With interest in exporting at an all-time high throughout the USA, many Virginia businesses are also looking to improve their sales and profits by hoping to sell their products or services to customers outside US borders.  Finding foreign customers outside the USA with a need for the products or services offered may appear to many Virginia to be an extraordinary challenging and daunting effort, but they should know that they do not need to face these challenges by themselves.  The international Trade Division of the Virginia Economic Development Partnership (VEDP) offers export support services and programs that are available to Virginia businesses for the asking. 

These export support services and programs are described on the web site of the International Trade Division (www.exportvirginia.org), but prospective Virginal exporters have another opportunity to learn about the services and programs available to them: from the International Trade Manager assigned to their region.

Seven regional International Trade Managers cover the State of Virginia that has been divided into 6 operational regions consisting of up to twenty counties each. Northern Virginia with its high concentration of businesses is served by two VEDP Trade Managers, while the other 5 regions are each served by one regional Trade Manager.  A map showing the six regions and the counties they include is accessible online http://www.exportvirginia.org/trade_managers.html

Regional Trade Managers are on call to local businesses who either wish to start exporting or are already involved in exporting but want to expand their international business.  Companies new to exporting may have substantial needs for assistance in determining the best foreign markets for their particular products or services. Involving the regional Trade Manager in their search for suitable foreign markets will reduce the time and effort the company may spend on looking unsuccessfully for new business in the wrong country.  Not every foreign market is a good target for Virginia businesses, and chasing for sales in the wrong markets is a costly undertaking that every frugal business manager should avoid.

To find markets that offer good business potential, Virginia businesses do not need to throw the proverbial dart at a world map to select a market to pursue. There are some 200 countries to choose from, and with considerable knowledge about the potential these countries may offer the Virginia exporter, backed by a lot of economic statistics, the regional Trade Manager can quickly zero-in on a few key markets that may hold the best chances for success for the client.

Aside from perhaps personal experience that the regional Trade Manager may have in dealing with specific foreign markets, other resources available to him or her to narrow the search include access to the export data of the US Census Bureau, which is responsible for tracking all export shipments from the United States. 

US Census maintains detailed records for all product commodities shipped from the United States.  Once a client’s products have been properly categorized in accordance with Harmonized Tariff codes (aka Schedule B codes),  the regional Trade Manager will then issue a research request to the research staff at VEDP HQ in Richmond to compile a detailed export record of the particular commodity for the past five years. The export summary record will include the $ value and quantity of the goods exported and the foreign country destinations. A five-year chart featuring export values provides export trends for the commodity and its foreign destinations.  

While such statistics do not always point to the “best” export markets for a client, they certainly will be an important part of the Trade Managers evaluation of potential markets for his client. High export values for a commodity to a particular foreign market do not necessarily indicate that the market is the “best” market to pursue for the client. Other factors, such as market saturation, and difficulties in doing business there, often indicate that the client may be better off looking for another market not yet overrun by the competition (both domestic and foreign). 

Tackling a nearby market like Canada, which traditionally is the “best” trading partner for the USA and for Virginia, may at first glance be the preferred choice for new-to-export Virginia companies, but most small to medium sized companies will have a difficult time, and certainly considerable expense, in wrestling market shares away from competitors already firmly established in that market.

A better choice may be the pursuit of consumers in another country that have a substantial need for the client’s products, the financial strength to pay for them, but are not yet overpowered by the client’s competition. This often means looking at developing markets in Eastern Europe, Asia, or South America.  

The regional Trade Manager and his support staff in Richmond will make their collective experience in international business aspects available to assist clients in sorting out all of the many influences that impact the decision on what foreign markets to pursue.  

These efforts should result in a “short-list” of potential markets that deserve further scrutiny. Again, the regional Trade Manager can be instrumental in assisting the client to “drill down” to one or two markets that will be the focus of the client’s export efforts. For in-depth and specific research on the business opportunities a foreign market may provide for the client’s products, the Trade Manager will make use of the VEDP’s Global Network of foreign market research firms that currently cover 44 key markets in the world. 

These in-country researchers are retained and compensated by the VEDP for their services. Based on specific instructions and research goals provided by the client, and transmitted by the regional Trade Manager, these research firms will compile up-to-date information that answers the client’s questions about the market, such as a “best-estimate” for the country’s market size for products offered by the client, major competition from inside and outside the country, and technical and product safety considerations.

