IAEM Annual Meeting 2006IAEM Annual Meeting 2006

It’s NOT as Hard as You Think -It’s NOT as Hard as You Think -Bringing the World’s Exhibitors Bringing the World’s Exhibitors

to Your Eventto Your Event

November 29, 2006, San Diego, CANovember 29, 2006, San Diego, CA

Stephanie S. Selesnick, CEM

International Trade Information, Inc.

stephITI@aol.com

Session OverviewSession Overview

How to increase international sales:How to increase international sales:

1. All from the USA1. All from the USA

2. Partnering2. Partnering

3. Sales Agents3. Sales Agents

4. Setting up Offshore Sales Offices4. Setting up Offshore Sales Offices

Examples in action: Examples in action: For Profit Multinational ShowFor Profit Multinational Show

US-based Association ShowUS-based Association Show

General TipsGeneral Tips

USA Only- the positivesUSA Only- the positives

You control all communication about You control all communication about your show and who it goes toyour show and who it goes to

Relationships - you make them - Relationships - you make them - possibly visit the most important possibly visit the most important countriescountries

USA Only - the negativesUSA Only - the negatives

You will not know all of the major playersYou will not know all of the major players• Different countries need different types of Different countries need different types of

communication and hand holdingcommunication and hand holding Does your staff have the cultural and political knowledge?Does your staff have the cultural and political knowledge?

Services ProvidedServices Provided• Do you have multilingual staff to communicate?Do you have multilingual staff to communicate?

On-site expertiseOn-site expertise• Does your staff have any experience with the Does your staff have any experience with the

differences between US and offshore shows?differences between US and offshore shows? i.e.: no unions, no display regulations, hardwall schemes i.e.: no unions, no display regulations, hardwall schemes

vs. pipe and drape, drayage challengesvs. pipe and drape, drayage challenges

USA Only - Sales RelationshipsUSA Only - Sales Relationships

• In other countries, formal introductions must be In other countries, formal introductions must be made or it will take a long time to meet the right made or it will take a long time to meet the right people who can assist youpeople who can assist you If you don’t have someone “in country” it is very hard to If you don’t have someone “in country” it is very hard to

follow upfollow up

• Government EntitiesGovernment Entities US Embassy/ConsulatesUS Embassy/Consulates

• AssociationsAssociations• Trade Show Organizers Trade Show Organizers

What kind of contact and relationships do you have with What kind of contact and relationships do you have with colleagues in other countries?colleagues in other countries?

Do you do trade outs in their shows?Do you do trade outs in their shows?• Do you have trained staff to travel and work those shows?Do you have trained staff to travel and work those shows?

PartneringPartnering

PartneringPartnering

TravelTravel Meet PeopleMeet People Make Deals Make Deals

U.S. Trade ShowsU.S. Trade Shows• In your industryIn your industry• Outside your industry – as long as there Outside your industry – as long as there

is an international componentis an international component International ShowsInternational Shows

Partnering – Meet PeoplePartnering – Meet People

Publishers – they can introduce you to Publishers – they can introduce you to associations and agentsassociations and agents

International delegation organizers – International delegation organizers – both government and trade associationsboth government and trade associations

International Trade AssociationsInternational Trade Associations U.S. based trade expertsU.S. based trade experts

• Foreign commercial officesForeign commercial offices• US embassies/consulates in other countries US embassies/consulates in other countries

(commercial officers, FSN’s)(commercial officers, FSN’s)

Partnering – Make FriendsPartnering – Make Friends

Sales AgentsSales Agents Delegation OrganizersDelegation Organizers Trade AssociationsTrade Associations

• Manufacturer (exhibitor) groupsManufacturer (exhibitor) groups• Attendee groupsAttendee groups

Sales AgentsSales Agents

Check List for Choosing AgentsCheck List for Choosing Agents Types of Types of AgentsAgents Exclusives?Exclusives? RelationshipsRelationships

Sales Agents – Check ListSales Agents – Check List References/resumeReferences/resume

• ExperienceExperience• Experience with U.S. showsExperience with U.S. shows

Services ProvidedServices Provided• Contract salesContract sales• Pavilion organizationPavilion organization

On-site expertiseOn-site expertise• Do they have any?Do they have any?• Will they accompany their customers?Will they accompany their customers?

