REQUISITOS DE COMPRADORES
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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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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


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


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:


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


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


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


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


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


Not to forget…

Integrity

Punctuality

Respect for legal arrangements

Cultural aspects – DOs and DON’Ts


Gustavo Ferro

[email protected]


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