report” where the company is told which markets were analyzed and their reasons, as well as an order of priorities with the markets with the greatest opportunity so that the company board.
With this report, the company has the certainty of correctly choosing its next export market, having a high percentage of being successful in its management when addressing it.

For more information we invite you to https://www.rgxonline.com/rgx-trading-2/

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The importance of being competitive to export internationally

RGX Trading

The importance of being competitive to export internationally

RGX - Industrial Yard - Export Business Plan

Many SMEs want to grow in international markets, but they do not know the variables that indicate the competitiveness necessary to do so. Others, however, have grown on the basis of trial and error, and today they are exporting internationally. 

The question is how to expand into new markets minimizing economic risks and optimizing time? In order to help companies in this process, RGX has developed a service we call “Export Competitiveness Report”, which is based on measuring the ability of a company to export on a global scale. 

In this way, we can not only give recommendations on how to improve the export performance of a company but also prepare it, if it is not competitive enough, so that it can do so. 

The companies to whom we provide this service complete an online questionnaire (specially designed by RGX to know the company’s competitiveness) and send RGX an Export Brochure (Presentation that the company uses to generate interest among its potential international clients). 

The categories that we use to measure the competitiveness of a company are:

With this information, which does not require more than 1 hour for the company to prepare, RGX can measure the global export competitiveness of a company. 

Once RGX receives this information, it is processed by our specialists and, if the company does not have the necessary competitiveness to operate in foreign trade, it receives, from RGX, a “Competitiveness Improvement Plan” in report format so that it company can work on its deficiencies and weaknesses, and then contact us again so that RGX re-evaluates its competitiveness and continues to support its internationalization process. 

The companies, on the other hand, that have a sufficient level of competitiveness, receive a plan to improve certain aspects of their export behavior so that they can implement it, as well as the invitation to continue with the international acceleration process with the expert services of RGX (Market 

Selection, Business Agenda or list of importers, market profile, market study) that will allow them to enter a new international market without economic risks, and without wasting time. 

To the surprise of many, not all companies that are currently exporting are competitive, and if this competitiveness is not improved, they may run severe risks of losing their export business in the medium term. 

We invite and encourage all exporting companies or companies intending to export to start with this service if they intend to grow in new markets. It is not an expensive service at all, and it can save a lot of time, money and headaches.

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Successful business meetings between Salvadoran exporters an American buyers

RGX Trading

Successful business meetings between Salvadoran exporters an American buyers

RGX - Business Meeting - Construction Market Data

Continuing the collaboration maintained since 2015 with the El Salvador Export Promotion Agency, PROESA, we developed a new project of business appointments with international buyers, which were successfully carried out the first week of December 2020.

The appointments with American buyers were made for 4 Salvadoran export companies in the food and beverage sector:

  • Bazzini House
  • Tropix Food
  • Pahnas
  • Provapan

To start the process, each exporting company had to complete the Export Check UP and send to the RGX team its Export Brochure. With this information a “Competitiveness Report” was prepared for each company, showing the main aspects that should be improved. 

To operate in a market as competitive as the United States, the strategic areas evaluated were:

  • Seniority and Export Experience
  • Human Resources for export
  • Percentage of exports over total sales
  • Evolution of Exports in the last 3 years.
  • Export markets supplied
  • Quality certifications
  • Buyer support
  • After Sales Service
  • International Online Marketing
  • Incoterms used to export
  • Financing offered

Once the Salvadoran businessmen had completed the submission of the required information, the structuring and scheduling of meetings began, where in total each company held 4 meetings with buyers located in the states of California, Texas, Chicago, Florida, New Jersey, New York, Maryland and Georgia, who were interested in learning about the Salvadoran export supply.

The work was the product of a collaborative effort between PROESA and RGX that for the fifth consecutive year are continue working to achieve companies internationalization. It is expected that in the coming weeks the connected companies will be able to advance in negotiations aimed at finalizing purchases.

To learn more about our business planner service, email us at customerservice@rgxonline.com and a specialist from our team will contact you within 48 hours.

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Market profile vs Market study

RGX Trading

Market profile vs Market study

RGX - Market profile vs Market study - Trading Sites

Many companies ask us what is the difference between a Market profile and a Market study and which one they need to do to have more benefits.

