7 tips for doing business with buyers of European spices and herbs?

 

7 tips for doing business with buyers of European spices and herbs?

       

1. Respect cultural differences What is acceptable in your culture can create conflict in another culture, and vice versa. To build strength through cultural diversity in international cooperation, you need to manage expectations. The most relevant cultural aspects are listed below. However, please note that this is an exaggeration and may not be true of any business organization in Europe. Each company has its own culture, and everyone is different and cannot be made universal. It is safe to say that well-known retailers in the field of spices and herbs are generally professional, pragmatic, and sophisticated. Established retailers know the market well and have a good knowledge of product ranges and various quality features. They will enjoy contacting you and prioritizing technology. One of the best ways to increase your business communication skills and culture in general is to invest in training and coaching. A common trap in communication workshops is that they often miss out on individual approaches and are unaware of participants' progress. The way we communicate is part of our personality and cannot be changed by simple training sessions, no matter how interesting. So, use social psychology, and combine training with psychological training to get the best results. Language and values Your sales staff should have excellent English language instruction. This will be enough to contact many European purchasing managers. However, buyers from other countries appreciate it if you can speak to them in their native language. This is the case with Spanish-, French-, Italian-, Portuguese- and German-speaking countries. For example, France is showing significant growth in the importation of vanilla from Madagascar (a French-speaking country with a common heritage). Another example is Spain: they import more than 90% of European shares of dried peppers from Peru (a Spanish-speaking country with a common heritage). Structure and order At various levels, potential buyers in western and northern Europe are highly organized and like to plan everything in detail to avoid unexpected changes and delays. However, there is little difference between targeted markets. For example, in the Netherlands and France, business meetings are usually organized but not overly formal, starting and ending with a little talk. On the other hand, potential customers from southern European countries such as Spain and Italy will be more flexible and time-saving. Structure and order are also less effective during crowded trade events such as ANUGA or SIAL, when meeting times are very limited. Communication style When approaching European buyers of spices and herbs for the first time, it is important to be brief and to present quickly but clearly with your promise. This is especially important when you meet them during trade fairs. The communication style of some communities is seen as ‘circular’: people tend to provide detailed information on a key topic, which is often only mentioned at the end of a conversation. This is in contrast to the 'direct' communication style of Germany, Austria or the Netherlands and many other European countries, where people often start with the story and come to the details later. Another important aspect of communication style is emotional expression. For example, people in Britain, Germany, or the Dutch often monitor and control the amount of emotion they display at business meetings. On the other hand, in markets such as Eastern Europe, Spain, Italy, and France, emotional reactions are often the result of laughter, smiles, anger, or even spitting. Personal space is seen differently in southern Europe. People tend to be closer together than in western Europe, but this depends on the closeness between them. According to a recent study, Brits prefer to keep a meter between them and a stranger, 80cm from an acquaintance and just over 50cm from a close or close friend. Sovereignty in the workplace The power level between a manager (team leader, company owner) and a subordinate (team member, employee) are the characteristics of more companies than countries. At most spice and herbal remedies, the purchasing manager will not make a final decision regarding your gift before consulting with their manager. One of the reasons for this is to respect the relationship between the current providers and the owner of the company. It is quite common, especially for small companies, for sales activities to be carried out by sales managers, while import and purchase services are used by the owners or senior management. There are still other royal preferences related to company and country level. For example, their respective positions and powers are better defined in France and Germany than in the Netherlands. Also, the French and Germans use more decent manners in business situations. In some asset companies, subordinates tend to give higher status to their superiors. Potential Dutch customers may see this as a lack of performance, as they expect everyone to contribute to the meeting.
. Tips: Get used to shaking hands. Physical contact, such as a handshake, is not uncommon in many Asian countries. This may make businessmen from other countries feel uncomfortable shaking hands. A strong handshake shows confidence and is preferred over a soft handshake, which may indicate indifference or disloyalty. However, as the Covid-19 epidemic, instead of shaking hands, many people switch to elbows or avoid contact altogether, using for example wai bow or heart donations. Speak clearly and clearly, but not too much. Words should be kept in a comfortable and pleasant volume. German, Dutch, and British customers may be uncomfortable with a loud voice, which may seem intimidating. Don't

2. Be aware of price fluctuations and set appropriate values
In the European spice and herbal market, prices fluctuate frequently depending on the product in major supplier countries. In cases where a small number of countries dominate land grants, inflation is very high. When the yield in those countries is high, prices fall and vice versa. Examples of top suppliers and influences of global prices include China (dried capsicum, ginger), India (turmeric and other spices), Indonesia (cloves and other spices), Iran (saffron) and Madagascar ( vanilla).

