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The challenges of distribution overseas

As David Barrow, of Barrow International, has recently been elected chairman of the International Committee at the BMF, I thought it appropriate to discuss with him the challenges of distribution overseas.

Tom Chant is international commercial manager at the British Marine Federation
Tom Chant is international commercial manager at the British Marine Federation

"The first step is to identify which markets to target and draft a strategy for," he said. "The Marine Equipment Trade Show (METS) in Amsterdam is a good launching pad for many products, alongside China, the Middle East, Central and South America."

The International Committee, in conjunction with UK Trade & Investment, has worked on a rating system for countries based on the value and ease of access.

When Mr Barrow finds a product he considers appealing to specific customers, he sends samples to well known distributors in targeted markets: "Tweaking may be necessary to make it more viable in the market. Without taking the time to find out if the product will work in the overseas market; a company could waste thousands of pounds and a considerable amount of time."

Mr Barrow finally recommends finding good local representation: "It’s important to have people on the ground from the country you’re doing business with. They’re going to develop sales, attend boat shows, and translate your documentation.

"A new company is going to have to convince the buyer that he is reputable, and can support the product and distributor."

Mr Barrow's experience in releasing new products at METS has taught him that a product may generate a buzz but few sales in its first year. The second year may produce more targeted interest, but still not many sales. By the third year, potential customers who continue to see the product on display will realise the company has staying power.

"Make sure you’re committed to international distribution. It’s not a short game and should be considered as a three year plan," he says.

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