trade mission

March 16th, 2011

International trade shows: no place for improvisation

Every so often, we get a call from a company looking for financial assistance to participate in a trade show two or three months down the road. In a hurry because space is almost sold out, they want to reserve right away. While I can understand that it’s hard to have a structured approach when the business is pulling you in all directions and that sometimes you just have to seize opportunities as they arise, this type of request signals two major weaknesses in a company’s international market development strategy:

1- Participating as an exhibitor in a large international trade show typically requires planning several months or even a year in advance.

Exhibiting at a show abroad is very expensive. To maximize the benefits, you must first make sure to choose the right show and location, and to convey the right message to the clientele. One of the best ways to determine whether it’s worth participating is to first attend as a visitor. You can also get information from the organizers, Canada’s and Quebec’s trade delegates covering the region, your customers, local associations, and others. Another idea is to look at the list of exhibitors from the last year’s show to find out who else will be there, i.e. your competition or suppliers of products and services that complement yours.

International trade shows are big events where exhibitors compete for visitors’ attention. So  don’t expect your target customers or top distributors to automatically come to your booth. You need to let people know ahead of time that you will be there by sending out invitations to the target group, and if possible, setting up appointments with the most important people. To maximize the benefits, you can even initiate discussions beforehand and take advantage of the show to close the deal.

All this preparation and promotion can’t be done in just a few weeks; you need to give yourself enough time. If you don’t prepare adequately, you are almost sure to be disappointed with the outcome.

2- Participating in a trade show as an exhibitor should not be viewed as a one-off event but as a central element of a comprehensive market development strategy.

All the preparation in the world will be for nought if you don’t follow up with the potential customers or partners you meet at the show. This means regular contact, visits or other activities in order to build a business relationship with them. On this topic, I recommend you read my colleague Caroline’s very informative blog on follow-ups, posted last June. Before heading off to exhibit in a trade show abroad, make sure you’re ready and available to take the next steps when you return.

I therefore suggest to anyone interested in launching into a new market to research it carefully, to set clear targets and to define a strategy and an action plan. Deciding whether to exhibit, choosing the show, and defining the expected outcome are all integral parts of this planning process. With such an approach, all your efforts are coordinated based on your objectives. The preparation and follow-ups will then no longer be viewed as additional work because they will have become part and parcel of your market development activities.

To learn more, check out these sources: an article published last November in Les Affaires Monde, a guide from the Canadian government  and a very detailed list of international trade shows.

Bruno Séguin

October 18th, 2010

Brazil has captured the world’s attention. Has it captured yours?

These days, it seems the entire financial world is talking about Brazil. In fact, the country is enjoying tremendous economic growth, unemployment is at an all time low, a real middle class seems to be emerging and the country is getting ready to organize the world’s two biggest sports events—the 2014 Soccer World Cup and the 2016 Olympic Games. A huge market, Brazil is increasingly becoming an unavoidable choice since so many developed nations, including the U.S, are struggling with a sluggish economy. That’s why, as some of the articles below point out, a growing number of Canadian and Quebec firms are turning to the Brazilian market while the Canadian government is working to forge closer ties with the Brazilian government with  a view offering its advice and helping the country organize the Olympic Games to be held in Rio de Janeiro in 2016.

Dossier de La Presse Affaires Magazine

Dossier Lesaffaires.Monde

However, the Brazilian market is tough to penetrate because of its size, language, cultural differences and entry barriers (very high customs duties on certain products for example). To be successful there, you have to surround yourself with the right people, get familiar with the market and be ready to maintain a presence for the long term to build a good business network.

Here are two testimonials of Laval companies that have penetrated the Brazilian market and who talk about their experience in Brazil and other Latin American countries: Interview with Jean Soucy of Technologies 20-20 and a profile of CDVI.

As a matter of fact, the International Business Centre is planning to organize a trade mission to Brazil in fall 2011.  When we organize our trade missions, we work with well-established local experts who arrange the right meetings with the right people based on the needs of our participants. These experts can also ensure certain follow-up activities with potential clients or partners. Lastly, the participating companies benefit from expert guidance from the International Business Centre team during and after the mission. The spinoffs of our last mission to Mexico were impressive and all the participants were very satisfied with their involvement. For more information, please contact Caroline Bouchard at 450-978-5902 or at caroline.bouchard@lavaltechnopole.com.