It is therefore very important that you know the prices set by the original feed source. When you start exporting spices and herbs to Europe, you will rely heavily on prices offered by leading suppliers. For new European retailers, one way is to keep prices slightly lower than those of the competition. Once you are familiar with the market, and you can anticipate market trends, you can add a margin smaller than your value.

Providing relevant information about production standards and farmers' price trends to your consumers is considered very important in the herbal and spice business. If you provide the right information about the expected change in advance, you will increase your competition in the market. Reliable buyers prefer to book orders in advance to ensure a stable availability.

Once you are in the market, you can try to improve your buyer's portfolio, thus improving your median sales price. However, buyers who are willing to pay more will also want more for quality, product management and service, so be realistic with your options. It is important to partner with other suppliers from your country in this process, and invest in partnership to improve quality. When quality from one country is considered consistently good, you will have many opportunities to increase your price.

When comparing your price with other offer sites, it is best to use C and D words as the basis for comparison. The terms Ex Work and F do not include material and cultural costs, which may vary from country to country. However, when making a quotation, you should choose Incoterms that allow you the best. For example, if you sell a lot of items, you can get better offers from transportation and insurance companies. In this case, the price of CIF (Cost, Insurance and Freight) will be very competitive for you. If you have little export experience, it is safe to offer a price based on Ex Works or F only names.

Once you have included all the costs in your price and added the margin according to the current market reality, it is time to set the quote. There are a number of important things that you should include in the rating. Figure 1 below summarizes some of the following key points:

Product Description - You do not need to include full product details in your rating, as you can send it as an attachment. However, it is important to include the basic grades and quality information related to your presentation. Several methods define a given, such as variety, size (of spices) or color (defined by industry standards). It is strongly recommended to submit a certificate of analysis from an accredited laboratory as proof that the product complies with European Union law.
Shelf life - this is usually based on industry information. There are no industry standards that describe shelf life, so it's your job. Traders will need shelf life for at least one year after importing, but usually it is required for two years. Importers must meet the expectations of final buyers (retailers or processors), which usually require the product not to exceed 2/3 of the total shelf life.
Price - should be mentioned in your preferred currency, although European consumers prefer to get a discount on EUR. It should be clear which Incoterms are used for the price and which unit is used (usually net weight in kilograms or tons and even fluids such as oleoresins). You can check out our product specifications for more information on product prices.
Packing - shows the type, size and load of the container. Container load can indicate how many units of goods (such as pallets) are placed in the container.
Payment - you can show payment terms, but you can also negotiate payment terms later. For example, if your buyer asks for a refund, you can negotiate a higher price because you will need to use the export insurance agency service. You can learn more about how to make sure you pay for our course on Planning Spot Spices and Herbs in Europe.
Expiration date limit for your rating - you do not always need to indicate the date. Sometimes you can show that the offer is valid until the product is available for sale. However, in this case, show that your offer is not the last resort. This is to prevent problems with normal price fluctuations in the long run. It is safe to add that the offer is subject to final confirmation.
Figure 1: Sample measurement in the field of herbs and spices

Sample rate in the field of herbs and spices
Tips:
Consider signing up for ISH pricing information services. It is one of the most respected information services in the markets for spices and herbs. Subscriptions will give you regular and up-to-date updates on export prices for several products.
Do your best to find a reliable trader who is willing to review you regularly at market prices. Some sellers of spices and herbs may regularly review you with pricing information, including Van der Do, AVS Spice or as many importers as Nedspice.
Stay up to date on price developments from certain price points such as the International Pepper Community or the Spices Board of India.
They work with manufacturers of spice and herbal machinery. Those companies usually have good information about harvest, harvest and prices in the.
3. Be realistic
Whatever promotional activities you plan to do, it is important that you explain your unique marketing proposals (USP). In other words: what makes your presentation different from the competition? Each company must create a USP to be separated from its competitors. However, if the origin of your product has increased in value, you can come up with a standard USP for a product from your region or country.

