Overseas Export Agent looking to break into a market..

[michael40]

Hi all,

I am in an unusual position to many here I suppose.
Instead of looking to import into the UK- I am looking for buyers in the UK to import from here.
Here I am in Seoul, Korea. (Originally from Ireland)

I am working alongside an Exporting Company here with a good reputation and plenty of expertise of sending goods etc, overseas- logistics etc.
What are the best ways to find potential buyers in The UK specifically?
B2B is what we are looking at..

ATM, we are in the process of sourcing some particular products and pricing them for shipping to the UK.
I am on the search for potential buyers.

Is it best to check out Online/Offline Stores in the UK or elsewhere?
Make a list of potential buyers from there and approach them with offers and see if they are interested?

Basically how would you advise an Export Company overseas that wants to break into a market and establish itself there start off? No doubting the quality of the goods or the potential anyway.

 

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[wade1mil]

Looks like nobody is interested...
https://www.thefastlaneforum.com/community/threads/korean-products.57815/

 

[michael40]

Looks like nobody is interested...
https://www.thefastlaneforum.com/community/threads/korean-products.57815/

Haven't even started yet..

Any advice on the above question?

 

[michael40]

Ok, Might as well add some more info and ask for advice here.

So I am in touch with a Company here in Korea who have a great product and price.
The price beats anything I have seen for the same product on Amazon, Ebay etc by a lot!!

There is a potential buyer in the UK who is waiting on Product Photos, Description and Price list.

I am concerned about a few things here and need some expert advice.
Once I give the Product Info to the potential buyer- and he sees the photos.
What is to stop him searching for the Product himself and possibly contacting the Manufacturing Company.
They have a website etc.

What steps should I take here?
I don't want to be cut out of the deal..

Regards,

 

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[Trevorjc]

Hi Michael, I see your problem and tbh i'm not sure there is much you can do to stop him going directly to the manufacturer.

But Is it a product you can private label yourself by that I mean re-package and ship directly to Amazon UK yourself so that it would be on your own listing that would be exclusive to you. That way you would not be the middleman and have a potentially higher profit margin.

 

[michael40]

Hi Michael, I see your problem and tbh i'm not sure there is much you can do to stop him going directly to the manufacturer.

But Is it a product you can private label yourself by that I mean re-package and ship directly to Amazon UK yourself so that it would be on your own listing that would be exclusive to you. That way you would not be the middleman and have a potentially higher profit margin.

Thanks for this Trevor. Great idea.
The product is not going to be easy to re- package I think though as their name is on the actual product itself too.

I am meeting the supplier tomorrow here in Korea and they would like to make a partnership it seems.
We will see what they say. They do have the expertise of exporting/shipping etc which would be very beneficial.
I do think that I can open up the products they have to a larger market so that would be a big benefit for them but I am concerned about whether I can get a fair enough slice of the pie. (To paraphrase good aul Richard Quest)

Just got to be careful that if any Distribution line is set up with a buyer in Europe I do not get frozen out.
Will say how tomorrow goes anyway.

 

[michael40]

Meeting with a local Korean supplier/ manufacturer went really well today.
This company has a range of products along similar lines.
Got to see their operation. A company on the up I would say.

Japan has been their biggest market so far. Also some other parts of Asia. They are seeking to expand to other regions and that is where I hopefully come in.. I will focus on Europe.
They already have a partner in the US. They complained a little about said partner due to the partner claiming Exclusivity on Amazon which wasn't true.

What was really interesting too was they showed me an Imitation of their product that was being sold in Korea. It was Made in China. It was been sold for the same price as the genuine one.
The material was a lot different- but the name tag and many other things were similar. The fabric was really easily damageable too.
The labeling was very similar. It was been sold for the same price as the genuine product that they produced.

Looks like I can either,
A- Act as an agent for the Company and sell through them for a commission or
B- Sell by myself etc. They said they could give me exclusivity to Europe too.

Which one looks like the better bet?
I will need to find buyers in Europe.
I am excited about it all.

Any advice from the many experts out there!!
Really Appreciated..

 

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[michael40]

Quick Question.

Has anybody had experience of working alongside a Manufacturer/Supplier on a commission based contract in that company's home country.

Rather than me buying and selling a particular line of products for resale..
I would be the gateway to a particular market for a company's products for a commission.
I understand maybe this goes against the grain.

I am planning on approaching a company with this suggestion.
I think it sounds feasible.

Of course the terming of such a contract is really important.
It should cover...
Exact responsibilities, Commission Rate, Territories, Payment Style,

What are yer thoughts on this?

Regards

 

[Walter Hay]

Quick Question.

