Maximizing the Benefits of Trade Mission Participation

- Lessons for suppliers

Bernard SwieckiAssistant Director, Automotive Communities PartnershipCenter for Automotive Research

Two Constituencies

Communities– New investment– Purchase of existing facilities

Suppliers– Export sales– Collaborative agreements

• Marketing• Distribution• Joint product development

In all cases, CAR seeks to create or retain jobs – thereby economically benefitting the region.

Why Participate in a Trade Mission?

Trade missions provide structure that prevents participants from being overwhelmed by unfamiliar– Business practices– Language barriers– Industry structure

Mission organizers weed out low-probability prospects, saving participants many potential wrong turns

Supporting organizations (U.S. Commercial Service, consultants, marketing firms) provide intelligence not available to firms who are not part of a mission – or available at a cost

In spite of the emergence of email, teleconferencing, and cheap international phone calls, there is still no substitute for going

Mission Objectives for Suppliers

Generate sales by– Selling directly to foreign customer firms– Securing an agreement with a marketing/distribution firm– Opening an overseas sales office

Scout a potential new market

Make connections with other mission participants and exhibitors

The Trade Mission as a Scouting Trip

Inexpensive but effective way to evaluate a country as a potential market through– Mission participant selection process– Market briefings from local experts– One-on-one meetings with potential customers

2008 Russia mission example: participant decided Russia was not yet mature enough a market for their high-tech product and postponed market entry – an inexpensive and informed decision

Anatomy of a Typical International Trade Mission

Pre-mission selection process and preparation Market briefing from local experts One-on-one meetings with potential customers Attendance of a trade show or parts expo Attendance of concurrent events

– Receptions– Conferences

Visits to key local suppliers– Meetings– Facility tours

Potential to add visits and meetings of your own before/after the mission

Mission follow-up

Previous Missions

Recommendations to SuppliersParticipating in Trade Missions

Pre-mission homework– Destination country– Companies of interest

Prepare appropriate marketing materials– Focused on products likely to sell in destination country– Most effective if translated

“Work” the expo (if applicable)– CAR usually provides each company with a “target list” of expo participants

to visit Prepare as well as possible for one-on-one meetings – they are the

heart of the mission After coming home

– Follow up with companies from one-on-one meetings– Maintain contact with other mission participants (their experiences may hold

useful lessons for you)– Some meetings yield fruit soon, others take time

Assembly Line – Where and When?

Living History in India - Some facilities are world class, some not. But emerging market consumers are

increasingly less willing to tolerate obsolete product and government regulations grow increasingly more stringent. American suppliers can help.

Thank You

bswiecki@cargroup.org