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Commercialising Sales When Selling Overseas Through Commercial Catalysts

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Jackey Paual
Commercialising Sales When Selling Overseas Through Commercial Catalysts

Many businessmen have demonstrated a unique ability to successfully commercialize their sales process in a complex world of exports in spite of varying degrees of trade and tariff-related barriers. They have overcome challenges not only by providing excellent business efficiency but also commercial acumen in overseas markets.

A good product can only generate successful sales on a sustainable basis, only if it makes a journey from the production line to the overseas marketplace, at a scale. Otherwise, they are bound to fail one day or the other.

The art of commercializing in export markets requires navigating numerous landscapes concurrently whether it is export documentation in line with correct H.S Code, meeting regulatory approval, labeling requirements (many times in local language), developing cost-effective packaging to meet transportation, shipping, shelf life, or building efficient supply chain, legal and banking system to collect the revenue in a risk-free manner from overseas customers.


Commercial Catalysts


One of the best ways to commercialize sales in overseas markets is to partner with commercial catalysts namely, distributors, resellers, retailers, franchisee,s or manufacturer representatives. It is important to choose your sales channels very diligently to overcome the challenges of bringing your product or service to overseas markets.

Today we all are in an era where simply being smart is not enough, you need to be smart and innovative; as delivery models are changing overnight and technology is shortening the product life cycle at a fast pace.

A groundbreaking product may become obsolete within a short span. A commercial catalyst like overseas distributors, franchise, or commission agents can be your strategic partners and help to keep you abreast of changing dynamics on both technology and commercial innovations( like Blockchain, fintech, etc.)


Commercial Policy


Commercial policy plays an extremely important role in the success of any product or service while working on price positioning in the overseas market. A sound commercial policy is one that is customized to meet the legal obligations of targeted export market requirements and encompasses all commercial elements. So what are these commercial elements? A distributor agreement or franchise agreement should clearly define at least three elements:


  1. a) Delivery terms (Ex-works, FOB, CIF, CFR, DDP, etc.) for distributor agreement Or Brand usage in the franchise contract
  2. b) Discount structure (MoQ (Minimum order quantity) linked; PPD (prompt payment discount) or standard discount etc.) applicable to dealer or reseller agreement. Royalty &/Or Franchise fees applicable to a franchise contract.
  3. c) Payment terms (Credit period; LC or TT, Upfront fee or Monthly fee from sales etc.); to avoid unnecessary discrepancies etc.

 

 

Conclusion


To be successful in overseas markets, a commercial policy framework is as important as product or service specifications. It may take some time to research and arrive at important elements for building a sound commercial policy. However, it’s worth spending time and effort to build this building block while targeting any export market.


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Jackey Paual
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