Consultant Says Dollar Decline Makes Goods Attractive : Begin Pacific Rim Exports Now, Expert Urges
Although the recent bloody turmoil in China has put a damper on some business transactions and scuttled others, conditions for exporting American goods and services to the Pacific Rim have never been better, according to Mike Van Horn, a San Rafael, Calif., export consultant.
“If companies don’t look at expanding sales or operations into the Pacific Rim countries they may be leaving a pile of money on the table for their competitors,” said Van Horn, author of a new book titled “Pacific Rim Trade: The Definitive Guide to Exporting and Investment,” published by Amacom Books in New York.
According to the Commerce Department, only 1,000 U.S. companies account for more than 60% of the exports to the Pacific Rim. Van Horn said the region holds endless possibilities for other American firms, especially smaller ones that can move quickly and respond to the changing market.
Most important, Van Horn said the Pacific Rim’s 200 million consumers are embracing American goods and services with a passion.
Several Making Deals
“The conventional wisdom had been that those countries were resistant to imports, but now all that has changed,” Van Horn said. “American imports are a lot more desirable because the people have a lot of money and the dollar has declined in value.”
Van Horn said he has one client who plans to open a chain of trendy, California-style restaurants in Japan. Several small biotechnology companies are also making lucrative business deals abroad, he said. And two other clients are successfully exporting California-made apparel to the Far East.
He said there are also excellent opportunities for American management consultants to work abroad because many young Asian businessmen have studied at American universities.
“There is a high level of American business culture in these countries,” said Van Horn, who began his career as a management consultant and began studying the Pacific Rim nations to better serve his clients.
Although Americans will be able to speak English with most Asian businessmen and women, a failure to observe the proper cultural protocol is often the major obstacle to establishing a good relationship, Van Horn said.
In his book, Van Horn explains how the exchange of business cards, printed in English on one side and the host country’s language on the other, is a very important ritual. He also advises readers to be on time when meeting with South Koreans, and avoid questions about a person’s family when visiting Singapore. In Taiwan, he suggests avoiding any personal contact other than a handshake. It is also customary to give gifts of small practical items such as pens or other items that represent your company.
Visit Nation First
In general, Van Horn said Asian businessman prefer to negotiate with the top person. Because of this, he believes that an entrepreneur can accomplish more in a visit than a lower-level executive with a major corporation.
Van Horn encourages his clients and readers to visit the countries they want to do business with to conduct “sidewalk market research.” This way, the business owner can see firsthand whether his products or services would be well accepted in a particular country. In his comprehensive, 450-page book, Van Horn discusses whether companies should use independent agents, trading companies, joint ventures or their own subsidiaries. He covers the pros and cons of each avenue in great detail. The book also provides lists of government and diplomatic contacts, trading companies, export assistant programs, financial institutions and other resources.