CommunicationCommunication• LanguageLanguage• Response timeResponse time

Sales Agents - TypesSales Agents - Types

• Government organizers –they often Government organizers –they often provide a significant financial provide a significant financial assistance to promote export tradeassistance to promote export trade

• Associations –provide logistical support Associations –provide logistical support and may have some government and may have some government financial supportfinancial support

• Agents – provide as little as “contracts Agents – provide as little as “contracts for sq ft” to complete logistical support for sq ft” to complete logistical support such as booth construction, freight such as booth construction, freight forwarding, etc.forwarding, etc.

Sales Agents – Exclusive?Sales Agents – Exclusive?

““Exclusive” statusExclusive” status ““Official” statusOfficial” status ““Competitive” statusCompetitive” status

All relationships must be nurtured!All relationships must be nurtured!

Offshore Offices CriteriaOffshore Offices Criteria

How many shows is your How many shows is your company/division producing?company/division producing?

How many square feet and serious “high How many square feet and serious “high digit” visitors are you planning to get digit” visitors are you planning to get from that country?from that country?

Is the long term plan to replicate the show Is the long term plan to replicate the show (or shows) in that country?(or shows) in that country?• Cost effectively - more than one show makes Cost effectively - more than one show makes

sense to amortize office expensessense to amortize office expenses

Office Off ShoreOffice Off Shore

Know the country’s relationship with the Know the country’s relationship with the USUS• Tax laws and Banking lawsTax laws and Banking laws

Most other countries make the US banking and Most other countries make the US banking and tax laws look easytax laws look easy

• Personnel lawsPersonnel laws Taxes, rules for firing, benefits, etc.Taxes, rules for firing, benefits, etc.

• Who is going to be authorized to handle the Who is going to be authorized to handle the money?money?

How much can they sign for without a second How much can they sign for without a second signature?signature?

Off Shore PersonnelOff Shore Personnel

Find someone to lead the office -Find someone to lead the office -• Must understand US and the countryMust understand US and the country• Should be someone who has Should be someone who has executive executive

level experience and connectionslevel experience and connections to to government and top level executivesgovernment and top level executives

• Trustworthy - will actually make the call Trustworthy - will actually make the call when things go bad (or challenging)when things go bad (or challenging)

• Can hire/train/supervise staffCan hire/train/supervise staff

Off Shore PersonnelOff Shore Personnel

Support and Sales StaffSupport and Sales Staff• Finding staff within the industries you Finding staff within the industries you

are selling vs. staff with tradeshow are selling vs. staff with tradeshow experienceexperience

• Personnel laws and benefitsPersonnel laws and benefits What challenges will you face if you have to What challenges will you face if you have to

fire people who don’t produce?fire people who don’t produce? What happens if the people you let go What happens if the people you let go

decide to go into competition with you?decide to go into competition with you?

Offshore OfficesOffshore Offices

Structure with the “home” officeStructure with the “home” office• Reporting proceduresReporting procedures• QuotasQuotas

Relationships with government, Relationships with government, associations, individual companiesassociations, individual companies

““Puentes” or unofficial days offPuentes” or unofficial days off• What month(s) is everyone “on What month(s) is everyone “on

holiday”?holiday”?

