Masterclass in Investment Promotion and Facilitation How to Attract - - PowerPoint PPT Presentation
www.wavteq.com | www.incentivesmonitor .com | www.fdiprofessionals.com| www.fdiaccounting.com company/wavteq @wavteq 1 Masterclass in Investment Promotion and Facilitation How to Attract FDI from Canada and Similar Countries Sultan
www.wavteq.com | www.incentivesmonitor .com | www.fdiprofessionals.com| www.fdiaccounting.com
company/wavteq @wavteq 1
TPSA program is executed by In partnership with:
Data ¦ T echnology ¦ Consulting
“How to Attract FDI from Canada and Similar Countries”
Sultan Hotel Jakarta, 9 & 10 November 2016
Workshop facilitated by:
08:45 – 09:00 Opening Statements Module 1: Global FDI Trends 09:00 – 09:30 09:30 – 10:00 Module 2: Global and regional FDI trends (with FDI quiz) Canadian FDI trends and opportunities for Indonesia Key success factors in attracting FDI 10:00 – 10:30 10:30 – 11:00 11:00 – 11:30 What is investment promotion and why does it work Most effective techniques to attract FDI: review of evidence Coffee break Module 3: Best practices in Lead Generation 11:30 – 12:45 12:45 - 14:00 14:00 - 14:45 14:45 - 15:15 15:15 - 15:45 Module 4: Group exercises (based on real FDI prospects for Indonesia) Lunch Best practices in lead generation Results of our campaign to target Canadian FDI in Indonesia Coffee break FDI value propositions & Indonesia’s competitiveness 15:45 – 16:15 16:15 – 16:30 16:30 – 17:00 Indonesia’s value proposition for FDI (group quiz) Best practices in proposition development Presentation of materials to attract FDI to Indonesia
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W A V T E Q
4 WAVTEQ is a specialist consulting firm working with economic development agencies to attract FDI and providingcorporate location services to companies. The WAVTEQ Group is the largest FDI team worldwide with the most extensive global presence
Over 75 FDI consultants, with lead generation teams in Austria, Canada, China, Germany , Hong Kong, India, Ireland, Japan, Korea, Spain, UK and US We have helped over 1,000 companies establish over $50 billion
project, including manufacturing, logistics, HQs, and R&D WAVTEQ develops the world’s leading FDI tracking and corporate location databases WAVTEQ is the technology and consulting partner of fDi Intelligence, Financial Times, with the Canada, Asia and Middle East Franchise
5 WAVTEQ's team is at the forefront of knowledge on FDI, with over 100 FDI publications. WAVTEQ provides a free publication portal for FDI studies (www.wavteq.com/publications) subscribed to by
publications are shown on this slide. These studies used extensively by EDOs, IPAs and international organizations to inform their investment promotion strategies.
W A V T E Q
Time: 9:00-10:00
9/20/2017
Source: WAVTEQ based on official data sources
2012 2013 2014
Source: FDI flows (UNCT AD), M&A (MergerMarket),
8Greenfield (fDi Intelligence)
1.51 1.43 1.28 1.76 1.15 1.07 1.62 1.67
M&A
0.63 0.83 0.71 0.78
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 2015
$ trillion
Greenfield FDI Flows
2016 (Jan-Sept)
Source: www.fdimarkets.com
2015
9
10
Source: fDi Intelligence/WAVTEQ FDI Forecasting Model
The 6 largest countries by GDP account for over half of global FDI
20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%
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2012 2013 2014 2015
Source: WAVTEQ based on www.fdimarkets.com
2016 (Jan-July)
US China Japan Germany UK France
1.48% 12 1.93% 1.37% 1.63% 2.14% 2.52% 2.71% 1.59% 2.85% 2.16% 2.19% 2.42% 4.95% 5.73%
1.00% 0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: WAVTEQ based on www.fdimarkets.com
2.00% 3.00% 4.00% 5.00%
Indonesia’s share of global FDI?
