Selling Goods to Europe

Selling Goods to Europe

Every president or top-manager of a company thinks about increasing sells and exporting goods they produce to foreign countries. Selling goods abroad gives opportunity to a company to increase sells and profit.

Volume of trade between China and European Union was equal to 217, 3 milliard USD, that is more than volume of trade between China and USA. This means that thousands of factories and plants in China produce and sell their products to Europe. This also means that somehow your company still has not developed strong trade links with European countries. Why it happened? Of course, it happened not because you did not understand the benefits of trading with Europe. Exporting goods is beneficial course government gives its support to those companies that trade abroad and returns them taxes. This additional money got from government is great support for exporting companies and gives company’s owners opportunity to develop business faster than others.

It’s not an easy thing to sign contract for exporting goods to Europe. From the other hand- thousands of businessmen managed to sign them. In this article we will try to analyze the ways of conquering European markets and find out the strategy that will help your company to sell goods abroad.

European customer should come to know about your company and goods you produce.

The ways of attracting the clients can be divided into two groups- passive ways and active ones. Example of passive way is creating a site and waiting till possible client find your site in internet and call you. Same site can be used in active way if you translate it into English and start promoting it. Sometimes passive ways work but usually only active ones can bring you success. You should not just wait for clients, but use all opportunities to sign export contract, find customer or sell goods abroad.

You can promote your goods abroad in several ways:

1. By participating in exhibitions in China where businessmen from Europe come. On exhibitional grounds people will come to know about your goods, will take your promotional materials and possibility of signing exporting contract will increase dramatically. Renting an exhibitional ground on Canton fair costs about 50 000 RMB, and several thousands RMB you will spend on printing promotion materials. You may feel that this is big money but even one contract will cover your expenses and bring you sound profit.

Of course different enterprises participating in Canton fair or other exhibitions in China will get different result. You should analyze the situation on exhibition and risks you may have. In our case you may have risks of not signing contracts and loosing money you spend on participating in exhibitions. A company that is situated near Guangzhou has more chances that European businessmen will visit it and sign contracts after exhibitions. The alternative way of promoting your goods and selling them abroad is participation in European exhibitions. Of course this is not cheap (but when you calculate everything it will not be more expensive then Canton Fair) but benefits you get are really huge.

The most important is that there are only several companies from China that participate in European exhibitions and you will not be lost among the rows of Chinese participants. You stand visitors will be European businessmen who wish to buy Chinese goods but do not have opportunity to visit China or are not satisfied with past Chinese partners. On exhibitional grounds you will get chances to talk to possible client face to face, explain him advantages of your goods and signing long-term contract with your company- you will have all those opportunities that you will never get by promoting your goods in internet or newspapers.

Only by participating in European exhibitions you will increase your popularity and will be view as reliable partner who provides good-quality goods and competitive prices.

Contracts you will get on European exhibitions will bring you profit and good name on European market.

2. Promotion of your goods in internet on your own site or in special catalogues. Creating own site will not solve all your problems but can bring much help to you. If along with site you find representative in Europe and two ways will come together you will certainly reach success. Do not be afraid, there are economical ways of promotion goods in Europe and specialists can develop strategy of conquering European market according to means you have.

3. Finding business-partner in Europe. There are lots of go-between companies in Europe that cooperate with Chinese suppliers. The only thing you need to do is finding qualified partner, rest he will do himself.

4. Establishing representative office in Europe where European customers can come and get information about your company and goods you produce. It is not so expensive as you may feel to register a representative office in Europe but profit you get is big. Lets see example, this wine is produced in China. Its wholesale price in China is 3 RMB per bottle, its price in Czech Republic, Europe is 104, 90 Czech korunas that is equal to 42 RMB. Price has been increased in 14 times. What do you think who get the biggest profit: producer, go-between company or seller? Of course, go-between company will take the biggest profit even though it has not taken any risks. Such analysis usually makes one think about establishing representative office in Europe, promoting goods and signing exporting contracts with European partners.

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Selling Goods to Europe