International

Markets Broaden, Providing Opportunities

 Pictured here are SEMA members measuring the ’13 Ford Ranger T6. A ’12 Toyota HiLux is also available. Member manufacturers can measure the vehicle free of charge at SEMA headquarters.

SEMA Programs for Global Exports

Growing demand for U.S. products among the more than 95% of the world’s consumers who reside outside the country has resulted in a five-fold growth in American exports from 1985–2012, according to a Federal Reserve Bank report, and a record number of American companies are seeking to meet the demand. Yet for all that growth, the Small Business Administration reports that only 1% of small businesses are involved in exporting. And for those that are, 58% export to only one country and 83% to less than five markets.

There are huge benefits for companies that export. Diversifying the customer base can lead to an improved bottom line; companies that export are better positioned to ride out future U.S. economic downturns and can increase the firms’ overall competitiveness through access to new customers; exporting leads to new ways of doing business; and exports provide contact with new cultures.

The United Arab Emirates and the Middle East Region

Max Stutz (left), sales representative for Ohio-based Avery Dennison, shakes hands with Sheikh Salem Bin Abdulrahman Al Qassimi (right), director of the Office of His Highness the Ruler of Sharjah. Also pictured is Philip Novac (center), Avery Dennison’s director of marketing and business development. 41 SEMA-Member Companies Explore the Opportunities and Challenges of Selling Into This Car-Lover’s Paradise

More than 160 pre-vetted buyers from nine countries met with 41 SEMA-member exhibitors at the 2013 SEMA Middle East Business Development Conference. Buyers from the six Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates [UAE]), from Lebanon, Egypt and Jordan traveled to the UAE to meet with manufacturers of parts for those engaged in car collecting, off-roading and motorsports and those seeking upgrades for street-performance vehicles.

A Closer Look at Russia

One of the World’s Largest Vehicle Markets

SEMA News recently traveled to Moscow to take a look at the center of the specialty-equipment market in the world’s largest country in terms of area (more than 6.6 million square miles). Russia is one of the fastest-growing emerging market economies and one of the five countries that make up the so-called BRICS, along with quickly growing Brazil, India, China and South Africa.

This article looks at the size of Russia’s passenger-vehicle market, the interest in customizing, consumer purchasing power, types of vehicles on the road and the implications for U.S. specialty-equipment companies as well as growth potential, opportunities and challenges.

Accessory-Friendly Vehicles

SEMA can tell you what vehicles are on the road in the Arabian Peninsula countries, Russia, China, Brazil, Japan and selected Euro-pean countries. Top Global Markets

Thinking of trying to sell your product overseas but not sure where to start? Say you make a Jeep accessory that is a hot seller here in the United States and you want to know where else the Jeep is popular. SEMA can help. It has sales data for Jeep in more than two dozen countries. The same data is available for trucks and select car models.

It doesn’t stop there. SEMA can tell you what vehicles are on the road in the Arabian Peninsula countries, Russia, China, Brazil, Japan and selected Euro-pean countries.

Making Headway Overseas

As might be expected, OMIX-ADA’s international sales are best where the Jeep brand has a strong presence. “China is a very important destination for our products,” said Nathan Calabrese (far right), director of international sales, regarding his OMIX-ADA meeting with buyers at the 2012 SEMA China Business Development Show.SEMA members create products for vehicles that are sold globally, and a growing number are looking to overseas markets for new business opportunities. OMIX-ADA, headquartered in Suwanee, Georgia, has more than 15,000 Jeep parts and accessories in stock and has been selling them globally for years, but the company expanded its international business department a few years. Now, OMIX-ADA’s international business is growing faster.

For this second in a periodic series of articles about SEMA members that are making headway in growing their overseas business, Nathan Calabrese, OMIX-ADA’s director of international sales, provided insights into how the company identifies markets to target, what company executives look for in a distributor, and offers some tips on how to get started selling internationally.

Case Study: Globalizing Sales

One Company’s Methods May Be a Model for Others

SEMA members are increasingly finding overseas markets and growing their exports, at least in part by taking advantage of resources and opportunities made available through SEMA. Royal Purple is one such company. Last year, international sales of its consumer products grew from almost nothing to around $60,000. Now it is setting its sights much higher.

Considering Mexico

Strong Growth and Fatter Pocketbooks Warrant a Closer Look at the Potential in Latin America’s Second-Largest Economy

Automotive specialty-equipment manufacturers might want to take a look at selling into Mexico, the second-largest export market for the United States. According to the International Monetary Fund, 85% of the world’s growth—and new customers—over the next five years are located outside the United States, and our neighbor to the South is an increasingly interesting market.

The World Stage

The International Happy Hour at the SEMA Show in Las Vegas was the venue for the 2012 Global Media Awards. In front of a crowd of more than 1,000 exhibitors and international buyers, 150 companies learned that their products had been selected by a panel of 25 international journalists as this year’s hottest products, chosen from more than 2,000 entries in the Ideas Alive: New Products Showcase.

China: A Promising, Emerging Specialty-Equipment Market

As with a similar program for the Middle East, the annual SEMA China Business Development Tour was designed to be a low-cost and high-value way to explore a new market. Activities included two full days of meetings with pre-vetted buyers in Shanghai and Beijing, visits to specialty-equipment shops in both cities, briefings by U.S. government officials based in China and the opportunity to network with both buyers and fellow SEMA members in an informal setting. In addition, trip participants were able to help defray the cost of participating through a three-year, $500,000 Market Development Cooperative Program Grant that SEMA was awarded by the U.S. Department of Commerce.

Branching Out

Helping International Buyers Find You at the SEMA Show

In a post-SEMA Show survey, exhibitors identified meeting potential new international customers and developing relationships with overseas buyers as an increasingly important goal. Exhibitors also felt that there was an increased international presence, with more global attendees at the 2011 SEMA Show than in the past several years—and they were correct! More than 25% of all buyers at the 2011 SEMA Show were from more than 100 nations outside the United States.

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