Today's global supply chains depend on information. Companies who successfully harness information can wield the power of big data to their advantage. But gathering data from the supply chain isn't an easy task. It requires bringing together countless supply chain partners from across the globe, in one place. As difficult as it seems, such connection is possible, and it's happening right now..
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Deutsche Bahn, one of the world’s largest transport companies, has agreed to test drive the new South West Transport Corridor linking India, Iran and other Gulf states to Europe
Read more From conversations with a number of senior industry figures, it is evident that there is no consensus over what Brexit will mean for the UK’s supply chains or the logistics companies which serve them. Those people who voted to remain in the EU typically consider that Brexit will create more complexity and regulation in dealing with our largest trading partner. Others who voted for Brexit see an opportunity to increase trade volumes with faster growing markets in North America and parts of the developing world. Their conclusions are largely subjective, an entirely understandable state of affairs given the lack of data with which to make an informed decision.
Read more If your business has seen successful growth, it will most likely see success in other countries as well. Keep in mind; you may want to lock up those markets, before some other company does. I recently met a startup that had successfully tripled its revenues, largely from the results of a successful international expansion effort. I want to share this knowledge with you.
PICK YOUR MARKETS There are 195 countries in the world, so where does one even start? Many companies will take the path of least resistance, choosing other English speaking countries that are closest to home—like Canada, the United Kingdom, Australia and New Zealand. While this is certainly a good strategy, the best method is to figure out which countries have the highest demand for your products. For example, if you are selling in the auto industry, perhaps big auto markets like Japan and Germany are the best place to start. Like anything, there will be an 80/20 logic here, where 80 percent of your international sales will come from 20 percent of your international markets. So, you should carefully prioritize your efforts. PICK YOUR STRUCTURE There are many ways to take your business global, with various levels of complexity and investment. You are going to need to decide between opening your own office overseas, leveraging key in-country distributors, and striking channel partnerships with key companies that have access to your target customers based on your goals and budgets. Also, the solutions you use in one country may not be the same solution you use in others, depending on the challenge in those markets. For example, in China, you will need a local company to partner with to help you navigate the local market. Where you can, set up your own efforts, either as a startup or via an acquisition of a local player, and they will likely exceed the results of piggybacking on others’ efforts. LEARN THE LOCAL RULES Every country has different “rules of engagement”. And, when you are getting started, it is often helpful to engage an international expansion consulting firm that can help you quickly learn all the local laws, regulations, accounting rules, business taxes, government taxes, employment vs. contractor rules, compensation rules, privacy rules, etc. Don’t underestimate the external risks from things like bribery payments, organized crime and other corruption in various countries, which you never want to partake in because you will risk going to jail. These varying rules can make the difference in deciding whether or not those markets make sense for you. LOCALIZE YOUR PRODUCT The product you use in the home country, most likely will not be the same product you use in different countries. You will need to think about localizing your product or service for local languages, currencies, laws, etc. So, make sure your core product has been “internationalized” for each country before launching it those local markets. LOCALIZE OUR FULFILLMENT You will have to think through all the back office tasks for your business and how it will be different overseas. Who will be answering the phones (in the local language and during local business hours), how will products be warehoused and shipped, how will you collect payments from customers, how will you process payroll payments, into which bank accounts, who is going to train your local customers, whoare going to service local customers post sale, etc. Often times, it is like building a whole new fulfillment process from scratch. LOCALIZE YOUR MARKETING EFFORTS Every country has a unique culture of its own. And, you need to tailor your marketing creatives according to the messaging that will resonate best with the local market and will stand out against local competitors (who are most likely different companies than the ones you are competing with in the your market area). And, if you are already successfully selling into global companies today, be sure to ask your contacts at those companies for introductions to their counterparts in the countries you wish to enter. Anyway, I hope you found this high level introduction to the topic helpful. Global expansion is a really tricky topic to cover as a short post, given all of its complexities by country, so make sure to surround yourself with expert expertise of Lediator team, they Ecosystem, lawyers and other global entrepreneurs that can help you. David Hollander’s innovative streak is being put to the test. He is scoping out new markets thousands of miles from the English headquarters of Aqualisa, a £41m turnover shower-manufacturing business he runs.
