Stephanie S. Selesnick, CEM International Trade Information, Inc. stephITI@aol

1. IAEM Annual Meeting 2006It’s NOT as Hard as You Think -Bringing the World’s Exhibitors to Your EventNovember 29, 2006, San Diego, CA Stephanie S. Selesnick, CEM International Trade Information, Inc. stephITI@aol.com

2. Session Overview How to increase international sales: 1. All from the USA 2. Partnering 3. Sales Agents 4. Setting up Offshore Sales Offices Examples in action: For Profit Multinational Show US-based Association Show General Tips

3. USA Only- the positives • You control all communication about your show and who it goes to • Relationships - you make them - possibly visit the most important countries

4. USA Only - the negatives • You will not know all of the major players • Different countries need different types of communication and hand holding • Does your staff have the cultural and political knowledge? • Services Provided • Do you have multilingual staff to communicate? • On-site expertise • Does your staff have any experience with the differences between US and offshore shows? • i.e.: no unions, no display regulations, hardwall schemes vs. pipe and drape, drayage challenges

5. USA Only - Sales Relationships • In other countries, formal introductions must be made or it will take a long time to meet the right people who can assist you • If you don’t have someone “in country” it is very hard to follow up • Government Entities • US Embassy/Consulates • Associations • Trade Show Organizers • What kind of contact and relationships do you have with colleagues in other countries? • Do you do trade outs in their shows? • Do you have trained staff to travel and work those shows?

6. Partnering

7. Partnering • Travel • Meet People • Make Deals • U.S. Trade Shows • In your industry • Outside your industry – as long as there is an international component • International Shows

8. Partnering – Meet People • Publishers – they can introduce you to associations and agents • International delegation organizers – both government and trade associations • International Trade Associations • U.S. based trade experts • Foreign commercial offices • US embassies/consulates in other countries (commercial officers, FSN’s)

9. Partnering – Make Friends • Sales Agents • Delegation Organizers • Trade Associations • Manufacturer (exhibitor) groups • Attendee groups

10. Sales Agents • Check List for Choosing Agents • Types of Agents • Exclusives? • Relationships

11. Sales Agents – Check List • References/resume • Experience • Experience with U.S. shows • Services Provided • Contract sales • Pavilion organization • On-site expertise • Do they have any? • Will they accompany their customers? • Communication • Language • Response time

12. Sales Agents - Types • Government organizers –they often provide a significant financial assistance to promote export trade • Associations –provide logistical support and may have some government financial support • Agents – provide as little as “contracts for sq ft” to complete logistical support such as booth construction, freight forwarding, etc.

13. Sales Agents – Exclusive? • “Exclusive” status • “Official” status • “Competitive” status • All relationships must be nurtured!

14. Offshore Offices Criteria • How many shows is your company/division producing? • How many square feet and serious “high digit” visitors are you planning to get from that country? • Is the long term plan to replicate the show (or shows) in that country? • Cost effectively - more than one show makes sense to amortize office expenses

15. Office Off Shore • Know the country’s relationship with the US • Tax laws and Banking laws • Most other countries make the US banking and tax laws look easy • Personnel laws • Taxes, rules for firing, benefits, etc. • Who is going to be authorized to handle the money? • How much can they sign for without a second signature?

16. Off Shore Personnel Find someone to lead the office - • Must understand US and the country • Should be someone who has executive level experience and connections to government and top level executives • Trustworthy - will actually make the call when things go bad (or challenging) • Can hire/train/supervise staff

17. Off Shore Personnel • Support and Sales Staff • Finding staff within the industries you are selling vs. staff with tradeshow experience • Personnel laws and benefits • What challenges will you face if you have to fire people who don’t produce? • What happens if the people you let go decide to go into competition with you?

18. Offshore Offices • Structure with the “home” office • Reporting procedures • Quotas • Relationships with government, associations, individual companies • “Puentes” or unofficial days off • What month(s) is everyone “on holiday”?

