exporting the usa to europe
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XL GroupXL Group
Exporting the USA Exporting the USA to Europe and Latin Americato Europe and Latin America
XL GroupXL Group 100% export master distributor100% export master distributor Since 1984Since 1984 Founder: Oliver SintobinFounder: Oliver Sintobin
– Born in Belgium, speaks 7 languagesBorn in Belgium, speaks 7 languages– Bridges European & American Business CulturesBridges European & American Business Cultures– Certified by US Department of CommerceCertified by US Department of Commerce
Increase sales of US Manufacturers Increase sales of US Manufacturers by: by: – 30% within 5 years30% within 5 years– 100% within 10 years100% within 10 years
Medical, agricultural, foods, energy, Medical, agricultural, foods, energy, home accessories, telecom, chemical, home accessories, telecom, chemical, etc.etc.
What we doWhat we do
We connect U.S Companies and their products to We connect U.S Companies and their products to the European market by:the European market by:– Purchasing and exporting U.S. Products and Reselling Purchasing and exporting U.S. Products and Reselling
them through our International Network of Distributors.them through our International Network of Distributors.– Linking U.S. Manufacturers to the European Marketplace Linking U.S. Manufacturers to the European Marketplace
for Commercial, Medical, Agricultural, Foods, Energy, for Commercial, Medical, Agricultural, Foods, Energy, Home Furnishing, Telecom and Chemical Industries.Home Furnishing, Telecom and Chemical Industries.
– Services that we offer include:Services that we offer include: International Business DevelopmentInternational Business Development Export Financing GuidanceExport Financing Guidance Overseas Distribution and LogisticsOverseas Distribution and Logistics International Sales and Marketing International Sales and Marketing Export Cash FlowExport Cash Flow
Supply Chain Capabilities:Supply Chain Capabilities: Distribution Experience: Distribution Experience:
Manufacturing / ProcurementCE Mark Importer App’t,ISO Certification Guidance
Inbound/Outbound Logistics Management and Optimization
Market Channel Development and Product Distribution
Market Intelligence and SWOT
Fiscal Representation
Medical Supplies
Commercial & Industrial Textile
Components & Coatings
Wood Moldings
Furniture & Accessories
Windfarm Equipment & Financing
Cleaning Equipment
Fertilizers
Export Effort
Manufacturer Results:
Increase Sales Volume
Increase Bottom Line
Increase Market
Increase Sales Force
Decrease Sales Expense
Decrease Exposure
Europe is a Larger MarketEurope is a Larger Market
StatesStates 50 50 4848Pop.Pop. 300 million 300 million 665 million665 millionSq miSq mi 9,704,200 9,704,200 4,010,0004,010,000GDP GDP $11,190 trillion$11,190 trillion $13,840 trillion$13,840 trillionGrowthGrowth 1.6%1.6% 1.5%1.5%ImportsImports $1,480 billion$1,480 billion $1,304 billion$1,304 billionExportsExports $795 billion$795 billion $1,223 billion$1,223 billionInflationInflation 2.5% 2.5% 2.0%2.0%PovertyPoverty 12.4%12.4% 17%17%Unempl.Unempl. 5.5%5.5% 8.8%8.8%
http://en.wikipedia.org/wiki/Economy_of_the_European_Unionhttp://en.wikipedia.org/wiki/Economy_of_the_European_Union
Europe is a Larger Market (Cont’d)Europe is a Larger Market (Cont’d)
Exports per capitaExports per capita
Country Country US$ US$ 1 Singapore 49,1002 Hong Kong 40,7003 Belgium 25,9004 Ireland 24,6005 Norway 24,1006 UAE 22,9007 Netherlands 22,4008 Switzerland 20,5009 Denmark 17,50010 Kuwait 16,50011 Austria 15,00012 Sweden 14,00013 Finland 12,90014 Germany 12,30015 Puerto Rico 11,90016 Canada 11,30017 Slovenia 9,42018 Taiwan 8,08019 Czech Republic 7,67020 Oman 7,410
August 2006August 2006Country Country US$ US$
21 France 7,33022 Trinidad and Tobago 7,02023 Saudi Arabia 6,71024 Italy 6,40025 United Kingdom 6,27026 Hungary 6,12027 Slovakia 6,00028 Israel 5,97029 South Korea 5,81030 Malaysia 5,80031 Estonia 5,59032 New Zealand 5,51033 Libya 5,26034 Australia 5,11035 Spain 4,51036 Japan 4,21037 Gabon 4,20038 Portugal 3,70039 Lithuania 3,19040 United States 3,11079 China 572
http://en.wikipedia.org/wiki/List_of_countries_by_exports_per_capita
Europe is 7 Hours Ahead of usEurope is 7 Hours Ahead of us
=>=> AllAll day to work on orders / day to work on orders / issuesissues
EuroZone has a Single EuroZone has a Single CurrencyCurrency
EUROEURO
English = Business LanguageEnglish = Business Language
But Local Language is But Local Language is PreferredPreferred
US Products = QualityUS Products = Quality
ElectronicElectronic MedicalMedical PharmaPharma FoodFood ApparelApparel MachineryMachinery FranchisesFranchises EntertainmentEntertainment AppliancesAppliances Fitness EquipmentFitness Equipment
Strong RelationshipsStrong Relationships
CompaniesCompanies
PeoplePeople
RelationshipsRelationships
Strong Relationships = Strong Relationships = PartnersPartners
For whom are you a Partner? For whom are you a Partner?