Here we list what each one contains so that the Companies can evaluate what they need.

 

MARKET PROFILE 

– Overview of the country’s economy.

– Analysis and assessment of the target market.

– Import volumes ($) and origin.

– Competition.

– Client Profile.

– Marketing channels.

– List of importers in the target market.

– Fairs and industry events.

– Standards and entry requirements.

– Requirements for setting up a company.  

 

MARKET STUDY

– Macroeconomic Data. Evolution of GDP, spending, and imports the last three years.

– Local production and market: composition of production. Identification of monopoly/oligopoly, size of wholesale and retail markets.

– Analysis of competition (national, foreign, product competition).

– Composition of distribution channels (% of total sales represented by each channel, brands operating in each channel, and market share of each brand).

– Prices: price analysis, competition prices, margins that each link in the chain works with. Calculation of the import price and comparison with other suppliers.

– Promotion: recommended specialized media: international fairs, trade publications, newspapers, radio, TV, etc.

– Assessment of necessary product adaptations due to regulations or consumer preferences.

– Brand and packaging feasibility analysis according to regulations and consumer preferences.

– Legal and technical requirements for importing the product.

– Current, past, and future consumer trends and consumer preferences of the target market.

– Installation of subsidiaries and their corresponding procedures.

– Business culture protocol in the destination country.

– List of potential buyers/importers.

– Summary of in-depth interviews (between 5 and 7) conducted with importers, key informants, and opinion leaders.

– Conclusions and recommended next steps. 

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How to go from FOB quotes to Group D Incoterms

RGX Trading

How to go from FOB quotes to Group D Incoterms

RGX - Containers - international Trade Process

Based on our study “UPS Business Monitor Export Index Latin America” it is recommended that entrepreneurs consider advancing even further in the international distribution chain to make contact with importers, since, as a result of the interviews conducted with 2,170 small and medium-sized importing companies in the American continent, 78% of importers indicated that shipping and logistics solutions are the most important attribute when choosing a supplier, after product quality and price; This means that exporters are willing to sell with incoming Incoterms (Group C and D) over the outgoing ones (Group E and F), it will clearly make their exportable offer much more attractive for an international buyer. .

In this making contact context with potential customers, the exporter may find himself with two marked scenarios:

  • Quotation request sending by the importer.
  • The exporter will draw up a standard price list for a given quantity of merchandise and send a quote.

Under this these situations begins the negotiation process. The exporter (seller) is forced to generate a price list that can accompany a product catalog, company brochure, explanatory videos, technical specifications of the products, certifications, and commercial samples that demonstrate the suitability and quality of the merchandise offered. Then, there are two instances that the exporting entrepreneur can avoid:

  • Negotiate with large importers: Generally these companies have a Purchase Order where they establish their procurement policies and the exporter must adapt to the imposed conditions; so much so that aspects inherent to prices, payments, qualities, packaging and Incoterms, are difficult to negotiate.
  • Negotiate with small importers: The scenario changes, and there is a greater margin for negotiation, and it is even possible to impose conditions.

Regardless of the situation, reality indicates that the sale clause, the Incoterms, not only determines the obligations and rights of each of the parties in the operation, but also the level of commitment and risk that the exporter wants to assume in the operation of export. In this sense, the FOB value is one of the most used in international operations and it is also the tax base used by various regimes that participate in exports, although it is clearly not the most valued by importers who expect a higher level of commitment for your suppliers.

To improve this proposal, contact should be made with shipping companies and freight forwarders that offer competitive charter prices and that allow the exporting company to begin negotiating under the terms of group D of the Incoterms.

To move from the FOB value to other Incoterms, the value of international freight and insurance must be added, obtaining the CIF.

If, in addition to shipping, you want to offer a “delivery solution”, that is, for the importer to receive the product directly in their warehouses, the following costs must be added to the CIF value:

  1. Port or airport terminal costs
  2. Storage and prior import deposit at destination
  3. Customs broker fees at destination
  4. Import duty and other import taxes at destination
  5. Value Added Tax if applicable (calculated on the CIF tax base)
  6. Other import taxes, if applicable
  7. Internal transport to the importer warehouse

In this case, the operation will be quoted under the Incoterms DPU that if it contemplates the unloading of the merchandise at destination (in this case it should not include the concepts of paragraphs 3, 4, 5 and 6) or DDP (all the concepts ), although the seller does not have the obligation to unload the merchandise.

