CBI News Bulletin November / December 2005

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CBI News Bulletin Page 28 CBI News A hard-line approach leads exporters of stationery, school & office products to long-term success No pain, no gain Basing your strategic market entry choices on adequate market knowledge considerably increases your chances of success. The only condition is that you´re prepared to put in plenty of hard work on adapting the necessary marketing tools. Ample proof of this hard-line business approach has been provided by the excellent results in the CBI´s export development programme for manufacturers of stationery, school and office products throughout 2005. Photo albums, stationery & matching gift articles from Indonesia. The CBI is currently supporting 14 stationery, school & office products manufacturers based in Colombia, the Philippines, Indonesia, Thailand and El Salvador in their efforts to enter European markets. CBI consultant Yolanda Netto believes in doing this by means of what she calls ´a hard-policy approach´. In this programme, she says, there´s “no mercy for those who did not show any or insufficient efforts to prepare themselves to the best of their ability.” The strictness is paying off. By mid 2005 both the total and average turnovers achieved by the 14 manufacturers enrolled in the programme had already exceeded the total result of 2004. “We expect the total results for 2005 to be the highest ever achieved by the CBI in this sector”, says Netto. First-time success The big trade event for CBI-supported exporters in this sector is the annual Paperworld trade fair. Usually, exhibitors new to the field have to attend Paperworld at least once or twice before they find their first serious trading partner. However, at this year´s exhibition, last January, one of the exhibitors in the CBI pavilion to find a very valuable first European customer was a first-timer. Says Netto, “The company in question, based in Thailand, did it’s utmost to prepare itself for the fair and has succeeded accordingly.” Preparation began with a serious approach of the CBI´s Expro 50 seminar in June 2004, at which participants wrote the first rough framework of an export marketing plan (EMP). “The Thai company wrote theirs by hand, but it was serious and provided a solid basis for further development.” After the seminar the Thai company took time out to go into the details of the EMP. The CBI´s input, provided partly from long-distance and partly during a first visit of the production location, led the company to adapt the EMP. “The plan clearly did not end up in the drawer of a desk, but was used to adapt some of the marketing tools”, says Netto. As a result, the company made a very good first impression at the Paperworld exhibition, January 2005. “The most visible of the adaptations they´d made, of course, were the products”, says Netto. “They clearly got the message that you have to impress European buyers in that first one-second glance at your booth. By developing matching designs that could
e reasonably well presented in product families, the Thai company attracted a lot of European buyers.” Well aware that visitor numbers are no guarantee, the company went on to put considerable effort into its follow-up activities. “They spent a lot of time on this”, says Netto. “The follow-up was specifically assigned to two staff members, to prevent it from drowning in the daily flood of local and regional business. This systematic commitment has clearly paid off, as the company has now acquired it’s first foothold on the European market, starting in the southern region.” No time for relaxing But even success in the first year does not mean you´ve arrived in export heaven and can sit back and relax. One participant in the CBI programme had to face the consequences of an important market trend occurring in Europe this year. This company, a professional and hard-working team, bagged a huge contract in it’s first steps onto the European market in 2004, by becoming the manufacturing partner for a large, well-known European A-brand supplier. In its second year, however, total sales dropped – simply because of market trends and not for lack of hard work on the side of the manufacturer. Yolanda Netto explains: “On the one hand, European A-brand suppliers offer exporters from developing countries good opportunities to enter the European market. The A-brands are increasingly outsourcing parts of their production to lower-wage countries. Of course they prefer supplier companies that know how to provide service and a good quality-price balance, rather than just the lowest prices. These are qualities many of the participants in the CBI programme can offer. On the other hand however, once you´re producing for an A-brand trading partner, you become dependent on the same market influences. And currently, A-brands in Europe are having difficulties. The poor economy is causing many end users to shift from A-brands to private labels.” A-brands are still loosing market share, although the tide is expected to turn in the next two to five years. “This example proves the importance of constantly searching for new partners, even when success has already come”, says Netto. Going to Paperworld alone But even though it takes a lot of hard work, long-term success is not a dream. Three participants in the CBI programme for stationery manufacturers have proven this. They´ve established a foothold on the European market that is strong enough for them to take the next step: exhibit at Paperworld on their own, after three years of support from the CBI. One of the three is from Peru and manufactures rulers, geometric sets, compasses, letter trays and other injection-moulded stationery items. The second is from Jordan and manufactures whiteboards, flipcharts and projector screens. The third, a company from Indonesia, manufactures photo albums and matching stationery and gifts. All three plan to exhibit at the next Paperworld event, in Frankfurt, Germany, from January 25 to 29, 2006. “With some minor support and long-distance guidance from the CBI, they´ve been able to acquire exhibition space opposite the CBI pavilion in Hall 10.1”, says Netto. “We´re working together in the field of booth development and construction in order to keep capitalising on the advantages of a group exhibition.” One challenge the three independent firms face, she says, is to make their presentations so professional that they will clearly distinguish themselves from the many competitors from countries like Hong Kong and China. “The CBI may be very proud of these three manufacturers”, concludes Netto, “not only because of the positive export development results they have shown in the past three years, but even more because they offer proof that the CBI’s goal to help exporters achieve long-term successes can be realised.” Rulers, geometric sets, match sets, protractors, stencils, triangles, French curves and compasses from Peru. CBI News Bulletin 2005 November/December Page 29
Page 1 and 2: November/December 2005 No 306 The C
Page 3 and 4: contents Export Marketing & Managem
Page 5 and 6: enrolled in the CBI´s export devel
Page 7 and 8: The Fair Flowers Fair Plants Label
Page 9 and 10: CBI and UNCTAD join forces to make
Page 11 and 12: Is aloe food or medicine? Is a praw
Page 13 and 14: ENGINEERING PRODUCTS Price pressure
Page 15 and 16: anked seventh and was overtaken by
Page 17 and 18: Pencils Market Briefs provide in-de
Page 19 and 20: The motto for the upcoming Vakantie
Page 21 and 22: The year´s groceries at Fruit Logi
Page 23 and 24: Dressed for danger At A+A 2005, the
Page 25 and 26: A representative of a European medi
Page 27: Success is like a magnet in a hardw
Page 31 and 32: group in a lecture on negotiating s
Page 33 and 34: Art meets commerce The schism that
Page 35 and 36: What When Where Details Technical A

CBI News Bulletin November / December 2005

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