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Export
101 – Trade Shows and Trade Missions
Introduction
There is no doubt that one of the most exciting
aspects of international trade is attending and participating in trade shows and trade
missions. It also represents one of the best opportunities to understand world markets as
they relate to your industry and product, to evaluate your competition both from here and
abroad, and to locate potential agents and distributors to increase your export business.
All of this is valuable primary market research information that is very beneficial
to your overall marketing efforts. (See "Market
Research" chapter of this Export 101 section.)
It also represents one of the biggest (and most
expensive) challenges that you will face as an exporter, and it should thus not be done
without careful planning. The planning and executing of pre-show, during the show and
post-show strategies is extremely important and should be done with the support of export
assistance providers, the show administrators, and perhaps even other exporters who have
had prior experience at the event. (Note: Food Export USA’s Food Show PLUS! service is available at several overseas
trade shows to help companies prepare for this challenge!) Also, Food Export USA's Market Builder helps you determine which markets are best suited for your products before
you enter via trade shows.
At a minimum, trade show and trade mission planning
should include the following elements:
- Establish your trade show/mission
objectives. You should be able to clearly identify why your company is attending a
particular show or mission. In order to do this, you will need to research and consider
the various options available to you to determine where you should invest your resources.
This would not include such aspects as "I need a vacation" or "I love to
travel," as there is very little time for leisure if you are really working at the
show. Your reasons for attending trade shows/missions should include one or more of the
following: increasing sales and market share by obtaining sales leads and qualifying
potential distributors; introducing your product into the market for the first time; and
competing with other firms in your industry that are already in or attempting to get into
the market.
- Prepare your trade show materials, staffing, and
logistics. Make sure that you have the proper products on display, as well as sales
collateral and appropriate product literature (translated at a minimum into the local
language, and ideally into 2 - 4 of the major international trade languages). You should
also have your booth appropriately staffed for the show. If you don’t have access to
a translator, you might consider bringing at least one bilingual person to the show,
fluent in the major language of the country. You also need to follow the instruction of
the show’s logistics guidelines. Strongly consider using the freight forwarder
appointed by the show, if available, since they can efficiently guide your materials in
and out of the country.
- Market research before, during and after the show.
During the planning stages, you should thoroughly research the market to determine the
costs and benefits of attending the show. You should learn about the requirements that
exist for the importation of your product with regard to labeling and packaging,
ingredients, certificates, etc. You should be aware of tariff and non-tariff barriers,
growth patterns, the destination’s economy, and exchange restrictions. You’ll
want to familiarize yourself with the pricing structure for similar or comparable products
in the market, both for local and foreign products. Finally, be prepared to quote
container and air rates on the spot between your facility and the destination ports. You
should have an "EXW" quote sheet as well as some variables of other INCOTERMS,
such as "FOB" and "CIP."
- Measuring and evaluating the results. Although
it may take some time, you will need to determine the benefits of having exhibited at the
show before considering whether to continue investing your time and resources in that
market. This is the main reason why you need to have clearly defined objectives in advance
of attending. If your goals were to locate qualified distribution channels, obtain sales
leads, research the market, assess the competition, introduce your product to market, and
determine future growth potential, then you should make every effort to achieve those
goals before, during and after the show/mission. Granted, some surprises will obviously
occur while you are there, but they should also be measured against your goals to
determine future marketing efforts. It is not considered a total loss to return convinced
that your product has little potential, since this would provide you with the opportunity
to shift your resources to another country or market.
- Follow up. It is at this point that your work
really begins. Upon your return, immediate action is required to keep the momentum from
the show moving in your direction. Usually, after the trip, you might be distracted by the
work that piled up in your absence, the daily rigor of your regular job, and fatigue from
jet lag. Nonetheless, you should analyze all of your leads and other correspondence, and
obtain a list of companies who attended the show who you may not have met. Prioritize your
leads in order of potential and follow up with each one. Use their business cards and your
lead card to address them properly; email, fax, phone or write them, thanking them for
their time and addressing the issues required to move toward the next step. If you did not
meet them, apologize for missing that opportunity and let them know about your
company’s products and long-term goals in the market. Don’t be too concerned if
you don’t hear back right away, as many countries concept of time is different than
our own.
FAQ’s
What is the difference between a trade show and a
trade mission?
A foreign trade show is usually a
privately-sponsored promotional event that focuses on a certain industry, or subset of an
industry. The cost of the show may seem prohibitive at first, but depending upon your
level of export readiness and proactive export strategy, may actually be a good investment
for long-term growth. For many shows, there may be government support that may help in
lowering the overall cost of attendance. (Note: Food Export USA's cost-share Branded Program is available to help companies
offset the costs of exhibiting at overseas trade shows and at select U.S. trade shows with
an international focus.)
