| Exhibiting overseas is one of the fastest and most | | | | shows expecting to place orders. They expect, and |
| cost effective ways to identify the best foreign | | | | want, to deal with their counterparts in your |
| markets for your products/services. International | | | | company. They expect to spend time discussing |
| trade shows and fairs offer opportunities for | | | | technical details and will often want to close major |
| multilateral contacts and business deals. They allow | | | | deals on the show floor. Technical staff, sales people |
| you to test your product's export suitability; explore | | | | and in-country representatives will help form a |
| the strength and scope of your competition; and gain | | | | complete team.Nail negotiating. Negotiating in |
| exposure to potential suppliers, in-country distributors | | | | international business is extremely complex. Socializing |
| and customers before making any sizable financial | | | | is often considered essential to the negotiating |
| commitments. However, to effectively trade | | | | process. Learn the cultural rules, especially as they |
| internationally, top management must commit to | | | | relate to timing and how business is conducted. |
| developing foreign markets.More than 2,000 shows | | | | Patience is often a real virtue.Offer quality and |
| are organized worldwide each year, and | | | | uniqueness. High quality products and services are |
| approximately 150 of these events have significant | | | | expected, particularly when dealing with the Japanese |
| global attraction. Most are held in the major trade | | | | and South Koreans. The packaging is as important as |
| show centers in the United States, Germany, France, | | | | the product. If your products and services compete |
| Italy and the United Kingdom. The following A-Z | | | | directly with native companies, there needs to be |
| guidelines will help to take the fear and anxiety out | | | | something unique in the technology, innovation, |
| of your overseas exhibiting ventures:Ask questions | | | | design, styling or image to gain acceptance in the |
| and thoroughly research overseas shows to find the | | | | Asian market.Plan on having a third-party contact. |
| ones that attract your target market. A good | | | | Many Asian and Latin American cultures prefer to do |
| starting point is the U.S. Foreign Commercial Service | | | | business with people they know. Meeting the right |
| (FSC), part of the International Trade Administration | | | | people often depends on having the right introduction. |
| of the Department of Commerce. Other sources of | | | | If the person you wish to meet respects your |
| information include banks, trade associations, foreign | | | | intermediary, then chances are you too will be |
| embassies and consulates, bi-national chambers of | | | | respected.Question whether "no" really means "no." |
| commerce and the Internet.Book space early. | | | | Much confusion, frustration and irritation can occur |
| Allocation for space is a "first-come, first-served" | | | | when different cultures communicate real meaning. In |
| basis. Applications for space need to be submitted as | | | | some countries, such as France, "no" can often mean |
| early as possible - 12-18 months prior to the event. | | | | "maybe' and "maybe" can mean "no." In many Asian |
| Reservations are made with the show organizer or | | | | cultures, individuals will not say "no" outright. Rather, |
| their international representative. Most of the large | | | | they use subtle clues, for example, saying "It's very |
| shows, especially the German ones, have global sales | | | | difficult," or "I'll consider it." A "yes" or a nod of the |
| offices.Coordinate shipping arrangements. Most | | | | head may very well mean "maybe" or "I understand," |
| international trade shows have an officially designated | | | | instead of it being the affirmative response you |
| freight forwarder who is familiar with all the relevant | | | | might interpret. To avoid saying "no," Koreans in |
| details. They will handle the invoicing, arrange for | | | | particular will often give you the answer they think |
| licenses and declarations, prepare packing list, issue | | | | you want to hear. Learn to listen to the subtleties by |
| bills of lading, handle insurance and prepare all | | | | asking open-ended questions. It is at times like these |
| necessary documentation. A duty charge is not | | | | that a cultural mentor can be particularly |
| normally assessed on equipment, unless it is destined | | | | helpful.Recognize the role of women in business. |
| to remain in the country after the show ends. An | | | | Research the customs of the country you are visiting |
| international carnet facilitates importation and | | | | as they apply to women. Although female business |
| movement of samples and professional equipment | | | | travelers account for one of the fastest growing |
| between countries.Determine that your product | | | | segments of the travel industry, problems still exist. |
