Page 73 - Food & Drink Business Nov-Dec 2019

Being prepared and ready to go is in itself a selling point.
For marketing, Talacko likes to draw up a six-month plan for buyers showing how her company can complete campaigns, provide in-store demonstrations and drive social media activity.
Again, being able to show success in an existing market helps build confidence that a company can deliver.
MAKE YOUR PITCH
I was curious as to how the panellists saw the “elevator pitch” – is it important for businesses
to be able to pitch their product and package in a few sentences, or can they rely on having more leisurely conversations?
Fazarri said a good elevator pitch was imperative in scenarios like trade shows where time is of the essence, and companies might need to pitch their products in as little as 30 seconds.
However, both experts stressed the importance of listening rather than just talking. Fazarri suggested two thirds of the pitch time should be focused on finding out who the buyer is and what they are looking for. Talacko actually flips the pitch concept round, letting the buyers talk first so she can tailor her pitch to what they need. Finding the balance between giving and receiving information is key.
Fazarri cautioned that it is crucial to end a conversation with some clear next steps. Don’t just sell the product. Listen to what the customer is saying and define what their, and your, next steps are in advancing future contact.
MAKING THE DEAL
Once a business has met with a potential buyer or distributor, how quickly do the orders come in? I asked our experts if they’ve ever had orders from the first meeting, or if it is a slower process requiring lots of conversations.
Fazarri pointed out that a lot also depends on our own approach, with targeting of suitable buyers much more likely to be successful than general canvassing. He reminded us of the importance of establishing
credentials as a reliable business with longevity. Buyers are shrewd, and in purchasing products they are making an investment of time and money.
It goes back to Talacko’s earlier point about selling not just a product, but the business as successful and experienced.
Talacko also highlighted a common trap for first-time exporters – don’t be desperate! No business should be making a deal just because someone is interested. Instead it’s important to take the time to check out their coverage and whether it matches what the product needs.
UNDERSTANDING YOUR MARKET – CHINA
I asked Fazarri for his top tips as an export manager active in the Chinese market.
1
sales potential. A large market can mean a lot of competition. For every three or four competitors you might see in the Australian market, Fazarri told us that in China there are 40-60, or even more. It’s a highly fragmented market, which means both opportunity and competition. A targeted approach is essential.
2
make your dreams come true.
We’re talking about the food and beverage market – fine foods, organics, and health foods. That means premium products with a use-by date. Fazarri says a key question to ask retailers is how many of those stores will your product actually sell in. Premium products need to be targeted to the markets where shoppers will buy them.
3
interesting market with good opportunities for Australian food and beverage manufacturers. It’s worth considering as long as your business is going well in Australia. Breaking into the Chinese market will take investment and effort, and if your business isn’t doing well at home, diverting that money and energy abroad could be damaging.
INDONESIA AND MALAYSIA
For Talacko’s company, exporting to Indonesia was a no-brainer due to the proximity, language and growing economy.
Crucially, they felt it was the right market, with the right distributor at the right time (the company makes gluten-free foods). Indonesia had a growing middle class with an interest in health, and a confidence in Australian products.
Of course, like any market, Indonesia has hurdles exporters
barriers to entry – although Fazarri pointed out that easy entry also means a lot of international competition.
Talacko is active in the market and reported that retail is very affected by the political situation, with smaller orders and slower market movement, although food is not impacted as badly as non-essential goods.
Her company is providing its client with more promotional support, which is another example of building those long-term partnerships.
Don’t extrapolate
population numbers to
need to navigate including halal registration, other product registration, and packaging.
I found it interesting that Talacko’s company employed Indonesian staff in the home office during this period.
Having staff who spoke the language made completing the right paperwork easier – and also flagged to the distributor that the company was serious about the country.
Like Indonesia, Malaysia is an export market on Australia’s doorstep, and it’s a market Farrazi was very positive about. It’s close, the consumers appreciate a premium product, and with the right distributor, Fazarri told us that it is a market companies can enter quickly. It punches above its weight in terms of performance compared to size, he said.
HONG KONG
Hong Kong has been in the news a lot recently due to the demonstrations and political unrest. Therefore, it’s a market that exporters might be concerned about. I asked our experts for their opinions on the situation from a business perspective.
Talacko and Fazarri both agreed that Hong Kong is a potentially great market, with a westernised sensibility, sophisticated retail, and low
THAILAND
Thailand is another market fairly close to Australia, which can get overlooked in favour of bigger foreign markets
such as China and the US. It is one Talacko was
enthusiastic for, saying it was fast growing and sophisticated. Interestingly, she told us her company had initially assumed their products would be very niche in the Thai market, mainly of interest to ex-pats, but in reality they’ve found Thai consumers aware of trends and interested in Australian products. ✷
Hopefully you’ve found this article useful to understand how export professionals approach buyer presentations and negotiations and view important export markets. As always, if you’ve got any questions or want to discuss export opportunities for your company, feel free to drop Export Connect a line.
✷ ABOUTTHEAUTHOR
Don’t assume a client with
thousands of stores will
EXPORT
“ ...A common trap for first-time exporters – don’t be desperate. No business should be making a deal just because someone is interested.”
Get your business pumping
at home first. China is an
www.foodanddrinkbusiness.com.au | November-December 2019 | Food&Drink business | 73
Najib Lawand is the
director of Export
Connect. He has 20 years’
experience in the food and
beverage industry, across
the private and public sector. He can be contacted at najib@exportconnect.com.au or +61 448054234.