6.00%
Indonesia accounts for 1.39% of world GDP
637,285 675,020 704,335 761,550 828,812 1005227 55,520 55,876 58,476 58,444 67,665
200,000 400,000 600,000 800,000 1,000,000 1,200,000 2010 2011 2014 2015 2012 2013
Source: StatsCanada
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World Asia & Oceania
6.90% 14 4.41% 1.81% 1.65% 3.31% 3.13% 2.46% 3.12% 3.38% 2.58% 3.81% 2.48% 2.18%
0.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: WAVTEQ based on www.fdimarkets.com
1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00%
Canada’s share of global FDI
Canada accounts for 2.5% of world GDP and a similar share of world greenfield FDI
Canada’s decline in market share related to decline in commodities prices where Canadian firms are major foreign investors
W A V T E Q
Time: 10:00-11:00
W A V T E Q
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➢Asset seeking motives ➢Market Seeking Motives ➢Resource Seeking Motives ➢Efficiency Seeking Motives
China Horticulture Medical devices Genetics
Many FDI decisions are based on a combination of different strategies e.g. to lower costs and access new markets
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W A V T E Q
Investment promotion
Source: Loewendahl, ‘A Framework for Investment Promotion’ TNCs, UNCTAD (April 2001)
9/20/2017
9/20/2017
₊ The net present value of pro-active investment promotion to be almost $4 for every $1 expended ₊ A 10% increase in investment promotion budget leads to a 2.5% increase in FDI flows or in other words $60,000 of promotion leads to a $5 million increase in FDI ₊ There a 2-5 year lag for the impact of increased promotion to feed through to increased FDI, which shows that investment promotion activities need to take place as part of a 2-3 year strategy and evaluation cycle.
Source: World Bank studies
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₊ Image, brand awareness, and perceptions are major factors influencing the location of FDI. Companies make investment location decisions on the basis of their information pool and understanding of an area’s location “offer” . ₊ When making a decision on where to locate the information base of MNEs is far from perfect, and the decision-making process can be subjective and biased. It is often a bureaucratic process, which may be affected by imperfect competition, distorted risk perceptions and political rivalry between affiliates of MNEs. ₊ The implication, as the International Finance Corporation (IFC) argues, is that: “Most companies consider only a small range of potential investment locations. Many other countries are not even on their map. ”
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₊ Investment promotion is most effective when it:
1. Overcomes information asymmetries 2. Compensated for the imperfect functioning of international markets, which makes parent companies (and their corporate location advisors) reluctant to consider new production sites; and 3. Led to product differentiation of the host country as a location for targeted activities.
₊ A DCI survey of 356 corporate location decision makers found that articles in newspapers & magazines and meetings with EDOs were 3 of the 4 most important factors influencing executives perceptions of an area’s business climate for inward investment ₊ The EIU survey of 155 MNEs concluded that: “Governmental support for corporate overseas expansion plays a crucial role across all key areas”
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Impact on the economy Studies have shown that typically: ₊ $1 in FDI leads to $1 in domestic investment ₊ 1 manufacturing FDI job creates 3 indirect jobs in the local economy ₊ IFC studies have also shown that companies that focus on
economy But the impact is company, project and location specific and also depends on government policies to help foreign investors do more in the country
W A V T E Q
Source: fDi Intelligence
9/20/2017
Technique – most effective % Agencies using Average score of effectiveness (5=most) After-care services for existing firms 100% 4.1 Sales representatives overseas 75% 4.0 Outsourcing LG to consultancy firms 50% 3.5 Diaspora inward investment targeting 13% 3.5 Conferences, seminars 100% 3.4 Inward investment website 100% 3.3 Inward FDI missions 63% 3.3 Outward FDI missions 63% 3.3 Referrals from the national IPA 38% 3.3 Conventions, exhibitions 100% 3.1 Direct mail to targeted companies 63% 3.0 Outward trade missions 38% 3.0
