One crucial aspect that SMEs often overlook is the importance of effective B2B matchmaking in enhancing export performance.
As we mentioned previously, SMEs, especially inexperienced exporters, choose an opportunistic approach over a strategic one.
Consulting teams from all over the world receive very similar inquiries: โPlease match us with potential clients, and then we will continue to develop our business ourselves. We need only B2B matchmakingโ [B2B MATCHMAKING: WHAT YOU NEED TO KNOW?]
Alternatively, companies visit/participate in trade shows and conferences with the hope of finding a potential partner in a certain country there.
The probability of success with this approach is low because an exporter must be prepared for negotiations with a matched partner. Furthermore, it is common for the ideal partner envisioned by a company to be unavailable in the local market. Additionally, there may be insufficient demand for the product..
This is a lot of homework to be done before the moment when two parties find themselves at the negotiation table.
What kind of homework for an effective B2B Matchmaking?
- Firstly, it’s imperative to validate whether the target market truly aligns with your expectations and if there is indeed a demand for what you offer as a comprehensive package. This involves thorough market research and analysis.
- Additionally, it’s essential to craft a clear and compelling presentation of your offering, highlighting the unique benefits it brings to potential partners. This presentation should effectively communicate the value proposition and differentiation of your product or service.
- Clear pricing and margin calculations are indispensable elements of preparation, ensuring transparency and fairness in negotiations for both you and your prospective local partner. Understanding the local distribution channels is equally vital, as it provides insights into how your product will reach end consumers effectively.
- Moreover, adapting to the cultural nuances of the target market is paramount. This includes understanding not only the business practices but also the social customs and communication styles prevalent in the region.
In summary, before stepping into negotiations, thorough homework is essential. From validating market fit to crafting compelling presentations, and from pricing strategies to cultural adaptation, each step plays a crucial role in maximizing the chances of success in B2B matchmaking ventures.
You can read some real life examples in this post
