1.1 DIRECT EXPORTING Direct exporti

1.1 DIRECT EXPORTING
Direct exporting involves selling directly to your target customer in market. This could be from New Zealand through the internet and regular trade visits, or by setting up a branch, office or company in the target country.
Selling directly to customers prevents other businesses taking a share of your margin. However this approach requires a large commitment of financial and human resources. It takes time to make contacts and build relationships, negotiate deals, understand the market and carry out marketing.
Direct exporting means you export directly to a customer interested in buying your product. You are responsible for handling the market research, foreign distribution, logistics of shipment and for collecting payment.
Direct exporting allows the U.S. firm to communicate directly with the customer so as to provide a quality product and service, and the managerial commitment necessary to ensure long-term growth and success
Direct exports represent the most basic mode of exporting made by a (holding) company, capitalizing on economies of scale in production concentrated in the home country and affording better control over distribution. Direct export works the best if the volumes are small. Large volumes of export may trigger protectionism. The main characteristic of direct exports entry model is that there are no intermediaries.
A direct export occurs when the complete transaction from supply to export is under the control of the UK supplier or owner of the goods. The location of the customer is not a relevant factor provided the goods are exported under the control of the supplier.
1.2 INDIRECT EXPORTING
Selling to or through an intermediary is a relatively cheap and straightforward way to enter a new market. Intermediaries are typically agents or distributors based in your target export market who sell your products or services to end users.
Indirect exporting means selling to an intermediary, who in turn sells your products either directly to customers or to importing wholesalers. The easiest method of indirect exporting is to sell to an intermediary in your own country. When selling by this method, you normally are not responsible for collecting payment from the overseas customer, nor for coordinating the shipping logistics.
Indirect exporting may also mean losing part of the business’s margin, as well as diminishing the ability to develop direct relationships and grow business with customers in foreign markets, says Denis Csizmadia, manager of the Greenville, S.C., U.S. Export Assistance Center of the U.S. Department of Commerce.
Indirect export is the process of exporting through domestically based export intermediaries. The exporter has no control over its products in the foreign market.
An indirect export occurs when the goods are exported outside the EC by or on behalf of the overseas purchaser ie someone other than the UK owner or supplier arranges the export.