The Key To Success In Global Trade

The Key To Success In Global Trade - 5th March 2009
Having product knowledge and understanding market demands

The fundamentals of success in global trade remain the same both in good times and bad times. There is an opportunity to boom even as others in the trade talk of gloom. Living goes on, hence, commerce continues. The dollar may be stretched but it has ultimately to be spent on essentials and in up lifting the human spirit.

The key to success no matter what the economic condition is to be found in a strong network of reliable suppliers of quality products and dealers with local market knowledge. Successful global trading companies are those who process the market feed back from both suppliers and local dealers into a business strategy that satisfies the existing consumer demand. A leading global burger chain focuses on attractive pricing to tempt the lunch time crowd while in Canada traffic lines build up at drive thrus of Tim’s a national favourite. “People have to eat”, so the saying goes.

Major supermarket chains are sourcing for products that satisfy consumer demand for quality without having to pay the premium that brand names require. The challenge, therefore, for trading companies is in balancing the entrepreneurial initiative of the dealer who best understands the local customer and the essential discipline of the head office.

By evaluating customer feedback from dealers, the head office can formulate training programmes that package product knowledge with sales presentation skills. This requires constantly working with dealers to make sure they follow the fundamental principles of retailing, which essentially focuses on the relationship with customers.

It is clear that for successful trading companies, organising regular yearly trade shows for dealers is important. Emphasis is placed on securing the attendance of all dealers. Suppliers invited to such trade shows educate dealers about their various products and their uses. The differing individual needs of the dealers are taken into account in structuring presentations and programme content. The message that, there can be no compromise on fundamental principles of customer relations is drummed in even as participants are motivated with talks of strategy, market share and sales targets.

An effective business strategy addresses issues such as; competitive pricing, location of dealerships, creating dealers collective buying power, providing free delivery to customers, variety and quantity of products to be stocked, ensuring staff have good product knowledge, and, making sure customer needs are satisfied.

In locating operational headquarters, factors taken into account by successful trading companies include; availability of local talent, logistics as a distribution hub, operating expenses and related overheads, quality of living for staff in relation to the local community, ability of headquarters staff and dealers to work seamlessly, the supply chain network and warehousing across the country, and, capacity to service expanding and evolving market demands.

Such trading companies recognize the importance of rewarding business achievements of staff and dealers. A system of awards is put in place to motivate individuals. Acknowledgement of employee contribution to success goes a long way in instilling loyalty to the company. It very often lifts the spirit and motivates them towards greater achievement of productivity which translates into profit for both the individual and the company.

Siddha Param
International Business Consultant
E-mail:siddhaparam@worldwidebusinessconnection.com

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