Has anybody had experience of working alongside a Manufacturer/Supplier on a commission based contract in that company's home country.

Rather than me buying and selling a particular line of products for resale..
I would be the gateway to a particular market for a company's products for a commission.
I understand maybe this goes against the grain.

I am planning on approaching a company with this suggestion.
I think it sounds feasible.

Of course the terming of such a contract is really important.
It should cover...
Exact responsibilities, Commission Rate, Territories, Payment Style,

What are yer thoughts on this?

Regards

Hi Michael,

I don't know if you have bought my book, but it contains a section dealing with this subject, including warnings based on my own experience. It certainly does not cover some of the specific aspects to your question, so I will post here something that I hope will be helpful.

In brief:

• Enforcement of contracts is extremely costly in any country, but in Asian countries even more so. Therefore you need to establish a good relationship that is so good that you become a personal friend of the owner, but "business is business" and money has destroyed many a friendship.
• Among the joint responsibilities would usually be terms such as a) You will maintain your best endeavors within the designated territory and b) The supplier will not compete with you.
• Who is to invoice the sales and delivers the goods to the customer. For maximum control, that should be you. That inhibits the supplier taking over your territory.
• Commission rate does not apply if the preceding clause is used, but you could substitute something like: "% Discount off usual wholesale price ...." in lieu of reference to commission. I always paid commission reps 30% on sales generated by them and 20% on sales resulting from leads supplied by me.

Overall, I would suggest that you private label the product. I know you have said the manufacturer's brand is on the product itself, but unless it is molded into the product, say, by way of injection molding if it is plastic, there are many different ways to add your own label.

 

[michael40]

Hi Michael,

I don't know if you have bought my book, but it contains a section dealing with this subject, including warnings based on my own experience. It certainly does not cover some of the specific aspects to your question, so I will post here something that I hope will be helpful.

In brief:

• Enforcement of contracts is extremely costly in any country, but in Asian countries even more so. Therefore you need to establish a good relationship that is so good that you become a personal friend of the owner, but "business is business" and money has destroyed many a friendship.
• Among the joint responsibilities would usually be terms such as a) You will maintain your best endeavors within the designated territory and b) The supplier will not compete with you.
• Who is to invoice the sales and delivers the goods to the customer. For maximum control, that should be you. That inhibits the supplier taking over your territory.
• Commission rate does not apply if the preceding clause is used, but you could substitute something like: "% Discount off usual wholesale price ...." in lieu of reference to commission. I always paid commission reps 30% on sales generated by them and 20% on sales resulting from leads supplied by me.

Overall, I would suggest that you private label the product. I know you have said the manufacturer's brand is on the product itself, but unless it is molded into the product, say, by way of injection molding if it is plastic, there are many different ways to add your own label.

So I approached the Company with the suggestion of Commission and full exclusivity to the UK/Irish Market.
My experience etc doesn't warrant greater Exclusivity than that anyway to begin with.

They have said Yes to the Exclusivity.

The initial Commission they have offered is just 10%.
I feel this is a bit low especially considering the MRSP is really high.
What are yer thoughts on this?

They have asked me to draft the contract and we can then work together to finalise it.

Also, to answer the question above about re- labeling. The labels including their website are engraved on the back of the product so there is no way to erase or change those.
That is the reason I am moving towards Commission Based Work.

Regards,

 

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[Walter Hay]

So I approached the Company with the suggestion of Commission and full exclusivity to the UK/Irish Market.
My experience etc doesn't warrant greater Exclusivity than that anyway to begin with.

They have said Yes to the Exclusivity.

The initial Commission they have offered is just 10%.
I feel this is a bit low especially considering the MRSP is really high.
What are yer thoughts on this?

They have asked me to draft the contract and we can then work together to finalise it.

Also, to answer the question above about re- labeling. The labels including their website are engraved on the back of the product so there is no way to erase or change those.
That is the reason I am moving towards Commission Based Work.

Regards,

10% does seem low, but they may say that the high selling price makes it worthwhile. If you have to pay all selling costs it would not satisfy me in your situation. If they carried all of the costs it would be acceptable.

Any contract should be drafted by your lawyer. The exclusivity part would need to be for a set period, renewable by mutual agreement.

Regarding labeling; I think you may have the wrong term "engraved". It is probably debossed as part of the molding. If so a new mold would be needed and that could be costly. An alternative may be possible. What is the size of the brand? Is the product made of plastic? Is it flat and if so what dimensions would need to be covered to completely obscure their brand?

Don't give up on private labeling until we have exhausted the possibilities.

Regards,
Walter