It's a good idea to improve your company's product. This works well for business-to-business (B2B) trading in the same way as business-to-business (B2C) trading. If your country is known for certain products (for example, a protected name of origin) you can link your product to your country. International product campaigns from developing countries include Superfoods Peru (Peruvian food branding and other foods), Sri Lanka-born Ceylon Spices (branding and promoting Sri Lankan spices), Iranian Product (used to promote saffron origin) and Amazing Thai Nambitha (promotion of Thai food used for international exhibitions).

You can build your USP with various features. It is important to give authenticity beyond height. In other words, don't call yourself 'the best in the world', but instead show how different you are. Here are some factors to consider:

Origin as USP - you can base your USP on specific spices and herbal remedies. An example is the Amazon Andes Export. They highlight Peru as its origin and use the official landmark.
Product features - you can support your USP for specific features of your product. It can be somewhat less widely known, but with the desired quality (for example, saffron from Afghanistan or unusual cardamom and Indian aroma). Your product may be in line with dietary habits (for example Indian turmeric with health benefits).
Product quality - product quality is determined by a few levels in the industry of various types of spices and herbs. You should not advertise yourself as a company with a high quality product, because quality is sometimes closely related to weather conditions. It is best to create your USP around other quality features such as 'standard and stable', or that you have never been below the minimum requirements. Sometimes it will be enough if you stick to the basic requirements and never fail. For example, a dry Chinese manufacturer that promotes food safety by sterilization. Indian suppliers are developing integrated spice control pesticides grown in accordance with European law.
Spices that do not contain Allergen- and alkaloids can give you much more benefits than competitors, especially if you offer seed spices. Currently, European consumers are struggling to get pyrrolizidine and tropane free of spices and herbs due to the very low restrictions imposed by the European Commission.
The natural and unique environment in which your product is produced - many developing countries have a cleaner environment and lower use of pesticides. This can be offered as a USP. Bhutan Natural turmeric is an example of this. Bhutan develops itself as a living country.
Price - there is nothing wrong with advertising your price as better than the competition. However, it is important to note that your price does not automatically mean low quality.
Your service - if you are punctual, responsible and solve problems quickly, this could be your USP. The Indian spice company, for example, emphasizes customer-focused approach and fast delivery methods to reduce travel time.
People - if you take care of your employees and their families and if you create a positive atmosphere in your company, this can be a place to be known. For example, this Indonesian spice producer emphasizes the workmanship and craftsmanship of their workers.
Sustainability as USP. Sustainability is becoming increasingly important, especially in finding herbs and spices. If you can prove that you support and pay the farmers well, and that you care for the rural communities and the environment, it will add to your productivity.
Tips:
Be honest. Do not advertise products or services that you cannot deliver. In the field of spices, it is important that you never cheat. Problems with spice and herbal fraud are a hot topic within the European Union. You should never be in danger of ruining your image by selling dirty spices.
Never create your own USP. The USP must be accepted as a share of all your employees (including employees who do not directly participate in export activities). Enter all levels of your company while creating a USP. It is a process of team building.
Communicate your product consistently across all your news platforms, your website, social media, your emails, newsletters, quotes, letters and business cards. Making a product will make you more unique and visible and will add value to your business.
Participate and check out product competitions at leading European events such as ANUGA or SIAL. Even if you don't get the prize, you'll learn what companies are using to create a USP.

4. Be a trade show champion
Food trade events in Europe are important platforms for spice and herbal companies. Commercial participation is very important because it enables potential buyers to see, smell and taste your products.

Commercial events are a great place to promote yourself among other companies in the target market, find new trends, and meet existing customers. The trade show is live, interactive, and allows companies to have a three-dimensional exhibition to introduce the company and its products. One of the biggest benefits is that companies can meet potential customers face-to-face, which is very important in gaining trust in the field of spices and herbs.

Keep in mind that participating in a foreign trade event can be very expensive, so you should only invest in participating in an event where:

know that there is a need for your products / services in the target market;
know that you can meet the needs of potential customers;
make the necessary product conversions in the target markets;
may provide additional value or divisive suggestions.
Find a list of relevant trade shows in our tips for finding buyers at the European Spice Market and Herbs.