19. Case Study - Tradeshow A • For profit show with long history • Top 200 • 680,000 nsf from 3100 exhibitors • Professional attendance 34,000

20. Sample Official Country Pavilions • India 3,000 nsf • Korea 3,200 • Malaysia 1,000 • Hong Kong 4,600 • Indonesia 400 • China 58,500 • Taiwan 24,000 (3 organizers) • Brazil 800 • Thailand 1,000 • Israel 800 • UK 6,000 (2 pavilions) • Germany 4,000 (2 pavilions) • Italy 3,200 (2 pavilions) • France 800 (2 pavilions)

21. Sales Channels • Direct Sales • Show team • Key accounts manager • US-based International Sales Group • Sales Agents • Government Agencies • Industry Associations • Agents • Friends

22. NHS- International Sales Agents • Government Agencies • CCPIT (and sub-councils) – China • AUSTRADE – Australian Trade Commission • KOTRA – Korea Trade Center • Malaysian Trade Commission • Bancomext – Mexican Trade Commission • Hong Kong Trade Development Council • India Trade Promotion Organization • Consulate General of Sri Lanka • Consulate General of Indonesia

23. China • Visas • China is still a communist country • Visas are required to enter the U.S. from China • U.S. officials in embassy/consulates view all visa applicants as potential illegal immigrants to the U.S. • The interview process that determines the granting of a visa to a Chinese applicant lasts less than 2 minutes.

24. China • Visas – how can you help • Keep in touch with embassy/consulates – visit if possible • Invitation letters • Make them counterfeit resistant • Spell everything correctly • Hand sign them each letter – with a name and signature known by the consulate office • If only 20% are rejected, have a party

25. International RelationsOn - Site • Keep a consistent (year-to-year) point of contact with the organizer • Get Operations, Directories, Registration, Travel Desk involved VERY early • Floor managers – must be attentive and sensitive to cultural issues – keeping consistency from year-to-year is a plus • Show Manager (fancy title) needs to be attentive to meetings, visiting VIPs, social functions, etc.

26. Case Study - Show B • Association-owned tradeshow • TS 200 show • 2000 exhibitors, 500,000+ sq. feet • 55,000 visitors • Almost no outreach internationally • No budget • No real supervision of international agents

27. Case Study: Show B • Host international government breakfast or lunch • Invite local city-based commercial officers, Consuls, and local ethnic media • Present information about US Market and the show

28. Case Study: Show B • Assemble an international team • Contact any current agents you may already have who actually sell 2. Fire the ones who are not producing 3. Ask friends/colleagues for suggestions in some countries Get leads on professional agents from the Commercial Officer or Consulate

29. General Tips - Culture • Know the Culture • Of the sales agents • Aggressive • Relationship based • Time zone • Of the exhibitors • What do they expect? • How firm or flexible are they? • When in Rome, or Beijing, or Frankfurt…

30. General Tips - Culture • Get books on international etiquette • How to address people (i.e.: is it by Mr. or Ms. or Mrs. or Honorable)? • Ask those who you know who have done business with the unfamiliar cultures/countries you are dealing with for advice • Travel there! Have meetings! Lunch! Dinner! Drinks!

31. General Tips • Everywhere else is different - be the “Sociologist on Campus” • History and Culture • Religion • Family and it’s priority in life • All international business is relationship based • Trust, communication, respect, and awareness

32. General Tips - Agents • Make sure and say thank you to a job well done very publicly • Make sure your agents and employees know you appreciate their efforts • Fly in agents who have come in over quota • Involve all offshore agents who come to the show in the team. • Make them feel welcome • Make sure they are invited to official functions • Make sure they get fed!

33. General Tips: Money • Does your bank give great wire transfer receiving information? • If not, find another bank • If you can’t confirm monies received… • How will you send the exhibit materials to make sure your international clients receive them? • Will your company make accommodations for multiple payments? • Some countries require correct invoices, etc. • Some companies have challenges buying dollars

34. Conclusions…Tips…LessonsInternational Sales • International sales is a long term and time consuming process • It requires United Nations-like diplomacy • It requires real “hand-holding” – there are no small national pavilions, especially from their perspective • Success is a complex and formula resistant mix of agents, friends, agencies and associations