29% 26%
Source of inward investment project leads for US EDOs (2016) – shows the importance of
20% targeting intermediaries 9% 6% 5% 0% 10% 20% 15% 25% 30% 35%
Site Consultants & Brokers Business Development Team State EDO Direct Company Inquiry Other
Source: Development Counsellors International (2016) Survey of Major US EDOs, “What’s working in Lead Generation” 27
Investor perspective: Most effective marketing techniques used by IPAs (% rating 4 or 5 out of 5)
(Source: DCI, Winning Strategies, 2014 based on 356 corporate executives and location advisors)
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Investor perspective: Leading sources of information influencing executives perceptions of an area’s business climate
2% 2%
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4% 9% 12% 13% 22% 21% 24% 31% 37% 44% 55%
0% 10% 20% 30% 40% 50% 60%
Dialogue with industry peers Articles in newspapers & magazines Business travel Meetings with EDOs/IPAs Rankings/Surveys Online sources Word of mouth Personal travel Other TV & Radio Advertising Social media Direct mail
Source: DevelopmentCounsellorsInternational“Winning Strategies” (2014) based on a survey of 356 corporate executives
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Source: WAVTEQ
W A V T E Q
Time: 11:30-15:15
W A V T E Q
Our experience in Lead Generation
₊ WAVTEQ has achieved unparalleled success in attracting FDI for our clients ₊ WAVTEQ has a current pipeline of $15 billion FDI projects pending decisions ₊ Two members of our Asia and Europe teams have received prestigious government awards for their success in attracting FDI.
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Performance metric Confirmed investments
>1000 projects Capital investment (US$ billion) > $50 billion Direct job creation >150,000 jobs Performance since 2014 >$10 billion of FDI
I need 5 “project successes” (average project = 100 jobs)
20%
So I need 25 “active projects” with decision this year
20%
That means I need to have 125 “qualified prospects”
20%
And to identify & prospect 650 FDI “leads”
34 –
companies that have strong potential to invest
Source: WAVTEQ
9/20/2017 35
What is the average length of time from first contact with a lead to when they have a project and have selected your location for that project?
24 months What is the average time until a project is operational? 12 months
Source: WAVTEQ
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Finding capital Acquiring foreign brands Moving to business-friendly location Access raw materials/energy Other motives
Source: EIU, “Corporate overseas expansion: Opportunities and barriers” (2015) based on a survey of 155 senior corporate executives
7 23 31 30 39 42 44 47 57 59 10 20 30 40 50 60 Improving R&D/technology Producing more cost effectively Seeking foreign markets due to competition… Opening new markets for products/services Gaining market share
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Source: www.fdimarkets.com. Based on corporate press releases for 1,222 FDI projects in first 7 months 2016
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W A V T E Q
“For the long term, the focus should be on product development to improve location competitiveness and maximize the benefits of FDI for the country”
(WAVTEQ)
“In the short to medium term investment promotion strategy should focus on effective lead generation to increase the number of prospects, active projects and re-investments and investment facilitation to increase conversion rates. ”
(WAVTEQ)
Quick wins
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Over 30 companies are about to make their first investment
Y
₊ There is a lot of “low hanging fruit” out there in the FDI market! ₊ The challenge is to find it and act on it
fDi Intelligence “investor signals” service
₊ Screening over 20,000 FT and other sources daily ₊ Tracked over 15,000 companies which our analysts in the FT believe will invest overseas – many have now investe ₊ Over 5,000 companies are considering FDI into Asia Pacific ₊ We are tracking many FDI signals, with the most important signals being: ₊ Company X has a new FDI project or expansion strategy but has not decided where to locate (yet). ₊ Company X is receiving new financing for international expansion, but has not decided on the site (yet)