The size of this study does not allow for a detailed examination of the most important aspects of commercial participation, but you should break down the following three categories and prepare yourself in advance to participate effectively in the trade:

Before: ‘Invalid Promotion Stage '
You have to start work before it is months in advance. However, the visible activities of your sales should begin six to eight weeks before the show. The aim is to attract existing customers and potential visitors to your stand. European spice and herbalists should be informed of your participation and why they should visit you.

For pre-righteousness promotion, consider the following:

Have a goal in mind: how many leads are needed?
Select communication tools. The least expensive way to communicate and participate in marketing is to advertise on the company's website, using social media and direct marketing.
Pass on important information, such as event name, location, dates and stop number. And try to answer the question: 'Why would a potential customer visit you?'
Get as many guaranteed appointments with potential customers as possible. It has become commonplace among early observers to completely ignore this step. Other commercial events offer matching services on their website, including BIOFACH, Anuga and SIAL.
Social media sometimes allows attendees to communicate. Try to find out if the event organizer is using social media tools.
The stand should look professional, and should speak openly about what the company offers. This will show the company's expertise and credibility. Your stand should clearly show your basic skill and the added number of your customers.
Try to stand out as being creative in your work organization. For example, a 'mini-congress' may be arranged with a speaker and interesting topics. You can attract customers with a taste show or by donating exciting gifts.
At: ‘Killing Stage’
Your goal in this section is to connect with potential customers who can be converted into real customers. Here are some important tips on how to do this:

Show action! This will help establish contacts and meet potentially powerful guidelines.
Practice your voice; you can make one first impression. Learn how to state the most important aspects of your presentation in just a few seconds, and in a respectful and nonverbal way.
Carefully research which potential buyers are the best among the visitors. Ask your guests why they are visiting the exhibition and what they hope to learn. Use business contact forms.
During exhibitions and activities, check which visitors are facing challenges your company can solve. Be sure to talk to them after the show or activity is over.
Be nice to the stand. Ignore common pitfalls, such as eating out.
Background: ‘Tracking Stage’
Efforts by the exhibition will not yield satisfactory results if the delegates do not follow the lead. After the equation, the real work begins: to turn companies into customers. Carefully tear up business cards and other items collected. Which contacts seem appealing to both of us and are likely to progress further?

For the first two weeks after the show, you should:

Contact your directions. Prioritize leads that lead to less. Connect with potential customers; remember that competitors will also be affected.
Think and act according to any promises made. For example, a representative may promise to send a sample or set a call by lead.
Consider sending an email thanking your guests for standing. Add a photo of the tent to help them remember the scene and the company.

5. Go to your potential customers. Spices and herbs are a business and facial component
When working with European spice and herbalists, remember that they like the way it works and its contacts. Direct marketing is a marketing strategy that you can use to promote your offering among other spice and herbal companies in Europe. A variety of methods can be used, including telephone calls or direct e-mail (for example, sending a printed brochure).

Only contact the selected list of potential customers. Your resources should focus on those who are likely to be converted into real customers. Note that your success rate will depend largely on performance and efficiency (and environment) in marketing.

Create Target List
CBI Finding Consumer Tips discusses how you can compile a list of potential buyers. Use a direct marketing method when compiling your customer list that matches your offer. Quality is important, so you should check and refer to those who might be interested in your offer, or those you are sure you can add value to. Identify people you have met in person at trade events. Continue to keep your list of potential buyers actively looking for new contacts.

Create a Communication Program - Which Communication Channel Will Reach the Target Audience?
Should a book and a brochure be sent? Is there enough budget allocated for this channel? For spice companies, there is an effective solution: a call followed by an email. Calling allows you to give yourself a brief introduction about your company, and is much more effective at capturing the target's attention than an email or a letter. If a potential buyer shows interest, the email may be used to provide more information. To reduce the cost of international calls, you can use online calling software, such as Skype, which will significantly reduce costs.

Customize your USP - How Can the Price Be Set?
You must use the USP you created (discussed in the previous chapter). Don’t call companies from time to time on your list and don’t give them the same offers in the same way. Focus on the specific benefits of doing business with them. For example, if the target is a food service provider provider, you can provide them with specific packaging solutions. Before you pick up the phone, you should gather as much information as possible about your potential buyer. Information about future plans and activities that provide indications of what qualities the customer values ​​and what they may need.

