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Trade Map: Transforming Midsize Businesses from Reactive to Proactive
Trade Map: Transforming Midsize Businesses from Reactive to Proactive
Introduction
Paige O’Neill is an International Business Development Counselor. She has global experience in business development, business acquisition and integration, technology strategy and international market research.
Paige received her BBA in Management Information Systems from Western Connecticut State University and her Executive MBA from Duke University.
She lived and worked overseas for 15 years in several countries across Asia Pacific, Australia and Canada.
Paige is also on the Board of Directors for the National Charity League, a non-profit focused on building leadership and philanthropy opportunities for young women in the community.
Email: [email protected]
The NC SBTDC’s International Business Development program is a business and technology extension program of the UNC System and is funded in part through a Cooperative Agreement with the U.S. Small Business Administration.
Awards and Recognition:2019 NASBITE Program of Excellence2019 President’s “E Star” Award2018 NASBITE Advancing International Trade2015 EXIM City/State Partner of the Year2014 NASBITE Accredited Training Program2003 President’s “E” Award
SBTDC International Business Development
International Business Development Counselling
Target: midsize companies with management commitment, experience in the marketplace, adequate cash flow and capability/capacity.
International Business Expertise
• Global Business Management• Global Marketing / Global Market Research
• Supply Chain Management• Trade Finance
Reach out to your local SBTDC for confidential, no-cost counseling.
Why Conduct International Market Research?
• Which country has growth potential for the product?• Which geographic areas are potential markets for global expansion? • What are the obstacles to entering specific countries?• Which countries are my competitor’s exporting to? • What tariffs are imposed for specific countries?• Where do I localize my website services for global expansion? • How can I grow my market Internationally?• Who do I partner with?
Goal of Market Research is to identify high potential markets to explore
What is Trade Map?
A tool created by International Trade Center (ITC) that shows trade statistics for International Business sorted by Product Code.
• The tool can provide monthly, quarterly, and annual trade data.• The data is sorted using indicators for trade performance, international
demand, and competitive markets.• Trade Map data covers 220 countries and territories and 5500 product codes.
The Harmonized System
• Global system of product numbers harmonized to the 6-digit level.Ex: 87.12.00
• The product codes are used for imports/exports to assign tariff and duties.
• Overseen by the World Customs Organization (WCO)
• For U.S. Companies:
IMPORTS: Harmonized Tariff Schedule of the US (HTSUS) www.usitc.gov
EXPORTS: Schedule B http://www.census.gov/foreign-trade/schedules/b/
Bike-Me, Inc. | Case Study
Total 2019 Sales $6,800,733 27 FTE
Mountain Bike ($759 SRP)
Founded in 2011. By 2016 Bike-Me, LLC had sold $40,000 of their Vintage Bikes to Canada—their first international customer. The VP Sales met with International Trade Reps for the following countries; Canada, Mexico, Europe, Japan, China and the Middle East.
Utility Bike ($559 SRP) Vintage Bike ($359 SRP)
HTS Code Definition
87 - Vehicles other than railway or tramway rolling stock, and parts and accessories thereof
The first 2 digits of the HS Code are referred to as the Chapter. When searching for your code you’ll start by searching through the chapter descriptions.
8712 - Bicycles and other cycles, incl. delivery tricycles, not motorized
The more digits your HS code contains, the more descriptive your product classification becomes, as you can begin to see. The first four digits of an HS code are referred to as the Heading.
8712.00 - Bicycles and other cycles, incl. delivery tricycles, not motorized
The six-digit codes are complete and official HS codes. The codes are globally harmonized at this level, meaning all countries using the harmonized system will use the same codes to classify their products. The first six digits can also be referred to as the Subheading.
HTS Code : 87.12.00 for Bike-Me Case Study
Trade Indicators – Importing
Trade Indicators – Importing
1. The US, Germany and Netherlands are the three biggest importers of the product bicycles, counting for 33.1% of global market share.
2. Netherlands and Austria have had a growth rate in value above 10% between 2018 and 2019, with 14% and 15% respectively.
3. Moreover, Austria and Netherlands both had a steady growth rate in value between 2015 and 2019, 9% and 15% respectively.
General Observations
The Import Trade Map shows Market Potential which creates a starting point for Country Prioritization of Exports
Export Trade Maps
The Export Trade Map can be used to determine competitive trade activity;
• Where are the competitor’s selling? Which markets and regions?• Is the market saturated? Is there a potential market with no competition?
Determine International Competitive Position and Supply Chain Diversification
The Export Trade Map can be used to determine supply chain activity;
• Which countries produce and export the product? • Do additional countries export the product? • Can the company diversify its supply chain to import from multiple countries?
Client Feedback
• “Trade Map gave us the ability to look at unbiased data that enabled the company to prioritize investment dollars for specific global regions and visibility to increased distribution opportunities resulting in increased sales.”
• “The Trade Map data had a very positive impact with the potential investor, particularly the ability to show a significant worldwide market for our product.”
• “The Trade Map analysis and insight really helps to demonstrate the global opportunities.”
❑ International Trade Administration: Country Commercial Guide
https://www.trade.gov/ccg-landing-page
❑ IBIS World: Industry ResearchLookup with NCAIShttps://www.ibisworld.com/
❑ CENSUS Bureau: World ReportLookup with NCAIShttps://www.census.gov/
Sources of Market Research Information
❑ National Export Global Report (Trade.gov)Lookup with HS, USITC or NCAIS codehttps://www.trade.gov/
❑ TradeStats ExpressLookup by States with NCAIShttp://tse.export.gov/tse/tsehome.aspx
❑ ITA: Market Diversification Tool Lookup with HS, USITC or NCAIS codehttps://beta.trade.gov/marketdiversification
Questions
