International Best Practices inExport Development

Presented by Jim KrigbaumFounder and CEO of 2020 Development

Company LLC and 20/20 Institute of Tradeand Entrepreneurship (20/20 ITE)

Speaker Profile

• Jim Krigbaum is an experienced international development professionalwith a solid background in the private sector. He has 30 years ofexperience in international trade and development. His ability to identifyopportunities and niches for products is well documented, with successin several industries.

• Mr. Krigbaum has delivered experience driven exporting andentrepreneurship training courses around the world. Students fromcompanies of all sizes have applied these lessons and skills to achievegreater success in their businesses. Having worked with products asdiverse as wine from Georgia, horsemeat in Mongolia to high-endfashion in Peru, wood products in Paraguay, stainless steel equipmentfrom Austria and Germany and honey in Ethiopia, Mr. Krigbaum appliesexperience working with industry and individual firms to build capacityfor international trade, product development and market linkages

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Audience Profile

• How many understand English fluently?• How many are traders/brokers?• How many are Manufacturers?• How many are exporter service providers including

forwarders, logistics companies, warehouseoperators, banks and other service providers?

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Pillars of Export Success

– Know your resources– Know your competitive and comparative

advantages– Know your markets– Know your customer– Service your customer– Find the right niche for your product

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Pillar #1 Know your resources

• Know your capabilities, comparative and competitiveadvantages

• Understand what you can produce competitively

Be ready to answer the question “Why in theworld would anyone buy my product overeverything else that is available?”

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Use a “T” chart to look internally intoyour company, your staff and yourresources.Characteristic Strength Weakness Action plan

Creative thinking

Product development

Visionary

Communication skills

Sales/Marketing skills

Accounting/financial

Time ManagementLegal understanding

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SWOT Analysis-Strengths, Weaknesses, Opportunities and Threats

Pillar #2 Competitive Advantages

• Where Is Your Comparative Advantage?• Land (Physical Resources)?• Labor?• Capital?

Identify where and why you arecompetitive.

Plan to exploit these advantages.

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Select a Product for Export

• Do you have sufficient supply to service export markets?• Do you have sufficient capital, personnel, and resources

to handle volume?• Are you better off selling a big volume item or a small

volume item with more profit?

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What factors determine if a buyerbuys?

• What factors determine if a buyer purchases aproduct at the importer level?

• What about the distributor level?

• What determines if an end consumer purchases yourproduct?

Know the “demand chain” … it allstarts with demand!

Pillar #3 Know your markets– Study your market

• Use the web– Trade statistics– Trade reports– Tradeshow websites– Market brands, advertisements and products sold

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Know your markets

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Quality SellsBut Packaging sells it first!

The customer wants a high perceivedvalue – this is often a factor of imageof packaging and price.

Pillar #5 Service your customer

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Details, details, details!

Pay attention to every detail. In business small details can costyou more than your job!

• Buyers want consistent, reliable, honest and value fortheir purchases. Many times the best way for them toensure this is to join forces with their suppliersthrough joint ventures, purchase and lease ofequipment and technology.

• If they help create the product they have a vestedinterest in success.

• Join forces with your customer to ensure a long termand mutually beneficial relationship.

Treat your customers as partners

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Pillar #6 Identify a niche for yourproduct

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Identify a niche for your product

Identify a niche for your product

Identify a niche for your product

Identify a niche for your product

Certifying Organizations

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The China factor!– Growing Chinese middle class is driving worldwide product

development• Aging population and smaller households are enhancing need

for package design for convenience and smaller pack size• Increasing disposable income is boosting demand for aspiration

products. 4.29% of consumer market sales are aspirationalconsumer trends.

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The Russia factor!– Growing– Aging population

– NEED SOME HELP HERE WITH FACTS OR FACTORS

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Case Study #1 Mongolian BlueberriesSynopsis

The development of Mongolian Wild Blueberry products represents acompelling case for innovative partnerships fulfilling a demand-drivenmarket while providing Mongolian blueberry harvesters with anopportunity for economic development. Mongolia faces significantchallenges for economic development and growth given variousenvironmental, political, and infrastructural factors, however wildblueberries provided a rare opportunity for development. A uniquecombination of public-private partnerships and early establishment ofa buyer, among other factors, proved vital to the success andsustainability of this operation. This case study examines the efforts,successes, and failures of the development of sustainable economicactivity around the Mongolia wild blueberry crop from initial interest tothe present, offering key insights and lessons for developing profitableagricultural products in low –income and/or –resource settings.

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Case study #2 Quinoa Market Developmentin the Andean Region Synopsis

• An innovative consortium provided the opportunity forintroduction of a niche ‘red quinoa’ from the Andean Region ofPeru into the USA food service and retail market. This venturerepresents a rare prospect for this poor geographic area withlimited resources characterized by limited manufacturingpotential, unskilled labor, and distance from markets. The projectteam brought together a consortium of stakeholders from thepublic and private sectors, NGOs, local growers, and communityand agricultural leaders to advise on the production and marketfor red quinoa. This case study explores the best practices andlessons learned starting from the identification of red quinoa asa niche product to identifying a buyer and the uniqueintroduction of this product to the market.

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Case study #3 Paraguayan HairSynopsis

Paraguay’s current economy is largely informal with a significant proportion ofthe population living off of subsistence farming. As a landlocked country, themajority of Paraguay’s limited commodities are exported to its neighborsBrazil, Argentina, and Uruguay. The project Paraguay Vende, or ParaguaySells, brought an optimistic entrepreneur seeking new industries fordevelopment in Paraguay. While most business development experts hadcome to understand that dozens of industries had already been establishedand developed in Paraguay, this entrepreneur saw an opportunity forsomething it seemed no one else had considered. Paraguayan women allhave dark, straight hair great for making wigs, similar to established ‘suppliers’and markets for Brazilian and Indian hair. Hair is a widespread commodityeasily accessed, transported, and utilized. After collecting the new commodity,the entrepreneur exported the hair to India to make wigs. This examplerepresents a unique case of utilizing previously unseen commodities andmatching them to international demand and markets.

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Case study #4 Kosovo stone – turn aproblem into an opportunity

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Case study #5 Georgian wine – overcomeissues beyond your control

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Lessons from an Entrepreneur

“I always tell the youngentrepreneurs that arecoming up, if you want towin, be prepared to lose.And every loss is anopportunity, you learnsomething from your loss.We lose many times.”CNN – Interview – Ron SimFounder and CEO of OSIM-

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