Doing Business with Switzerland and other EFTA countries

Doing Business with Switzerland and other EFTA countries

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Description: Regulations and market requirements, Trade Peru and Switzerland, Neglecting market trends, vital first step to export success, Export Marketing Planning, Trends in Europe, Key Success Factors for Creating Value Are Present at Each Stage of Activity, Leather from Africa, Alpaca and Pima, Handicrafts from South Africa, Beans from Peru, Eco furniture from Ghana, Aquaculture Peru, Fashion Forecast 2008, Special trade fair participation Fruit & Vegetable in Berlin, Organic production.

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Doing Business with Switzerland and other EFTA countries

EFTA Seminar Lima, September 26-27, 2007

Switzerland at a glance 2006
Surface area: Dimensions: Capital: Population: Languages: 41'285 km2 North-South 220 km East-West 348 km Berne about 7,5 millions German 64%; French 19%; Italian 8%; Rhaeto-Romansch 1%; others 8% Total Gross Domestic Product / GDP (USD) Export total (USD) Import total (USD) 334 bln 148 bln 142 bln Per capita 44`600 19`721 18`908

Your export market is also ...

... your "import market"

Regulations and market requirements
� Health & safety � Patents � Environmental aspects & social accountability � Quality management, Total Quality Management (TQM) � Import duties, levies (food products, anti-dumping), taxes, VAT, import licensing, quota, phytosanitary certificates, bans � Tariffs & non-tariff barriers (technical norms, CE label � EU conformity) � Environment, Social accountability

Import duties

Regulations and market requirements

Products from organic production The placing on the European Union (EU) market of livestock, unprocessed crop and animal products as well as other processed agricultural products intended for human consumption or animal feed bearing a reference to organic production methods must comply with the rules laid down by Council Regulation (EEC) No 2092/91 (OJ L-198 22/07/1991) which aim at the promotion of quality products and the integration of environmental conservation into agriculture ...

Peru and Switzerland
Trade of Goods Switzerland - Peru 2006 (USD)

Total: Mil. $ 27.6

Total: Mil. $ 74.1

Trade Peru and Switzerland 2006 (USD)

Product groups Total Food, agricultural products, fish & seafood Energy products Textile, clothing, shoes paper and graphics Leather, rubber, plastics Chemicals and pharmaceuticals Industrial minerals Metal and metal products Machines and electronics Motor vehicles Instruments, watches, jewellery Miscellaneous products Precious metals and stones Art and antiques

Imports from Peru USD % 100 27'522'547 68.3 18'804'656 1'176'069 22'524 71'580 134'838 308'471 227'778 5'923'415 218'850 59'910 557'710 16'744 4.3 0.1 0.3 0.5 1.1 0.8 21.5 0.8 0.2 2.0 0.1

Exports to Peru USD % 100 74'111'956 5.3 3'906'873 0.0 8'638 1.5 1'074'005 0.6 441'192 1.3 990'679 34.6 25'637'289 0.1 41'746 2.3 1'677'455 38.4 28'478'150 0.2 147'606 14.6 10'839'945 1.1 817'915 0.1 49'692 0 769

Neglecting market trends

no clients

wrong products lack of market information

insufficient quality

negative Image lack of prices

environmental & social accountability

import regulations

The vital first step to export success
� Trade and Market information CH/EU � Country-specific rules and regulations in the exportimport and investment fields � New business opportunities � Norms and standards, quality requirements, certificates, appropriate design � Export marketing planning: a must

SIPPO brochures and hand-outs

You, as a potential exporter
� Is my company ready to export? � Where can I obtain expert information on foreign markets? � Where and how can I find new sales outlets? � How do I locate the right business partner in my target market? � Who can help me launch products and services anywhere in the world? � Where can I find new suppliers?

Export Marketing Planning: a Must
Market assessment and selection Company assessment SWOT - internal analyses: Strenghts, Weaknesses - external analyses: Opportunities, Threats Strategic action - Business plan - Marketing plan Terms of payment Terms of delivery Price strategy

Trends in Europe

Ecology Consumer market trends Social Aspects

Trade & market information

the health campaign
Five a day that is:
the consumption of 2 portions of fruit and 3 portions of vegetables daily a healthy nutrition with pleasure rich in vitamins rich in mineral nutrients digestive low-calorie food precautionary health protection cancer precaution diversified delicious

Key Success Factors for Creating Value Are Present at Each Stage of Activity

Analyse Trends & Opportunities

Identify Products, Companies & Sectors

Build Export Capability

Match Buyers & Vendors

Monitor & Follow Up Transactions

Social & Economic Impact


Intervention Type

Future Resource Allocation

Portfolio Mix

Selection of Events

Strategic Objectives

FSG Social Impact

Leather from Africa

Alpaca and Pima

Handicrafts from South Africa

Beans from Peru

Eco furniture from Ghana

Aquaculture Peru


Fashion Forecast 2008

Handicraft Forecast

Mozambique: Cashew nuts � kernels, Mini L�gumes

1980: worldwide largest producer of cashew nuts 29 processing companies 1990: due to liberalization no more processing companies, direct export of unprocessed cashew nuts Today: thanks to technical support, 12 functionning processing companies for the production of kernels (white cashew nut) with the support of SECO

