An Export Management Company
MAXIA An Export Management Company
Your Bridge to New Markets
Mexico, Central America, South America, Europe
MAXIA “The FITA estimates that there are about 600 EMCs in the United States, with each representing an average of 10 suppliers, which means about 6,000 U.S. companies are using EMCs. But Joyner says there are ‘thousands upon thousands’ of companies that should be using EMCs yet aren't, including many large companies proud of their inhouse sales operations. He attributes this to ‘lack of knowledge of what an EMC does and how to get in touch with them.’ “ - Courtney Fingar, Global Business Magazine “All manufacturers without export experience should consider an EMC. Even sophisticated exporters may want to consider using an EMC for selected products for certain foreign markets. Firms looking for new markets in order to accelerate their business growth should consider using an EMC.” - Nelson T. Joyner, Former Chairman, The Federation of International Trade Association
Who are we?
MAXIA is an Export Management Company (EMC) focusing on the consumer packaged goods industry. An EMC is a firm that provides an exclusive, outsourced export department for established, market-leading manufacturers. More importantly, we operate as our partners’ international sales and marketing department in foreign markets where we’ve established distribution networks and sales & marketing best practices. We do not represent competitive products and, in return, we earn the exclusive right to represent our manufacturers’ brands in those markets. Think of us as you would an exclusive regional distributor in your home market.
How do we work with you?
Essentially, our operating status with our partners is the same as any of their large clients: we buy at a given price at the door of the nearest distribution point, take title to the goods, and pay according to established terms. In our case, we arrange for all export processes and documentation, invoice our foreign clients directly, and assume all exportation risks. We meet regularly with our manufacturers and discuss market conditions, sales goals and marketing objectives. Additionally, we work on a fixed-margin basis, thus aligning our interests to promote high-volume sales and minimize the price to our end consumer.
“One advantage cited for use of an EMC is that it gives the firm instant access to foreign market knowledge and export know-how. Furthermore, most EMCs will not charge you a fee for their services, and they will frequently pay you on whatever terms you sell to your best U.S. customers. You will have relatively few out-of-pocket costs.” - Nelson T. Joyner, Former Chairman, The Federation of International Trade Association
Your Bridge to New Markets
Mexico, Central America, South America, Europe
Why export? •
Exporting is no longer a luxury, it is a necessity since the US market/economy can no longer provide the growth needed for nationally distributed brands.
•
US consumer goods companies such as Coke and P&G long ago realized international markets are key drivers for revenue growth. Roughly ¾ of Coke beverages are sold outside of North America and developing markets alone accounted for 32% of P&G’s revenue in 2009.
Why use MAXIA? Instant Access to Foreign Markets – We’ve already built a sales and distribution network in our markets. It takes years to find dependable and trustworthy distributors. We’ve negotiated payment terms and credit lines. We’ve established best practices for marketing and quality control. We also have relationships with freight forwarders and shipping lines. We can plug you in right away. Save Time, Effort and Money - We’ve already spent the time researching and testing foreign market import requirements and processes. We understand the nuances of marketing and promoting products in our markets. Last and most important, we have a firm understanding of the unique wholesale and retail market landscapes in each of our countries. These are very different from what we find in the U.S. You will learn directly from us through the process of selling. Free Market Research - We travel to our markets consistently, perform surveys, discuss market conditions regularly with our distributors, and receive import data from various local sources. Traditional market research provided by Nielsen and others is very expensive will never approach the accuracy or specificity of our data. Risk Avoidance – We take title to the product as soon as it is loaded on our trucks at your distribution point in the U.S. All risks involving payment, currency exchange, customs requirements, shipping, inventory control, quality control, and volatile market conditions is assumed by us. Additionally, you avoid the cost and effort required to manage international tax and accounting issues. Limited Resources – Do you have the time, money and experience to successfully export with your current resources? Can you afford to make mistakes?
We are your instant bridge to new and foreign markets.
