basic-guide-to-exporting_Latest_eg_main_086196

China but needed to do a lot of homework if I wasgoing to successfully grow long-term sales.”He needed a road map of introductions to keypublic- and private-sector resources, including anyavailable export financing. “In short, I needed todevelop a long-term export strategy,” he says.The SolutionSoon after making his first sale to China, Strangemet Tony Ceballos, Director of the U.S. CommercialService in Philadelphia. “This led to a followupmeeting with CS Trade Specialist LeandroSolorzano regarding my China trade lead,” Strangesays. “He gave me good insight on navigatingthe Chinese market, including customs and tariffresources, essential market research, and referralswith export funding providers.”Solorzano arranged a meeting for Strange withthe U.S. Commercial Service in Beijing, as well asthe Foreign Agricultural Service, which provided acommercial briefing, local contacts, and advice onestablishing a market presence in Beijing.Combined with resources from Ex-Im Bank, theWorld Trade Center of Philadelphia, and the SBA,Strange’s efforts soon culminated in a long-termdeal for the sale of more ice cream in China.Now, 6 years later, exports to China account fornearly 20 percent of Bassetts’ overall sales, andthey continue to grow. As Chinese consumersnibble away on the tasty treat at restaurants,hotels, independent parlors, and supermarkets,Strange hopes to “melt away” some of thecompetition by offering newly crafted flavors. “Forthe Chinese market, we introduced fruit- and nutbasedice creams and green tea and black sesameflavors to go along with traditional vanilla.”Meanwhile, Strange continues to diversifyhis international portfolio, participating in aCaribbean Buyer’s Mission in Miami, where hemade additional sales and met new potentialinternational customers. He is also focusing oncountries with which the United States has FTAs.“FTAs make it all the better because the importeris not facing stiff product duties,” he says. “Theopportunities are endless.”Lessons LearnedReduce risk by purchasing Ex-Im Bank foreignreceivables credit insurance. “There’s no way Iwould have the volume of sales in China right nowwithout it,” he says. “It costs less than 1 percent ofthe invoice, but it covers 90 percent of receivables.”“Have confidence in your product or service. If youhave a track record of selling in the United States,that’s a good prerequisite for exporting,” he says.“As my ice cream exports continue to grow, sodoes my confidence in exporting.”Challenge your logistics expectations. “Idealshipping and long-term storage temperaturefor ice cream is –20⁰F. U.S. common carriers withfreezer units rarely maintain temperatures below–15⁰F, which is fine for most frozen foods butborderline too warm for ice cream. The containerswe use to ship ice cream to China, though, aredesigned to hold temperatures well below –20⁰F.”ActionTake advantage of all export resources, and attendnetworking events. “One of the biggest surpriseswas the whole array of government and quasigovernmentexport resources that are out there.”Be open to other cultures. “There’s no way Iwould have understood Chinese culture had I notexported. My distributor and I have become fastfriends. I take him to vendors, and he takes me tohis customers. Our relationship couldn’t be better.”Look for opportunity in FTA countries. You’ll havefewer barriers and greater ease of doing business.Success Story: Bassetts Ice Cream Company145