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Event: How to sell your products internationally

SBOCTeam — Thu, 19 Feb 2009 22:23:11 GMT

Are you thinking of selling your product or services abroad, but not sure how to approach it? Or are you currently working with international distributors but experiencing some cultural differences in how business is conducted? Learn how Lela Barker was able to successfully expand her natural beauty business by developing an international network of suppliers spanning Europe, Asia, and the Middle East. Lela will be on SBOC to provide insights and tips on to secure international contracts and expand your business.

With no formal business training and less than $500 in start-up capital, Lela Barker commandeered nearly every inch of her 800 square foot house for the research and development of her naturally focused skincare line. Six months later, in the fall of 2003, the first 18 products made their debut. Lela was home with her children...and she was definitely working. Lela now has 8 full time employees and her luxury products can be found in spas and wellness centers from LA to as far as Dubai. Lela's must recent travels have involved securing a deal to sell her products to an international hotel chain in the Middle East.

Ask her to share her story on how she grew her business internationally.

How did you establish your network of international distributors?
What are the advantages with international distributors?
Have you seen more sales domestically or internationally?
Which countries have given you the greatest ROI?
What's usually on your agenda when you travel abroad?
Was your most recent trip to the Middle East successful?

About Bella Lucce:

Founded in 2003 by Lela Barker, Bella Lucce, http://www.bellalucce.com, was conceived from her frustrating search for sumptuous, natural beauty products. A wide gulf existed between "natural" products and "luxurious." Barker sought to infuse her natural formulas with delicious decadence, resulting in products that effectively bridged the gap between the two industries. The result is a collection of innovative bath and body products that marry exotic ingredients gathered from around the world with pure, naturally-focused formulas.

Post your question here today and then join us on March 3rd at 2:00PM EST for Lela's response.

Re: Event Mar. 3: International business opportunities

bathdesserts — Tue, 03 Mar 2009 20:10:40 GMT

Hi Lela,

Thanks very much for all the helpful information. I loved your story about the first time you had to palletize your products and how traumatic it was. This is the first time I had attended one of small business online events. I learned a lot and appreciate you sharing your experience with us. You are a great mentor!

I look forward to meeting you in Palm Springs at the Handmade Soap Convention. Thanks again.

Christie Wanlass,

Bath Desserts

Re: Event Mar. 3: How to sell your products internationally

SBOCTeam — Tue, 03 Mar 2009 20:06:57 GMT

Lela,

On behalf of the SBOC Team and the members of the Small Business Online Community, we wanted to say we truly appreciated your time today and your detailed and helpful responses. Thank you so much for sharing your expertise.

Again, if you'd like more information about Lela and Bella Lucce, visit:

http://www.bellalucce.com
http://twitter.com/bellalucce

Thanks again,
SBOC Team

Re: Event Mar. 3: How to sell your products internationally

LelaBarker — Tue, 03 Mar 2009 20:08:06 GMT

Cheryl,

Thanks for your question. The regulatory market overseas truly varies by region. A select few countries require jumping through no more hoops than what is needed for beauty products distributed within the US. Others require all sorts of notarized statements, free sale certificates, registered formulas, embassy endorsements, bi-lingual packaging, etc. As noted in my response to David (above), there are organizations out there who can help, but the bulk of the work is on your shoulders, not the distributors. The EU, in my experience, has been the trickiest. In my opinion, global regulations are tightening around the world, and the GCC (Arab countries), in particular, have new rules in the making. No matter where we export, I always assume 6-9 months after signing the contracts until our first shipment is ready and we NEVER ship until we have all the government clearances. The good news is that you generally only have to jump through those hoops once for any given region. Good luck!

Re: Event Mar. 3: How to sell your products internationally

LelaBarker — Tue, 03 Mar 2009 20:00:53 GMT

Hi there OrganicMix,

Sometimes I travel to the region and score new finds for raw materials. That's my absolute favorite part of this job. Realistically, though, I work with a network of US-based companies that bring many of these materials in. They often visit our facility to present new materials that have been recently introduced and provide us samples for testing. Also, my distributors have been fabulously helpful in helping me identify and understand local beauty culture and the resources within their region.