Your Bridge to New Markets
Mexico, Central America, South America, Europe
Where do we work? We’ve established reliable and effective sales and distribution networks in the countries you see listed below. We differ from consultants who have hundreds of contacts in many countries because our networks have been tested and are currently working for us to sell product. We speak to all our distributors on a weekly basis and work with them to ensure the proper representation of our brands. Our distributors represent retail industry giants such as Unilever, Mars, Nestlé, Procter & Gamble, Johnson & Johnson, and Kimberly-Clark. Rest assured, you will be plugged into a very successful network and we will manage it all for you. Additionally, we are in the process of building our network throughout Western Europe and portions of Africa. If you have a particular market in mind that we don’t currently service, please let us know and we will perform the market and partner research for you. That is what we do. Market North America Mexico Central America Guatemala Honduras El Salvador Nicaragua Costa Rica Panama South America Colombia Argentina Peru Venezuela Chile Ecuador Bolivia Paraguay Uruguay Europe Spain Portugal Ireland
Population
What is our background and why are we qualified to represent your brands? Our management entered the export management business by representing Maruchan brand products in Mexico. Now a staple marketing case study reviewed in business schools across Mexico, Maruchan’s ascent to market dominance in the country was unprecedented. Currently, Maruchan sends over 30 fifty-three foot containers PER WEEKDAY across the US-Mexico border and owns the market with an astounding 83% share.
Based on this success, we were tasked by our Maruchan associates to develop the rest of Latin America in the same manner that the Mexican market was built. We perform this task under the commercial name of Max InterAmericas.
111M
www.maxinteramericas.com
13M 8M 7M 6M 4M 3M
Since 2002, we’ve increased Maruchan exports to our markets by over 600%. Currently, we ship over 70 containers per month to 15 different markets, the equivalent of over 80 million consumer units per year.
45M 41M 29M 27M 16M 14M 10M 7M 3M 41M 11M 4M
We would like to do the same for you, using the same network.
Your Bridge to New Markets
Mexico, Central America, South America, Europe
What are our requirements in a partner? Desire - We are looking to partner with manufacturers of market-leading brands in the U.S. that have the desire to export their products. Ideally, our partner will not have invested much time and money in educating themselves about the details of exporting and nuances of selling in foreign markets – that’s what we’re here for! Quality - Due to our exclusivity, we become invested in your brand and our reputation is tied to your products. We will only represent high-quality products that are market leaders or on their way to the top. Spanish Label - One of the advantages of the region of Latin America is that a single, accurate Spanish label will gain you access to a market of 350 Million people. It will get you into virtually all of the countries, with the exception of Brazil. We will provide the direction to ensure a compliant label that communicates effectively to Latin consumers. Marketing Support – A common mistake of exporters is the assumption that the product will sell itself based on its status in the U.S. or that the duplication of marketing efforts performed in the U.S. will yield the same results in foreign markets. Our partner must be prepared to appropriately support a product launch in a country and culture where the product may not be known. Long-term Vision – Penetrating Latin American markets that are dominated by vast, informal distribution networks takes time. Our experience has shown that 6-8 years are required to saturate these networks and achieve the per-capita consumption objectives that lead to market dominance. Patience in these markets will yield very profitable long-term results. “But in the end it’s usually the EMC that chooses the manufacturer, not the other way around. ‘[EMCs] don't add products without carefully evaluating the potential,’ Joyner says. ‘The EMC wants to make sure there truly is a market for the product, that it fits with current distribution channels and that the supplier is ready to support necessary marketing activities.’” - Courtney Fingar, Global Business Magazine Please Contact: Eric R. Gomez, Vice President, [email protected], (310) 529-3346, San Diego, California, USA
Your Bridge to New Markets
Mexico, Central America, South America, Europe
Why Mexico is a good place to start… 3rd Largest Market in the Americas - Mexico’s population is 111 million, 11th largest in the world. Additionally, the metropolitan area of Mexico City is one of the largest in the world, with over 20 million people. This is where we normally begin. The Most Inexpensive Export Market Available - Geographic proximity, free trade agreements (NAFTA), nearzero VAT, low distribution margins and relatively low level of regulations make Mexico the most economic export market available. Freight, import duties, taxes, partner margins, listing fees and product compliance can increase the consumer price of your product by 60% to 180% in traditional focus markets such as the EU, Brazil or China. In Mexico this is significantly reduced, making the price to the end consumer much more consistent and competitive. Success in Mexico Builds Your U.S. Business - By building your brand in Mexico, you will accelerate development with Hispanic consumers living in the U.S. The USA Census bureau estimates the Hispanic population will reach 48 million in 2010 and approximately 65% of them will maintain Mexican roots. The Hispanic population has accounted for 50% of USA population growth since 2000. Our Experience is Unmatched in Mexico – Our founder spent a decade building one of the most successful brands Mexico has ever seen, Maruchan. MAXIA’s relationships in this informal market cover the ENTIRE market and ALL channels. This is extremely valuable considering the distributors in the wholesale/traditional channel can be responsible for 60-80% of sales depending on the category. This network can take years to develop on your own.
