Nimlok News On Display:
The A-Z of Exhibiting Overseas - Part 1

Exhibiting overseas is one of the fastest and most cost-effective ways to identify the best foreign markets for your products/services. International tradeshows and fairs offer opportunities for multilateral contacts and business deals. They allow you to test your products' export suitability; explore the strength and scope of your competition; and gain exposure to potential suppliers, in-country distributors and customers before making any sizable financial commitments. However, to effectively trade internationally, top management must commit to developing foreign markets.

More than 2,000 shows are organized worldwide each year, and approximately 150 of these events have significant global attraction. Most are held in the major tradeshow centers in the United States, Germany, France, Italy, the United Kingdom and, now, China. The following A-Z guidelines will help to take the fear and anxiety out of your overseas exhibiting ventures:

Ask...

Ask questions and thoroughly research overseas shows to find the ones that attract your target market. A good starting point is the U.S. Foreign Commercial Service (FSC), part of the International Trade Administration of the Department of Commerce. Other sources of information include banks, trade associations, foreign embassies and consulates, bi-national chambers of commerce and the Internet.

Book space early

Allocation for space is on a "first-come, first-served" basis. Applications for space need to be submitted as early as possible - 12 to18 months prior to the event. Reservations are made with the show organizer or their international representative. Most of the large shows, especially the German ones, have global sales offices.

Coordinate shipping arrangements

Most international tradeshows have an officially designated freight forwarder who is familiar with all the relevant details. The forwarder will handle the invoicing, arrange for licenses and declarations, prepare the packing list, issue bills of lading, handle insurance and prepare all necessary documentation. A duty charge is not normally assessed on equipment, unless it is destined to remain in the country after the show ends. An international carnet facilitates importation and movement of samples and professional equipment between countries.

Determine...

Determine that your product complies with international technical and safety standards. Germany, in particular, has extremely stringent laws regarding testing products to make sure they comply with applicable specifications. Overseas companies are allowed to exhibit products at German trade fairs before their products have been inspected. Formal certification is necessary to legally sell your products in Germany. Certain types of merchandise are also subject to specialized safety codes and technical requirements. It is advisable to use a local consultant to help you through the compliance process.

Establish a realistic budget

Costs of overseas shows vary widely, depending on a host of variables, for example, location, exchange rates, time of the year. In addition to your display, shipping, promotional and staff costs, also take into consideration import duties and export regulations. As a safety net, add 25% to your budget to cover unexpected costs, tipping and exchange rate fluctuations.

Familiarize yourself with overseas union policies

Strong unions exist in the U.K., France and Italy. Understand and appreciate the rules and treat everyone with respect. Offering to buy your union labor lunch or a beer, as well as tipping, often helps to minimize pilfering, loss and damage. When working with contractors, always have someone who can speak the language and give logistical instructions. Arrive at least a week prior to the show to iron out any kinks.

Get to know pricing

Your company representatives should be prepared to negotiate and agree to terms at the show. They should also be fully conversant with tariffs, the European Community's Value Added Tax (VAT) and other tax implications, and importation and delivery procedures. When quoting prices, most buyers expect prices quoted CIF (cost, insurance, freight), including duties, taxes and other charges. For a small fee, local freight forwarders will assist and prepare CIF costs.

Have arrangements for credit and payment

You should make arrangements with a bank that has international banking affiliations to facilitate your banking needs. Discuss arrangements for transfer of funds, letters of credit and bills of exchange. Potential customers or representatives will expect a credit check. Individual profiles on overseas companies can be found through the World Trader's Data Reports, available for a small fee from the US Commercial Service. Since exchange rates fluctuate daily and can affect pricing, especially when dealing with Latin American countries, consider getting paid in U.S. dollars.

Insist on using a native-born translator

When translating copy or business communications, always hire a local translator who has technical knowledge of your products/industry. Embarrassing mistakes occur when a translation is done by a non-professional with limited knowledge of a language and little or no understanding of slang, colloquialisms and double-entendres. Prepare product/service literature, data sheets, catalogues, etc. in the principal languages of the major countries represented at the show. Remember that most countries outside the U.S. use metric measurements.

Judge the context

Some cultures are more direct and explicit in their communication. Swiss, German and Scandinavian cultures are considered low context. Their words have specific meanings. In contrast, Japanese, Chinese and Arab cultures are high context. Their languages are often vague, inexact and confusing for English-speaking cultures to understand. Reading between the lines is a must.

Keep language simple

Many of your international business contacts will speak English. Problems occur when you use slang, colloquialisms, idioms, jargon, buzz words, lingo, officialese, acronyms, and metaphors. These are often difficult to translate. It is far more effective to keep communication, written and verbal, basic and easy for anyone to understand.

Learn to speak body language

Seventy percent of our communication is nonverbal. We communicate by the way we stand, sit, tense facial muscles, tap fingers, etc. There are also hundreds of gestures to get across almost any meaning, from greetings, beckonings, and farewells, to terms of endearment and insults. Gestures and body language, with the exception of smiling, are not universal in meaning. Be aware of the etiquette on personal space, eye contact and when, what and how to touch.

Written by Susan A. Friedmann, CSP, The Tradeshow Coach, Lake Placid, NY, working with exhibitors and meeting & event planners to improve their event success through coaching, consulting and training.

Website: www.thetradeshowcoach.com