The A-Z of Exhibiting Overseas

Exhibiting overseas is one of the fastest andas they focus on sales. Top-level management
most cost effective ways to identify the bestattend these shows expecting to place orders.
foreign markets for your products/services.They expect, and want, to deal with their
International trade shows and fairs offercounterparts in your company. They expect to
opportunities for multilateral contacts and businessspend time discussing technical details and will
deals. They allow you to test your product'soften want to close major deals on the show
export suitability; explore the strength and scopefloor. Technical staff, sales people and in-country
of your competition; and gain exposure torepresentatives will help form a complete
potential suppliers, in-country distributors andteam.Nail negotiating. Negotiating in international
customers before making any sizable financialbusiness is extremely complex. Socializing is often
commitments. However, to effectively tradeconsidered essential to the negotiating process.
internationally, top management must commit toLearn the cultural rules, especially as they relate
developing foreign markets.More than 2,000to timing and how business is conducted. Patience
shows are organized worldwide each year, andis often a real virtue.Offer quality and uniqueness.
approximately 150 of these events haveHigh quality products and services are expected,
significant global attraction. Most are held in theparticularly when dealing with the Japanese and
major trade show centers in the United States,South Koreans. The packaging is as important as
Germany, France, Italy and the United Kingdom.the product. If your products and services
The following A-Z guidelines will help to take thecompete directly with native companies, there
fear and anxiety out of your overseas exhibitingneeds to be something unique in the technology,
ventures:Ask questions and thoroughly researchinnovation, design, styling or image to gain
overseas shows to find the ones that attractacceptance in the Asian market.Plan on having a
your target market. A good starting point is thethird-party contact. Many Asian and Latin
U.S. Foreign Commercial Service (FSC), part ofAmerican cultures prefer to do business with
the International Trade Administration of thepeople they know. Meeting the right people often
Department of Commerce. Other sources ofdepends on having the right introduction. If the
information include banks, trade associations,person you wish to meet respects your
foreign embassies and consulates, bi-nationalintermediary, then chances are you too will be
chambers of commerce and the Internet.Bookrespected.Question whether "no" really means
space early. Allocation for space is a "first-come,"no." Much confusion, frustration and irritation can
first-served" basis. Applications for space need tooccur when different cultures communicate real
be submitted as early as possible - 12-18 monthsmeaning. In some countries, such as France, "no"
prior to the event. Reservations are made withcan often mean "maybe' and "maybe" can mean
the show organizer or their international"no." In many Asian cultures, individuals will not say
representative. Most of the large shows, especially"no" outright. Rather, they use subtle clues, for
the German ones, have global salesexample, saying "It's very difficult," or "I'll consider
offices.Coordinate shipping arrangements. Mostit." A "yes" or a nod of the head may very well
international trade shows have an officiallymean "maybe" or "I understand," instead of it
designated freight forwarder who is familiar withbeing the affirmative response you might
all the relevant details. They will handle theinterpret. To avoid saying "no," Koreans in
invoicing, arrange for licenses and declarations,particular will often give you the answer they
prepare packing list, issue bills of lading, handlethink you want to hear. Learn to listen to the
insurance and prepare all necessarysubtleties by asking open-ended questions. It is at
documentation. A duty charge is not normallytimes like these that a cultural mentor can be
assessed on equipment, unless it is destined toparticularly helpful.Recognize the role of women in
remain in the country after the show ends. Anbusiness. Research the customs of the country
international carnet facilitates importation andyou are visiting as they apply to women. Although
movement of samples and professional equipmentfemale business travelers account for one of the
between countries.Determine that your productfastest growing segments of the travel industry,
complies with international technical and safetyproblems still exist. Be prepared to prove yourself
standards. Germany, in particular, has extremelyas you may not be taken as seriously as your
stringent laws regarding testing products tomale counterparts. Familiarize yourself with local
comply with applicable specifications. Overseasand regional attitudes and cultural differences
companies are allowed to exhibit products atabout women in business. This will help to define
German trade fairs before their products haveyour approach and avoid potential problems and
been inspected. Formal certification of required isembarrassing situations. However, business
necessary to legally sell your products inoverseas is based on trust and relationships. And
Germany. Certain types of merchandise are alsowomen, like men, are responsible for creating the
subject to specialized safety codes and technicalnecessary rapport to accomplish their goals.Supply
requirements. It is advisable to use a localall your company representatives with bi-lingual
consultant to help you through the compliancebusiness cards. In Europe and Asian societies,
process.Establish a realistic budget. Costs ofbusiness cards are essential. They act like a
overseas shows vary widely, depending on a hostbusiness passport. For countries where English is
of variables, for example, location, exchangenot widely spoken, have cards printed on the
rates, time of the year. In addition to yourreverse side in the local language. This is best
display, shipping, promotional and staff costs, alsodone in the country you are visiting. Also be
take into consideration, import duties and exportaware of the specific etiquette that exists,
regulations. As a safety net, add 25% to yourparticularly in Asian countries, for presenting cards.