Memberships/Affiliations Western United States Agricultural Trade Association (WUSATA) http://wusata.org/index.html World Trade Center San Diego (WTCSD) http://wtcsd.org/ The San Diego & Imperial County District Export Council http://www.sandiegodec.org/ The Federation of International Trade Associations (FITA) http://fita.org/ US Department. of Commerce http://www.commerce.gov/
Southern United States Trade Association (SUSTA) http://www.susta.org/ Food Export USA Midwest http://foodexport.org/ US Commercial Service http://www.export.gov/ US Department of Agriculture (USDA) http://www.usda.gov/wps/portal/usdahome Institute of the Americas http://www.iamericas.org/ Los Angeles Chamber of Commerce http://www.lachamber.com/
MAXIA EMC • San Diego, California, USA • 310-529-3346 • [email protected]
Your Bridge to New Markets
Mexico, Central America, South America, Europe
MAXIA “The FITA estimates that there are about 600 EMCs in the United States, with each representing an average of 10 suppliers, which means about 6,000 U.S. companies are using EMCs. But Joyner says there are ‘thousands upon thousands’ of companies that should be using EMCs yet aren't, including many large companies proud of their inhouse sales operations. He attributes this to ‘lack of knowledge of what an EMC does and how to get in touch with them.’ “ - Courtney Fingar, Global Business Magazine “All manufacturers without export experience should consider an EMC. Even sophisticated exporters may want to consider using an EMC for selected products for certain foreign markets. Firms looking for new markets in order to accelerate their business growth should consider using an EMC.” - Nelson T. Joyner, Former Chairman, The Federation of International Trade Association
Who are we?
MAXIA is an Export Management Company (EMC) focusing on the consumer packaged goods industry. An EMC is a firm that provides an exclusive, outsourced export department for established, market-leading manufacturers. More importantly, we operate as our partners’ international sales and marketing department in foreign markets where we’ve established distribution networks and sales & marketing best practices. We do not represent competitive products and, in return, we earn the exclusive right to represent our manufacturers’ brands in those markets. Think of us as you would an exclusive regional distributor in your home market.
How do we work with you?
Essentially, our operating status with our partners is the same as any of their large clients: we buy at a given price at the door of the nearest distribution point, take title to the goods, and pay according to established terms. In our case, we arrange for all export processes and documentation, invoice our foreign clients directly, and assume all exportation risks. We meet regularly with our manufacturers and discuss market conditions, sales goals and marketing objectives. Additionally, we work on a fixed-margin basis, thus aligning our interests to promote high-volume sales and minimize the price to our end consumer.
