CIC offers an advisory service to explore and enter new markets and provides information on global trade and investment. It supports commercial ventures in sectors that are looking for new markets or companies which are in need of market alleviation through market aggregation and development. CIC has developed a close working relationship with Investment Promotion Agencies in various Commonwealth countries and is therefore in a unique position to provide tailor made service to each company seeking investment opportunities.
Through globalisation there are a number of significant common interests between developed and developing countries. There is a vast potential to develop new markets globally and increase the purchasing power of Commonwealth nations.
As the pace of globalization quickens, and barriers in international trade and business lessen, there is a pressing urgency for companies to gain ground and establish themselves particularly in Asia and Africa. The CIC is in a unique position to provide an advisory service on entering and evaluating emerging markets. In addition, we advise investors on emerging market opportunities. An important incentive for companies to be present in emerging markets is the steadily increasing spending capacity of its rapidly expanding middle classes. With the creation of a manufacturing base, each country comes with a differing set of factors and infrastructure issues.
A business analysing their options might well be tempted to focus on market development and try to enter international markets as part of a growth strategy.
Selling into international markets is increasingly attractive for UK businesses. For example because of:
The main methods of investing in international markets are:
Exporting direct to international customers
The business takes orders from international customers and ships them to the customer destination
Selling via overseas agents or distributors
A distribution or agency contract is made with one or more intermediaries or Distributors & agents may buy stock to service local demand. The customer is owned by the distributor or agent.
Opening an operation overseas
Involves physically setting up one or more business locations in the target markets. Initially may just be a sales office – potentially leading onto production facilities (depends on product).
Joint venture or buying a business overseas
The business acquires or invests in an existing business that operates in the target market
Whatever method is used, a business looking at international expansion needs to consider some specific risk factors:
Cultural differences: a business needs to understand local cultural influences in order to sell its products effectively. For example, a product may be viewed as a basic commodity at home, but not in the target overseas market. The sales and marketing approach will need to reflect this.
Language issues: although the common business language worldwide is now English, there could still be language issues. Can the business market its product effectively in the local language? Will it have access to professional translators and marketing agencies?
Legislation: legislation varies widely in overseas markets and will affect how to sell into them. A business must make sure it adheres to local laws. It will also need to consider how to find and select partners in overseas countries, as well as how to investigate the freight and communications options available.
CIC can facilitate a successful long term presence in key new markets through strategy formulation and by interpreting the social and economic goals of local public policy for the successful integration of company's operations with local circumstances.
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