Our in-country contractors also can search for suitable candidate firms that could serve as local distributors for the client or as a technical service / installation provider to the client’s foreign customers.  Our Global Network partners are experienced business people that serve VEDP International Trade and our clients in a variety of capacities. Our clients may request such in-country research involving our compensated foreign Global Network partners at no cost, but there is a limit of two such “no-cost” projects per the State’s FY.  Countries served by our Global Network market research contractors are listed on  VEDP International Trade’s website http://www.exportvirginia.org/global_network.html .

After one or more markets with good business potential for our Virginia business client have been identified, it may be a logical next step for the client to actually visit the market for a firsthand look and on site interviewing of potential local business partners, such as distributors or service/repair facilities.

VEDP International Trade offers scheduled Group Market Visits (GMV) to key world markets selected for their importance to Virginia businesses. A list of upcoming destinations is accessible through the following link http://www.exportvirginia.org/schedule_market_visits.html .  Group Market Visits, Independent Market Visits, and Export 3.0 are described and explained on this webpage http://www.exportvirginia.org/market_visits.html .

Again, the regional Trade Manager can assist Virginia businesses in making use of the best option of foreign market visits offered by VEDP International Trade.

For a few select Virginia businesses that are already involved in exporting their products or services, the VEDP International Trade Division offers “VALET”, a comprehensive export enhancement program  designed to assist Virginia companies selected from applicants that meet specific qualification rules, to broaden their export initiatives to up to three new markets.  Companies accepted in the VALET program enjoy export support and assistance from the VALET program staff and the two dozen VALET service partners for a period of two years. VALET participating companies also receive reimbursements of up to $15,000 for certain qualifying export expenses incurred while in the program.

Again, regional Trade Managers have an important role in pre-qualifying and recommending which client companies should apply for participating in the VALET program. With only 25 openings available every six months to VALET applicants from all over Virginia, competition for the small number of openings allocated to each of six regions can be fierce. A final decision (made at HQ in Richmond) on which applicants will be accepted to the next VALET class is based on a number of “rules” and acceptance criteria.  Some of the rules are shown on the VALET web page http://www.exportvirginia.org/valet/apply_valet.html

Virginia businesses interested in starting or expanding international sales would be well advised to contact their regional International Trade Manager for guidance and easy access to all of the export services and programs offered by the State of Virginia. The consultations and support services provided by the regional Trade Managers are business tax funded and, like most of the Export support services and programs offered, are available at no cost to Virginia for-profit businesses wishing to expand their business range beyond the USA. There are no forms to fill out, nor contracts to sign. A simple phone call or e-mail message by a representative of a Virginia business to the regional Trade Manager will suffice in getting a company started in making use of the comprehensive list of tax-funded export support services and programs offered by the Virginia Economic Development Partnership.

economy · export · exports · group market visit · international business · international deals · international event · international sales strategy · manufacturer · projects · service exporter · trade show · travel · VEDP · Virginia

VSD, LLC (VSD) exhibited at the IDEX 2011 Conference Feb. 20-24 at the Abu Dhabi National Exhibitions Centre in Abu Dhabi, United Arab Emirates (UAE). IDEX is the largest defense and security event in the Middle East and North Africa.

VSD’s exhibit at IDEX featured their training and simulation capability demonstrations showcasing:

• In-depth analysis of training needs
• Customized system engineering and blended training programs delivery
• State-of-the-art e-Learning products and training services
• Balanced application of simulation and other training technologies
• Effective training that measurably enhances performance
• Streamlined project management and rapid implementation

While attending IDEX, VSD signed a Memorandum of Understanding (MOU) Feb. 22 with His Excellency Sheikh Faisal Bin Khalid Bin Mohammed Al Qassimi to facilitate an international business relationship with the UAE. The objectives set forth in the MOU are to jointly develop, deliver, and sustain training and simulation products for the UAE, supply products and services for the oil, gas, and power generation sectors in the UAE, and provide technical training through innovative technologies and educational programs.

The focus of the training and simulation product provision for the UAE will be technology and software products and vocational, educational, and training programs. The oil, gas, and power generation sector product supply will focus on building and sourcing within the industry. Technical training will be done through the collaborative efforts of both organizations, focused on groundbreaking technology and educational programming.

VSD plans to attend and exhibit at IDEX again in 2013.

defense · IDEX 2011 Conference · international business · international event · security · trade show · United Arab Emirates · Virginia · VSD

We’ve all heard the encouraging phrase “you’ll never know until you try.”  Well for small businesses deciding whether to invest in a visit to a potential new export market, it’s a phrase worth considering.  Consider the case of one VEDP International Trade client, Joanne Buto of Granny Roddy’s (http://www.grannyroddys.net/), a Virginia manufacturer of Irish soda bread mixes.  When Joanne first heard about the services of VEDP International Trade she had never considered exporting.  In fact, she had barely sold her product outside of Virginia.  But after hearing encouraging words from another Virginia food exporter she decided to get in touch with Jenee Andreev, her local VEDP International Trade Manager, and just see what she had to say and what services were available.  “I didn’t know what I was getting into,” Joanne said. 