Special trade fair participation Fruit & Vegetable in Berlin

Software Jordan and Palestine

Organic production
Advantages Market opener / competitive product / price premium Steady buyer, co-operation Natural production sites Positive image Market trends in Europe Opportunities opportunities for smaller producers in rural areas favours "natural" production methods can often be applied in developing countries on current production, but needs certification

Organic olive oil from Jordan and Palestine
Your USP in the future
- UMP: Unique marketing proposition - SSP: Sustainable social proposition - UEP: Unique environmental proposition

Peruvian Food

Eco Tourism

Wine from South East Europe

What is Marketing?
Marketing can be: � � � � � � Communication (quality, USP, region, certificates) Mailings, advertisement, publicity, trade fairs Reliability, confidence, trust Pricing, discounts, special offers, packaging, labels shopping center, house delivery, e-commerce a smile in the direct contact with your client / your customer

Marketing is everything what helps to increase sales.

La "Se�ora de Cao"


Traditional Marketing Mix PPPP Product Price Promotion Place
Product Products and services Product design (quality, design elements, packaging, brand) Extent of range Depth of range etc. Price Pricing method Style of pricing Discounts and rebates Trade margins Price relations within range etc. Promotion Contacting customers (direct contact, selling/ buying mission, trade fairs) Personal sales Sales promotion Advertising Direct marketing Public relations E-trade etc. Place Distribution channels (specialised retailers, wholesalers) Style of supply Availability etc.


� Confidence � Trust � Communication � Reliability � Vision


Price: Top-Down calculation
Consumer Price: VAT: Market price minus VAT: Margin retailer: Price to retailer: Margin Wholesaler: Price to wholesaler: Margin Importer: Landed-cost price: Import duties: Other costs (storage, banking): CIF (port of destination): Transportation costs: Insurance costs: FOB (port of shipment): Transportation costs factory to port: Export price Ex Works (EXW): Factory cost price: Export profit (per unit) 1`076 76 1`000 250 750 90 660 33 627 188 15 424 120 4 300 5 295 255 40 + 7.6% = 25% + 12% + 5% + 30%

Distribution channel

Right contacts

Equipment goods

usualy through an agent wholesaler act as importer Swiss manufacturer acts often as importer specialised importer wholesaler act as importer specialised importer

Raw materials

Consumer goods

Critical points in international trade Trade terms for ocean transport
Inland carrier Air/Rail/ Road/Ocean goods terminal Customs Air/Rail/ Customs Road/Ocean goods terminal

swiss import promotion program

Inland carrier


FAS Free alongside ship... (Named port of

Documents Risk Costs Documents

Transport Risk Insurance

FOB Free on board...
(Named port of shipment)

Transport Risk Insurance

CFR Cost and freight...
(Named port of destination)

Documents Risk Costs Documents Risk Costs Documents Risk Costs Documents Risk Costs

Transport Risk Insurance

CFR landed Cost and freight..
(Named port of destination)

Transport Risk Insurance

CIF Cost, insurance and freight...
(Named port of destination)

Transport Risk Insurance obtained by Seller

CIF landed Cost, insurance and freight...
(Named port of destination)

Transport Risk Insurance obtained by Seller

Match-making exporter - importer
� Information for importers (Brochures, newsletter, general promotion materials, Internet/Website) � Contacts Direct contact Selling mission Buying mission Contact forums Trade fairs � Follow-up Interested buyer/importer Interested seller/exporter PROPEX, ADEX Ministry of Trade Industrial Associations Camara de Comercio Suiza - Peru

Selling / buying mission
Hosting foreign business delegations in Switzerland with Swiss importers and buyers, businessmen and business women

Seminar, workshops
Technical consulting, export marketing, quality management

Trade Fairs

Boosting your Exports

"When in Rome, do as the Romans do" If you wish to sell in EFTA countries, act like an EFTA member
Market trends Ecological production Social responsibility reliability vision Customer needs & wants Market Success

Marketing Mix PPPP

Sustainability Marketing
� Osec Business Network Switzerland 2006

Your success


Forms of Internationalisation
Without capital investment With capital investment


Sales agent

Direct Export



Joint Venture


Own production plant

Exporting Swiss companies

Exports in relation to total sales over 2/3 1/3 - 2/3 under 1/3 micro-company (1-9 employees) small-size company (10-49 employees) middle-size company (50-249 employees) big-size company (250 employees and more) Total 7'222 1'306 584 181 9'293 4'659 1'165 430 86 6'340 14'963 3'897 1'096 206 20'162

total 26'844 6'368 2'110 473 35'795

How Switzerland gains profit out of international trade

1. Switzerland
imports: 58% highvalue and 42% lowvalue products.

2. The value
58 42
related productivity of the highquality products is proportionally better by 2:1

3. Switzerland
exports: 72% highvalue and only 28% low-value products.



Peru -

the place to go for export


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