Of course, as you “advance” in the use of Incoterms of greater responsibility and risk, the greater the financial immobilization, so you must either negotiate in advance of the operation or find export financing mechanisms that allow you to leverage the sales under those Incoterms. In our latest ICE 2020 study (www.rgxonline.com/ice2020) we found that 14 of the 15 most competitive companies among the 1200 interviewed, offer their products with group D Incoterms.

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Foreign trade in the cleaning supplies industry

RGX Trading

Foreign trade in the cleaning supplies industry

RGX - Cleaning - international Trade Process

The cleaning sector is one of the areas where RGX has been seeing a sustained increase in international demand. Exercising a sector division at a global level, it is possible to fragment it into three segments, commercial cleaning, which according to Cleaning Service Reviewed occupies most of the industry with 55%, followed by industrial cleaning with 30% and residential cleaning with 15%. In terms of growth rate, in 2019, Commercial Cleaning registered the highest gains with an Annual Growth Rate of 5.13%, followed by Residential Cleaning with 4.85% and finally Industrial Cleaning with 4.17%.

Taking into account Chapter 34 of the HTC: “Soaps, organic surface agents, laundry preparations, lubricant preparations, artificial waxes, prepared waxes, cleaning products, candles and similar items …” the purchase demand is atomized, and there are more than 20 players who take about 60% of the share of world imports. However, the Top 10 of the main applicants are represented by the following countries:

 Of these destinations, the countries that most mobilized their operations, increasing their international purchases steadily in the last five years, are:

  • United States: The North American market shows signs of constant increase from 2015 to 2019, and throughout the period the increase is 3.3%. 
  • United Kingdom: It is a market that since 2016 shows its increases in global purchases, showing a year-on-year growth of approximately 1%. 
  • Canada: Since 2016 its imports have advanced slightly, but steadily, in fact, the increase in the entire period 2016-2019 is 1.3%.
  • Russia: This market, measured by its geographical extension, is not only one of the world’s main demanders, but its increase in imports is clear, it increased steadily throughout the five-year period 2016-2019 by 4.9%.

Avoiding those usual destinations, it is interesting to also pay attention to the markets that do not make up the lot of the main applicants, especially because they show increasing behavior in their global purchases, in this aspect it can be emphasized:

  • Poland: It is a country that represents 2.1% of world imports, but it has also had a continuous and constant increase in its acquisitions in the last five years, that is to say that from 2015 to 2019 its purchases rose by 6.6%.
  • Singapore: It currently symbolizes 1.2% of global purchases accumulated in the last five years, in addition it also exhibits progression trends that translate into an increase of 4.1% between 2016 and 2019.

In general terms, exporters in the cleaning industry sector should know that global trends indicate that commercial cleaning will be the segment with the greatest promise, especially due to the direct relationship with the health sector that constantly requires disinfection , as well as large companies that demand a safe and disinfected environment for their workers. In the same way, and given the global crisis, self-employment is expected to increase in the coming years, especially the residential cleaning business.

For these reasons, our recommendations for exporters in the sector are: 

1. Foreign markets selection: Emphasize on international markets with capacity for continuous demand and growth, as shown by the markets of the United Kingdom, the United States, Singapore, Poland, Russia and Canada.

2. Target segment determination: Knowing that they are demanding and highly competitive markets, it is suggested to accurately determine the target segment to attack, be it commercial, residential or industrial cleaning.

3. Adjusted market Exportable offer: Have an ecofriendly alternative within the exportable offer, in this sense it is necessary to bear in mind the new tendencies for environmentally friendly products, especially taking as a reference the attitudes and behaviors of consumers of These suggested markets, who prefer the use of organic products in every way.

4. Logistics solutions: Offer shipping and delivery solutions, that is, be willing to sell in DDP condition as it is highly valued by the sector. 

5. Payment terms: Offer payment terms and alternatives, financing in commercial operations, and have the possibility of receiving payments online. 

