basic-guide-to-exporting_Latest_eg_main_086196

The ChallengeSmith first looked toward international marketsin 2008 by selling to Taiwan. He’s also had goodsuccess in Canada and Malaysia, and has madesales in Korea, Singapore, and England. Toovercome import requirements, he began workingwith the U.S. Food and Drug Administration (FDA)and International Standards Organization (ISO) toobtain product quality and safety certifications;he also gained the CB internationally acceptedapproval for safety. With these approvals, hisproducts are usually accepted in most countries,thus removing a major barrier to trade.About a year ago, Smith started eyeing India asa potential destination due to its large Englishspeakingpopulation and a growing middleclass. But when he previously tried to start doingbusiness in new markets, it took several monthsand costly trial-and-error to locate distributors.How could he quickly find a good distributor?The SolutionAt a local chamber of commerce event in 2012,Smith was introduced to Trade Specialist RichardRyan of the U.S. Commercial Service in north Texas.Smith later took advantage of business counselingand learned more about entry strategies. Smithsays, “I knew that India’s population generally triesto avoid drugs, but the additional market researchreally reaffirmed the Indian medical communitywas very receptive to nondrug therapies.”Working with U.S. Commercial Service colleaguesin New Delhi, India, Ryan helped Smith seek outpotential Indian distributors. Avazzia’s needswere matched with several prospective Indiandistributors, then Smith flew to India.“I interviewed several distributors and really‘clicked’ with one in particular—we both hadsimilar technology backgrounds,” Smith says.“Having U.S. government backing also gave meadded credibility with him, so it worked out well,and I ended up signing him as a distributor.”The distributor purchased an initial stock ofAvazzia products and showcased them at a tradeshow. Thirty Indian medical doctors came toAvazzia’s booth, generating additional sales thatcontinue to this day. Now, Avazzia is working onselling to a major sports injury rehabilitation clinicthat treats 500 patients per week.Lessons LearnedSmith originally assumed that internationalcustomers would be looking to pay the lowestprice, regardless of quality. “But what I found isthat if you have a quality product, people will layout the cash to buy it,” he says.So what does the future hold for Avazzia? Smith’scompany has grown to 15 employees. “Exportsaccount for 20 percent of our overall sales, a figurethat could grow to 50 percent within the next 2years,” he says. His next big focus is Mexico, withplans to expand into Latin America, where theUnited States has several free trade agreements.Oh, and what about Smith’s friend who sufferedfrom diabetic neuropathy? He continues to useAvazzia technology, which has dramaticallyreduced his need for painkilling medications.Action“If you have no previous international trade orexport experience, do your homework first andtake advantage of the U.S. Commercial Service.If I had known 10 years ago what I know today, Iwould have started selling to Europe early on.“Leverage your business experience; you may havea greater skill set than you realize. For example, ifyou’ve sold here in the United States, that’s a greatasset to becoming a successful exporter.”Success Story: Avazzia97