Within a few weeks of meeting Jenee, Joanne received a VEDP research report, highlighting the five best export markets for her Irish soda bread mixes.  Canada was at the top of the list and VEDP had a group market visit to Eastern Canada scheduled for several months later.  It seemed like the perfect opportunity to take the plunge.  “I had heard such positive comments about VEDP’s group market visits.  Plus it was the right time for me and my business to explore this opportunity.”  After talking with VEDP’s consultant in Toronto, Joanne signed up for the visit and eagerly awaited her opportunity to travel to Canada and meet with distributors and representatives interested in her products.  She admits she was nervous throughout the process, but said that she gained reassurance from the initial research that VEDP provided.  “It was great information and very understandable.  I kept going back to that report and the evidence it showed that there was definitely a market for my bread mixes in Canada.” 

During the group market visit to Toronto and Montreal, the VEDP consultants in Canada filled Joanne’s itinerary with meetings with a wide range of companies and organizations – food brokers, distributors, representatives, industry associations, and labeling specialists.  Joanne learned a lot from those meetings and met with several companies that were interested in carrying her product line.  After the trip she pursued a relationship with one of those.  “The distributor I chose was enthusiastic from the beginning, but he was also willing to move slowly, and that was important to me,” Joanne said.  She sent him samples to share with Canadian retailers and, while it took several months to do so, he eventually contacted her with pre-sales for 300 bread mixes.  Joanne made her first shipment and sales to Canada this October, one year after participating in the group market visit.  “VEDP and other exporters told me it would take a year to see results, and they were right.”

Joanne has been back to Canada to exhibit at a trade show and is committed to making additional trips to show her dedication to the market and serve as the face of the Granny Roddy’s brand.  She relies on her Canadian distributor to continue making contacts with new retailers and to make her products visible, but she partners with him in contacting companies and looks for opportunities to diversify her customer base.  When asked if she would participate in another VEDP group market visit, Joanne says she absolutely would.  “I consider VEDP an important member of my business team now.”  Most recently, Joanne has called upon VEDP to get additional leads for contacts in the food service industry in Canada.  She hopes to export to other markets in the future, but for now is focused on developing her sales in Canada, with plans to look at opportunities in the Western part of the country eventually.  “I’m content to be the turtle when it comes to exporting – slow and steady progress!”

Questions or comments?  Email Stephanie Tignor, VEDP Global Network Manager, at STignor@YesVirginia.org.

Canada · exports · group market visit · international business · international event · manufacturer · trade show · travel · VEDP · Virginia

The Paris Air Show has been the world’s leading aviation and space event for over 100 years. This year’s event will once again bring together the industry’s players worldwide to showcase the latest technological innovations. The Paris Air Show is an opportunity to meet the main industry players, seize new business opportunities, present expertise and innovations to the world and forge technology partnerships. By taking part in the Show you will be at the center of the event where all the decisions are made, where the history of aviation and space exploration is being written. You will be investing in the commercial and strategic future of your company.

Join VEDP – International Trade at the International Paris Air Show – Le Bourget. Enjoy the convenience of Virginia personnel in the shared booth at all times to take messages, greet visitors while you are away and connect you with relevant prospects. VEDP’s booth is the ideal ‘home base’ while you walk the Show and network with prospective customers and partners.

Your participation with VEDP gets you the following:

*Virginia personnel in the booth at all times to: take messages, greet visitors while you are away and connect you with relevant prospects.�
*Your company’s name and logo listed on a poster with other participants.
*A counter with lockable storage which allows for display of all participants’ literature on top and safe-keeping of articles while you walk the show.
*One exhibitor’s badge.
*Access to all USA pavilion amenities including exhibitor lounge for your meetings and the cyber area with free internet access.
*Free listing in the USA Pavilion Showcase Directory.
*Listing under the “Virginia Economic Development Partnership” in the main Paris Air Show Directory.

Sign up by December 1, 2010 to participate.  Click here now to register!!

Questions or comments?  Email Scott Kennedy, VEDP – International Trade Events Manager, at SKennedy@YesVirginia.org.

international event · Paris Air Show · trade show · VEDP