World Export Development Forum (WEDF)



 

Executive Forum 2001
Montreux, Switzerland
26-29 September 2001

Interviews

Helping SMEs get wiser to consumer choice
Barbara Mowat is President of Impact Communications Ltd., Abbotsford, British Columbia, Canada

Question: In Canada most of the micro-enterprises you help want to sell to the US? Doesn’t that limit the aid you can give to developing or transition countries?

Mowat: One of the first things that we have to do when we go into a new country – whether it’s in Asia, Slovenia, Puerto Rico or wherever we go – is that we can’t assume that we know everything about their region. So it’s very important for us, when we put together our merchandize specialist team, that we ask the developing country first to define which market they are trying to target. We ask: Are you trying to expand your exports into North America, and even more specifically Canada or the US, and then where in those countries? To South America? To Europe? To the Asian market?

Once we determine that – and in the case of Slovenia, 87% of the small producers indicated that they wanted to target the US market first and then to possibly look at Canada – our goal is to bring together the best merchandize specialists that will give the country feedback on the product development they require.

How does that work out?

What that meant in the case of Slovenia was that I invited along our generalists: buyers from Canada as well as some top buyers from the United States. Then in order to be sensitive to the culture we brought in an anthropologist, the owner of a gallery who was good at indicating why certain people might want certain colours, certain weavings or certain ways in which a product was developed. It is important for us – a matter of respect – that when we give the small producers feedback, that we are very cognizant of the local/regional needs. When our team comes over, we are also going to be bearing in mind that some products are going to be developed for the domestic market.

Who else apart from the anthropologist/gallery owner was on your panel in Slovenia?

We had a top retail buyer from Canada who does a beautiful catalogue and retail gift shows. We had someone from the Ontario Craft Council, and someone who does a lot of buying in Yorkville, Ontario. We were fortunate to get the Vice-President of Robert Redford’s Sundance Catalogue and Stores as a US buyer. Together then, as a team of US, Canadian and Slovenian buyers, we took each product and provided constructive and specific recommendations (these are always phrased positively) on what the producer could do to attract the US buyer.

What sort of changes were suggested?

When we have a product that is very traditional in scope or design, labelling is very important for marketing, but we also suggested that little hang-tags should tell the story of the product. People don’t want to know just that something is ‘made in Slovenia’ because the question then for a potential buyer is ‘Where is Slovenia?’ We think it is important to mention the specific village, say where it is and who makes it. Buyers in the United States and Canada are interested in the human interest element of the product – what lies behind it. That comes almost first in our purchasing considerations, next to the product, of course.

And other suggestions?

For someone who was producing porcelain, we wanted to make sure that they were taking a look at magazines that were trendy, to show them the right colours, designs etc. We wanted producers to understand that saleable colours may change quickly in today’s market, that they need to be aware of this in their planning for trade shows that may be eight months away. Wholesale buyers used to have products on their shelves for two years. It’s now eight to 12 months. I always caution people about going for big orders from big retailers, because if you spend a lot of time building your production around their demands, you end up losing the higher-value specialist orders.

You’ve said this is true not just for producers in developing or transition countries, but also for those selling within North America…

Yes, I want to emphasize that when we are doing our regional judging in Canada, it’s also very important for us to understand where the product is going to be ultimately sold. A product that appeals to a Torontonian is not necessarily going to appeal to someone in Alberta. You might have more success with folk art and jewellery in Toronto because of the influence of New York buyers who come to Toronto. In Alberta you are going to be selling to a ‘prairie market’ – a lot of ranching theme products, beautiful art work with wheat (we had a wonderful artist who produces blown wheat glass). That doesn’t appeal to someone on the west coast who will be struck more by scenes of whales and mountains.

In Slovenia we suggested to producers they have to be careful about the products that they are pitching to the Los Angeles/California market, which they might not realize is different from the East Coast/Massachusetts market in the products that would have most potential.

So you work with completely different panels to assess the export potential for each area?

Every time you go into a new area you have to work with merchandize specialists for that region. You need generalists because some things are true of all products: design so that it does not fall apart, originality, creativity, the function of the design, people who ask: can it be made better, can it be made with different materials? In Slovenia one of the products with export potential was made from plastic. We thought it had a better chance if it was made from natural materials. But we never say to producers that they must follow our suggestions. We only say: here are some options to consider if you want to target your specified market. Ultimately it is their choice.

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