Customer Engagement Program - What Engagement Strategies Should Be Used?
These strategies aim to create an effective response from the target. If someone who might be your client shows interest, offer them some actions. It is common to donate a product sample. Be very careful to offer a quality product that you can always bring. Do not provide samples beyond your normal quality. The next step would be to provide a free study tour of your company.

6. Don't work alone, get help from business support organizations
There are many supportive business organizations (BSOs) that can support your export. They can be found in your country, or in your target market or they can perform support functions at the global level. Some of those organizations have developed export promotion programs (such as the CBI), which are more focused on European exports and targeted areas. National export promotion organizations often sponsor activities such as export market research, training in export-related skills, participation in trade fairs or modeling activities.

The most popular overseas BSOs that support exporters in developing countries are:

Center for the Promotion of Import and Export (CBI). A government-sponsored organization that supports more than 800 entrepreneurs to become successful exporters in the European market. They provide market information for a variety of products and services, provide export training programs, technical support, inform and influence policy makers and involve country importers in the development and implementation of their programs.
Swiss Import Promotion Program (SIPPO). A government-sponsored organization that supports BSOs to improve their services to export companies, strengthen their institutional settings, and connect to a wider network.
Imported Desktop (IPD) Desktop. A government-sponsored organization from Germany aims to provide ongoing and structured promotion of the importation of certain products and services from selected countries. They bring together the interests of German importers and exporters in emerging markets.
International Trade Center (ITC). A United Nations Agency based in Geneva (Switzerland), dedicated to supporting small and medium enterprises around the world. Most of the projects are aimed at supporting exporters from developing countries.
Enterprise Europe Network (EEN). Established by the European Commission. It helps a variety of product and service companies to establish and grow globally. You can check if your country has an EEN focus area.
Development agencies from Scandinavian countries focus on trade projects in both countries. That includes Open Trade Gate Sweden, Finnpartnership, Danida and Norad.
World Trade Institutions. World Trade Centers are spread all over the world. They help connect with potential partners around the world. You can ask for business advice and rent a business meeting place.
While the BSOs mentioned above can help you in your export operations, you should always start by looking for support opportunities from your home country. Organizations such as export promotion agencies, trading rooms, or your country's agents in your target markets may assist you with promotional activities. Some sector-specific organizations are tasked with promoting the promotion of export. They set up public stands at trade shows and exhibitions, organize exports, or conduct market research on member companies.

In addition to BSOs, you can get a lot of market support and relevant data from specific sector organizations. To benefit fully from those organizations, you (or your industry organization) must become a member. The most suitable associations in the field of spices and herbs include the following:

European Spice Association (ESA). An umbrella organization representing the European spice and herbal industry.
Culinaria Europe. Represents national organizations and manufacturers of catering products such as soups and broths, emulsified and unsalted sauces such as ketchup and mayonnaise, salads, mustard, horseradish, condiment products, table olives and vinegar within Europe.
. German Spice Industry Association.
Dutch Spice Trade Association (Dutch only).
Season with the Spice Association in the United Kingdom.
Association of Processors and Packers of Spices and Seasonings in Spain.
Tips:
Establish contacts with employees of export promotion organizations in your country. This will allow you to better understand support services and provide suggestions on how to improve them.
See if there is a scattered international organization in Europe. Diaspora refers to members of a tribe who have migrated abroad, but maintain close ties with their country. The Diaspora can play an important role in trade. Diaspora members can build connections between your company and potential customers.
See the spice and herbal promotion programs on the CBI website. Also, contact IPD, SIPPO and ITC to see if any export support projects are appropriate for your company.
Contact local organizations in your country. Local areas, such as regional commercial chambers, regional development agencies or business and regional business support offices can also provide you with contacts and engage your company in export support projects. Specifically, seek the help of your country's diplomatic trade representatives in targeted markets.

7. Get immediate help in our pragmatic studies
The CBI has created a number of studies where you can find out more about doing business in Europe.

Tips:
Read European market analyzes studies of several spices and herbal products. You will find useful data about the product specifications required in your rating. You will also see which markets have the best potential in your company.
Use this opportunity to contact the CBI and ask for help or even to suggest new courses or programs to be developed.
Read CBI Tips for Planning Export Spices and Herbs in Europe for practical tips related to substance management.
Read CBI Consumer Acquisition Tips at Spices and Herbs Market to produce your own customer list that matches your offer.