# Presentation: 177036

## International Trade Opportunities and Preparing to Export Arts and Crafts	

- “Business of Art & the Art of Business”
- Carefree, Arizona
- July 13, 2008

## U.S. Commercial Service

**Our mission:**
- To promote the export of goods & services from the United     States, particularly by small- and medium-sized businesses

*The U.S. Commercial Service is part of the U.S. Department of Commerce, an agency of the United States government.*

## Our Network & What it can do for you

**Our Network & ****What it can do for you**

- We can...

-    Locate international buyers, distributors & agents
-    Provide expert help at every stage of the export process
-    Help you to enter new markets faster and more profitably

## Gold Key Service

- Pre-screened appointment schedule arranged for you before you travel overseas
- Customized market and industry briefings with our local trade specialists
- Timely and relevant market research
- Post-meeting debriefing with our trade specialists and assistance in developing appropriate follow-up strategies
- Help with travel, accommodations, interpreter service, and clerical support

## International Partner Search

**1.  You provide your marketing materials and background on your company**
**2.  Then we use our network of international contacts to interview potential partners and provide you with a list of up to five pre-qualified partners**
- Save valuable time and money by working only with pre-qualified international partners that are interested in selling your products and services.
- Obtain high-quality market information on the marketability and sales potential for your products and services.
- Get all this information in 15 days.

## International Trade Shows

- Pre-Show Promotion
- USA Pavilion
- One-on-One Appointments
- Interpreters
- Market Briefing
- No Off the Floor Sales At Most International Trade Shows —Orders Only

## Upcoming International Trade Shows

- CULTOUR, Cologne, Germany, June 12-15, 2008
- Import Shop Berlin, November 2008
- Christmas World, Frankfurt, January 2009
- Ambiente, Dusseldorf, February 2009
- Inhorgenta (Jewelry), Munich, Feburary 2009
- HK Int’l Jewelry Show, Hong Kong, March 2009
- Tendence Lifestyle, Dusseldorf, August 2008

## Single Company Promotions

**The Single Company Promotion service offers support and event facilities which will allow you to engage your target audience through:**

-  Product launches
-  Sales seminars
-  Staff training
-  Networking receptions

- Facilities available include exhibition halls, auditoriums, meeting rooms, hotels and even the residences of some US Ambassadors.

## Market Research

**Country Commercial Guides (CCGs)** - Prepared annually by US Embassy Staff, CCGs contain information on the business and economic situation of foreign countries and the political climate as it affects U.S. business and foreign investments.
**Industry Sector Analyses (ISAs)** - In-depth analysis of specific industry sectors and sub-sectors within a given market.
**International Market Insight (IMIs)** - Brief updates within a foreign country highlighting specific market opportunities, trade events, or changes in market conditions.

## Current Reports

- Giftware Market – Japan
- Giftware Market – New Zealand
- Giftware Market – Germany
- Giftware Market – Singapore
- Belgium-Native American Jewelry
- German Market for Native American Products
- Germany’s Jewelry Market
- Jewelry – Hong Kong, S. Korea, Argentina, Germany, Italy Singapore

## Do Small Companies Really Export?

- Small and medium-sized companies account for almost 97 percent of U.S. exporters.
- More than two-thirds of exporters have fewer than 20 employees
- Nearly two-thirds of small and medium-sized exporters only sell to one foreign market--many of these firms could boost exports by expanding the number of countries they sell to.
- Exports stimulates the economy, creates/sustains jobs

## Assessing Your Export Readiness

- Uncomplicated Communications – telephone, fax, e-mail accessibility—ability to respond quickly
- Promotional Materials – brochure, website
- Ability to process payments via credit card, letter of credit, etc.
- Ability to ship products in a quick and protective way
- Ability to resolve any issues the buyer may have with regard to their purchase.
- Product tag to describe contents and cultural significance
- Comply with a country’s import regulations and requirements if applicable to your product.

