Common Sense Strategies in International Sales
Lauren D. Rachlin, Esq. Partner, Barclay Damon, LLP
Michael Krause Director of Business Development, Complemar
June 18, 2015
What You Need to Know About Selling and Doing Business Internationally.
Lauren D. Rachlin, Esq.
Partner, Barclay Damon, LLP
Barclay Damon, LLP • Hiscock & Barclay and Damon Morey merged
on June 1 to create Barclay Damon, LLP – Founded in 1853 – Largest Upstate Law Firm with 275 Attorneys – Major Offices in Rochester, Buffalo, Syracuse,
Albany – Also in Elmira, New York City, Boston, Newark,
Washington, D.C. and Toronto. – 33 Practice Areas
Selling Successfully
If you are selling your product successfully in the U.S. you can sell it successfully in other countries: • Reactive
– Customer Demands • Proactive
– Desire for sales expansion
The Process
Let’s start by demystifying the process:
• There is a lot of help out there • Identifying potential markets
– World Trade Center, Buffalo, NY – GRE Trade Council – Private Consultations – U.S. Department of Commerce
The Process
Different countries have different rules and requirements:
Range from very simple: • Canada
– Labeling – Language
To very complex:
• European Union – These can be very different depending upon your product
The Process
Not daunting - Many sources of available help depending upon the issue.
• Local agent, Distributor or Strategic Partner • Lawyer knowledgeable in International Trade issues • Brokers and Freight Brokers • Bankers • WTCBN • GRE Trade Council • FL Global NY Work Group • U.S. Department of Commerce, AND MOST IMPORTANT, YOUR OWN
LOCAL, NATIONAL AND INTERNATIONAL TRADE ASSOCIATIONS and the traders you meet at their meetings
The Process
Selling into the Foreign Country • Hire your own sales force and employees
– Not unless you are very experienced and substantial company
Sales Representatives, Distributors—STRATEGIC PARTNERS • Provide much knowledge and assistance with navigating
local requirements • Best identified by U.S. Department of Commerce and
then vetted through trade associations and local contracts
The Process
Agency and Distribution agreements are easy to enter but expensive to terminate • Require very careful drafting • Unlike most state in the U.S., termination in many other
countries is a matter of public policy • Anti-corruption and anti-bribery statutes
Licensing • Good choice where product is large, difficult to ship or is otherwise
appropriate
The Process
Joint Ventures • An excellence choice with the right partner which is well-
established in the local market
Arbitration vs. Litigation
The Process
Other concerns • Selection of local counsel especially important when
drafting a contract subject to the laws of another country: – Common law – Civil law – Islamic law
• U.N. Convention on Contracts for the International Sale of Goods
• Export Controls • Intellectual Property Protection
Common Sense Strategies in International Sales
Michael Krause, Director of Business Development, Complemar
Director of Business Development at Complemar
Over 20 Years of Professional Selling Author of: SMART Prospecting That Works
Every Time! McGraw-Hill and Sell or Sink Strategies, Tactics and Tools EVERY Business Leader Must Know to Stay Afloat!
Michael Krause
Headquartered in Rochester, NY 4 locations – East & West Coast Over 300,000 sq.. ft.. Smart
Warehouse Shipping to over 30 countries Handle over 45 million packages
annually
About Complemar
International Growth Getting Started International Sales Process Are You Ready? Valuable Resources Questions and Answers
Agenda
Global Business is Booming B2C ecommerce hit $1.5 trillion in 2014
(eMarketer.com) Asia-Pacific consumers outspent NA on ecommerce;
46% of all ecommerce purchases Brazil, Russia, India and China (BRIC) – emerging
economies joining forces, similar to European Union Global economy to grow ~3% in 2015, average 3.3%
through 2017 (World Bank Global Economic Prospects 1/15)
International Growth
The 80/20 Rule: Spend 80% of your time on research, analysis & planning Investigate: Culture Values Attitudes Safety Political risk/stability Technology level Network (LinkedIn, social sites) with US and in-country
contacts to understand business realities Develop marketing, export/import strategies Sales force and management plans Shipping and order fulfillment
Getting Started
The 80/20 Rule, continued 20% Implementation Move cautiously but DO go where it can profit you Work only with people & companies you trust Make frequent on-site visits – nothing beats seeing it for
yourself Align with a company experienced in the countries you
target – learn from their past Every country presents different issues – research and
thorough vetting pays off
Getting Started
Sales team structure & pay Direct hires Sales brokerage Distributor/Channel representation Independent sales people
Local sales management Prepare sales training and
marketing materials in the local language
Use Web conferencing to stay connected
International Sales Process
Does your product “make sense” in their country? Have you studied on how to present your
product? Do you understand their culture? What will be your follow-up process?
Are You Ready
Export.gov – wealth of trade data, analysis, tools and links to resources
Trade Stats Express (tse.export.gov) – quarterly and annual export trade data
USA Trade Online (usatrade.census.gov) – current export and import statistics, detailed info on product categories in various countries
FL Global NY Work Group
Valuable Resources
Questions and Answers