Tips for Exporting in recession times
The economy cycle has ups and downs. The company long-term success is the result of managing such crisis by getting stronger of it. However, to achieve this it is necessary to address the short-term endurance priorities. Being careful that this does not distract us from the strategic approach, it is possible that the short-term contingency measures do not let us project into the future and as a consequence just get worse the problems.
This is happening in many companies that by taking downsizing strategies cut their budget without thinking of bad effects that it can cause in their sales, there are items which can be saved but in others can be dangerous. Selling is crucial for the company sustainability; any attempt to this direction will support the objective: "making money", any step in the opposite way will move us away from the aim, and we know what this would cause sooner or later. Competition in the broader market is sharp and we must face it firmly, our sales management must be reliable and determined.
I can see the crisis, but ... where are the opportunities?
As it is said by the Asian people <crises synonymous with opportunity> How come there are no opportunities in sight? The market is shrunk; it is manufactured more than the consumption demand. The macroeconomic environment suggests that markets for some time will go through instability. However the market uncertainty and volatility are the major opportunities’ makers. When uncertainty shows up, many competitors quit investing in advertising, cut their budget for sales, reduce their stock and range, fire qualified employees, customer service get worse and more endless issues.
Opportunities arise when the market participants do not take care about it effectively. In a depressed economy, we can find unhappy customers, importers, distributors and wholesalers who desperately seek better alternatives to keep doing business with retailers.
What you can do:
Hold strategies
Take care of your clients, others could be captivating them. Keep in touch with them; they can give you creative ideas. Know their needs; it is not always a price or financing issue. The solutions can be combined.
Take care of your brand positioning
Your products’ stock at the point of sales is crucial; these must be available to any consumer when it comes. Support your distributors with promotions and advertising, if distributors feel supported they would accept to share with you part of the investment.
Stayremarkable
Your brand is the most important asset. Nobody asks for what it isn’t known. The marketing and advertising policies remain unchanged. The brands that have disappeared from the market are those that nobody remembers.
Allocate your fixed costs
Certainly your company has more production than demand. Producing and selling more is smarter than cutting budget losing competitiveness in the long term. The key is to get out of this economic chapter faster than others.
Look for new markets
Where yesterday other companies were prevailing, such situation might have changed. Many of them are focused on saving money, as a consequence, disregard their customers. Believe it or not, the distribution channel is thirsty for news to boost demand.
Redraft your budget
It is clear that redeploying the budget causes a decisive impact on financial performance. You need to make differences between unnecessary spending and effective investment. The resources and items’ reallocation from one place to another would imply a significant increase in export sales.
Promote your company and products
Update your Web site; you should not remain freeze for years. Advertise in specialized media such as El Papel Magazine and El Papel-Digital. Circulation is important but more important is the readers’ target. Develop an effective media plan and you will see the return of your ad investment with the first sale.
Do not grope your way
If the abroad market is unknown, it is necessary to keep away from ineffective efforts, because you could waste time and money. Consult with trade specialists, or hire qualified traders. Attend specialized events related with your industry, focusing in those which will be attended by the major buyer companies and businessmen from all over the world, as an example you can attend the Marketplace Miami.
Businessmen explain that the economic situation will be defined in November
The global economic situation is undergoing changes. The international trade environment is adapting to the new circumstances. It is expected that in the coming months the prospect will be better defined and the strategic actions, that companies should adopt to face successfully the new context, will be more clear.
Coincidentally the MARKETPLACE attendance <to be held once again in Miami> has chosen November as the best time to participate in this international event among retailers and manufacturers of stationery, office, school, art, handcraft, office products & materials.
It is no coincidence that these major companies consider that once most of the year went by the market situation will be defined evidently and, thus, the meetings that will be carried out in Miami will be most productive.
Due to this whole request the Marketplace date has been changed (which traditionally was carried out in June) and in 2009 it will be held from November 9 to 12.
Actions that bring more expectative
In fact there is a huge expectation for this year's event. Everyone wants to know how their colleagues face the crisis in other countries, talking to them to know what actions they have taken and which are more effective than others.
They think that in November experience exchanging with these important players of the stationery industry will be more profitable and in that way to know from first hand what new opportunities will come up, which changes demand undergoes, how consumers react, how to face competition and what are the actions to get better results.
Finding solutions
Nevertheless, attention is focused primarily on knowing effective proposals in the new economic environment. Diversify suppliers, new sources of supplying and financing, new ranges, diversification of product and everything related to business opportunities, which will be defined this year with more importance than ever.
A Dutch proverb says that you can not change the wind, but you can build windmills. In the MARKETPLACE relationships are built, during two short days the major market players are meet. Miami and November are the right place and time to take advantage of the situation.
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