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Foreign trade in the cleaning supplies industry

RGX Trading

Foreign trade in the cleaning supplies industry

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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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.