Case Study - Tradeshow ACase Study - Tradeshow A

For profit show with long historyFor profit show with long history Top 200 Top 200 680,000 nsf from 3100 exhibitors680,000 nsf from 3100 exhibitors Professional attendance 34,000Professional attendance 34,000

Sample Official Country PavilionsSample Official Country Pavilions IndiaIndia 3,000 nsf3,000 nsf KoreaKorea 3,2003,200 MalaysiaMalaysia 1,0001,000 Hong KongHong Kong 4,6004,600 Indonesia 400Indonesia 400 ChinaChina 58,500 58,500 TaiwanTaiwan 24,000 (3 organizers) 24,000 (3 organizers) Brazil 800Brazil 800 ThailandThailand 1,0001,000 Israel 800Israel 800 UKUK 6,000 (2 pavilions)6,000 (2 pavilions) GermanyGermany 4,000 (2 pavilions)4,000 (2 pavilions) ItalyItaly 3,200 (2 pavilions)3,200 (2 pavilions) FranceFrance 800 (2 pavilions) 800 (2 pavilions)

Sales ChannelsSales Channels

Direct SalesDirect Sales• Show teamShow team• Key accounts managerKey accounts manager• US-based International Sales GroupUS-based International Sales Group

Sales Sales AgentsAgents• Government AgenciesGovernment Agencies• Industry AssociationsIndustry Associations• AgentsAgents• FriendsFriends

NHS- International Sales NHS- International Sales AgentsAgents

Government AgenciesGovernment Agencies• CCPIT (and sub-councils) – ChinaCCPIT (and sub-councils) – China• AUSTRADE – Australian Trade CommissionAUSTRADE – Australian Trade Commission• KOTRA – Korea Trade CenterKOTRA – Korea Trade Center• Malaysian Trade CommissionMalaysian Trade Commission• Bancomext – Mexican Trade CommissionBancomext – Mexican Trade Commission• Hong Kong Trade Development CouncilHong Kong Trade Development Council• India Trade Promotion OrganizationIndia Trade Promotion Organization• Consulate General of Sri LankaConsulate General of Sri Lanka• Consulate General of IndonesiaConsulate General of Indonesia

ChinaChina

VisasVisas• China is still a communist countryChina is still a communist country• Visas are required to enter the U.S. from ChinaVisas are required to enter the U.S. from China• U.S. officials in embassy/consulates view all U.S. officials in embassy/consulates view all

visa applicants as potential illegal immigrants visa applicants as potential illegal immigrants to the U.S.to the U.S.

• The interview process that determines the The interview process that determines the granting of a visa to a Chinese applicant lasts granting of a visa to a Chinese applicant lasts less than 2 minutes. less than 2 minutes.

ChinaChina

Visas – how can you helpVisas – how can you help• Keep in touch with embassy/consulates – visit Keep in touch with embassy/consulates – visit

if possibleif possible• Invitation letters Invitation letters

Make them counterfeit resistantMake them counterfeit resistant Spell everything correctlySpell everything correctly Hand sign them each letter – with a name and Hand sign them each letter – with a name and

signature known by the consulate officesignature known by the consulate office

• If only 20% are rejected, have a partyIf only 20% are rejected, have a party

International RelationsInternational RelationsOn - SiteOn - Site

Keep a consistent (year-to-year) point of Keep a consistent (year-to-year) point of contact with the organizercontact with the organizer

Get Operations, Directories, Registration, Get Operations, Directories, Registration, Travel Desk involved VERY earlyTravel Desk involved VERY early

Floor managers – must be attentive and Floor managers – must be attentive and sensitive to cultural issues – keeping sensitive to cultural issues – keeping consistency from year-to-year is a plusconsistency from year-to-year is a plus

Show Manager (fancy title) needs to be Show Manager (fancy title) needs to be attentive to meetings, visiting VIPs, social attentive to meetings, visiting VIPs, social functions, etc.functions, etc.