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Low cost lead generation
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₊ Intermediaries such as site selectors, accountants and journalists influence 1000s of companies on where to invest and are therefore referred to as “investment multipliers” ₊ The most important type of intermediaries varies by country, from site selectors being very important in the US to government institutions being very important in China ₊ The most successful EDOs/IP As in attracting FDI have developed a multiplier strategy to engage with intermediaries
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The key objectives of a multiplier strategy are:
location and get their location on the investor’s map
services the EDO/IP A offers, become a trusted business partner of the intermediary and gain FDI referrals
knowing the key organisations and individuals who can assist them with the FDI location and setup process
Source: www.fdiprofessionals.com 48
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Corporate Location Strategy Investment Facilitation ₊ Specialist site selection firms ₊ Major accounting firms ₊ Major consulting firms ₊ Major real estate firms ₊ Media ₊ Major HR firms ₊ Major banks ₊ Major utility providers ₊ VC and other financers ₊ Home country governments ₊ International Organisations ₊ EDOs and IP As ₊ Legal firms ₊ Real estate firms ₊ Accountants ₊ Recruitment & HR firms ₊ Infrastructure & utility firms ₊ Business associations
www.wavteq.com www.fdiprofessionals.com
FDI Professionals
The only global database of investment intermediaries Includes 20,000 FDI intermediaries All key types of FDI intermediaries (site selectors, real estate, consultants, accountants, legal, HR, banking, journalists…) Coverage of over 180 countries and 2,000 cities Full contact information, including email and social media EDOs/IPAs can give free access to investors they work with
www.fdiprofessionals.com
Unique new database of global FDI advisors and influencers
W A V T E Q
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Global Affairs Canada, executed by The Conference Board of Canada (CBoC). The partner of the TPSA project is the Government of Indonesia, specifically the Ministry of Trade and the Investment Coordinating Board BKPM. The ultimate goal of the TPSA project is to expand Indonesian exports to Canada and encourage Canadian investment in Indonesia.
in Indonesia to the sectors where Canadian firms invest overseas.
PDF flyers and value propositions for 9 subsectors.
contacts.
potential investors.
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in Canada team are already in contact with
tracking real time IPO, VC and PE funding companies are receiving
institutions of higher education in Indonesia.
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Agribusiness 88 Agricultural Chemicals 49 Dairy Products 24 Fisheries, Cold Storage & Processing 15 Alternative/Renewable energy 114 Biomass 15 Renewable Energy 51 Software & IT 1 Solar 47 Manufacturing 34 Machinery & Equipment 20 Software & IT 14 Services 226 Professional, scientific & technical 59 Software & IT 167 Transportation 38 Air Transportation 30 Software & IT 8
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Employee Range Agribusiness Alternative/Renewable energy Manufactu ring Servic es Transporta tion Grand Total 1-10 21 21 11-25 2 21 6 29 26-50 5 14 1 16 5 41 51-100 18 11 4 36 2 71 101-150 9 12 2 31 3 57 151-200 8 13 19 4 44 201-300 10 3 9 27 1 50 301-500 14 6 7 25 6 58 501-1,000 6 5 3 14 7 35 1,001-2,500 7 4 2 15 2 30 2,501-5,000 2 1 7 5 15 5,001-10,000 1 1 1 2 1 6 10,000+ 4 2 9 15 Confidential 2 3 2 19 2 28 Grand Total 88 114 34 226 38 500
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₊ Research was done on finding right contacts in the company ₊ Finding contact info – leveraging Data.com, company websites etc. ₊ Further research on the company such as any recent press releases, announcement of financing, new product launches, etc.
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₊ We developed 9 PDF 2-page flyers to send to companies to get their interest ₊ Several training sessions were provided to the lead generation team prior to launch and during outreach including overview of the market, UVP per sector, alignment opportunities between Canada and Indonesia, rationale for company selection, sample calling techniques etc.
