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Success StoryPedaling Through Trialsto Reach Global MarketsDeFeet InternationalAt the end of each chapter you’ll find a smallbusiness case study that describes how a businessbegan exporting and developed that aspect ofthe business over time. As you read the storieskeep in mind some of the themes from Chapter1: importance of exporting to growth; exportingto multiple international markets; solid businessfundamentals; dealing with challenges; andseeking expertise and assistance from governmentand other sources.The CompanyShane Cooper is president of DeFeet International,a maker of socks for cyclists. Over the years anddespite substantial adversity, he has built thebusiness that now includes distributors in 35countries. He and his wife were bike racers backin the early 1990s. During summers, she wassupplementing her income by racing bikes as anamateur and, as Cooper puts it, he was spendingher supplemental income as an amateur on hisbike racing. His father was a sock knitting machinetechnician and sold the machine’s parts. One day,Cooper the younger decided to make socks to payfor his bike racing hobby. “It just kind of happenedfrom there,” he recalls. “We made the world’s bestsock for cycling and that was 20 years ago.”The ChallengeCooper’s factory burned to the ground in 2006.There was no production for 9 months. Luckily,there was insurance, but it took a lawsuit and 3years to receive everything owed. And so whenhe finally got the check, he had to pay taxes outof that money because it’s considered businessincome. “We had 7 years where we made nomoney after the fire,” said Cooper. “We becameprofitable again and started winning the businessback.” That was just in time for the great recessionof 2008. Just when things were at their bleakestpeople started pulling bikes down from garagerafters and riding them to save money. Bicycleshops became flush with cash, and the Euro soaredagainst the dollar. “So all of a sudden, after 7 yearsof struggling, we made it through. And now, we’re4 years in with profits again. If we didn’t haveour international business, gosh, I don’t think wewould have made it.”8U.S. Commercial Service • A Basic Guide to Exporting
The SolutionOf course, the international business made thedifference. But it didn’t happen spontaneously.Cooper hired an international marketing managerwho developed a go-to market strategy forEurope, which included a web presence and anetwork of distributors. This allowed Cooper tofocus on the research and development side ofthe business, which included socks made of fibersextruded from recycled plastic bottles.Cooper elected to keep production in the UnitedStates, mainly because of worries that makingthe socks in Asia would involve quality issues,environmental problems, and loss of control overintellectual property. He said: “American-made tome is control. It’s American jobs. It’s quality, andmostly it’s value.”Lessons LearnedBy listening to his European customers, includingsome of the top riders in Italy and France, Cooperwas able to create—and continues to create—socks that the fans of the champions want tobuy. What he learns is his “secret sauce.” He alsorelies on his local U.S. Commercial Service officeto advise DeFeet on tariffs and duties—andabout the 20 or so free trade agreements theUnited States has with other countries. The U.S.Commercial Service also has extensive knowledgeabout international textile agreements and howhis products are affected.“I’m always looking for low-cost but accurateexpert advice, especially from governmentsources,” he said. “You’ve got to remember, I wasa dumb bike racer, a bad one at that. I wasn’t abusinessman.”Cooper also learned that success hinges onfiguring out early on what your strengths are. “Ifyou don’t have the skills or time to devote to theinternational side of the business, hire someonewho can do it.”ActionIf you have an export ready service or product,contact your local U.S. Commercial Service office.If you are just starting a business, or thinkingabout starting one, contact your local SmallBusiness Development Center, of which thereare more than 900 in the United States. Many ofthe centers have a counselor certified in exportbusiness counseling. For more information, pleasevisit 1.usa.gov/1vCFFxx.Success Story: DeFeet International9
Page 1 and 2: A BASIC GUIDE TOEXPORTINGThe Offici
Page 3: export.gov/basicguideLibrary of Con
Page 6 and 7: Table of ContentsChapter 1: Introdu
Page 8: global GDP and 30 percent of global
Page 11: A GEE might consist, for example, o
Page 16 and 17: Chapter 2Developing anExport Strate
Page 18 and 19: specified in the EAR under a specif
Page 20 and 21: All U.S. businesses have many ways
Page 23 and 24: Answer these 11 questions:1. Which
Page 25 and 26: Product or Service• What need doe
Page 27 and 28: Sample Outline of anExport PlanTabl
Page 29 and 30: 5. Current Trends and Practices•
Page 31 and 32: 16. My Product’s Harmonized Code
Page 33: Success StoryDownloading NewInterna
Page 36 and 37: This last advantage is especially i
Page 38 and 39: Gathering and evaluating secondary
Page 40 and 41: Drawing ConclusionsAfter analyzing
Page 42 and 43: United Nations Statistical Yearbook
Page 44 and 45: Private-Sector Product and Industry
Page 46 and 47: Success StoryHelping Feed the World
Page 48 and 49: Chapter 4Export AdviceIn this chapt
Page 50 and 51: Some of the more important services
Page 52 and 53: the important difference that the b
Page 54 and 55: at no cost to the small business ex
Page 56 and 57: A commercial bank can perform many
Page 58 and 59: location and construction of manufa
Page 60 and 61: To prevent reverse engineering in C
Page 62 and 63: We are agnostic on the question of
Page 64 and 65:
Distribution ConsiderationsHere are
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Often, the first company does not p
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your ability to terminate agreement
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Once your company has prequalified
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Choosing a ForeignRepresentative or
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Success StoryDon’t Wait—Innovat
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Chapter 6Finding QualifiedBuyersIn
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companies are available from many p
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Trade Fair Certification Program (e
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Millennium Development CorporationT
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Who Is the “Ideal”International
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Scores of new franchising concepts
