[PPT] - SMEs to Export to Canada Jakarta, Indonesia 26-27 April 2016 PowerPoint Presentation

SLIDE 1

Step-by-step Guide for Indonesian SMEs to Export to Canada

Jakarta, Indonesia

26-27 April 2016

Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)

SLIDE 2

Introduction

Why export?
Why export to Canada?
Opportunities for exporting from Indonesia

to Canada

03 stages of export preparation

2

Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)

SLIDE 3

Introduction

Why Export?
Increased sales & revenue
Increased competitiveness in Indonesia
Reduced vulnerability
Higher profits
Higher economies of scale
Improved global competitiveness
Enhanced national and regional development
Why Export to Canada?
Import-oriented market
Diverse consumer tastes
Strong economy
Increasing exports from South-east Asia to Canada
Strong Canada-Indonesia partnership

3

SLIDE 4

Introduction (continued)

Opportunities for exporting from Indonesia to Canada

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Agri-food Clothing Other  Coffee  Pepper  Coconut oil  Sugar  Coats, jackets and blazers  Dresses and Shirts  Wooden furniture  Footwear

SLIDE 5

Introduction (continued)

Export process

5

SLIDE 6

6. Entering the Market
7. Completing the Sale
8. Export Requirements
9. Import Requirements
10. Transportation and

Logistics

1. Export readiness
2. SWOT Analysis
3. Export Plan
4. Market Research
5. Marketing Strategy

Month 0-3 Month 3-6 1 YEAR PLAN Month 6-12 BUSINESS PREPARATION MARKET DEVELOPMENT MARKET ENTRY STAGE ONE STAGE TWO STAGE THREE

Introduction (continued)

03 stages of export preparation

SLIDE 7

Stage 1: Business Preparation

Step 1-Assessing Export Readiness
Step 2-Conducting SWOT analysis
Step 3-Preparing an export plan

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Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)

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Stage 1: Business Preparation

Step 1-Assessing Export Readiness
Export readiness checklist (please see handout 1)
General, About the firm, About the product/service
Interpreting the score
Step 2--Conducting SWOT analysis

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Internal External Management support Unique products Value-added services Track record Financial position Qualified staff Business plan Certifications Expertise Available time Market research Selling skills Domestic sales Quality standards Access to capital Marketing materials Website Language skills Foreign contacts Ability to travel Relevant technologies Risk factors Others Global economy Growing industry Competition Currency valuation Distance to market Language New trends Others

SLIDE 9

Stage 1: Business Preparation

Step 3-Preparing an Export Plan
Why is Export Plan so important?
Define target market, purpose of business activities
Identify SWOT and financial/other resource demands
Financing
Elements of an Export Plan (please see handout 2)
Executive summary
Introduction
Firm overview
Products and services
Export objectives and goals
Canadian market overview
Market entry strategies
Regulatory and logistical issues
Risk factors
Implementation plan (including financial plan)

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Reminder Before the development of an Export Plan, the Indonesian firm will need a current and comprehensive Business Plan. IETC and

ther

resources in Indonesia can help Indonesian firms in preparing business plans as well as export plans.

SLIDE 10

Stage 2: Market Development

Step 4-Market Research
Step 5-Developing a Canadian Marketing Strategy

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Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)

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Stage 2: Market Development

Step 4-Market Research
Conducting market research
Primary and Secondary research
Things to remember (please see handout 3)
Time & resources
Multiple research methods
Incorporate information into Export Plan
Canadian market research checklist (please see handout 4)
Political and economic highlights
Consumer trends
Business information
Partnering options
Support for market-entry strategies
Cultural considerations
Travel tips
Canadian market information
Annex 6

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A great source for Canadian Market Information!! TFO Canada’s website (www.tfocanada.ca) is a great source for Indonesian firms to access market information for dozens of sectors in Canada, including agri-food, textiles and apparel, footwear, and furniture.