“One advantage cited for use of an EMC is that it gives the firm instant access to foreign market knowledge and export know-how. Furthermore, most EMCs will not charge you a fee for their services, and they will frequently pay you on whatever terms you sell to your best U.S. customers. You will have relatively few out-of-pocket costs.” - Nelson T. Joyner, Former Chairman, The Federation of International Trade Association
Your Bridge to New Markets
Mexico, Central America, South America, Europe
Why export? •
Exporting is no longer a luxury, it is a necessity since the US market/economy can no longer provide the growth needed for nationally distributed brands.
•
US consumer goods companies such as Coke and P&G long ago realized international markets are key drivers for revenue growth. Roughly ¾ of Coke beverages are sold outside of North America and developing markets alone accounted for 32% of P&G’s revenue in 2009.
Why use MAXIA? Instant Access to Foreign Markets – We’ve already built a sales and distribution network in our markets. It takes years to find dependable and trustworthy distributors. We’ve negotiated payment terms and credit lines. We’ve established best practices for marketing and quality control. We also have relationships with freight forwarders and shipping lines. We can plug you in right away. Save Time, Effort and Money - We’ve already spent the time researching and testing foreign market import requirements and processes. We understand the nuances of marketing and promoting products in our markets. Last and most important, we have a firm understanding of the unique wholesale and retail market landscapes in each of our countries. These are very different from what we find in the U.S. You will learn directly from us through the process of selling. Free Market Research - We travel to our markets consistently, perform surveys, discuss market conditions regularly with our distributors, and receive import data from various local sources. Traditional market research provided by Nielsen and others is very expensive will never approach the accuracy or specificity of our data. Risk Avoidance – We take title to the product as soon as it is loaded on our trucks at your distribution point in the U.S. All risks involving payment, currency exchange, customs requirements, shipping, inventory control, quality control, and volatile market conditions is assumed by us. Additionally, you avoid the cost and effort required to manage international tax and accounting issues. Limited Resources – Do you have the time, money and experience to successfully export with your current resources? Can you afford to make mistakes?
We are your instant bridge to new and foreign markets.
Your Bridge to New Markets
Mexico, Central America, South America, Europe
Where do we work? We’ve established reliable and effective sales and distribution networks in the countries you see listed below. We differ from consultants who have hundreds of contacts in many countries because our networks have been tested and are currently working for us to sell product. We speak to all our distributors on a weekly basis and work with them to ensure the proper representation of our brands. Our distributors represent retail industry giants such as Unilever, Mars, Nestlé, Procter & Gamble, Johnson & Johnson, and Kimberly-Clark. Rest assured, you will be plugged into a very successful network and we will manage it all for you. Additionally, we are in the process of building our network throughout Western Europe and portions of Africa. If you have a particular market in mind that we don’t currently service, please let us know and we will perform the market and partner research for you. That is what we do. Market North America Mexico Central America Guatemala Honduras El Salvador Nicaragua Costa Rica Panama South America Colombia Argentina Peru Venezuela Chile Ecuador Bolivia Paraguay Uruguay Europe Spain Portugal Ireland
Population
What is our background and why are we qualified to represent your brands? Our management entered the export management business by representing Maruchan brand products in Mexico. Now a staple marketing case study reviewed in business schools across Mexico, Maruchan’s ascent to market dominance in the country was unprecedented. Currently, Maruchan sends over 30 fifty-three foot containers PER WEEKDAY across the US-Mexico border and owns the market with an astounding 83% share.
Based on this success, we were tasked by our Maruchan associates to develop the rest of Latin America in the same manner that the Mexican market was built. We perform this task under the commercial name of Max InterAmericas.
111M
www.maxinteramericas.com
13M 8M 7M 6M 4M 3M
Since 2002, we’ve increased Maruchan exports to our markets by over 600%. Currently, we ship over 70 containers per month to 15 different markets, the equivalent of over 80 million consumer units per year.
45M 41M 29M 27M 16M 14M 10M 7M 3M 41M 11M 4M
We would like to do the same for you, using the same network.