Case Study - Show BCase Study - Show B

Association-owned tradeshowAssociation-owned tradeshow TS 200 showTS 200 show 2000 exhibitors, 500,000+ sq. feet2000 exhibitors, 500,000+ sq. feet 55,000 visitors55,000 visitors Almost no outreach internationallyAlmost no outreach internationally

• No budgetNo budget• No real supervision of international No real supervision of international

agentsagents

Case Study: Show BCase Study: Show B

Host international government Host international government breakfast or lunchbreakfast or lunch• Invite local city-based commercial Invite local city-based commercial

officers, Consuls, and local ethnic mediaofficers, Consuls, and local ethnic media• Present information about US Market Present information about US Market

and the showand the show

Case Study: Show BCase Study: Show B

Assemble an international teamAssemble an international team1.1. Contact any current agents you may Contact any current agents you may

already have who actually sellalready have who actually sell

2. Fire the ones who are not producing2. Fire the ones who are not producing

3. Ask friends/colleagues for suggestions 3. Ask friends/colleagues for suggestions in some countriesin some countries Get leads on professional agents from the Get leads on professional agents from the Commercial Officer or ConsulateCommercial Officer or Consulate

General Tips - CultureGeneral Tips - Culture

Know the CultureKnow the Culture• Of the sales agents Of the sales agents

AggressiveAggressive Relationship basedRelationship based Time zoneTime zone

• Of the exhibitorsOf the exhibitors What do they expect?What do they expect? How firm or flexible are they?How firm or flexible are they?

• When in Rome, or Beijing, or Frankfurt…When in Rome, or Beijing, or Frankfurt…

General Tips - CultureGeneral Tips - Culture

Get books on international etiquetteGet books on international etiquette How to address people (i.e.: is it by Mr. or How to address people (i.e.: is it by Mr. or

Ms. or Mrs. or Honorable)?Ms. or Mrs. or Honorable)?

• Ask those who you know who have done Ask those who you know who have done business with the unfamiliar business with the unfamiliar cultures/countries you are dealing with cultures/countries you are dealing with for advicefor advice

• Travel there! Have meetings! Lunch! Travel there! Have meetings! Lunch! Dinner! Drinks!Dinner! Drinks!

General TipsGeneral Tips

Everywhere else is different - be the Everywhere else is different - be the “Sociologist on Campus”“Sociologist on Campus”• History and CultureHistory and Culture• ReligionReligion• Family and it’s priority in lifeFamily and it’s priority in life

All international business is All international business is relationship basedrelationship based• Trust, communication, respect, and Trust, communication, respect, and

awarenessawareness

General Tips - AgentsGeneral Tips - Agents

Make sure and say thank you to a job well Make sure and say thank you to a job well done very publiclydone very publicly• Make sure your agents and employees know Make sure your agents and employees know

you appreciate their effortsyou appreciate their efforts• Fly in agents who have come in over quotaFly in agents who have come in over quota

Involve all offshore agents who come to Involve all offshore agents who come to the show in the team. the show in the team. • Make them feel welcome Make them feel welcome • Make sure they are invited to official functionsMake sure they are invited to official functions• Make sure they get fed!Make sure they get fed!

General Tips: MoneyGeneral Tips: Money

Does your bank give great wire transfer Does your bank give great wire transfer receiving information?receiving information?• If not, find another bankIf not, find another bank• If you can’t confirm monies received…If you can’t confirm monies received…• How will you send the exhibit materials to How will you send the exhibit materials to

make sure your international clients receive make sure your international clients receive them?them?

• Will your company make accommodations for Will your company make accommodations for multiple payments?multiple payments?

Some countries require correct invoices, etc.Some countries require correct invoices, etc. Some companies have challenges buying dollarsSome companies have challenges buying dollars

Conclusions…Tips…LessonsConclusions…Tips…LessonsInternational SalesInternational Sales

International sales is a long term and time International sales is a long term and time consuming processconsuming process

It requires United Nations-like diplomacyIt requires United Nations-like diplomacy It requires real “hand-holding” – there are It requires real “hand-holding” – there are

no small national pavilions, especially from no small national pavilions, especially from their perspective their perspective

Success is a complex and formula Success is a complex and formula resistant mix of agents, friends, agencies resistant mix of agents, friends, agencies and associations and associations