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₊ Email extremely important, once permission was
projects, and to secure time slots etc. ₊ Pre-call research leveraging Google, Data.com, company’s website and LinkedIn was used to identify senior decisions makers and/or those responsible for growth in ASEAN. ₊ We reached out to 371 companies with a team of 6 business developers, through calls, emails and social media, over a period of 7 weeks
had an interest in Indonesia market
been scheduled so far with interested parties who have upcoming FDI projects
Renewable energy 46%
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Services 11% Transportati
11% Agribusiness 4% Industrial Machinery 8% Business Services 8% T elecom 4% Financial Services 4% T extiles 4%
11%
60
9% 8% 3% 1% 0% 2% 4% 6% 8% 10% 12% Renewable Energy Manufacturing Transportation Services Agribusiness
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₊ Several investors were surprisingly quite aware of the opportunities in Indonesia ₊ A few potential investors had actually lived in Indonesia ₊ Generally , most investors were impressed by the level of growth e.g. GDP , population etc. as well as the plans for future development in the market e.g. in Infrastructure, mix of Renewable Energy and GW targets etc.
W A V T E Q
Time: 15:45-17:00
0.5 1 1.5 2
Construction & Real Estate Retail & Wholesale Paper, Printing & Packaging Textiles Other Services Machinery, Metals, Electronics… Other Industry Agri-Business, Forestry &… Chemicals & Life Sciences Plastics & Rubber Transport Equipment Energy, Mining, Minerals &… Tourism Transportation & Warehousing
RCA (capital investment) RCA (FDI projects)
Source: WAVTEQ
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Singapore 500 1000 Philippines 1500 Thailand 2000 2500 Indonesia Malaysia Vietnam
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Indonesia is the 4th richest country per capita and its GDP per capita is forecast to more than double from $3370 in 2015 to $7840 in 2025
20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Malaysia China Thailand Indonesia Philippines Vietnam India
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12 13 17 19 19 21 38 12 5 10 15 20 25 30 35 40 Indonesia Singapore Malaysia China India Thailand Philippines Vietnam
Source: The Travel & Tourism CompetitivenessReport, World EconomicForum, Switzerland, 2015
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31 29 29 28 20 4 3 48 10
Source: World Bank Doing Business 2016
20 30 40 50 60 China India Philippines Thailand Vietnam Malaysia Singapore Indonesia
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6 31 69 92 101 255 7 36 70 103 128 308 50 100 150 Population projection (mid-2030, Millions) 200 250 300 Population (2015, Millions) 350 Singapore Malaysia Thailand Vietnam Philippines Indonesia
Source: International Monetary Fund (country); national statistics (sub-national) (fDi Benchmark 2016) & mark 2016) Population Reference Bureau World Population Data Sheet (fDi Bench 68
5.4 1 2 3 4
Source: Global Competitiveness Report, World Economic Forum, Switzerland, 2015-16.
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5 6 Indonesia Malaysia Singapore China Thailand India Philippines Vietnam 4.6 5. 1 4.5 4.3 4.2 4.0 3.9
0% 10% 20% 30%
Source: World Bank World Development Indicators 207 1 3.
23.9% 30.2% 30.5% 35.8% 38.5% 51.4% 72.0% 31.3% 40% 50% 60% 70% 80% India China Vietnam Philippines Malaysia Thailand Singapore Indonesia
35% 25% 30% 24% 20% 20% 61% 68% 43% 40% 39% 8% 30%
0% 20%
Total Tax Rate (% profit)
40% 60%
Top Corporate Tax Rate (%)
80%
Indone… Singap… Thailand Vietnam Malaysia Philipp… China India
Source: World Bank Doing Business 2016 & Deloitte 2016.
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Total tax rate as a % of profit provides a comprehensive measure of the cost of all the taxes a business bears. It measures the amountof taxes and mandatory contributionspayable by businesses after accountingfor allowable deductions and exemptionsas a share of commercial profits. Taxes withheld (such as personal income tax)
(such as value added taxes, sales taxes or goods and service taxes) are excluded.