SLIDE 12

Stage 2: Market Development

Step 5- Developing a Canadian Marketing Strategy
5 Ps (Product, Price, Promotion, Place, People)

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SLIDE 13

Stage 2: Market Development

Step 5- Developing a Canadian Marketing Strategy
Product
Design
Packaging
Requirements
Trends
Labelling
Language
Special requirements
Materials
Manufacturing process
Product attributes
Others
Competition (price, quality, design)
Standards

13

SLIDE 14

Stage 2: Market Development

Step 5- Developing a Canadian Marketing Strategy
Place
Canadian consumer preferences (design, quality, exclusivity, social and environmental

impact, customer service, price)

Retail outlets/distribution channel choices
Price
Buying influences
Consumer taxes
Price list
Pricing checklist (please see handout 5)

Source: Retail News Magazine, Market Pulse 2014

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What Influences a Retailer? Rating out

f 10

Excellent profit margin 8.6 Exclusivity in my area 8.2 Previous sales success 8.1 Availability 8.1 Cost 8.0 Design 7.9 Supplier's reputation 7.9 Good suggested retail price point 7.8

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Stage 2: Market Development

Step 5- Developing a Canadian Marketing Strategy
Promotion
Advertising
Promotional materials (business cards, customer testimonials, brochures, media pieces,

website, videos, exhibits….pls. see handout 6)

Listing and shelving fees
Media
Trade shows and personal visits
Trade publications
Others (contests, direct mail, gift cards, coupons, give-aways, store demos, special

events etc.)

Canadian advertising laws
People
Staff
Partners

15 Please see handout 7 for Checklist for 5 Ps and handout 8 for Exporting Services

SLIDE 16

Stage 3: Market Entry

Step 6-Entering the Canadian Market
Step 7-Completing the Sale
Step 8-Meeting Indonesian Export Requirements
Step 9-Meeting Canadian Import Requirements
Step 10- Shipping goods from Indonesia to Canada

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Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)

SLIDE 17

Stage 3: Market Entry

Step 6- Entering the Canadian Market
04 ways to enter Canadian market
Direct or Indirect export
Incorporating business or opening a subsidiary in Canada
Direct/Indirect export
Margins
Direct vs. Indirect
Things to consider (please see handout 9)
Knowledge of Canadian market
Key contacts
Distribution methods
Canadian culture/language
Additional investment required or not

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SLIDE 18

Stage 3: Market Entry

Step 6- Entering the Canadian Market
Intermediaries (please see handout 10 for how to choose intermediary)
Importers/distributors
Agents/brokers
Trading house
Retailers
Chains
Independents

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Example of Major* Canadian Importers in 2013

Product # of Canadian Importers Location Pepper (HS 090411) 13 All of them are located in Ontario and Quebec. Men’s and boy’s woven cotton shirts (HS 620520) 86 While most are located in Ontario and Quebec, some are located in British Columbia, Alberta, and Manitoba as well. Wooden Furniture for bedroom (HS 940350) 109 located in 9 provinces across Canada.

* 'Major Importers' comprise those which collectively account for up to 80% of

all imports (in terms of $ value). This list does not include individuals or importers whose importer numbers are unavailable. Source: Canadian Importer Database

Finding Contacts The Canadian Importer Database contains a list of Canadian importers by product Canadian Company Capabilities provides a list of Canadian wholesalers by product

30%

Loblaw's

25%

Sobeys

7%

Metro

7%

Independents

32%

Other

Supermarkets & Grocery Stores $80 billion market (2014)

SLIDE 19

Stage 3: Market Entry

Step 6- Entering the Canadian Market
Market snapshot (Apparel)

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SLIDE 20

Stage 3: Market Entry

Step 6- Entering the Canadian Market
Market snapshot (Home décor includes furniture)

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SLIDE 21

Stage 3: Market Entry

Step 6- Entering the Canadian Market
Market snapshot (Footwear)
Footwear
Valued at CAD 4 billion
Low level of market share concentration (04 largest players control < 20.0%

industry revenue)

Most shoe stores operate as non-chain retailers
Overwhelming majority of industry operators (99.4%) are small-scale.
Low barriers to entry: Many aspiring operators enter industry and induce greater

competition

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Stage 3: Market Entry

Step 6- Entering the Canadian Market
Spotlight on Indonesia

22 Who are some of the major buyers of Indonesian goods in Canada? Furniture  Artemano  Barrymore Furniture  Canadian Tire Corp  Cantrex Nationwide Group Inc  Ikea Supply  Indo Asian Carpet  Jordans Interiors  Pier 1 Imports Footwear  Adidas  Nike  Asics  Converse Apparel  GAP  Pld Navy  Mexx  Lululemon  Express Fashion Apparel Canada Inc  Columbia Sportswear  Under Armour Canada Coffee  RGC Coffee  Café Vittoria  Royal Coffee Incorporated  Metro Logistics Inc  Costco  Bridgehead

