Introduction of EMCs
Export Management Company
Export management company is one of the export mediators, which helps economic agencies to enter international markets and increasing the export of goods or services. These companies manage the export activities of specially SMEs partially or thoroughly. These are companies are called EMC2.
Export management company is an independent private company which acts as a sales department for agencies. Export management company, which signs a contract with them to manage their export affairs, can benefits the partial our total representation of their products in global markets exclusively or non-exclusively.
Export management company should not be mistaken with the commercial companies which have no obligation toward the producer. Commitment and long-term relationship with producers and users distinguish export management company from its counterparts. It covers fields other than international marketing. It facilitates foreign trade therefore the agencies benefit entering global markets while export management company enjoys long-term relationship between producer and buyer which leads into non-oil export promotion.
The types of export management company:
Some of export management companies act like a representative. They search for foreign customers under the name of producer. In this case, the invoice is issued in the name of producer and the producer takes the risk of non-payments and takes decision on final price, as well.
Another type acts as an exclusive or non-exclusive distributor. Due to its knowledge in distribution channels, it determines prices for export products. In this case, it takes the risk of non-payments, whereas the commercial companies do not have any control an export prices and they buy the product from the producer directly and sell to the foreign customer with their favourite price. In this case, the commercial company issues the invoice and takes the risk of non-payments.
The activities of export management company:
Most of the export management companies make sales network in foreign markets. Even some have sales branches and stores. Most have representatives and distributers and trade mediators in each target market.
Signing contracts between export management companies and agencies:
The contracts are usually between one and three years and based on the types of the contract, the company can take annual membership or/and sales commission/ project fees.
Services of an export management company
-Marketing research for knowing target market
-Determining qualitative and quantitative characteristics of the product
-Selecting efficient distributer
-Negotiating on required licences
-Training the distributers
-Offering customer services
-Providing required documents for export
-Determining precise fees for transportation and insurance
-Counselling for pricing
-Offering storage services
-Coordinating transportation affairs
-Managing risk and mutual commitment