Re: Event Mar. 3: How to sell your products internationally

LelaBarker — Tue, 03 Mar 2009 19:59:16 GMT

Generation,

I don’t travel anywhere without my Laptop and trusty Blackberry. With the Blackberry, I have an international data plan, which is worth every penny. Essentially, I can conduct business from the comfort of a cabana on the Arabian Gulf. There are worse fates in the world…

I have used Skype (www.skype.com) in Europe to minimize telecommunications costs. Essentially the call is routed through the computer and you speak using a headset, all for just pennies a minute. Unfortunately, its banned in parts of the Arab world, so I don’t get to use it as much as I like.

That’s pretty much it. We like to keep things low-tech at Bella Luccè!

Re: Event Mar. 3: How to sell your products internationally

LelaBarker — Tue, 03 Mar 2009 19:53:46 GMT

Hi Devaney,

We manufacture our products domestically. That's my strong preference and I don't foresee Bella Luccè outsourcing production overseas anytime in the near future. A couple of years back, we were engaged in serious talks with a major investor and a deal was put on the table. I ultimately walked away from the deal entirely, because it was contingent on manufacturing our products in China. I had my own control issues and political issues which made that a hurtle I didn't want to jump, but I do know that it can be a successful arrangement. I saw the cost specs on manufacture in China and my jaw dropped- it certainly would have saved us quite a few pennies.

Understanding that, for my particular industry, I chose not to go that route and freely admit my bias. However, consider this: when we were in the throes of that deal, I asked if I could travel to China and see the manufacturing plant myself. I was told I'd be welcomed there and it was a good idea, in order to show that we'd done our due diligence in case of a "Kathie Lee Gifford" incident (their words, not mine). However, I was warned that the factory we see may not actually be the factory making our product and that the people I see likely wouldn't be the actual workers. Apparently, they can put on quite a show for American principles making a visit. When I resisted, my potential investors said that, if I go, I've covered my bases and can't control the rest. Unfortunately, that's not how I play ball and I had visions of girls the same ages as my children in backroom at 3am making sugar scrub. I passed and have not regretted that decision one bit...

I think outsourcing overseas is a very personal decision, with many pros and cons. At the heart of it, you have to scrutinize what you're personally comfortable accepting in the name of your business. Ultimately, I did what was right for me, but I understand that someone else may make a very different decision. Best of luck in whatever you decide!

Re: Event Mar. 3: How to sell your products internationally

LelaBarker — Tue, 03 Mar 2009 19:48:45 GMT

Hi there Atlas. Thanks for the welcome back- it's always a sure sign that you didn't blow it the first time around and I am forever grateful.

With regard to country-by-country formulation, we generally aren't faced with reformulation for new distributors. Thank heavens, because I am certain that would be a truly maddening endeavor. More often, we must repackage our original formulations to meet the criteria of each country's specific labeling requirements and that is headache enough. Some countries (The EU, especially) do ban specific ingredients, so it's wise to consider where you'd like to distribute when designing the products initially- saves time and money down the line. As an example, the EU does not allow ANY of these ingredients in cosmetics distributed in any member country: http://ec.europa.eu/enterprise/cosmetics/cosing/index.cfm?fuseaction=search.results&annex=II&search and these ingredients can only be used in specific instances: http://ec.europa.eu/enterprise/cosmetics/cosing/index.cfm?fuseaction=search.results&annex=III&search

Bella Lucc� does, indeed sell a great many products in the Middle East. It's our second-largest market to date, though we have burgeoning distributorships in Scandinavia, South Korea and Europe. There wasn't any rhyme or reason to our "decision" to run amuck in the Arab world...it's just that our Middle East distributor was our first and is our largest and she's a take-the-ball-and-run-with-it kind of gal, so we got our foot in that region early, just by happenstance.

Re: Event Mar. 3: How to sell your products internationally

cherylr — Tue, 03 Mar 2009 19:45:33 GMT

Hi Lela,

Given how regulations have become prominent here in the US. How is the regulatory market outside of the US? Also are the Arabian regulations close to those of the US, or did you have to retool to meet them?

Re: Event Mar. 3: How to sell your products internationally

OrganicMix — Tue, 03 Mar 2009 18:37:00 GMT

Lela, I visited your website and noticed that your products include ingredients from all over the world. Can you tell us how you sourced ingredients from all those different countries? Did you travel to those places yourself? Or did you identify international partners to help you?