Fear Factor – Asia

What you don’t know,

you don’t know
and why you should not fear going
to market in Asia (or other
emerging markets for that matter)
Trade Harry Falber
Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
What is so mysterious about
doing business in Asia?

Nothing
And
Everything
Trade Harry Falber
Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
What can you hope to gain from a
few short minutes together?
A brief idea of what you will need as a
foundation to go to market.
What type of learnings are necessary
And what type of market intelligence is
necessary so when you invest in going to
Asia, you will know that there is a lot
you don’t know…
and you can begin to do something about
that – from the get-go. Trade Harry Falber
Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
The first thing?

We all think
CHINA
We all should think…
Trade Harry Falber
Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
We should all think…..
Singapore
Thailand
Korea
Malaysia
Vietnam (safest country)
Philippines (90% literacy – English primary language)
Japan (in spite of aging market– want the best of the best
India (world’s largest middle class)
Indonesia
Australia
New Zealand
China (Taiwan, Hong Kong) – great quality in goods
…….and others.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
What is the point of thinking
Pan-Asia vs. China?
Simple. Virtually all the countries are
emerging as opportunities to conduct
business in – either selling or buying.
And many of them have an economic
backbone of “middle class” consumers
that are aspiration oriented

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
This is what Carrefour has said
(the biggest retailer in Asia)
“We are expecting a great deal from this area.
We have been doing business in Asia since
1989, and we are very familiar with local
customs and trends. We believe the rapid
changes in consumer patterns in the
countries where we do business are
promising.
Asia is the continent with the greatest
potential for long-term growth for the
Group” Trade Harry Falber
Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
This is what Wharton’s Professor Zang
said (marketing focused on retail,
pricing advertising,etc.)
“The country is moving very fast. Never
in my dreams could I imagine that a
country this big with this many people
could move so fast. It’s astonishing to
me, and probably to most people in the
world”

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
But while it all may sound rosy, you need to
understand the dynamics going on
• Northern Asia: Politically expected to remain stable, and
economic growth will be positive.
– Korea: Middle class expected to grow, purchasing power of young,
married adults will grow and convenience/fashion items will be
attractive
– China (PRC): Economic trends with eye on world-class political and
financial clout married to “old way” networks (PRC estimated to have
min 40% of total world textile business), and Olympic hosting will help
drive purchasing power and interest in convenience food. But many
foreign investors say China is already the most competitive market in
the world, and it's likely to get tougher
– Japan: Emerging from 17 year old recession, older married couples
having first child, and dual incomes will help grow home product
categories, but it is an aging market
Trade Harry Falber
Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
But while it all may sound rosy, you need to
understand the dynamics going on
•Southern Asia: Politically expected to remain unstable
for ‘10. warnings signs are prevalent.
–Philippines: 90mm population but 68% below poverty,
political instability/terrorism/military build up, one of most
dangerous places for journalists in world
–Thailand/Malaysia: business environment predicated on
unknowns that may effect shipping and manufacturing
business - impacting on purchases of premium products but
on the positive side, becoming a center for best of breed
medical procedures

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
But while it all may sound rosy, you need to
understand the dynamics going on
•Sub-continent
–India continues to have high trade barriers for
entry.
–You definitely need a “guide” to navigate the
waters of entry -- both financial and political
–It is the largest middle class in the world, but there
are few big stores for distribution of products and
you need to rely heavily on strong distributors

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
That not withstanding – each of you should
examine the great potential of Asia
•40%+ of all wooden furniture is now coming
out of China to US
•With China’s “almost fully executed”
commitments to the WTO including most
WFOEs (wholly foreign-owned enterprise), all
the other Southeast Asian countries will grow
by the “spill over” effect from China not keeping
pace with the needs and production goals of
manufacturers as global economincs improve.
Trade Harry Falber
Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
The real question today is how do you go
to market and where do you start.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
To start, you can pay men and women like me
from the to do all the work, or begin the
education on your own

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
Export.gov is the place to start

• What is Export.gov?
Export.gov is the portal to all export-related
assistance and market information offered by the
federal government. Whether you're looking for
trade leads, free export counseling, or help with the
export process, Export.gov is your first step in
growing your international sales. Export.gov
Newsletter
• Register to receive monthly updates on feature
articles, trade events and new market reports.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
And you can go visit (hands on learning is the
best learning – gives you all sorts of
competitive intelligence)

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
Nor is it expensive to go

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
There is a wealth of information here

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
There is a wealth of information here

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
There is a wealth of information you can
link to