SLIDE 23

Stage 3: Market Entry

Step 6- Entering the Canadian Market
How to find Canadian buyers
Attending tradeshows (Canadian and International)
Consulting Indonesian trade representatives and other entities in Canada (TFO Canada)
Consulting Canadian embassy and other entities (TPSA office) in Indonesia
Obtaining list of buyers
Enhancing online presence
Using search engine optimization
Using Social media and E-markets
Checking E-leads

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SLIDE 24

Stage 3: Market Entry

Step 6- Entering the Canadian Market
Major trade shows in Canada

(please see handout 11 for tips on how to prepare for attending a trade show in Canada)

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SLIDE 25

Stage 3: Market Entry

Step 6- Entering the Canadian Market
What Canadian buyers are looking for
Good value and competitive pricing
Reliability of product quality, continuous supply, and delivery times
Good relationship and regular communication
Competent & experienced staff
Follow-up service
Innovative products
Communication
Email
Skype
Reputation

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Stage 3: Market Entry

Step 7- Completing the sale
Sales contract process
Receiving an inquiry
Quoting a price
Tips
1st impression
Sending samples
Trial orders
Negotiating a deal
Import terms
Payment terms
Delivery date
Communication
Dealing with risk & non-payment
Incoterms

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SLIDE 27

Stage 3: Market Entry

Step 8- Meeting Indonesian export requirements (please see Annex-6)
Requirements for all Indonesian exporters
Legal entity
TIN
License
Types of Indonesian exporters
Manufacturer
Non-manufacturer
Tax procedure
Export controls
Export-free, Export-Controlled and Export-Prohibited goods
Customs clearance

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Stage 3: Market Entry

Step 9- Meeting Canadian import requirements
Border Inspection
Canadian Border Services Agency (CBSA)
Canadian Food Inspection Agency (CFIA)
Other Canadian government departments
Laws & Regulations

(please see handout 12 for import regulations)

Federal, Provincial, Municipal
Organic product requirements
Automatic Import Reference System (AIRS)
Intellectual Property Rights (please see handout 13 for types of IPR)
Canadian International Property Office
Combating Counterfeit Products Act

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SLIDE 29

Stage 3: Market Entry

Step 9- Meeting Canadian import requirements
Classification of goods
HS Code
Determining HS code
Tariffs and duties
Tariff determination
Rates of duty
Duty-free & quota-free imports
Rules of origin
Tariff rate quotas & seasonal tariffs
Anti-dumping and countervailing duties

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Indonesia is eligible for the Most Favored Nation Tariff (MFN) rate The tariff for exporting hiking footwear from Indonesia to Canada will be the MFN tariff (16%), while exporters from LDCT countries – such as Cambodia – will have a tariff of 0%.

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Stage 3: Market Entry

Step 9- Meeting Canadian import requirements
Import documentation
Releasing goods at the border
Types of documents (see handout 14 for list of documents)
Import control list
Agri-products
Firearms
Steel
International Import Certificates
Prohibited goods
Transshipment

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Stage 3: Market Entry

Step 10- Shipping goods from Indonesia to Canada
Getting Indonesian goods to Canada
By ocean
By air
By train and truck
Canadian Port of Entry and Distribution within Canada

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Canada is larger than you think! 2nd largest landmass in the world, Canada encompasses nearly 10 million square kilometers. Up to eight hours to fly across the country, and travelling by road or train takes several days.

SLIDE 32

Stage 3: Market Entry

Step 10- Shipping goods from Indonesia to Canada
Transportation intermediaries
Freight forwarders
Consolidators
Customs brokers
Packing the goods (please see handout 14 for Canadian import documentation checklist)
Outer packaging
Wooden crates
Labels and marks
Next steps
Start with the Business Plan then export readiness assessment then Export Plan
Use the annexes
Register with TFO Canada and implement the Export Plan

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SLIDE 33

Annexes

Annex 1: Useful resources & Contacts
Annex-2: Trade Publications
Annex-3: Canadian Business Associations
Annex-4: Canadian Market Information
Annex-5: Incoterms
Annex-6: Indonesian Export Requirements and Processes

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Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)

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Zaki Munshi, Project Manager-Asia TFO Canada 130 Slater Street, Suite 1025 Ottawa, ON Canada K1P 6E2 T: +1 1613 233 3925 T: +1 800 267 9674 E: zaki.munshi@tfocanada.ca; steven.tipman@tfocanada.ca www.tfocanada.ca

Thank You!

Contact us: @TFOcan linkedin.com/TFOCanada

54 Canada-Indonesia Trade and Private Sector Assistance Project (TPSA)