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REQUISITOS DE COMPRADORES Flores Exóticas. Part II: Export guidelines – diversifying markets Going East – Czech Republic case Why to venture into new markets Trade channels Existing and future opportunities Business practices Product marketing Delivery , payment , services.

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slide1

REQUISITOS DE COMPRADORES

Flores Exóticas

Part II: Export guidelines – diversifying markets

  • Going East – CzechRepublic case
  • Why to venture intonewmarkets
  • Tradechannels
  • Existing and futureopportunities
  • Business practices
  • Product marketing
  • Delivery, payment, services
slide2

Venturing into new markets

  • Unexplored and unexploited
  • Alternative to saturatedmarkets
  • Smaller companies  targetting smaller buyers
  • Pioneering
  • Expandingmarkets, findingnewclients
  • Framework of Free TradeAgreementwith the European Union
going east main markets
Going East – main markets
  • Main East-European destinations for exotic fruits:
    • Czech Republic
    • Bulgaria
    • Poland
  • Segmentation
    • Large retail chains are the main segment
    • The catering industry
    • Small retailers are losing ground
slide4

European market

Colombia

Czech retail market

Czech wholesalers

Small retailers

West -European specialised importers

Colombian exporters supply Northwest European specialised importers, which re-export the products to the Czech market.

1

Catering industry

Colombian exporters

Czech mainstream importers

3

DIRECT SUPPLIES: POSSIBLE?

Large retailers

  • Colombian exporters supply Northwest European mainstream importers, which re-export the products to the Czech market.

2

West-European mainstream importers

Main distribution flow

Secondary distribution flow

direct supplies possible
Direct supplies – Possible?

Colombian exporters supply Czech mainstream importers, which supply the Czech market.

Opportunities

  • Czech buyers are interested in consolidated orders of different exotic fruits

(Colombia’s competitive advantage)

  • Growing market due to increase of disposable income
  • Holiday season provides window of opportunity to establish trade relations (stepwise approach)

Challenges

  • Small demand  Lack of scale required for cost-efficient transport of exotic fruit
  • Underdeveloped infrastructure (lack of good flight connections from South America to the Czech Republic)
promotion crucial step
Promotion – crucial step

Heavy promotion is required for the realisation of sufficient demand for direct imports

  • Promotion at the retail level
    • Store promotions – tasting, explanation of use, recipe ideas in Czech language
    • Colombian week?
    • Specialtyshelves
    • Promotion in cooking programmes / Internet / Social media
    • Trade fairs
    • QR-codes on product label  unification of technologies
promotion crucial step1
Promotion – crucial step
  • Promotion at the wholesale level
    • Accurate product description

(EU or UN standards) - www.codexalimentarius.org

    • Photos of the product and packaging
    • Delivery capacity per year per product

(supply calendar)

    • Possible delivery dates
    • Information about the available storage and processing facilities
    • Branding (company’s logo, revealing reputation)
    • Export references
    • Quality certificates (e.g. GlobalGAP, HACCP ,BRC, etc)
    • Contact details (on brochures, website)

Example of a supply calendar:

slide8

Product marketing - website

  • Website – doinggood, and causingnoharm
    • High-quality websites are associatedwithmodern, professional approach
    • Website shouldinclude:
    • well-definedproduct characteristics
    • strenghtsof yourcompany, such as certificates, specific story, quality and deliverysystems, etc.
    • History and track record
    • Product presentations, catalogues, brochures (thusalsosavingprintingcosts)

@

Good example: Frutierrez

slide9

Product marketing – trade fairs

Important events

  • Fruit Logistica - www.fruitlogistica.de - world\'s leading fresh fruit and vegetable trade fair. Takes place every year in Berlin, Germany.
  • Biofach- www.biofach.de - most important international exhibition for organic food and fair trade products held every year in Nürnberg, Germany.

Findingpotentialbuyers

slide10

How else to find potential buyers?

Interesting sources – Internet databases & marketplaces

  • FreshPlaza - www.freshplaza.com

meeting place for the international fresh produce industry.

  • Foods for Trade - www.foodsfortrade.com

leading B2B marketplace for the food industry.

  • Greentrade - www.greentrade.net

online marketplace with the worlds’ largest database of the organic farming industry.

  • Zipmec - www.zipmec.eu

largest search engine for fruit and vegetablecompanies in Europe

Information sources: Eurofruit Magazine, Fresh Info

slide11

Terms of delivery and payment

  • If required…
  • Pesticide control!
  • Samples which represent what you can deliver:
  • Quality
  • Quantity
  • Time
  • Packaging material
  • Sampling
    • Rare
    • Buyers assume traders are familiar with the product standards
    • Not willing to pay for samples
  • Terms of delivery
    • Lead time: 3 days (air transport)
    • Incoterms:
    • quote your prices Free-On-Board (FOB) in the case of sea transport and CFR/CIF in case of air transport.
    • pay attention to strict contract fulfilment regarding contingencies during export procedures, transport, etc.
    • Insurance: costs are approximately 4 %
    • Valuable when product quality is compromised during transport
    • Costs cannot be reimbursed if damage results from factors which cannot be controlled, e.g. volcanic ash
    • Make sure there are thermometers installed on board or on the pallets
slide12

Terms of delivery and payment

  • Contracts
    • Buyersprefer open accounts
    • Communication serves as a formalagreement(e.g. e-mails)
    • Non-compliance

Contract example: International Trade Centre

  • Terms of payment
    • Trade of smallquantities- fixedprices
    • Trade of largequantities - on the basis of consignment.
    • Price-fixing more common in the holidayseason
    • Pre-financing is more commonfor partners whoalreadydid business together
    • Payment documents (involving 3rd parties) are often avoided in the fresh fruit trade
    • Paymenttakes place within 2 weeks
    • Every delivery should be accompanied by an official customs invoice for customs declaration
slide13

Not to forget…

Integrity

Punctuality

Respect for legal arrangements

Cultural aspects – DOs and DON’Ts

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