| complies with international technical and safety | | | | Be prepared to prove yourself as you may not be |
| standards. Germany, in particular, has extremely | | | | taken as seriously as your male counterparts. |
| stringent laws regarding testing products to comply | | | | Familiarize yourself with local and regional attitudes |
| with applicable specifications. Overseas companies are | | | | and cultural differences about women in business. |
| allowed to exhibit products at German trade fairs | | | | This will help to define your approach and avoid |
| before their products have been inspected. Formal | | | | potential problems and embarrassing situations. |
| certification of required is necessary to legally sell | | | | However, business overseas is based on trust and |
| your products in Germany. Certain types of | | | | relationships. And women, like men, are responsible |
| merchandise are also subject to specialized safety | | | | for creating the necessary rapport to accomplish |
| codes and technical requirements. It is advisable to | | | | their goals.Supply all your company representatives |
| use a local consultant to help you through the | | | | with bi-lingual business cards. In Europe and Asian |
| compliance process.Establish a realistic budget. Costs | | | | societies, business cards are essential. They act like a |
| of overseas shows vary widely, depending on a host | | | | business passport. For countries where English is not |
| of variables, for example, location, exchange rates, | | | | widely spoken, have cards printed on the reverse |
| time of the year. In addition to your display, shipping, | | | | side in the local language. This is best done in the |
| promotional and staff costs, also take into | | | | country you are visiting. Also be aware of the |
| consideration, import duties and export regulations. | | | | specific etiquette that exists, particularly in Asian |
| As a safety net, add 25% to your budget to cover | | | | countries, for presenting cards. For example, in Japan, |
| unexpected costs, tipping and exchange rate | | | | business cards are exchanged ceremoniously using |
| fluctuations.Familiarize yourself with overseas union | | | | both hands and a bow. Both parties will read and |
| policies. Strong unions exist in the U.K., France and | | | | study the card. It is extremely impolite to write |
| Italy. Understand and appreciate the rules and treat | | | | notes on the card or shove it in your pocket.Train |
| everyone with respect. Offering to buy your union | | | | your people. Make sure that the people who |
| labor lunch or a beer, as well as tipping, often helps | | | | represent your company at overseas shows are well |
| to minimize pilfering, loss and damage. When working | | | | trained and know and understand the cultural |
| with contractors, always have someone who can | | | | differences of the people with whom they will |
| speak the language and give logistical instructions. | | | | interact. They should know how to greet and |
| Arrive at least a week prior to the show to iron out | | | | address visitors. Formality is the norm in Europe, |
| any kinks.Get to know pricing. Your company | | | | whereas a more casual and friendly style is |
| representatives should be prepared to negotiate and | | | | acceptable in the U.S. Understanding different |
| agree to terms at the show. They should also be | | | | business negotiating styles, conversation sensitivities, |
| fully conversant with tariffs, the European | | | | and how women are treated in business, is essential, |
| Community's Value Added Tax (VAT) and other tax | | | | in addition to knowing eye contact, handshakes, body |
| implications, and importation and delivery procedures. | | | | posture and spatial distance differences. The key is |
| When quoting prices, most buyers expect prices | | | | to develop relationships of trust and sincerity as they |
| quoted c.i.f. (cost, insurance, freight), including duties, | | | | are critical for successful business.Use ATM's |
| taxes and other charges. For a small fee, local freight | | | | (Automated Teller Machines) to get local currency. |
| forwarders will assist and prepare c.i.f. costs.Have | | | | They give you the wholesale exchange rate of |
| arrangements for credit and payment. You should | | | | 5-10%, which is a far better rate than you would get |
| make arrangements with a bank that has international | | | | at hotels or currency exchanges. Always try to |
| banking affiliations to facilitate your banking needs. | | | | purchase enough local currency before leaving home |
| Discuss arrangements for transfer of funds, letters | | | | to pay your transportation from your destination |
| of credit and bills of exchange. Potential customers or | | | | airport to your hotel, plus a little extra for tips.Value |
| representatives will expect a credit check. Individual | | | | different decision-making processes. The key is not |