## Preparing to Export

- Commit Human and Budgetary Resources
- Long Term Commitment/Effort
- Target One or Two Markets
- Identify Trade Resources/Partners
- Gather Market Information
- Promote Your Products
- Identify and Qualify Buyers
- Do Your Homework and Develop Your Strategy

## Long Term Commitment

- Establish 6 to 12 month goals—be realistic—develop a budget; identify action steps; reassess your goals on a regular basis and stay focused
- Target one or two markets at most
- Gather market data and understand your market
- Understand your production capabilities and be up front when communicating with international buyers

## Understand Your Market

- A “niche” market
- Not Mass Produced
- Wide Open Market – Limited Consumer Demand
- Generally Purchased for their uniqueness;
-    or for their individual or sentimental appeal
- 	--purchaser may have traveled in the region or had other personal ties
- Very competitive against other arts/crafts imports from other regions.

## Typical Marketing Venues	

- Internet
- Department Store Promotions
- Specialty Shops/Gift Shops
- Airport Gift Shops
- Art and Giftware Trade Shows
- Museum Shops/Museums
- Catalogs

## Product Presentation

- Product tag, or label, should always have
-     the artist’s name and geographic location;
- A description of the cultural significance –
-     in your native language with local language translation, if possible;
-   --  A description of product contents and any cultural significance;

## Shipping Your Product

- Package to protect product
- Labeled correctly—address, phone numbers, etc.
- Proper Documentation
- --Commercial Invoice
- --Airway Bill/Bill of Lading
- --Shippers Export Declaration (SED) if value is $2,500 or higher
- --Certificate of Origin
- Insured against damage, pilferage, damage,etc.
- Harmonized System Number (product identification)

## Clearing Customs

- Proper Shipping Documentation
- Any certifications or other documents required for your product, i.e., content of jewelry—percentage of silver, gold carats, stones, etc.

## Pricing and Payment Issues

- Price Competitively – take into account extra costs incurred by your buyer, i.,e, tariffs and duties, shipping costs, insurance, etc.
- Payment Methods – Cash in Advance, Credit Card, Letter of Credit
- Always require payment in U.S. dollars
- Be certain to include all costs on your quotation—cost of the product, shipping costs, etc.

## Export Resources

- Local U.S. Export Assistance Center
- Chambers of Commerce
- Colleges/Universities
- World Trade Centers
- State Governments
- Trade Associations
- SBA

## Slide 22

##  CS Rural Export Initiative (REI)

- Special Funding for Export Outreach to Rural Communities
- Bring International Trade Resources to Rural Businesses
- Develop Rural Partnerships

## CS Programs for American Indian Communities

- First DOC Associate Office on an Indian Reservation – San Manuel
- Created An Associate Office with the Tlingit-Haida Central Council in Alaska which serves 20 villages
- Video conference with Italian buyer and artisans at RES ’99 in Phoenix
- Actively involved in organizing and supporting the annual American Indian Tourism Conference

## CS Programs for American Indian Communities

- Special export workshops series for Indian communities held in Alaska, Arizona, New Mexico, South Dakota, Utah and other states.
- Native American Tourism Featured at Trade Event in 6 locations in Australia
- 7 American Indian Tourism Organizations featured at BIT 2003, Travel and Tourism Show in Milan, Italy
- American Indian jewelry featured at CHIBI Jewelry Show, Milan, Italy
- Native Americans represented at the Hong Kong International Jewelry Show, March 2004

## CS Programs for American Indian Communities	

- Special Native American Section at ITB Berlin in March 2004– See Native America, One Tribe At A Time
- Special Native American Cultural Program at the John F. Kennedy School in Berlin, March 2004
- Native American representation at ITB 2005, ITB 2006, ITB 2007, and ITB 2008 including cultural program.
- Series of International Tourism Marketing Workshops on Native Land in April 2005
- Six Native American tribes represented at a Nordic Travel Program in January 2006
- MACEF Jewelry Show, Milan, Italy, September 2006
- World Travel Market, UK

##  Websites

- _[www.export.gov](http://www.export.gov/)_
- (4 hr. export seminar and Basic Guide to Exporting book)
- _[www.buyusa.gov](http://www.buyusa.gov/)_

## Local U.S. Export Assistance Center

-     Matt Baker, International Trade Specialist
-     U.S. Commercial Service
-     Tucson, AZ
-     _[matt.baker@mail.doc.gov](mailto:matt.baker@mail.doc.gov)_
-     520-670-5540
- 	Sandra Necessary, Director
- 	U.S. Commercial Service
-      Santa Fe, New Mexico _[Sandra.Necessary@mail.doc.gov](mailto:Sandra.Necessary@mail.doc.gov)_
- 	Tele: 505-231-0075