budget to cover unexpected costs, tipping andFor example, in Japan, business cards are
exchange rate fluctuations.Familiarize yourself withexchanged ceremoniously using both hands and a
overseas union policies. Strong unions exist in thebow. Both parties will read and study the card. It
U.K., France and Italy. Understand and appreciateis extremely impolite to write notes on the card
the rules and treat everyone with respect.or shove it in your pocket.Train your people. Make
Offering to buy your union labor lunch or a beer,sure that the people who represent your
as well as tipping, often helps to minimize pilfering,company at overseas shows are well trained and
loss and damage. When working with contractors,know and understand the cultural differences of
always have someone who can speak thethe people with whom they will interact. They
language and give logistical instructions. Arrive atshould know how to greet and address visitors.
least a week prior to the show to iron out anyFormality is the norm in Europe, whereas a more
kinks.Get to know pricing. Your companycasual and friendly style is acceptable in the U.S.
representatives should be prepared to negotiateUnderstanding different business negotiating styles,
and agree to terms at the show. They shouldconversation sensitivities, and how women are
also be fully conversant with tariffs, the Europeantreated in business, is essential, in addition to
Community's Value Added Tax (VAT) and otherknowing eye contact, handshakes, body posture
tax implications, and importation and deliveryand spatial distance differences. The key is to
procedures. When quoting prices, most buyersdevelop relationships of trust and sincerity as they
expect prices quoted c.i.f. (cost, insurance, freight),are critical for successful business.Use ATM's
including duties, taxes and other charges. For a(Automated Teller Machines) to get local currency.
small fee, local freight forwarders will assist andThey give you the wholesale exchange rate of
prepare c.i.f. costs.Have arrangements for credit5-10%, which is a far better rate than you would
and payment. You should make arrangementsget at hotels or currency exchanges. Always try
with a bank that has international bankingto purchase enough local currency before leaving
affiliations to facilitate your banking needs. Discusshome to pay your transportation from your
arrangements for transfer of funds, letters ofdestination airport to your hotel, plus a little extra
credit and bills of exchange. Potential customers orfor tips.Value different decision-making processes.
representatives will expect a credit check.The key is not to sell but rather to build
Individual profiles on overseas companies can berelationships. Decision-making differs around the
found through the World Trader's Data Reports,world. For example, in Asian cultures, it starts
available for a small fee from the US Commercialfrom the lower levels in the organization, and
Service.Since exchange rates fluctuate daily andworks its way up the ladder. Many times, lower
can affect pricing, especially when dealing withlevel employees will visit a trade show to gather
Latin American countries, consider getting paid ininformation, which they will include in a report to a
U.S. dollars.Insist on using a native-born translator.higher manager. Don't expect a decision from an
When translating copy or businessinitial meeting. Decisions are usually made
communications, always hire a local translator whocollectively, and the process is often slow and
has technical knowledge of your productsthorough. However, once a decision is made,
industry. Embarrassing mistakes occur when aespecially in Japan, a quick execution is expected.
translation is done by a non-professional withThe key, once again, is to do your
limited knowledge of a language and little or noresearch.Watch out for cultural differences. Know
understanding of slang, colloquialisms andand understand the cultural differences of the
double-entendres. Prepare product/servicepeople with whom you will interact. Be sensitive to
literature, data sheets, catalogues, etc. in thecolor and symbols and their meanings in different
principal languages of the major countriescountries. For example, mourning is symbolized by
represented at the show. Remember that mostwhite in Asia, purple in Brazil and yellow in Mexico.
countries outside the U.S. use metricIf your product, packaging and literature are in the
measurements.Judge the context. Some cultureswrong color, you will lose sales. Red and yellow
are more direct and explicit in their communication.are lucky colors in China - conversely, never use
Swiss, German and Scandinavian cultures arered printing in South Korea. In many of the Asian
considered low context. Their words have specificcountries, the number four denotes death and
meanings. In contrast, Japanese, Chinese andshould be totally avoided, including products
Arabs are high context. Their language is oftenpackaged in fours. If possible, avoid the number
vague, inexact and confusing for English-speakingnine, as it has connotations of suffering. Seven
cultures to understand. Reading between the linesand eight are considered lucky. Be safe and
is a must.Keep language simple. Many of youralways do your research!Expect to follow-up
international business contacts will speak English.personally. Personal contact and immediate
Problems occur when you use slang, colloquialisms,follow-up after the show is the best way to
idioms, jargon, buzz words, lingo, officialese,establish foreign buyer/seller relationships to
acronyms, and metaphors. These are oftenproduce future orders.Yield to a time investment.
difficult to translate. It is far more effective toBuilding relationships is a key component to doing
keep communication, written and verbal, basic andbusiness overseas. Behavioral differences are real.
easy for anyone to understand.Learn to speakIt is wise to recognize them and to make
body language. Seventy percent of ourallowances when doing business. Willingness to
communication is nonverbal. We communicate bycultivate business contacts through personal visits
the way we stand, sit, tense facial muscles, tapplays a major role in export success. Plan regular
fingers, etc. There are also hundreds of gesturesvisits to your major buyers, agents, or
to get across almost any meaning, fromdistributors. Be available, interested and quick to
greetings, beckonings, and farewells, to terms ofreact to problems or complaints.Zero in on the
endearment and insults. Gestures and bodyfact that doing business overseas demands time
language, with the exception of smiling, are notand patience. It may take several appearances at
universal in meaning. Be aware of the etiquette ontrade shows before your company is taken
personal space, eye contact and when, what andseriously. Foreigners want to feel confident that
how to touch.Make sure that your top executivesyou are sincere and totally committed to your
are available. Overseas shows, particularly ininvolvement in their country.
European and Asian countries, are serious business