The purchasing habits in emerging markets
Posted by: Jenny | 2016-09-11 10:20:04
We need to do thing targeted. Only if we can truly understand the customer's purchasing habits can we do well in the sales process. I also think highly of the emerging market.Now,let's see their purchasing habits so that we can be more smoothly in the negotiation.
Trading habits: Buy with seeing the goods. I give you money, you give me product.Or sell goods on a commission basis.
Order quantity: Small quantity with variety kinds. Hurry to get the goods.
Note: African countries inspect the import and export commodity before shipment which has increased our cost and delay our delivery date, hindering the normal development of trade.
Trading habits: Usually use credit card and cheque. They used to consume first before payment.
Note: Due to the limited funds, the bank interest rate is higher (about 22%). They are still accustomed to pay as you see or installment. They generally do not open LC at sight.
Trading habits: Declare the lower value and pay the price difference by cash.
Note: Morocco's import tariffs level is higher and the foreign exchange management is strict. DP payment terms has the higher risk for its export business. There once occurred that the Morocco customer colluded with the bank to get the document first and did not finish the payment until the domestic bank and export enterprise repeatedly urged.
Trading habits: Danish importers are generally willing to accept LC payment terms in the first business with the foreign exporters. Since then, they usually use Cash Against Documents and D/P 30-90 days or D/A. It will be a small amount at the beginning(sample consignment or trial order).
Tariffs: Denmark gives the developing countries and the Eastern Europe countries and the Mediterranean countries the most-favored-nation-treatment or the more preferential GSP. But in the steel and textile system, it receives seldom tariffs privilege while the countries have larger textile exporter often adopt the self limited policy.
Note: Denmark requires the same product as the sample and they pay more attention to the delivery date. When implement a new contract, the foreign exporter should specify the delivery date and finish on time. Any violation of delivery, resulting in the delay of delivery, are likely to be the canceled the contract by the Danish importers.
Transaction: They use to do LC and the credit period is generally 90 days while the large chain stores are about 120 to 150 days.
Order quantity: About 200 to 1000 pieces each time.
Note: Spain does not charge the tariffs on its input products. The supplier shall shorten the production time and pay attention to quality and reputation.
The Eastern European market has its own characteristics. Their requirements for product quality is not high, but for the long-term development, the goods with poor quality is not potential.
The Middle East
Trading habits: Indirect transactions through agents. They show indifference in direct trading. Their demand on product in not high compared with Japan, Europe, America and other place. They pay more attention to color and prefer the dark items. The profit is small and the amount is not large, but the order is fixed.
Note: Pay attention to the agents to avoid being lowering the price by them. Be faithful. Once the contract and agreement is signed, you should perform your duties, even the oral promise. Pay attention to the customer's inquiry. Keep a good attitude and do not care too much about the sample or sample freight.
The Russians often TT after sign the contract and require to deliver the goods on time. They seldom open the LC. It is not easy to find the customers, and you can find them by the exhibition or local visit. The local language is Russian and the seldom speak English for communication, so it is more difficult to communicate. People will generally find the translator for assistance.
Trading habits: Generally they do not accept LC at sight payment terms but the usance letter of credit.
Orders quantity: The order quantity is small and usually requires to see the sample first.
Note: Try to shorten the delivery period. Try to meet the need of this country's purchasing needs and relevant provisions. Secondly, improve the product quality and grades to make it meet the international standards. The Mexico government regulates that all imports of electronic products must apply the NOM from the Mexico Ministry of Industry and Commerce before importing which means to meet the America UL standard.
Different people should be treated in different ways, but we need to provide the same service to them. If you can clearly understand the purchasing habits in different countries, you will do better in the business and work more handy!
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