“If we’re going to grow our export business, it has to be done in an entrepreneurial way,” he says. Restricted by a lean budget, he is researching wholesalers and has considered “selling under another brand” to allow Aqualisa to expand overseas. Businesses that were once domestic competitors are now potential allies, he says — such is the flexibility required to become a first-time exporter. Full articel in Financial Times http://www.ft.com/cms/s/2/2ef2081e-21be-11e6-9d4d-c11776a5124d.html#ixzz4KuuK4mXA While growth is continuing at a moderate rate in Europe, significant parts of the world economy are grappling with major challenges. Growth in the euro area in 2016 is expected to continue, but the recovery is slow, both in historical perspective and compared to other advanced economies. While the renewed drop in energy prices should continue to boost households’ real incomes and consumption, public consumption has surprised on the upside due to the arrival of unprecedented numbers of migrants fleeing war and insecurity in Syria and elsewhere. Fiscal policy more generally is expected to support the recovery this year, and monetary conditions are set to remain highly accommodative. However, despite the continued confluence of supporting factors, the acceleration of economic activity expected this year is minor: GDP in the euro area is forecast to expand by 1.7% compared to 1.6% last year. Growth should pick-up further to 1.9% in 2017 but this will depend crucially on a rebound in investment, which has so far remained elusive and is sensitive to the materialisation of the risks surrounding the central scenario.
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http://www.lediator.com/magazine-lediator-news.html According to the preliminary statistics of foreign trade of goods provided by Finnish Customs, the value of Finnish exports decreased by 13 per cent and the value of imports by eight per cent in July compared with the year before. The value of Finnish exports in July was 3.9 billion euros and the value of imports was slightly over 4.1 billion euros. Calculated from the beginning of the year, exports have diminished by six per cent and imports by a per cent.
The trade balance showed a deficit of 245 million euros in July. Calculated from January to July there was a deficit of almost 1.3 billion euros. Under the same period last year, the balance of trade showed a surplus of 262 million euros. Last year the trade balance for July showed a deficit of four million euros. Exports to EU member states decreased by 12 per cent and exports to non-EU countries by 15 per cent in July. Imports from EU-countries decreased by six per cent and imports from non-EU countries by nine per cent in July. Calculated from the beginning of the year, exports to EU countries decreased by four per cent and exports to non-EU countries by ten. During the same period, imports from EU member states remained at the level of the previous year and decreased from other countries by three per cent.. A number Japanese companies and banks are considering participating in the financing and construction of the third stage of the Sakhalin 2 LNG project in Russia’s Far East, it has emerged, as Japan managed to steal the show at last weekend’s Eastern Economic Forum in Vladivostok by signing some 20 agreements worth more than $1.3 bn with their hosts. The size and range of the project financing committed to by Tokyo is being interpreted as an attempt by Prime Minister Shinzo Abe’s government to redress Russia’s current leaning towards China and to break the 50-year impasse over the South Kuril islands. “During the negotiations at the Eastern Economic Forum 2016, representatives of Japan … showed interest in the financing and construction of the third stage of the Sakhalin-2 LNG plant,” Energy Minister Alexander Novak told TASS. “In addition, they would also like to expand the supply of hydrocarbons from the Sakhalin projects,” Gazprom later confirmed that it had been in discussions with representatives from Mitsui and Misubishi concerning their future involvement. News of Japanese interest in the project topped off a good week for relations between the two countries in which the Far East Development Minister Alexander Galushka and Japan’s Minister of Economy, Trade and Industry Hiroshige Seko agreed to draft a road map for future co-operation between the two countries which will include Japanese participation in the reconstruction of the international airport in Khabarov and will also cover construction of a Mazda Sollers car assembly plant in Vladivostok which was approved by the Russian government back in April. ITAR-TASS The majority of UK small businesses (60%) are not exporting abroad, potentially missing out on millions of pounds in lost revenue according to new research from Royal Mail. The research released as part of Small Business Advice Week, lists key reasons for this, including the perceived cost and complexity of getting through customs (26%), a lack of knowledge of the market (21%) and language barriers (21%). The scale of the potential missed revenue is illustrated by the fact that among small businesses who sell internationally, just over a quarter of their sales (26%) this Christmas are expected to come from international orders.
Thirty-five percent of small businesses believe Europe holds the most potential to generate new sales for their business, whilst 28% believe the US and North America are the most promising markets. Other reasons given by small business owners for avoiding exporting were a lack of knowledge of the market (21%) and language barriers (21%).But the research shows that those who are not selling overseas are missing out. Among the 40% of business who sell internationally, just over a quarter of their sales this Christmas (26%) are expected to come from. A further look into the export aspirations of UK small business owners found that 10% are currently selling to customers within the EU and would like to seek more opportunities to sell to non-EU customers. Fifteen percent said they sell outside the EU and would like to seek even more opportunities to sell to non-EU customers. While domestic online marketplaces are popular among small business looking to grow their UK customer base, only 25 per cent of small businesses look to international marketplaces to grow their sales potentially missing out of the huge sales potential they offer. Source: Royal Mail |
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