Many government export-trade offices can help a company find a local distributor. These same reasons make exporting a good strategy for small and midsize companies that can’t or won’t make significant financial investment in the international market.Ĭompanies can sell into a foreign country either through a local distributor or through their own salespeople. It’s a low-cost, low-risk option compared to the other strategies. In the first year, sales were only $100,000 but then jumped to $1 million in the second year, when Cuffe sold to more than one thousand restaurants, retailers, and grocery stores. Even better, American Airlines began carrying Cuffe’s imported wines on flights, thus providing a steady flow of business amid the more uncertain restaurant market. Cuffe has attributed her success to passion as well as to patience for meeting the multiple regulations required when running an import business.Įxporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. She started her company with $70,000, financed through her savings and credit cards. She also saw a gap in the existing market related to wine produced by indigenous African vintners and decided to fill it. Cuffe got the idea after attending a wine festival in Soweto, where she saw more than five hundred wines from eighty-six producers showcased. Cuffe did some market research and learned of the $3 billion wine industry in Africa. Importing wine isn’t new, but Cuffe did it with a twist: she focused on importing wine produced by black South Africans. Selena Cuffe started her wine import company, Heritage Link Brands, in 2005. Importing is also known as global sourcing. Importing is the flipside of exporting. Importing refers to buying goods and services from foreign sources and bringing them back into the home country. After reading this section, students should be able to …Įxporting is defined as the sale of products and services in foreign countries that are sourced or made in the home country.
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