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
And other sites that are just as
comprehensive as the “dot gov” site.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
But you need to take the first step
• Export Phobia
Fear comes naturally to anyone new to exporting. Fear of the unknown, or lack of
information, is one of the reasons that many businesses that are doing well
nationally are reluctant to engage in exporting.
• Fear of the unknown encourages deeper thinking.
By thinking and careful planning, the risk of failure in exporting can be reduced.
Never allow fear to impede exporting. Exporting is vital to the growth and
prosperity of the company and the country.
• The process of exporting is not like a walk
in the park.
Neither is the process like mastering Beethoven's piano sonatas and concertos.
Exporting is never easy but it can be learned and can be done well. The process of
exporting is challenging! (from Export911)

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
And steel yourself for a rollercoaster
experience
• Export Mindset

The business ground is a battleground. Exporting, like any

other business, involves risks. It is necessary to prepare for
the challenges and the consequences. Engaging in exporting is
akin to engaging in a war. It is a war of price, quality, delivery
and service. It is a battle for the business orders. It is a fight
for the company's survival---profits and growth. In practice,
rough strategies are often used by some exporters in order
to win contracts.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
It won’t be easy
Overnight export success will not happen.
Short-term export profits rarely occur.
Exporting requires long-term commitment
from management and employees.
Dedicating long hours to the business is
necessary, especially for the fledgling
exporter.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
Remember, it’s a rollercoaster ride not a
trip in a Mercedes
• New exporters will usually encounter lots of
unanticipated problems.
• Problems cannot be solved by panicking.
• There is always a solution to a problem.
• Learning from experience is indispensable.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
And that’s where a plan comes in

• Here is the way I would go about the first 90

days after biting the bullet and saying I want to
jump into business in Asia

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
 100 day action plan
I. Gain Understanding of Country Sales and Distribution Practices

Detail Current Sales & Distribution Practices from Strategy

Development/Account Specific Plan Implementation to Management Controls
among competitors, if any

Document Sales Planning practices related to sales volume, goal setting and
attainment to key business drivers (Distribution, Shelving, Merchandising, &
Pricing)

Evaluate Criteria being used to capture key learnings influencing past business
performance and support future planning.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
Develop Competitive Knowledge Base

Gain Marketplace Insights to Trade and Supply Chain Practices,

and Retail Conditions

Evaluate Wholesaler and Distribution

Networks

Develop Criteria for Wholesale and

Distribution Partners

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
About that “Distributor”
Ask how they will:
• Do Sales Planning from Volume Goal Setting to Budget Establishment
• Work with you on Account Planning with respect to Distribution, Shelving,
Merchandising, and Pricing
• Agree to Trade Terms and Conditions of Sale
• What they will do on their own for Instore Promotional Activity (Push
Girls, Slotting fees, Extra Display, etc.)
• What are the Key Account handling systems, practices, and competencies
• Run your Sales Management Team
• Manage in country logistics
• Distribution by Trade Type
• Distribution by Account
• Controls, Controls, Controls and Reporting

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
Sales Development Action Plan

Develop Competitive Knowledge Base

Gain insights into who is doing what

Marketplace Success
Retail Clout
Trade Relationships
Wholesale/Distribution Network Sales
Go-To-Market Strategy
Sales Force Profile/Size
Trade Harry Falber
Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
 Sales Development Action Plan (continued)
Perform Comprehensive Marketplace Assessment

Trade Assessment
Conduct Trade Interviews in HQ of Global and Key Local retailers to probe and gain insights into:
Development Strategies
Management Styles
Economics
Supplier expectations and supplier best practice
Wholesaler-Distributor Assessment
Interview principals and sales managers of Prospective Wholesalers
Probe current capabilities, and development potential
Develop criteria for the selection of suitable wholesaler partners by region/city

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
 Sales Development Action Plan (continued)
Formulate a Best Effort Sales Plan
Work closely with in-country team to develop
comprehensive Sales Plan

Develop Sales Planning Process

Develop ‘Go-To-Market’ Strategy
Identify Trade Terms and Conditions
Margin Strategy
Price Lists
Discount and Rebate Plan
Provide Criteria for Distribution / Wholesaler Selections
Key Requirements
Decision Selection Template

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com
 Thank you…
and welcome to the world of doing business
in (Pick a country, almost any country
that’s an “emerging market”) .

You’ll love it.

Trade Harry Falber

Area 203.557.4150 (office)
Marketing 203.858.0279 (mobile)
Group harry@tradeareamarketing.com
hfalber@gmail.com