Who is your Partner?Who is your Partner?
Who is winning more in this Who is winning more in this Partnership?Partnership?
http://www.worldcitizensguide.org/
Labor Costs are Lower in the Labor Costs are Lower in the USAUSA
0
5
10
15
20
25
30
1 Hour Wage Employer's Cost
US Europe
US
Europe
LOWER Labor Costs in the US
$20.40/hr
$24.64/hr
} $4.24 = 21%
Currency Exchange RateCurrency Exchange Rate
MUCH Lower Value of the US$ compared to the €uro and the GB£
$1 = €0.634$1 = £0.502
€1 = $1.577£1 = $1.993
58% & 99% Difference
$ - €/£ Exchange Rates as of June 30, 2008
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07
Source: http://finance.yahoo.com/currency?u
59% Currency Exchange Difference
21% Labor Cost Difference
= USA Competitive Advantage of 80%
Our Competitive Our Competitive AdvantageAdvantage
$ 0.33
$ 0.55--> 67% (Oct. 2007)
XL Group DeliverablesXL Group Deliverables
Appointment of importer of recordAppointment of importer of record Translate literature, labels, instruction manualsTranslate literature, labels, instruction manuals Market research and authenticate distribution Market research and authenticate distribution
documentsdocuments Compile list of potential distributorsCompile list of potential distributors Contact qualified (and verify for non authorized by US Contact qualified (and verify for non authorized by US
Law) prospective distributorsLaw) prospective distributors Set up meetings with responsive qualified distributorsSet up meetings with responsive qualified distributors Print catalogs / brochures in localized formatPrint catalogs / brochures in localized format Visit and make sales call in person to present productVisit and make sales call in person to present product Ship catalogs / brochures and / or sample materialShip catalogs / brochures and / or sample material Second visit in person to confirm relationshipSecond visit in person to confirm relationship Third visit in person to set up / sign distributorThird visit in person to set up / sign distributor Train distributors’ sales forceTrain distributors’ sales force
Timeline of 1Timeline of 1stst 6 months of 6 months of ExportingExporting
Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9Wk10Wk11Wk12Wk13Wk14Wk15Wk16Wk17Wk18Wk19Wk20Wk21Wk22Wk23Wk24Wk25
Translate Catalogs
and Brochures
Report
Translate / Set Up Webpages on Country's Google
Report
Set Meetings / Appointments Report
First Visit with P rospects in P erson / Order P roduct
Report
Report
Report
XL Group Action
P rogress Report
Training Obtain / P rovide Support Documents and Samples from Manufacturer
Intro Ltr
Make List of P rospects
Ship Samples / Testing Material
Third Visit
P rint Catalogs
Contact P rospects
Ship Samples / P rovide Testing Material
Second Visit with P rospects in P erson / Order P roduct
BenefitsBenefits
ABC Co. w/ ABC Co. XL Group solo
•Intelligent Entry to Market •Regulatory Affairs YES NO
•Market Data YES NO
•Knowledge of Cultural Differences YES NO
•Quick Market Penetration YES NO
•Full Market Coverage YES NO
•Economical Marketing Efforts• Shipping Samples & Documentation YES NO
• Travel Expenses YES NO
•International Sales Department YES YES
•Safe Payment Terms• Credit Safety YES NO
• Short Payment Terms YES NO
• Economical Payment Terms YES NO
Success StoriesSuccess Stories
Total Sales ExportsTotal Sales Exports (> 5 yrs)(> 5 yrs)
OR CONCEPTSOR CONCEPTS 22.7M22.7M 38% 38%
VETEXVETEX 27.3M27.3M 31% 31%
PREOXPREOX 16.3M 33%16.3M 33%
INT’L WIND CORP.INT’L WIND CORP. 9.4M 9.4M 48% 48%
Export, Export, ExportExport, Export, Export
• Thank you Very MuchThank you Very Much Gracie Gracie MoltoMolto
• Muchas GraciasMuchas Gracias Obrigado MuitoObrigado Muito
• Merci BeaucoupMerci Beaucoup Большое Большое спасибоспасибо
• Dank u VeelDank u Veel Σας Σας ευχαριστούμε ευχαριστούμε
• Vielen DankVielen Dank ありがとうありがとう
