Export Management Companies

• An Export Management Company (EMC), functions as an external export sales department.
  • They represent your product along with various other non-competitive manufacturers.

• An EMC typically provides the following services:
  • Performs market research and develops a marketing strategy
  • Uses existing foreign sales agents to put your product into the foreign market
  • Functions as an overseas distribution channel or wholesaler
  • Takes title to the goods and operates on a commission basis
    • This depends on the arrangement between the EMC and the manufacturer

• An EMC must balance the product lines it represents.
  • Product diversification protects an EMC against radical changes in foreign market.
  • It also maximizes their economies of scale.

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© 2004 John Michael Pierobon

Notes