Export Management Company
An Export Management Company or EMC is an intermediary facilitating manufacturers export sales to foreign importers. To achieve its mission, an EMC operates as an export sales agent or exclusive distributor for non-competing manufacturers. Exporting through an EMC offers manufacturers competitive advantages over exporting in direct.
TWO BUSINESS MODELS
… and their fundamental differences:
Export sales agent model: The EMC prospects the export area and collects orders from foreign importers. Orders are then transmited to the manufacturer who invoices the importer directly. Thus manufacturers bears the payment risk. The EMC earns revenue on export order sales commission basis.
Exclusive distributor model: The EMC prospects the export area and collects orders from foreign importer. The EMC buys from the manufacturer who invoices the EMC in return. The EMC then sells to the foreign importer. Thus, the EMC invoices the foreign importer and bears the payment risk. The EMC earns revenue adding a mark-up to its purchase price covering its costs and profits.
Exporting direct Vs. with an EMC
… assessing a manufacturer’s benefits from exporting with LINK in MENA:
Does your company have the resources to build new export routes to market?
Doing business in MENA is different from doing business in Europe or the North America. MENA importers are mostly family owned companies with a long-term business approach. Building strong relationships and trust with importers takes time and dedication. It requires frequent travels, diplomacy and a long-term business approach.
LINK is a family owned company with a long established distribution network across the MENA region. Thus allowing manufacturers to distribute through our importers network without supporting the cost of building their own.
Does your company have sufficient understanding of the export market ?
The MENA markets are distant from European markets in terms of customer preferences and purchasing power. These differences also exist among the MENA markets at national level. Understanding each country’s unique profile and tailoring the sales & marketing strategy accordingly is decisive for success.
LINK is specialized in European food brands export sales and focused on the MENA area distribution. Our experience and exposure to the MENA region for over 20 years enables the design of successful sales & marketing strategies.
Does your firm have the risk appetite for export?
The MENA markets export and food regulations are not always harmonized. Complying with foreign regulations is essential to avoid product rejections. Products rejections often trigger payment disputes with local importers. Dealing with such situations requires time, diplomacy and knowledge.
LINK export experience is a valuable asset to both prevent and deal with export compliance issues.
Are you satisfied with your current export sales performances?
European manufacturers may find their MENA export sales ROI poor compare to other export regions. MENA is composed of many small markets with non-harmonized regulations and heterogeneous consumer profiles. Therefore, exporters costs of sales due to the MENA region complexity tend to add up quickly.
LINK earnings are exclusively conditioned by export sales performances. Hiring LINK is a cost effective way to get around this complexity and increase export sales revenue.
If your answered no to any of the above questions, your company may benefit from exporting with LINK.