6. Cross-border E-Commerce: Having the possibility of placing orders online, it is worth noting that this has been maximized in the update, especially because it allows buyers to take advantage of discounts, evaluate product alternatives and assess fast shipping.

RGX has recently signed a collaboration agreement with the International Sanitary Supply Association (www.issa.com) that brings together more than 18,000 companies in the sector worldwide, which allows us preferential access to importers and distributors in the sector, which we connect with potential exporters that supply them, in the 53 countries in which we have coverage. 

If your business operates in this industry, simply email us at: customerservice@rgxonline.com and a consultant will contact you within 48 hours.

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The purchasing behavior of SMEs importers of industrial manufactures in the Americas

RGX Trading

The purchasing behavior of SMEs importers of industrial manufactures in the Americas

RGX - Market profile vs Market study - Trading Sites

In 2017 RGX conducted a study of the purchasing behavior of 2,170 small and medium-sized importing companies from Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Mexico, Panama, Peru and the United States, which was complemented in 2018 with the participation of 1,041 small and medium importers from Argentina, Brazil, Chile, Colombia, Costa Rica, Panama, Peru, the Dominican Republic, Nicaragua, Guatemala, Mexico and the United States.

The panel of interviewees were importing companies with less than 150 employees, among which more than 1,000 companies from the industrial manufacturing sector participated (also from the clothing, high technology and automotive sectors). Those responsible for purchasing or imports answered a questionnaire that ran from the international supplier search stage to aspects of import logistics and supply chain.

The results allowed us to identify the behavior of international purchasing or importation of these companies. Among the most salient aspects are:

1) Contact with new international suppliers

34% of importers in this industry use Internet search engines to find new suppliers. In parallel, 21% do not look for them, but wait for potential suppliers to contact them electronically.

This leads to incentivize exporting companies in the sector to use search engines more intensively as promotional tools (SEO, Adwords, etc.) and at the same time identify buyers in the target market and contact them directly.

At RGX we provide tailored “Importers List” to address buyers in the indicated markets, this includes a supervision of the communication to be sent to the buyer, to ensure that the export value proposition conforms to what the buyer expects to receive.

2) Importance of financing:

68% of importers of industrial manufactures have indicated that “flexible payment terms and / or financing” are a fundamental reason why they would choose a new supplier.
Making a more exhaustive breakdown, the countries that are most likely to change providers if they offer them “flexible payment terms or financing” are Panama, Argentina, Colombia, Peru and Mexico.

It is important that the exporter review the possibility of converting the payment term into a commercial sales argument, improving the financing conditions under which their counterparts currently pay.

3) Use of E-commerce in the sector:

Four of ten importers indicated that they buy products online. Among them, 67% buy directly from the website of their supplier, the exporter. Additionally, 59% of importers state that the website of a supplier influences the evaluation of a new supplier, with the most valued content being the following:

• Technical specification of the product
• Product certification / product warranty
• Section “Who we are / about us”
• Information on the export of the particular product (commercial conditions, information on freight / transport, etc.)

At the same time, a quarter of those surveyed (23%) mentioned having used B2B platforms, such as Alibaba, Amazon and / or eBay, among others, to make imports.
These results indicate the importance of having a website with specific information for international buyers for industrial manufacturing exporters. At the same time, it reveals the importance of having a presence on b2b platforms that connect them with potential buyers.

4) Import Logistics:

80% of industrial manufacturing importers admitted to having delays in the import process, while production delays are the main cause, as stated by exporters and importers.
The second and third most common obstacles indicated by importers were the additional import costs in Customs, and national logistics, that is, the internal distribution of the product in the importer’s place.
This behavior indicates the opportunity for industrial manufacturing exporters to offer delivery solutions at destination (Group D Incoterms), offsetting the greater financial immobilization with pre-financing or export financing instruments that do not substantially alter the prices of the products.

At RGX we currently select exporting companies with high capacity to compete in the international market, and incorporate them into its virtual business agenda service with tailored buyers in more than 50 countries.

If you want to qualify for our Export Competitiveness Methodology and qualify for the export acceleration service, click below.

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Successful business meetings in Chile

RGX Trading

Successful business meetings in Chile

Meetings Chile RGX - SMB Crossborder

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.

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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.

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