irish exporters presentation
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OPPORTUNITIES IN EXPORTING
Overview of Irish Exporting today• Value of Irish Exports is €150 billion
Overview-Exports 2010
€millions 2009 2010 % change
Merchandise 84,239 89,392 +6.1%
Services 66,634 73,322 +10.0%
Total 150,873 162,714 +7.8%%
GOODS Export Performance 2010:
€ millions 2009 2010 %Agri-food 6,279 6,973 +11%
Beverages 1,079 1,186 +10%
Crude materials 972 1442 +48%
Mineral fuels 595 1,027 +73%
Animal and veg. oil 20 27 +35%
Chemical and pharma
47 988 52,426 +9%
Manufactured goods 1,243 1,443 +16%
Computer hardware 9,778 7,583 -22%
Other machinery 3,807 3,409 -10%
Medical devices 3,944 4,382 +11%
Other miscellaneous 5,246 6,104 +16%
Commodity miscellaneous
2,464 2,711 +10%
Total 84,239 89,392 +6.1%
Services Exports 2010 €millions 2009 2010 %Transport 2,898 3,435 +18.5%Tourism and Travel
3,506 3,075 -12.3%Telecommunications
506 480 -5.1%Insurance 7,597 7,865 +3.4%Financial Services
5,714 5,999 +5.0%Computer Services
24,223 28,126 +16.0%Royalties/Services
1,213 1,362 +12.3%Business Services
20,458 22,429 +9.6%Miscellaneous 519 552 +6.4%Total: 66,634 73,322 +10.0%
Exporting Services
• Irish services representing strong growth
patterns
• Rise of €2.2 billion to €34.6 billion in 1st Qtr
2010
• WTO ranks Ireland as 9th largest commercial
exporting nation
• Services account for 45% of total Irish Exports
Exporting Services
• 2010 IEA launched the
World Series in Cork -
Selling Your Services
Overseas
• Comprehensive Guide to
Services Exporting
Why Export?
• Survival in the economic downturn
• Profitability through creation of a wider client-base
• To establish relationships with similar companies
or create partnerships with research institutes
• Losing Market share due to intense competition
domestically
• Knowledge transfer
• To raise Company Profile
Steps to Exporting
1. Market Research
2. Creating a Plan
3. Strategic Partnerships
4. Sales & marketing
5. Transportation/ Distribution
6. Finance
1. Market Research
Primary Research:
• Visit the potential market
• Cultural Issues/ Language Barriers
• Operations & Distribution
• Legislation
1. Market Research
Secondary Research:
Internet
Company directories and industry-specific publications
Government Departments - Enterprise Ireland
Chambers of Commerce
Embassies
Irish Exporters Association
Bord Bia
Bord Iascaigh Mhara
2. Creating an Export Plan
• You create a Business Plan so why not an Export Plan
2. Sales & Marketing
• Establish how competitors promote their products or services in your target market
• Personal selling and networking
• Advertising
• Digital Media
• Direct Mail
• Trade Shows
• PR
3. Strategic Partnerships
Advantages:
• Access to distribution
• Greater economies of scale
• Wider product range
• Reduced Risk
• Cheaper finance
• New Markets
• Shared market knowledge
3. Strategic Partnerships
Considerations:
• Research the suitable partner
• Define goals and expectations from the
partnership
• Agree main roles of each partner
• Conclude with a legal agreement
3. Strategic Partnerships
• Strategic Partnerships assist companies expanding
into foreign markets
• Cross- distribute products, or service back up
• Production agreement or sharing of production
facilities
• Sourcing or Bulk buying agreements
• Sharing Research & Development facilities
4. Transportation
• Important to choose the most efficient method of dispatching goods to overseas markets
• Air Freight – costly, length and weight restrictions but faster delivery
• Sea Freight – economic, large items but slow
• Express Trailers - Driver accompanied trucks
• Insurance and Agent
5. Distribution
• Factors to be considered include:
• Cost
• Element of Control
• Product or service type
• Agents / Representatives
• Distributors
• Trading companies
5. Agent vs. Distributor
Comparative characteristics of Agents and Distributors
Factors for Consideration Agency
DistributorControl over price and terms of sale Yes
No
Ability to dictate choice of customer Yes
No
Direct contact with customer Yes No
Close control over marketing Yes No
Ability to offload risk of stock No Yes
Commission Payable Yes No
Compensation for termination/expiry Yes No
High Risk of Competition law issues No
Yes
Similar tax position No Yes
6. Finance / Payment
• Development costs
• Currency of Payment
• Credit Periods
• Financing Trade
• Finance Methods
So What Can Irish Exporters Association do For You?
OverseasMarket
Advisers
ExportsRapid infoService
Visa, Legal,Translation
Export /Import Regulations
Market Entry,Market Research
Buyer searchservices
Your Company
Create Strategic
PartnershipsFor
Exporters
Client Transport Logisticsservice
Promotionof
Your Product/service