November 10, 2009
Finding Global Customers
The US population is approaching 300 million people. In contrast, the world population is 6 billion. Therefore, 96 percent of the world lives outside of the United States. Yet, it is still difficult with the world becoming smaller everyday for companies to grasp the sheer magnitude of finding global customers. US companies are s-l-o-w-l-y warming up to the fact their customer base can be beyond domestic borders.
As an export/global marketing consultant, I understand getting started is quite overwhelming. There is so much information to digest that one would want to give up after reading the second page. But, it doesn’t have to be. Here are some tips to get you started on the right track to finding global customers and successfully making sales. As a rule of thumb, it will take one to two years from the time you start this endeavor until the time you actually make a sale. Patience is key. Keep in mind, this list is not exhaustive nor are the steps in the exact order.
- Look for similarities
Language and culture are two that stand out the most. It is easier to get your product into a foreign market when your target audience is already familiar with it or can easily understand its attributes. Not to mention, you save money when only slight modifications (i.e. converting to metrics) need to be made to marketing materials and labels vs. translation costs and printing new materials.
If there are other countries on the US dollar (El Salvador and Panama are two that are close to home) that you think could be potential markets, look at those, too. You may have to translate materials but you don’t have to worry about currency exchange rates.
- Economics
Look into markets that have similar income levels to match your product. Keep in mind that pricing product should not include all of your domestic costs, only production, marketing and shipping the product globally.
Stable economies are necessary as well. Most companies do not think about this because the US has a stable government, whether it changes every two to four years. There are no threats of political uprisings, coup d’etats, port blockades, national strikes or nationalizing industries (well, the recent banking and auto industries in the US are the exception).
- Market Access
Once you pinpoint and narrow down some global markets, ask the next question, “does your product have market access?” If not, what is it going to take to get it? If you belong to a national trade association that has the ear of the US government, seek their guidance. They can tell you if market access of your product is a priority in gaining market access to certain countries.
On the flip side, is your product even allowed to be sold on the global market? Certain types of intellectual property, firearms/weapons, drugs and chemicals are not allowed to be transfered to other countries by the US. In some cases, export licenses must be issued by the US government.
- Market Visits
Visiting and doing research in your target markets is not only necessary but it shows your committment to servicing it. It also gives you firsthand knowledge of the customer base, culture, wants/needs, distribution system, etc.
If you have a US-based company, the US government is at your disposal. The USDA has the Foreign Agricultural Service based all over the world ready to assist US ag exporters with finding customers and locating trade shows, etc. The US Department of Commerce also assists American businesses who are non-agricultural based. You should seek the assistance of your state department of agriculture or economic development first. They can assist you with contacting US government officials. All of this is either free or of relatively no cost to your business.
Sending product overseas is becoming easier every day. Now that I have given you some resources, you’ll need to build your export team…
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