Small Business Council Meetup – Discovering Opportunities for Growth by Expanding into Foreign Market

Date: May 27, 2014

Name: Small Business Council Meetup – Discovering Opportunities for Growth by Expanding into Foreign Market

Presenters: Alice Chen, Cristina Falcone, Sandra Light, Arjan Stephens, and Rob Arthurs

Many companies are using expanding to new market as a strategy to grow their businesses. Import and Export regulation is important for business to ensure they are diversify the risks they are facing. The focus of this seminar is to introduce techniques for companies going through international expansion. The seminar invites Alice Chen, the CEO of Export Ventures Group to lead the presentation.

Cristina Falcone, VP of Government Relations of UPS Canada

Based on the Comprehensive Economic and Trade Agreement (CETA), UPS Canada creates 80,000 jobs and introduces 500 million consumers up to this date. During the current economy, free trade agreement (FTA) is essential. Understanding the economy sector of Europe, Canada is ranked 12^th in the list as global trade partners. Therefore, trade is the engine of the global economy.

In the next 15 years, GDP forecast will grow by 50 trillion and 74% will be expected to come from emerging market. 26% will remain from existing developed company. The main grow opportunities and industrialization will focus on Mexico, United Arab, South Africa and Vietnam.

Companies are recommended to implement supply chain strategy in the future to adapt the changes.

Falcone recommends Canadian Companies to visit CETA Benefit from Canada’s Economic Action Plan and Canadian trade Commissioner Service Resources for further detail.

Sandra Light, Trade Advisor, Small Business BC

Small Business BC is a resource center for business companies. They offer information about international trade, import/export coaches, trade regulation, HS code and logistic training.

Arjan Stephens, VP of Marketing & Sales of Nature’s Path Foods

The Nature’s Path Foods starts locally in Vancouver and believe organic will be a trend in the future. The company’s philosophy is to build on a fundamental value from underground and understand what the value is stand for. Stephens take the company oversea and transform from local to a large international corporation.

“Big Vision can achieve Big Things”

Rob Arthurs, Senior Manager of Export Development Agri – Food & Natural resources, BC Government.

Arthurs’s company sold all over 11 countries, including India, Hong Kong, and US, with the help of Federal and Provincial government. Arthurs recommends companies to look at Trade and Investment Representatives because they are designed to help international businesses discover the benefit of BC. It will help businesses to penetrate the market and avoid the minefield.

Arthurs also suggest companies to register BC Business Network to promote their business for free. There is also BC Business Opportunities Database for companies to access free resources for investments. BC government also provides contracts and grants for companies to startup international trade.

Group Answer

How do companies know if they are ready for Export?

Presenters recommend companies to learn from failure and receive feedback. International trade requires long time commitment and determination. Companies need to adjust their products based foreign market.

“Think International, Act Local”

There is a test from Canadabusiness.ca for companies to see if they are capable of international trade. The test will help companies to understand the general concept of import and export. Trade Data Online can also provide information for companies.

Companies need to have domestic success before going internationally.

How do companies determine what to go first?

Presenters suggest companies to look at geographic advantages, resistance, freight cost, and capital. People will come to companies that provide high quality. Companies should pick country that is closer to them and understand which strong culture that fits their companies.

What are the requirements to access foreign market?

Companies need to look at the Free Trade Agreement for any advantages. Companies need to understand the culture and the barrier of entry. It is beneficial to have roots from other countries. International trade is a two-way trade, so companies need to determine the demand and supplies from other countries.

How do you market in the current region?

Companies should be participating international and local trade shows across the world. Look at government grant, brokers and payment terms. Word of mouth is the best reference.

How do you handling logistic?

Companies need to review their supply chain strategy. Companies need to understand their ocean freight cost.

What are some restrictions in import and export companies need to be aware?

Canada Security Business will check and verify all export products. Government will initiate smell test to ensure products are approved by law. Some products, such as high-tech, require control; therefore, permit will be issued. Government will look at domestic sales. If the sales are too low, they will reject to help companies to export internationally.