Page 203 - International Marketing

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BRILLIANT'S Overseas Market 205

The merchant intermediaries take title to the goods and deal in the
own names. They may or may not undertake delivery of the goods and the
services they provide, vary. The authority exercised by these intermediaries
differs. The following are some popular forms of merchant intermediaries:
1. Export Merchant: These merchants buy directly from
manufacturers according to their specifications, taking title to the
goods. They have overseas contacts through which the goods are
sold either to wholesaler or retailers. They assume all the risks
and sell in their own names. Their compensation consist of markup
percentage that is based on market conditions. They resemble to
a domestic wholesaler.
2. Cooperative Exporter: The cooperative exporter is any company
that has an established system of handling exports of its own goods
and distributes products overseas for other manufacturers on a
contractual basis. These cooperative arrangements are also called
piggy backing. They may assume the role of an EMC or may just
serve as a commission agent for a short period in selected markets.
3. Export Vendor: They specialize in buying poor quality and over
produced goods for distribution overseas. These companies buy
the goods outright, taking title to them. They ship the goods to
one or more countries and sell them through their established
contacts. Such intermediaries are useful in times of depression
business conditions when a company due to some reasons gets
stuck with certain unwanted products.
4. Overseas Military Market Representatives: These are
representatives who specialize in selling to U.S. military post
exchanges (PXS) and commissaries. The bulk of this market is
made up of a joint Army-Airforce PX system. PX managers abroad
decide what to buy. Commissary managers are restricted by a "brand
name contracts" list but still they have considerable discretion.
The PX and commissaries system primarily serve young
consumers among whom ethnic products are popular. Usually
these products are purchased in bulk at top discounts.
5. Multinational Companies: These companies through overseas
subsidiaries have overseas operations including factories, branch
and regional offices. The MNCs generate massive demand for plant,
machinery, supplies, testing equipment, vehicles, spareparts,
process control system, training equipment, appliances, furniture
and other goods.