Is your product a good candidate for exportation? Exporting a product can include worldwide distribution or maybe just marketing it to people outside your immediate region.
Derek Miller from the Utah World Trade Center examined Utah’s role in the global economy at the economic summit. Today there are four billion internet users around the world. There are world markets for products available more now than at any other time. Just 10 years ago there were 200 million users of the internet and now it’s exploded.
Countries are growing their economies. The United States government struggles to live within their means. The federal government borrows 100 percent of the gross national product.
Utah is doing better at exporting than the country as a whole. Utah is one of the fastest growing states. It is a young state. Seventy-five percent of the people, now 3 million, live along the Wasatch Front. In Utah the unemployment is 3.4 percent. In the US it’s 5 percent.
Utah is ranked ninth for exports. One/third of those exports are primary metals from Kennecott. Gold has gone up in value since the recession of 2009.
The top five destinations for the exports are Hong Kong, Canada, United Kingdom, China and Mexico.
Seventy percent of all purchases are made outside the United States. Ninety-five percent of all consumers live outside the United States. That’s a big market.
Middle class consumption is changing, North America and Europe are flat but it’s up in India and China.
“Have you visited a state or national park lately? Many visitors from China and India are there. The rising middle class in these countries enables them to travel and spend.
“We need to look at these areas for businesses to raise sales. Only 1 percent of US companies export. Of those, 58 percent only export to one market. That number is better in Utah, 5 percent of our businesses export. Twenty-five percent of Utah’s companies are off the Wasatch Front. We need to figure out how to get balance with more companies exporting. There is a lot going on around the world and the world is quickly changing. You need to be aware of what’s going on around the world because businesses can be impacted.
“The World Trade Center of Utah is here to help. We help Utah companies to think and succeed globally. We hold monthly seminars and regional forums. There will be one in Price on May 26. You can learn more about international business. You can meet one on one, create goals and objectives and learn where to focus. We can help you get connected. We go on trade missions for food and agriculture. In March we are going to Mexico. We host diplomatic visitors from around the world. The ambassador from China was here, the consulate general from India, and Vietnam is an emerging market as is Thailand and France. You can come and meet these people and make connections. Sign up for our newsletter at wtc.utah.com.
“The newsletter comes out two times a month with events and visitors listed,” said Miller.
Miller said the possibilities are endless in this global economy. Utah is one of the best performing economies and fastest growing states. “We have a role to play, not just to take care of our economy but to be an example to the country and world. Prosperity through trade and the free market and individual prosperity. We can see in our own state economic prosperity take root and create jobs and better quality of life and prosperity for the world,” said Miller.
Miller suggested 10 tips to help you think, act and succeed globally. Conduct a thorough and realistic self-assessment of your goals, current capacity and export readiness.
Identify resources: Discover the many resources available to help you succeed in your international expansion.
Learn the lingo. Understand the technical language of exporting and international business.
Who wants what you’ve got? Research overseas markets to determine demand for your product or service.
Know the rules of the games. Become aware of the laws, regulations and procedures for your product or service in the specific overseas markets.
Leverage existing platforms. Reach and retain customers through existing online commerce platforms.
Grow as you go. Utilize trade shows and trade missions to explore markets, test demand and meet potential partners.
Choose partners carefully. Identify partners who can help develop your strategy, manage market entry and handle in country representation.
Limit the culture shock. Understand the differences in culture and customs for your markets in advance.
Make money. Maximize your profits by understanding export costs, the skill of payment negotiation and how to get paid on time.
Part III: Is your business/product ready for the world?
"Derek Miller from the World Trade Center of Utah."