25% 1 17 8% % 2
0.5 1 1.5 2
Source: The World Bank: Logistics Performance Index 2016
72 4.1 3.7 3.4 3.4 3.3 3.0 2.9 3.0 2.5 3 3.5 4 4.5
Singapore China Malaysia India Thailand Vietnam Philippines Indonesia
18.5% 10.3% 9.0% 6.2% 5.8% 4.0% 0.5% 9.6% 0% 5%
Source: World Bank World Development Indicators 2013.
10% 15% 20% Indonesia Singapore Malaysia China Thailand Vietnam Philippines India
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11.5% 6.7% 6.7% 6.7% 5.8% 4.9% 4.0% 3.2% 0% 2% 4%
Source: World Bank World Development Indicators (March 2011)
6% 8% 10% 12% 14% Malaysia Philippines Singapore Thailand China Vietnam India Indonesia
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0.005
Source: World Bank World Development Indicators
75 2.01% 2.00% 1.13% 0.01 0.015 0.02 0.025
Singapore China India Malaysia Indonesia Philippines Vietnam Thailand
0.08% 0.11% 0.19% 0.39 % 0.82%
3255 3960 6267 6924 9009 7321 2000 4000 6000 8000 10000 Philippines Vietnam Malaysia Thailand Singapore Indonesia
Source: World Bank, World Development Indicators 76
334 487 1006 1303 1353 702 200 400 600 800 1000 1200 1400 1600 Philippines Vietnam Thailand Singapore Malaysia Indonesia
Source: World Bank, World Development Indicators 77
₊ Location database and benchmarking tool designed for site selection and value proposition development ₊ Coverage: ₊ 878 countries, regions & cities and growing! ₊ 906 cost and quality data points on every country ₊ 776 cost and quality data points on every region/city ₊ T
with built-in value proposition report builder ₊ Other key data sources are EIU and World Bank and national statistical agencies in each country
Source: http://www.fdibenchmark.com
Module 5: Best practices in Investment Facilitation 09:00 – 10:15 10:15 – 11:00 11:00 -11:30 Group exercises (real life case studies) Best practices in investment facilitation Coffee break Module 6: Canadian business practices 12:00 – 12:30 Best practices in how to attract FDI from Canada (also relevant to US and other Western countries) 12:30 -14:00 Module 7:
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Lunch Best practices in account management (“aftercare”) 14:00 – 15:15 15:15 – 16:00 16:00 - 16:30 Group exercises Best practices in account management (“aftercare”) Closing comments
W A V T E Q
Time: 9:00-11:30
Effective investment facilitation is the most important activity to increase FDI performance. IPAs should focus on making the conversion rate
projects as high as possible” (Dr Henry Loewendahl, Group CEO, WAVTEQ)
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Source: Economist Intelligence Unit, “Corporate overseas expansion: Opportunities and barriers” (2015) based on a survey of 155 senior corporate executives
Compliance: % firms with significant issues in FDI
83
HR related: % firms with significant issues in FDI
84
85
Source: WAVTEQ based on Loewendahl (2001) “Bargaining with Mult 8 in 6ationals” (Palgrave Macmillan)
C. Commitment
decisions and have an active role in government policy?
Source: WAVTEQ based on Loewendahl (2001) “Bargaining with Multinationals” (Palgrave Macmillan)
1. How many agencies/departments are responsible/involved in project handling? 2. Is there one point of contact for the investor? 3. Is there clear ownership of a ‘project’? 4. How is the process managed? 5. Are all the stakeholders involved, understand the process and committed? 6. Are there key performance targets for enquiry handling?
requirements 1. Is an attempt made to understand investor requirements (‘project brief’)? 2. Is there effective research and timely information provision to the investor?
handling 1. Who has ownership of the visit? 2. Are senior official involved? 3. Is there a well planned process? 4. Is the investor satisfied?
Source: WAVTEQ based on Loewendahl (2001) “Bargaining with Multinationals” (Palgrave Macmillan) 88
licenses
for?
and making the application?
