Too often than not, companies in international business rely excessively on the product and its excellent quality; they think that this is all it takes to make sales and unknowingly leave the human interaction process behind. This, as a consequence, results in so many projects being undermined by expectations, assumptions, and dishonesty.
The steps described hereafter are based on true stories and might be picturesque enough for you to recall some evidence about what and how you should improve when collaborating with your international partners.
- SIGN WRITTEN AGREEMENTS and BEAR YOUR RESPONSIBILITIES
Trust is important, but in reality, there are quite a few considerable terms and conditions that can go wrong if both parties are not on the same page (prices, volumes, sales channels, packaging among others). A seller may simply avoid signing agreements to try to get rid of the product fast and counting too much on someone else to do his part in marketing. A distributor may avoid signing an agreement because this way their obligations become ambiguous and no promises are made. And as a matter of fact when no promises are made, then there is no one to account for the results.
- TEST THE MARKET
Do not assume that your product will be successful and be sold in every region. Its novelty is not a guarantee of smooth sales. A seller must be ready to provide his partner with free samples at first. Buyers and distributors, on their hand, need to act proactively and do all their best to promote the product, and this becomes possible if only their store is automated.
- BE PREPARED FOR THINGS TO GO WRONG
Be patient as things do not always work out as planned and results are not always immediate. It takes time to introduce a product into a foreign market. One year? Two years? Responses depend on the partners, store, location, traffic, marketing programs, etc.
- SUPPORT YOUR PARTNER
This goes both ways. As the seller needs to be updated regularly, in the situation when no responses come from a store, he/she should take matters into his/her hands and arrange a quick sale elsewhere in the region. If the buyer knows that they cannot deliver proper marketing, he/she should be honest and say no to the opportunity.
- DON’T DE CHEAP
Everybody wants to save, but there are limits to that. Adequate packaging and marketing programs can’t be compromised. As no mutual efforts of a seller and a buyer to advertise, to distribute, and to market (proper display in the store and online, especially if the product is new) are put in place, the collaboration becomes undermined.
- BUILD A CULTURE OF EXPERIMENTING TOGETHER
There is nothing childish in sitting together and learning. Learn what works and what doesn’t. Learn how to become a team and also friends, elaborate together on how things should be improved and be open to ask for or provide advice.
- SET AN EXAMPLE IN HONESTY
Be honest. Be honest first with yourself and then with your partner in what you want and what you can deliver. Deliberately take time to explain your reasons, wants, needs or suggestions. If you, a seller, work simultaneously with numerous distributors, don’t hide and be courageous to inform the buyer about the chosen strategy. Remember also that speaking the same language doesn’t guarantee understanding. Keep explaining as many times as needed.
- COMMUNICATE CLEARLY AND REGULARLY
Clear, regular and often communication is key. Consider this example for the importance of clarifying the intent. A seller may decide to donate the product, out of a wish to get reimbursed and get a tax credit or as a marketing strategy. By making his/her partner guess which is the real intention, he/she may fail to achieve his desired purpose.
In conclusion, as guessing will bring you nowhere, avoid assumptions at all costs, and from the first encounter with your partner start immediately by building relations and communicating as often as possible. Make empathy your friend, it will enable you to see the story from the other’s perspective and easily get into the partner’s shoes.
Kim Lefort, a student at McGill University in Political Science and Russian Studies, Loran scholar
Marina Belskikh, Ph.D. in economics, international business development consultant, coach