ExportX has created a new way of exporting that’s fast to market and slashes the cost and risk compared to conventional market entry strategies. With ExportX you have the in-market selling advantage without needing to establish a costly direct presence or sign away control and margin to a distributor. Your products can be in-market and selling nationwide in just weeks.
Have you explored the conventional options for breaking into the American market? You’ll likely be advised to choose between direct market entry and using a distributor.
Conventional direct market entry involves committing key staff to America, hiring a sales force, spending American-size budgets on marketing, and often risking everything for a shot at making it in America.
Appointing a distributor is a seemingly easy option that in practice can cost time and money and still fall short of expectations. What distributor can represent your product and educate resellers and the market as well as you can, or will try as hard to sell it as you think they should?
With ExportX, you won’t need an office, a warehouse and staff in America, and you won’t need to sign away control to an offshore distributor. You retain control of your brand and customer community, which is rarely possible with a conventional distribution arrangement.
If you’re already exporting to America, could you benefit from extra revenue by adding the ExportX online sale channel? We can work alongside your distribution relationships.
This compare-and-contrast table shows the ExportX advantage over conventional export market entry.
|ExportX||Conventional Export Model: Direct Market Entry||Conventional Export Model: Appoint Distributor|
|Summary||Fast to market. Low capital requirement. Low business risk. Retain control of brand.||Full control, do it your way. Takes time. Expensive. High fixed costs.||Often seems ‘easy option’. Give up exclusivity and control. Can be difficult to exit. Low margin.|
|Capital required||Stock.||Stock, salaries & expenses, premises, accounting & compliance, marketing. $250,000+/year||Stock, Find and select a distributor (trade shows, travel, legal contracts). $50,000+|
|Margin||Similar to selling to a local reseller.||Full margin.||Slim margin.|
|Branding and marketing||Production promotion and brand marketing from New Zealand. Low cost start-up on-line marketing and promotion options.||Full control. American-size marketing budget. Typical PR retainers start at US$15,000 per quarter.||Little control. Typically controlled by distributor.|
|Critical path to market||Product availability, shipping.||Establish US entity, open bank account, hire or relocate US employee #1, rent premises, start marketing.||Find distributor, negotiate contract, ship stock, buyer seasonal cycle.|
|Time to first sale||12 weeks.||12 months.||6 months.|
|Market visibility||Monthly detailed sales reports, online live stock levels.||Internal systems.||Typically little to none.|
|Market entry cost||$||$$$$$$||$$$|