OPPORTUNITIES IN EXPORTING

Overview of Irish Exporting today• Value of Irish Exports is €150 billion

Overview-Exports 2010

€millions 2009 2010 % change

Merchandise 84,239 89,392 +6.1%

Services 66,634 73,322 +10.0%

Total 150,873 162,714 +7.8%%

GOODS Export Performance 2010:

€ millions 2009 2010 %Agri-food 6,279 6,973 +11%

Beverages 1,079 1,186 +10%

Crude materials 972 1442 +48%

Mineral fuels 595 1,027 +73%

Animal and veg. oil 20 27 +35%

Chemical and pharma

47 988 52,426 +9%

Manufactured goods 1,243 1,443 +16%

Computer hardware 9,778 7,583 -22%

Other machinery 3,807 3,409 -10%

Medical devices 3,944 4,382 +11%

Other miscellaneous 5,246 6,104 +16%

Commodity miscellaneous

2,464 2,711 +10%

Total 84,239 89,392 +6.1%

Services Exports 2010 €millions 2009 2010 %Transport 2,898 3,435 +18.5%Tourism and Travel

3,506 3,075 -12.3%Telecommunications

506 480 -5.1%Insurance 7,597 7,865 +3.4%Financial Services

5,714 5,999 +5.0%Computer Services

24,223 28,126 +16.0%Royalties/Services

1,213 1,362 +12.3%Business Services

20,458 22,429 +9.6%Miscellaneous 519 552 +6.4%Total: 66,634 73,322 +10.0%

Exporting Services

• Irish services representing strong growth

patterns

• Rise of €2.2 billion to €34.6 billion in 1st Qtr

2010

• WTO ranks Ireland as 9th largest commercial

exporting nation

• Services account for 45% of total Irish Exports

Exporting Services

• 2010 IEA launched the

World Series in Cork -

Selling Your Services

Overseas

• Comprehensive Guide to

Services Exporting

Why Export?

• Survival in the economic downturn

• Profitability through creation of a wider client-base

• To establish relationships with similar companies

or create partnerships with research institutes

• Losing Market share due to intense competition

domestically

• Knowledge transfer

• To raise Company Profile

Steps to Exporting

1. Market Research

2. Creating a Plan

3. Strategic Partnerships

4. Sales & marketing

5. Transportation/ Distribution

6. Finance

1. Market Research

Primary Research:

• Visit the potential market

• Cultural Issues/ Language Barriers

• Operations & Distribution

• Legislation

1. Market Research

Secondary Research:

Internet

Company directories and industry-specific publications

Government Departments - Enterprise Ireland

Chambers of Commerce

Embassies

Irish Exporters Association

Bord Bia

Bord Iascaigh Mhara

2. Creating an Export Plan

• You create a Business Plan so why not an Export Plan

2. Sales & Marketing

• Establish how competitors promote their products or services in your target market

• Personal selling and networking

• Advertising

• Digital Media

• Direct Mail

• Trade Shows

• PR

3. Strategic Partnerships

Advantages:

• Access to distribution

• Greater economies of scale

• Wider product range

• Reduced Risk

• Cheaper finance

• New Markets

• Shared market knowledge

3. Strategic Partnerships

Considerations:

• Research the suitable partner

• Define goals and expectations from the

partnership

• Agree main roles of each partner

• Conclude with a legal agreement

3. Strategic Partnerships

• Strategic Partnerships assist companies expanding

into foreign markets

• Cross- distribute products, or service back up

• Production agreement or sharing of production

facilities

• Sourcing or Bulk buying agreements

• Sharing Research & Development facilities

4. Transportation

• Important to choose the most efficient method of dispatching goods to overseas markets

• Air Freight – costly, length and weight restrictions but faster delivery

• Sea Freight – economic, large items but slow

• Express Trailers - Driver accompanied trucks

• Insurance and Agent

5. Distribution

• Factors to be considered include:

• Cost

• Element of Control

• Product or service type

• Agents / Representatives

• Distributors

• Trading companies

5. Agent vs. Distributor

Comparative characteristics of Agents and Distributors

Factors for Consideration Agency

DistributorControl over price and terms of sale Yes

No

Ability to dictate choice of customer Yes

No

Direct contact with customer Yes No

Close control over marketing Yes No

Ability to offload risk of stock No Yes

Commission Payable Yes No

Compensation for termination/expiry Yes No

High Risk of Competition law issues No

Yes

Similar tax position No Yes

6. Finance / Payment

• Development costs

• Currency of Payment

• Credit Periods

• Financing Trade

• Finance Methods

So What Can Irish Exporters Association do For You?

OverseasMarket

Advisers

ExportsRapid infoService

Visa, Legal,Translation

Export /Import Regulations

Market Entry,Market Research

Buyer searchservices

Your Company

Create Strategic

PartnershipsFor

Exporters

Client Transport Logisticsservice

Promotionof

Your Product/service