Export Marketing Guidelines for Vietnamese Craft Exporters

DEVELOPING INTERNATIONAL MARKETS FOR HOME ACCESSORIES AND GIFT ARTICLES Export Marketing Guidelines for Vietnamese Craft Exporters Prepared for: VIETRADE/ITC/WTO/UNCTAD Export Marketing Guidelines for Vietnamese Craft Exporters Table of Content Page Preamble 3 1 Are you Ready to Export? 4 1.1 Market Analysis (External Analysis) 4 1.2 Company Analysis (Internal Analysis) 9 1.3 SWOT Analysis 11 2 Market Entry Strategy 12 3 Preparing a Professional Presence 14 3.1 Marketing Material 15 3.2 Professionalize your Staff and Communication 19 3.3 Professionalize your Company Operations 21 3.4 Understanding Market Requirements to Improve your Presentation 23 4 Preparing Products for Export 24 5 Export Costing, Pricing and Invoicing 28 5.1 Export Costing and Pricing 28 5.2 Quotations and Proforma Invoices 31 5.3 Terms of Sale 33 5.4 Methods of Payment 34 6 Trade Fair Participations 38 6.1 Selecting the Right Trade Fair 39 6.2 Trade Fair Preparations 40 6.3 Participation Costs 42 6.4 At the Trade Fair 43 6.5 After the Trade Fair 44 7 Export Documentation and Shipping 45 8 Dealing with Claims 47 2 Export Marketing Guidelines for Vietnamese Craft Exporters 9 Appendixes 48 Preamble Vietnam is a land of handicrafts1 thanks to the hardworking and creative Vietnamese people. Fine Vietnamese handicraft articles are exported to over 120 countries worldwide. Products such as ceramics, lacquer, wooden wares, bamboo and rattan products, textile, embroidery etc. are nowadays becoming popular throughout the world as home accessories, home decor and gifts. Vietnam has been extremely successful in exporting craft products during the last few years. It is estimated that 1.35 million inhabitants earn a living from producing or trading with crafts, generating an export turnover of almost 600 million USD per year. However, if compared with the consumption of home accessories and gifts in the world, the above figure only accounts for less than 1% of the market volume. There is still tremendous potential for further export increases. These Export Marketing Guidelines are a manual which aims to provide practical and comprehensive information to a large number of Vietnamese craft exporters. The Export Marketing Guidelines serves the needs of both current and potential crafts exporters, showing them how to enter and get a firm foothold in the world markets in the context of global competition. The authors thank all parties concerned who assisted in preparing the guidelines, notably the Vietnam Trade Promotion Agency (VIETRADE) and the International Trade Center (ITC) project team in Hanoi and Geneva. Prepared by Handicraft Research and Promotion Centre, Hanoi, Vietnam (www.hrpc.com.vn) IDC – International Development Consultants, Aachen, Germany (www.idc-aachen.de) Copyright The information provided is aimed at assisting handicraft producers, exporters and business support organizations in Vietnam. It may, therefore, not be used for re-sale, the provision of consultancy services and other commercial purposes. For utilization of this information on a non-commercial basis, the condition applies that VIETRADE is referred to as the source of the information. All other use is prohibited, unless explicitly approved in writing by 1 The handicraft articles covered in these marketing guidelines are defined in Appendix No.1 3 Export Marketing Guidelines for Vietnamese Craft Exporters VIETRADE. 4 Export Marketing Guidelines for Vietnamese Craft Exporters 1 Are you Ready to Export? 1.1 Market Analysis (External Analysis) To decide if your company is ready to export, first of all assess markets in order to identify opportunities in the most suitable markets. Then assess to what extent your enterprise is capable of taking advantage of the opportunities identified in the market analysis. There are a number of promising markets for Vietnamese crafts in the world and it may cause some difficulties for you to decide where you should focus your efforts. In general, you can use the following step-by-step approach. Step 1: Screen potential markets Obtain trade statistics about handicraft imports in various countries and Vietnamese exports. The General Statistic Office of Vietnam (presently located at No.1A Hoang Van Thu Street, Hanoi) is the best place to find these sources of information, even for your individual product (product codes according to the Harmonized System). Some information about different major export markets is included in Appendix No.2. Identify 5 to 10 large and fast-growing markets for your products. Look at them over the past three to five years. Identify some smaller but fast-emerging markets that may provide particular opportunities. If the market is just beginning to open up, there may be fewer competitors than in established markets. Target three to five of the most promising markets for further assessment. Consult with experts, the Vietnam Trade Promotion Agency (VIETRADE) and others to help refine targeted markets. Step 2: Assess targeted markets Identify importers, wholesalers and other main players in the market. Make yourself familiar with distribution channels and business practices. Identify the market segmentation by users (on demographic criteria, on customer preferences, by price/ quality, etc). Who will want to buy what you can make and why? What is their lifestyle, where do they live, what kind of products do they usually buy? Examine price level and market trends for your company’s products as well as related products. Ascertain the current supply sources, particularly with regard to major foreign countries the firm is competing against. Check market entry barriers (tariff or non-tariff) for the product being imported into the 5 ... - tailieumienphi.vn