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Source: WAVTEQ based on Loewendahl (2001) “Bargaining with Multinationals” (Palgrave Macmillan)
incentives? 1. What are the objectives of incentives? 2. What type of incentives are on offer? 3. Are incentives aligned to the need of different sectors? 4. Are they linked to performance targets? 5. Do these meet the objectives? 6. Are the incentives clear to investors?
1. Who can get the incentives? 2. Who allocates/awards the incentives? 3. Is the negotiation process predictable and transparent? 4. Are the incentives needed to win the project? 5. What will be the return on investment & impact?
1. What is the process for awarding incentives? 2. Is it politicised? 3. How speedy and fair is the process?
1. What happens after approval? 2. Is there monitoring of performance targets? 3. Do investors receive the incentives? 4. Are their effective claw-back mechanisms if investors do not meet targets?
W A V T E Q
Time: 12:00-12:30
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₊ Response times to info requests – 1-2 business days for urgent , 2-3 business days for general correspondence. However , best practice it to generally respond within 1 business day. ₊ Provision of bios for setting up road show meetings – when and why this is important – this should be done prior to commencing
provides the investors with the opportunity to do pre-research
meetings ₊ Critical to have confirmation at a minimum 6-8 weeks in advance
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₊ Send any presentation that will be covered during the meeting 2-3 days in advance of the meeting ₊ Presentations should be dynamic, do not simply read of the slides but provide additional context and details not contained in the deck ₊ Presentation can have general overviews but at slides need to be customized to the investor’s company and industry ₊ Ensure the investors/prospects are aware of the names, titles and contact info
this is not possible, then it should be provided 1-2 weeks in advance of the meeting ₊ Arrive on time if not a few mins early ₊ During the meeting, ensure the investor does at least half if not most of the talking; understand their business and where and why they see opportunities – always probe
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₊ Following up in a timely fashion is key e.g. 1-2 hours after a conversation, send an email; after attempting to reach a contact and leaving a voicemail, send an email the same day or next day; when following up always reference the email or voicemail to jog memory and provide a reference point ₊ Some of the keys to conversion include: understanding where the investor is now (locations or in terms of growth) and why it could make sense to enter your market/region, looking for growth signals via press releases or their website etc. and relaying this back to the prospect so that they understand 1) that you’ve done your research and understand their business and 2) you’re presenting an
reference
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₊ Avoid making a pure sales pitch. Y
understand obviously that we are interested in them expanding to Indonesia, and that we can support, but have a soft sales approach, show that you are interested in their company and want to learn about their strategy and specific needs, instead of just talking about Indonesia. Make it investor-centric. ₊ Following up – don’t be afraid to be a little aggressive (not used car salesman but persistent) but polite, a lot of investors/prospects consider it as a favor to remind them…they’re busy and honestly forget.
W A V T E Q
Time: 14:00-16:30
Source: WAVTEQ based on fDi Markets
56% 70% 82% 85% 89% 90% 93% 98% 44% 30% 18% 15% 11% 10% 7% 2% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Headquarters Manufacturing Design, Development & Testing Extraction Electricity ICT & Internet Logistics, Infrastructure Distribution & Transportation Business Services Expansion New 96
9/20/2017 Source: UNCT AD
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Source: Henry Loewendahl “Bargaining with Multinationals”
policy
with investors once they make the investment?
marketing, supply chain linkages, upgrading of plants etc.)?
techniques
aftercare?
+44 7557 965393 info@wavteq.com @wavteq /company/wavteq
Contact WAVTEQ
Keep in touch
London Cork Ottawa Vienna Beijing Seoul Tokyo Shanghai Hong Kong Phoenix Montreal San Francisco Madrid Mumbai Bangalore
Dr Henry Loewendahl, Group CEO, WAVTEQ Ltd E-mail: henry.loewendahl@wavteq.com Skype: hloewendahl | Linkedin: Henry Loewendahl Cell: +447557965393