After Initial Export Success in Asia, How Do You Scale?

 

Tractus Asia’s business Inc.ubator service allows you to have dedicated sales, marketing or technical support staff in Asia to grow your exports cost effectively and minimize risk. The situation is typical. You make a commitment to sell into Asia, achieve some initial export success after attending regional trade shows, and then you sign-on dedicated distributors in one or more markets. But, exports plateau or don’t meet your growth expectations. What’s wrong? Asia is the world’s largest market for your product, but you are underwhelmed by the performance of your distributors. The markets you are servicing, such as China, might have complexities that are frustrating your customers. Or perhaps, you are unable to operate your business model in Thailand in the same way as you would in the U.S. because of regulatory issues. If you can’t operate with the same business model, what do you do?

The simple answer is to have ‘boots on the ground’ in key markets – dedicated sales, technical support, or business development staff to troubleshoot these issues. The problem is the cost. To capitalize on opportunities in multiple markets in Asia – China, India, and Southeast Asia – you would have to incorporate in each of your key markets, hire staff to support your distributors, agents and customers, as well as manage operating a micro-multinational business across Asia. Not only is the investment and operating cost prohibitive, but how can you mitigate the costs and risk of needing to exit a market should you not be successful? The cost of closing a company in Asia can be 2 to 3 times what it takes to incorporate, and can take years to unwind. How do you balance your need for an in-market presence to grow your business with the costs and risks of operating a new business up to 10,000 miles away across the Pacific?

Tractus’ business Inc.ubator service is the answer. As a business Inc.ubator client you leverage Tractus’ network of offices throughout Asia to cost effectively support your business growth and minimize risk. Tractus works with you to recruit needed talent – technical sales, business development, customer support or marketing – based on a clear understanding of your needs. We conduct interviews, reference checks, and administer standardized tests as required. We then recommend a short-list of two or three finalist candidates that you interview in collaboration with our senior managers and directors. Once a finalist is selected, Tractus acts as the legal employer arranging for salary and statutory benefits to be paid and assists you to manage their performance. Your new Asia-based staff, while legally a Tractus employee, is dedicated full-time to your business.

We provide office space, administrative support, and most importantly, oversight and guidance by one of our senior managers or directors. While your new staff reports directly to you, Tractus provides the needed indirect supervisory support to ensure they are not ‘out of sight and out of mind’.

Our clients come from a wide range of industry sectors and have leveraged Tractus’ business Inc.ubator to accelerate their market entry, scale their exports to key markets in Asia, and successfully grow their international business. Please visit our website, www.tractus-asia.com, review our case studies and learn how Tractus’ business Inc.ubator can propel your Asian growth strategy or contact us on inc.ubator@tractus-asia.com for more information.

Best Practices For Choosing A Supply Chain Management Solution

Read ThinkGlobal President Greg Sandler’s story about how choosing the right supply chain management software can help keep your supply chain running smoothly.

Sandler talked to chain expert Daniel Stanton, author of Supply Chain Management for Dummies, who says that in order to manage your international supply chain you need a system that can handle planning, sourcing, production, delivery, returns and fulfillment.

Read the full story on the American Express Open Forum website.

Enterprise Florida: Making International Business Your Priority

 

By Manny Mencia

Enterprise Florida is one of America’s leading trade, export development, and foreign direct investment organizations. International is big business in our state and we know what it takes to make it happen.

As North America’s principal gateway to Latin America and the Caribbean, billions of dollars in goods flowed through our airports and seaports last year, making Florida the seventh largest exporting state in the U.S., and a leading international business hub. Since 1996, Florida exports have more than doubled, growing from $21 billion to $52 billion in 2016.

Florida’s 60,000 exporters are second only to California and keep goods moving through the state 24 hours a day, while services exports of more than $38 billion rank Florida fourth in the U.S.

The state has significant advantages as a destination for foreign direct investment, ranking sixth in the U.S.in employment and first in the Southeast. Just ask the 260,000 workers who are employed by foreign-owned companies how important that is to them.

Ready to learn more about expanding, relocating, or exporting? Start by contacting Enterprise Florida’s International Trade & Development Division at 305-808-3660 or visiting www.enterpriseflorida.com.

Manny Mencia is Senior Vice President for International Trade & Development at Enterprise Florida Inc.