Bruno Séguin

December 15th, 2009

Our next Mexico trade mission

As you know, we’re organizing a trade mission to Mexico in April 2010. You may be wondering why we chose this country.

There are several reasons why we’ve decided to go back for the second time.

First, because when we were first there in 2008, I noticed that the Mexicans source mainly to the U.S. but that they do so reluctantly. That’s because U.S. manufacturers have a hard time adapting their products and services to the Mexican market. In the meetings I attended, it was clear that the Mexicans would like to find other business partners. This bodes well for Laval firms.

Second, according to National Bank and EDC, the Mexican economy is expected to grow next year – 1.6% according to NB and 3% according to EDC.

Third, we’ve found an excellent business partner for our Mexico missions. The outcome of the first trip was so positive that we will be working with him next time round as well.

Lastly, a number of you have told us that you’d like to develop this market, and you are absolutely right. Countless opportunities await you just a short flight away.

Véronique Proulx

September 10th, 2009

Business opportunities in Texas

I was in Texas this June as part of a trade mission in the company of Mondo America, Orbi Group and Geo-Plus (and I would advise you not to travel there at that time of the year as the weather can be horribly hot and humid). I was surprised to observe just how well Texas was pulling through the current economic situation. In fact, since Texans did not speculate heavily in real estate, the market there has remained relatively stable.

There are therefore business opportunities for exporters. I made the following notes, which I would like to share:

Dallas: This area does not seem to be very well known abroad. It has the highest concentration of academics and academic institutions in Texas. A number of organizations in the cancer research sector, both public and private, have been established there. The technology (including manufacturers such as Texas Instruments) and defence industries are expanding.

Houston: This city attracts millions of dollars’ worth of investments every year. A great deal of money has been spent to encourage major companies to establish themselves in the area, and the strategy certainly seems to have been successful. Furthermore, Houston has set itself the goal of being a “green” city, so all future construction projects will have to receive LEED (Leadership in Energy and Environmental Design) certification.

Northwest Arkansas (to be sure, this is another state, but the information below demonstrates the economic vitality of the region) is an extremely dynamic area that offers good opportunities for companies in the agri-food (for example, Tyson is based there) and logistics sectors, as well as for those providing products and services to manufacturers. In fact, 15% of revenues in the region come from manufacturing, in comparison with the U.S. national average of 11%.

The Texan economy will continue to thrive. On the one hand, current growth leads both local and foreign companies to invest in the area while, on the other, such growth attracts the migration of workers from other states. The number of Florida licence plates now seen on Texan roads is but one proof of this, as the economic slowdown in the Sunshine State drives people to look for work in Texas.

If you would like to learn more about this particular market, feel free to send us your questions. You are also invited to share your knowledge. In addition, the LTIBC team held a number of meetings during its trip to Texas, which has enlarged its network of contacts in the state. The latter could certainly help you develop or expand your business in this market.

September 10th, 2009

52% of UAE Construction Projects Suspended

Following last November’s trade mission to the United Arab Emirates (UAE), attended by Orbi Group, 20-20 Technologies and MMC Packaging Equipment, we recently spoke with these firms and logged into several blogs to find out the impact of the recession on this market.

A study published by Proleads in February showed that 52% of the 1,289 construction projects in the UAE had been suspended, the equivalent of $676 billion of unspent money. Soon after, the media reported that 20,000 Indian workers had left the country, either to go home or to work in other Gulf Cooperation Countries.

The participants of the LTIBC trade mission agree that this exodus will cut demand for consumer goods since there are fewer consumers to serve. The entire chain will be affected, from manufacturers to their equipment suppliers, and I imagine, their raw material suppliers.

A client told me that the money is running out. “The big developers are struggling financially and there are too many vacancies and no investors,” said Jean Soucy, International Sales Manager of 20-20 Technologies.

That said, there is still $700 billion of projects on the table, an impressive amount you must admit. In July 2009, there were 750 projects underway and 450 that had just been completed. This is way more than other countries. What’s more, the number of hires has stopped falling, a sign that the economy is stabilizing.

Although the market is less attractive than it was a few months ago, there is still plenty of money floating around. For those who already export to the UAE, make sure to stay in touch with your contacts so that you can cash in when the recovery begins. This is exactly what our mission participants are doing.

And for those thinking of exporting to the UAE, this is a good time to start building contacts in this market.