A Trade Mission is often a trip of a select group
of companies that is being sponsored by a federal, state or local agency, such as a local
state department of agriculture or chamber of commerce. It is much smaller in scope than a
trade show and offers your company a more personal opportunity to meet selected,
pre-qualified buyers and foreign government officials. In this case, your itinerary is
arranged in advance, and your overall costs may be much lower.
How do I know which shows or missions to attend?
You should carefully analyze the various options
that are available to you. Many of the web site links provided in this section of the
site, as well as Food Export USA’s
Events Calendar, can assist you in this process. You should also consult with
representatives from your local state agricultural promotion agency, since they have
likely attended many of these shows and may be directly involved with the event. They can
also provide keen insight into which opportunities may best fit your company, and where or
how you might obtain financial assistance.
Once I decide to attend, what are my first
steps?
You might want to break down your preparation into
short, medium, and long-term goals in regards to preparation. These are action steps that
should take place after all of the initial considerations mentioned above have been
considered.
You should determine where your booth is located,
(if possible), and obtain as much other information from the show organizers as possible.
Work on determining which staff will attend and clear their schedules. Plan your layout
and design, and what product literature you will be using, as well as any translation of
material to be done. Consider the cultural impacts of your products’ names and
colors, as they may be inappropriate. Consider the benefit of hiring a translator at the
show. Establish a sample policy with regard to which ones you may give away and which you
might be selling. Be aware of the regulations for selling samples at the show. Direct any
questions that you may have to the show organizers or your state’s coordinator (if
applicable).
You should also consider your overseas
transportation, your hotel accommodations, and other travel arrangements, such as proper
attire, passports, visas, inoculations, etc. You might also price out any special
hospitality suites or events that you might want to host, if it is within your budget.
Consider federal and state government-sponsored events that you may use instead. Pay close
attention to the timelines indicated in the trade show literature and follow them closely.
It is very difficult to achieve success at a foreign trade show if your wares do not
arrive on time. Use the services of the show’s designated freight forwarder to
provide logistical support in those particular areas.
Why do I need to use the show’s designated
freight forwarder, if I have my own?
If you already have an established freight
forwarder, you might first check with them to see if they have experience doing trade show
work (especially into that country, and even perhaps at that particular show). Not all
freight forwarders have sufficient experience in trade show forwarding, and for this
reason, the show organizers generally recommend one or two good possibilities. They can
build consolidations with your cargo and other freight that might lower your
transportation costs, or they might even have a special freight rate for the show.
They are also familiar with the exact way your
documentation should be completed for ease in clearing customs, as well as re-export from
the show and clearance back into the United States. They are aware of the latest date of
shipment for a proper arrival time, and most likely have representatives at the show to
handle logistics and concerns you may have while you are there. You cannot underestimate
the value of having someone competent in this area who can handle your cargoes in and out
of the country.
What is "Boothmanship"?
"Boothmanship" involves the
strategies and techniques you employ at the show while you are there. This activity may
decide your success or failure at the event. You will need adequate staffing and
preparation to show your samples, provide demonstrations, and discuss the merits of your
products with potential agents and distributors that are in attendance (who can arrive at
your booth at any time).
You should have all the product literature
prepared, including your prices, transportation costs, and discount capabilities. In
addition, you should have an appropriate lead card available to begin your evaluations
while you are at the event. Finally, be prepared to spend as much time as necessary with
potential buyers you meet at the show, even at post-show times, such as dinner or
breakfast.
You also need to be prepared to deal with people
from a variety of backgrounds and cultures, since international trade shows (and even
those that are held in the U.S.) are very cosmopolitan in scope and draw attendees from
around the world. That means you need to be flexible with your time and attention, since
all of the people that visit your booth are your potential customers. Just because you are
at a trade show in London does not mean that business opportunities won’t arise for
another country, or market, altogether.
How will I know how to measure my results?
Your results will need to be measured against your
goals, as well as any international variable events that take place while you are there.
You might measure goals against potential distributors, competitive intelligence, sales
made at the show, purchase orders in the following months, an increase in sales and market
share as a result of the show, or any other successes that you can achieve as a result of
having attended.
You will need to be patient, however, in
determining immediate results. Although the goals of domestic and international shows are
essentially the same, the export component usually takes much longer to generate any kind
of concrete results. Therefore, don’t make the mistake of substituting your
"domestic sales expectations" on the export side of your business.
Keep in mind that potential buyers you meet at the
show do not necessarily view themselves as "buyers" as you may know them.
Rather, they are looking to build a long-term relationship with a U.S. company that can
work with them to achieve mutually agreed upon sales goals. They will thus take great care
in selecting an appropriate supplier.
The key to succeeding in this type of activity is
your ability to assure potential customers that you are a competent supplier of quality
products at a competitive price, and that you are sensitive to the realities of trading
internationally.
Trade Shows & Trade Missions
Links
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