| profiles on overseas companies can be found through | | | | to sell but rather to build relationships. Decision-making |
| the World Trader's Data Reports, available for a small | | | | differs around the world. For example, in Asian |
| fee from the US Commercial Service.Since exchange | | | | cultures, it starts from the lower levels in the |
| rates fluctuate daily and can affect pricing, especially | | | | organization, and works its way up the ladder. Many |
| when dealing with Latin American countries, consider | | | | times, lower level employees will visit a trade show |
| getting paid in U.S. dollars.Insist on using a native-born | | | | to gather information, which they will include in a |
| translator. When translating copy or business | | | | report to a higher manager. Don't expect a decision |
| communications, always hire a local translator who | | | | from an initial meeting. Decisions are usually made |
| has technical knowledge of your products/industry. | | | | collectively, and the process is often slow and |
| Embarrassing mistakes occur when a translation is | | | | thorough. However, once a decision is made, |
| done by a non-professional with limited knowledge of | | | | especially in Japan, a quick execution is expected. The |
| a language and little or no understanding of slang, | | | | key, once again, is to do your research.Watch out |
| colloquialisms and double-entendres. Prepare product | | | | for cultural differences. Know and understand the |
| service literature, data sheets, catalogues, etc. in the | | | | cultural differences of the people with whom you will |
| principal languages of the major countries | | | | interact. Be sensitive to color and symbols and their |
| represented at the show. Remember that most | | | | meanings in different countries. For example, |
| countries outside the U.S. use metric | | | | mourning is symbolized by white in Asia, purple in |
| measurements.Judge the context. Some cultures are | | | | Brazil and yellow in Mexico. If your product, packaging |
| more direct and explicit in their communication. Swiss, | | | | and literature are in the wrong color, you will lose |
| German and Scandinavian cultures are considered low | | | | sales. Red and yellow are lucky colors in China - |
| context. Their words have specific meanings. In | | | | conversely, never use red printing in South Korea. In |
| contrast, Japanese, Chinese and Arabs are high | | | | many of the Asian countries, the number four |
| context. Their language is often vague, inexact and | | | | denotes death and should be totally avoided, including |
| confusing for English-speaking cultures to understand. | | | | products packaged in fours. If possible, avoid the |
| Reading between the lines is a must.Keep language | | | | number nine, as it has connotations of suffering. |
| simple. Many of your international business contacts | | | | Seven and eight are considered lucky. Be safe and |
| will speak English. Problems occur when you use | | | | always do your research!Expect to follow-up |
| slang, colloquialisms, idioms, jargon, buzz words, lingo, | | | | personally. Personal contact and immediate follow-up |
| officialese, acronyms, and metaphors. These are | | | | after the show is the best way to establish foreign |
| often difficult to translate. It is far more effective to | | | | buyer/seller relationships to produce future |
| keep communication, written and verbal, basic and | | | | orders.Yield to a time investment. Building relationships |
| easy for anyone to understand.Learn to speak body | | | | is a key component to doing business overseas. |
| language. Seventy percent of our communication is | | | | Behavioral differences are real. It is wise to recognize |
| nonverbal. We communicate by the way we stand, | | | | them and to make allowances when doing business. |
| sit, tense facial muscles, tap fingers, etc. There are | | | | Willingness to cultivate business contacts through |
| also hundreds of gestures to get across almost any | | | | personal visits plays a major role in export success. |
| meaning, from greetings, beckonings, and farewells, | | | | Plan regular visits to your major buyers, agents, or |
| to terms of endearment and insults. Gestures and | | | | distributors. Be available, interested and quick to react |
| body language, with the exception of smiling, are not | | | | to problems or complaints.Zero in on the fact that |
| universal in meaning. Be aware of the etiquette on | | | | doing business overseas demands time and patience. |
| personal space, eye contact and when, what and | | | | It may take several appearances at trade shows |
| how to touch.Make sure that your top executives | | | | before your company is taken seriously. Foreigners |
| are available. Overseas shows, particularly in European | | | | want to feel confident that you are sincere and |
| and Asian countries, are serious business as they | | | | totally committed to your involvement in their |
| focus on sales. Top-level management attend these | | | | country. |