November 2024 – International Trade Forum: Focus on US
Date published:
The Chamber had its last international trade forum for the year 2024 on the 4th of November, well attended by our esteemed members. The forum was chaired by Sarfraz Mian, and we had David Smallman as our speaker. David Smallman is the Global Advisor for the Delaware Prosperity Partnership. He has business experience in more than 64 countries spread across 5 different continents. He currently helps international businesses to develop in the US.
David spoke about US as a marketplace and the points to be kept in mind by international businesses before venturing into doing business in the US. Each State in the US is different. So, it is very important to do proper market research and risk analysis. Economic development groups at a city level, state level and country level can help with the market research. Economic development is different up to county levels all the way through to state level, and one should begin with speaking with the county within the state they wish to set up. It is very important to meet Economic Development team of the state or county.
Identifying the market according to the product/service is of utmost importance. Knowing the rules and regulations of the state in which one is planning to establish the business is crucial. Talking to the local chambers of commerce in the states which UK has MoUs with and establishing a symbiotic relationship can go a long way.
For a manufactured product to save on duties and taxes and to be more easily accepted in the US, it would be helpful to give it US origin. The percentage of manufacture required to be done in the US will be different for each state. Assembling the final product in US is a good strategy to reduce duties and taxes. Speaking with other businesses who are already trading in the US, to “pick their brain” would be a good beginning.
Before product placement in a certain market, one should try to assess how well the product/service will be accepted in that market. Different states in US are hubs for different sectors. For example, Delaware is a hub for health care and New Orleans is a hub for gaming. Talking to other businesses and consultants with experience in the US market, understanding the USP of the product to be launched and finally actually going there to experience and gauge the market are amongst other important things that David talked about.
To conclude, here are the keys steps to begin a US market penetration plan:
- Begin with good market research
- Seek to identify your company’s product key market in the US
- Pay attention to the regulatory rules for your product at the various state levels
- Make sure to carry out a detailed risk analysis
- Talking to the local chambers of commerce in the states which UK has Memorandum of Understanding (MOUs) with and establishing a symbiotic relationship can go a long way
- Where should you incorporate your business and where you should trade from, are vital for success in the USA?