Export Management Companies
It is one of the types of export intermediaries (Export Intermediaries) that plays a role to help economic enterprises to enter global markets and increase the export of goods or services of enterprises. Depending on the conditions and needs, these companies can manage all or part of Undertake the export activities of economic enterprises, especially small and medium enterprises.
These companies are commonly known as the Export Management Company (EMC). The Export Management Company is a completely independent private company that acts as an export sales department for firms. The Export Management Company is based on a formal contract to manage the export business. Companies can conclude with them, can have exclusive or non-exclusive representation of all or part of their products or services in foreign markets.Export management companies should not be found with the Export Trading Company (ETC) that they usually seek They are foreign customers and have no obligation to the manufacturer to make mistakes.
Commitment to maintaining a long-term relationship with producers and consumers distinguishes the nature of the export management company from other business units. As part of this commitment, export management companies are pursuing value-added promotion that covers areas other than international marketing. The company provides export management services in order to create demand in international markets (Transaction-creating Activities) as well as how to process and respond correctly to the demand of foreign markets (Transaction-Fulfillment Activities) and in other words facilitate foreign trade to firms that in As a result, businesses benefit from entering global markets, and the export management company benefits from the establishment of a long-term relationship between producer and buyer, and the result is for the country to achieve one of the important development goals, namely the development of non-oil exports.
Types of export management companies: A type of export management companies acts like an agent, so that it is present in the target market and seeks to attract foreign customers, but operates under the name of the main manufacturer, so that the invoices called The producer is exported and helps it in all the steps and details of exporting, in this case the producer accepts the risk of non-payment and the export management company may offer the price to the producer, but in this case the decision in Especially the final price is taken by the manufacturer. In cases where the companies that are parties to the contract of the Export Management Company are service companies, based on the agreement between them, the project can be obtained in the name of the Export Management Company and implemented by the service company. Another type of export management company acts as an exclusive or non-exclusive distributor, and because it has sufficient control over distribution channels, sets a competitive price for export products and is followed by manufacturing companies, in which case the manufacturer also He accepts the risk of non-payment.
The difference between these companies and commercial companies is that in the manufacturing companies, the manufacturer has no control over the export price and the trading company buys the product directly from the manufacturer at an agreed price and sells it to a foreign customer at the desired price. In this case, the trading companies themselves are responsible for issuing invoices and accepting the risk of non-payment, and the manufacturer has no control over the export price and may not even recognize the foreign customer.
How to conclude contracts of export management companies with subsidiaries Usually the export management company concludes long-term contracts (1 to 3 years) with the firms that are parties to the contract, and depending on the type of contract, it can receive annual membership fees from its subsidiaries or The sales / project commission (in the case of service companies) or both the membership fee and the project sales / commission. Services that can be provided by an export management company to take all measures to create demand and respond to existing or created demand in international markets, including:
• Conduct marketing research to identify the target market
• Determine the quantitative and qualitative characteristics of the product required by the target market
• Identify and select a skilled and experienced distributor
• Negotiate to obtain the necessary permits
• Educate distributors on how to market each specific product
• Provide after-sales service to customers
• Preparation of documents required for export of goods or obtaining international tenders abroad
• Provide requirements and suggestions for branding and packaging of export products
• Determining the exact costs of insurance, transportation and ...
• Provide advice on pricing products (goods or services)
• Providing warehousing services in the target market
• Coordination of transportation affairs
• Managing the risk of payments and obligations of the parties
These companies are commonly known as the Export Management Company (EMC). The Export Management Company is a completely independent private company that acts as an export sales department for firms. The Export Management Company is based on a formal contract to manage the export business. Companies can conclude with them, can have exclusive or non-exclusive representation of all or part of their products or services in foreign markets.Export management companies should not be found with the Export Trading Company (ETC) that they usually seek They are foreign customers and have no obligation to the manufacturer to make mistakes.
Commitment to maintaining a long-term relationship with producers and consumers distinguishes the nature of the export management company from other business units. As part of this commitment, export management companies are pursuing value-added promotion that covers areas other than international marketing. The company provides export management services in order to create demand in international markets (Transaction-creating Activities) as well as how to process and respond correctly to the demand of foreign markets (Transaction-Fulfillment Activities) and in other words facilitate foreign trade to firms that in As a result, businesses benefit from entering global markets, and the export management company benefits from the establishment of a long-term relationship between producer and buyer, and the result is for the country to achieve one of the important development goals, namely the development of non-oil exports.
Types of export management companies: A type of export management companies acts like an agent, so that it is present in the target market and seeks to attract foreign customers, but operates under the name of the main manufacturer, so that the invoices called The producer is exported and helps it in all the steps and details of exporting, in this case the producer accepts the risk of non-payment and the export management company may offer the price to the producer, but in this case the decision in Especially the final price is taken by the manufacturer. In cases where the companies that are parties to the contract of the Export Management Company are service companies, based on the agreement between them, the project can be obtained in the name of the Export Management Company and implemented by the service company. Another type of export management company acts as an exclusive or non-exclusive distributor, and because it has sufficient control over distribution channels, sets a competitive price for export products and is followed by manufacturing companies, in which case the manufacturer also He accepts the risk of non-payment.
The difference between these companies and commercial companies is that in the manufacturing companies, the manufacturer has no control over the export price and the trading company buys the product directly from the manufacturer at an agreed price and sells it to a foreign customer at the desired price. In this case, the trading companies themselves are responsible for issuing invoices and accepting the risk of non-payment, and the manufacturer has no control over the export price and may not even recognize the foreign customer.
How to conclude contracts of export management companies with subsidiaries Usually the export management company concludes long-term contracts (1 to 3 years) with the firms that are parties to the contract, and depending on the type of contract, it can receive annual membership fees from its subsidiaries or The sales / project commission (in the case of service companies) or both the membership fee and the project sales / commission. Services that can be provided by an export management company to take all measures to create demand and respond to existing or created demand in international markets, including:
• Conduct marketing research to identify the target market
• Determine the quantitative and qualitative characteristics of the product required by the target market
• Identify and select a skilled and experienced distributor
• Negotiate to obtain the necessary permits
• Educate distributors on how to market each specific product
• Provide after-sales service to customers
• Preparation of documents required for export of goods or obtaining international tenders abroad
• Provide requirements and suggestions for branding and packaging of export products
• Determining the exact costs of insurance, transportation and ...
• Provide advice on pricing products (goods or services)
• Providing warehousing services in the target market
• Coordination of transportation affairs
• Managing the risk of payments and obligations of the parties
