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 ex ticas

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


Requisitos de compradores flores ex ticas

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


Requisitos de compradores flores ex ticas

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:


Requisitos de compradores flores ex ticas

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


Requisitos de compradores flores ex ticas

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


Requisitos de compradores flores ex ticas

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


Requisitos de compradores flores ex ticas

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


Requisitos de compradores flores ex ticas

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


Requisitos de compradores flores ex ticas

Not to forget…

Integrity

Punctuality

Respect for legal arrangements

Cultural aspects – DOs and DON’Ts


Requisitos de compradores flores ex ticas

Gustavo Ferro

[email protected]


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