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What is EMC

Release Date: 2016/11/30 | Number of Visits: 693 | Post ID: 13120

Expand Your Business Overseas with an Export Management Company

How to Start Selling Products in overseas 
Do you want to sell your goods or services in the ……….? If you are looking for a quick and cost effective way to introduce your goods to a new market you may benefit from working with an Export Management Company.
This article explains how an Export Management Company works and why you may choose this method of exporting over other alternatives.

What is an Export Management Company?

An Export Management Company (EMC) appoints and provides services to the distributors in overseas markets. An EMC's customers receive full technical and promotional support services from each of the manufacturers. And, most importantly, it provides advanced information on product modifications and new product development and factory implements of warranty programs overseas.
An EMC is an independent company which acts as your export sales department. It is a common method that many manufacturers and businesses use to sell their products overseas.


What are the major functions that an export management company performs on behalf of manufacturers, distributors / exporter, Importers?

  • An export management company can offer products from several manufacturers and can combine different products from different manufacturers to provide big customer’s enquiry. Most overseas big chain are customers of an export management company, they rely on it, as their principal procurement source of a product line for all their requirements from other countries.
  • Help to merchandise promotion. Issues together with marketing and sales advice. 
  • An in-depth understanding of the needs of your business - which is needed if your business is to grow. 
  • Consulting work - to help better organize your business. 


What are the procedures an export management company performs on behalf of manufacturers or distributers?

  • EMC provides the following international services on behalf of the manufacturer.
  • Searching potential market.
  • Studding market conditions. 
  • Locating overseas distributors.
  • Help to merchandise promotion issues together with marketing and sales advice. 
  • Consulting - How to sell and introduce your products to the selected overseas market.
  • International Exhibitions.
  • Market searching.
  • Analyzing the market.
  • Marketing.
  • International Sales.
  • Contract.
  • Financing.
  • Banking.
  • International and Domestic Transportation.
  • International Insurance.
  • Documentation as required by overseas import regulations.
  • After Sales Service Coordination.
  • Organizing customer Service.
  • Organizing technical Support.
  • Warranty Service Coordination


Why use the services of an Export Management Company?

An Export Management Company usually works based on two structures, taking commission of sales amount or buying the material from the manufacturer and resells to its client.
The cases where the Export Management Company works on a commission structure, two situations may have occurred: whether the manufacturer does not have an international department or, he has it but does not wish to expand the existing sales department to provide the coverage every possible client in the world.
There are also other cases where the export management company might have a particular sales relationship in a market that requires his expertise.
One of the most important features of an Export Management Company is the fact that it can “afford” to promote products with less fee structure.


What does an Export Management Company require from its Principal?

An Export Management Company (like Sepehr Meshqat Caspian Co) is usually as “strong” as the principal allows him to be. The following are some keys toward proper development:
•    Full Product knowledge
•    Technical support in preparation of quotations and responding to technical issues
•    Competitive pricing structure to competition
•    Market competitive payment terms and conditions
•    Territory protection
•    Prompt referral of any communication received by the factory directly from the client with the response coming from or coordinated with the Export Management Company
•    A representation agreement that is equitable to both parties and allows for sufficient time for project development
•    Open communication between both parties

Why Choose an Export Management Company?

If you feel that opening your own operations in a foreign market is unachievable then an Export Management Company can provide an alternative which can simplify the process.
Export Managers help businesses to overcome the challenges they may face on their own by providing a logistic link in the international supply chain between producers in one country and channels to sell in another. They will be able to tap into an existing network of businesses and wholesalers which can help speed up the process of getting products on foreign shelves.
Through their knowledge of the market and the area, Export Management Companies are able to help pass your products on in an efficient and cost effective way and develop the most effective way to link the supply chains of a business in the targeted market.
After discussion with your business, its process and goals, and once all requirements and barriers have been outlined and assessed, an export manager can begin the process of marrying up supplier to potential distributers in the region.


What Process Does an EMC Follow?

An Export Management Company will follow a number of processes to manage the flow of your product to the supplier. They are responsible for setting up the systems and processes needed to manage the flow of a product from your business to their local supplier/distributor.
A good Export Management Company will ensure that you are informed about the progress of your products and about any potential issues and ways in which they can be resolved.


Advantages of Using an Export Management Company

There are a number of reasons why you might decide to use an Export Management Company over direct exporting. Some of these are explained below:
1. Export Sales care to Come Quicker
Those looking to accelerate their business growth abroad quickly can benefit from using an EMC. 
An EMC will typically have a network of agent and distributors already in place and established contacts through which to sell your product. This will allow you to sell faster than setting up your own export channels which will normally require more time to realize sales.
2. An EMC Has the Time & Specialized Knowledge Needed.
Even if you have the adequate financial resources your business may lack the time necessary to build an export business, or the time needed to gain the specialized knowledge about the foreign market you wish to sell in.
Your chosen export management company will typically have a greater understanding of the foreign market. They will be able to handle all the details of orders, including quotations and shipping.

3. Their Profits Are Based on their Success
An EMC’s profits are based on how successfully they export. Thus, they will be motivated to sell more to increase their own profit.
4. By exporting through an EMC you will be able to evaluate if there is a market for your product without taking the risk associated with setting up your own distribution channels.

Doing Business in foreign market
For each business in new markets, there are three main ways to sell: direct trade; through commercial agencies or by establishing a branch. 
The route you choose depends on your business and the nature of your product or service.
If you lack exporting knowledge, then you may find it difficult to trade directly or establish a branch. For manufacturers or businesses in this position you may benefit from using an Export Management Company (EMC).


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