Your Bridge to New Markets
Mexico, Central America, South America, Europe
What are our requirements in a partner? Desire - We are looking to partner with manufacturers of market-leading brands in the U.S. that have the desire to export their products. Ideally, our partner will not have invested much time and money in educating themselves about the details of exporting and nuances of selling in foreign markets – that’s what we’re here for! Quality - Due to our exclusivity, we become invested in your brand and our reputation is tied to your products. We will only represent high-quality products that are market leaders or on their way to the top. Spanish Label - One of the advantages of the region of Latin America is that a single, accurate Spanish label will gain you access to a market of 350 Million people. It will get you into virtually all of the countries, with the exception of Brazil. We will provide the direction to ensure a compliant label that communicates effectively to Latin consumers. Marketing Support – A common mistake of exporters is the assumption that the product will sell itself based on its status in the U.S. or that the duplication of marketing efforts performed in the U.S. will yield the same results in foreign markets. Our partner must be prepared to appropriately support a product launch in a country and culture where the product may not be known. Long-term Vision – Penetrating Latin American markets that are dominated by vast, informal distribution networks takes time. Our experience has shown that 6-8 years are required to saturate these networks and achieve the per-capita consumption objectives that lead to market dominance. Patience in these markets will yield very profitable long-term results. “But in the end it’s usually the EMC that chooses the manufacturer, not the other way around. ‘[EMCs] don't add products without carefully evaluating the potential,’ Joyner says. ‘The EMC wants to make sure there truly is a market for the product, that it fits with current distribution channels and that the supplier is ready to support necessary marketing activities.’” - Courtney Fingar, Global Business Magazine Please Contact: Eric R. Gomez, Vice President, [email protected], (310) 529-3346, San Diego, California, USA
Your Bridge to New Markets
Mexico, Central America, South America, Europe
Why Mexico is a good place to start… 3rd Largest Market in the Americas - Mexico’s population is 111 million, 11th largest in the world. Additionally, the metropolitan area of Mexico City is one of the largest in the world, with over 20 million people. This is where we normally begin. The Most Inexpensive Export Market Available - Geographic proximity, free trade agreements (NAFTA), nearzero VAT, low distribution margins and relatively low level of regulations make Mexico the most economic export market available. Freight, import duties, taxes, partner margins, listing fees and product compliance can increase the consumer price of your product by 60% to 180% in traditional focus markets such as the EU, Brazil or China. In Mexico this is significantly reduced, making the price to the end consumer much more consistent and competitive. Success in Mexico Builds Your U.S. Business - By building your brand in Mexico, you will accelerate development with Hispanic consumers living in the U.S. The USA Census bureau estimates the Hispanic population will reach 48 million in 2010 and approximately 65% of them will maintain Mexican roots. The Hispanic population has accounted for 50% of USA population growth since 2000. Our Experience is Unmatched in Mexico – Our founder spent a decade building one of the most successful brands Mexico has ever seen, Maruchan. MAXIA’s relationships in this informal market cover the ENTIRE market and ALL channels. This is extremely valuable considering the distributors in the wholesale/traditional channel can be responsible for 60-80% of sales depending on the category. This network can take years to develop on your own.
Memberships/Affiliations Western United States Agricultural Trade Association (WUSATA) http://wusata.org/index.html World Trade Center San Diego (WTCSD) http://wtcsd.org/ The San Diego & Imperial County District Export Council http://www.sandiegodec.org/ The Federation of International Trade Associations (FITA) http://fita.org/ US Department. of Commerce http://www.commerce.gov/
Southern United States Trade Association (SUSTA) http://www.susta.org/ Food Export USA Midwest http://foodexport.org/ US Commercial Service http://www.export.gov/ US Department of Agriculture (USDA) http://www.usda.gov/wps/portal/usdahome Institute of the Americas http://www.iamericas.org/ Los Angeles Chamber of Commerce http://www.lachamber.com/
MAXIA EMC • San Diego, California, USA • 310-529-3346 • [email protected]