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Success StoryCast a Wide Net to Cat
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Chapter 8Preparing YourProduct for
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You can also contact the Office of
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training seminars, or DVDs. Zeigler
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The ChallengeSmith first looked tow
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encompasses services in transportat
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give U.S. companies a competitive e
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Success StoryRecruiting New Franchi
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Chapter 10International LegalConsid
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For more information from the U.S.
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When goods enter a bonded warehouse
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under the UCC. Older works may also
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Trade names are also protected on a
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knowledge, in turn, promotes furthe
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prevent him or her from obtaining a
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Business-to-Consumer E-Commerce Wor
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Because such a website is often sta
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An online exporter may choose to pu
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important to identify and incorpora
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other business contacts) options re
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Success StoryGrowing Strong withInt
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Chapter 12Shipping YourProductIn th
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One popular method of shipment is t
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Certificate of ConformityRequired b
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The cost of the shipment, delivery
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To learn more about comprehensive r
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China but needed to do a lot of hom
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price is too high, the product or s
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CompetitionIn the domestic market,
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Commonly Used TermsIt is important
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Success StoryAligning Innovationwit
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Chapter 14Methods ofPaymentIn this
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Letters of Credit and Documentary C
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You must provide documentation show
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associated with open-account trade
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payment. This is because the export
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ut they were willing to make the sm
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• The need for preshipment financ
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Thus it is in your best interest to
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to support ongoing export sales or
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To be eligible, a business must hav
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Medium Enterprise Department and OP
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Success StoryManufacturingInternati
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Chapter 16Business TravelAbroadIn t
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Planning an ItineraryTravel agents
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Business Culture TipsAlways answer
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Gift giving is an important part of
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particularly intense issue. So the
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Here are a few suggestions.• Expe
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Building a Working RelationshipOnce
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negotiations and agreements with it
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Chapter 18Rules of Originfor FTAsIn
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5. Determine if the foreign content
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The original ROOs are listed in an
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Example Rules of OriginCombining Mu
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Israel, Jordan, Morocco, Bahrain, a
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The importer may ask the exporter w
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Generic CertificatesIf a good does
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Architectural Association of Kenya
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Appendix A: Glossary of TermsAdvanc
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Export-Import Bank of the United St
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Market SurveyReport that provides a
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Appendix B: Definitions of Abbrevia
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Appendix D: FormsHere, you will fin
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228U.S. Commercial Service • A Ba
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Tech International1000 J Street, N.
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COMMERCIAL INVOICESELLER: INVOICE N
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Copyright © 1998 UNZ & CO.SHIPPER/
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DEPARTMENT OF HOMELAND SECURITYU.S.
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PACKING LIST© Copyright 2001 Unz &
Page 228 and 229:
1a. U.S. PRINCIPAL PARTY IN INTERES
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U.S. $13220of this FIRST of Exchang
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IndexAA2ASee account-to-account (A2
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Global Entrepreneurship Ecosystem (
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Swinko, RonSee Jet IncorporatedSzuc
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International OfficesAfghanistanKab
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