As an example, Singapore and Malaysia are bordering countries and members of ASEAN, but very different in social, legal, economic, political and technology contexts. Simply put, the markets are unified under the ASEAN framework, but highly fragmented and unique, and as such each market needs different entry and development treatment.

Competition should be reviewed and assessed during the trade readiness stage.

Price decisions must be made based on factual market intelligence and a logical thought process which takes into account customer demand (price elasticity), total addressable market, cost function, logistics, and competitors.

A SWOT analysis (figure 1) should be completed, keeping in mind that you will most likely be facing local and imported brands. Without exceptions all competitors and alternatives must be reviewed and analyzed.

High-end elite and luxury brands command a price premium in most global markets. However, as a new entrant you may not be able to leverage your home market brand equity. In that case, you will need to build brand equity to achieve that premium price.

There are 4 stages to reaching that premium price level:

1. establishing brand awareness
2. building brand acceptance
3. attaining brand preference
4. achieving the “holy grail of branding”, brand insistence

All of this this takes time and investment.

There is a longer-term hierarchal approach to developing an international or overseas market. This approach begins with exporting your product to your new market – entering it for the first time. When the business builds traction and gains momentum, a local sales and marketing support office and inventory can be established.

Investing in local production assets eliminates value-detractor costs like shipping, handling fees, and duties (depending on relevant trade agreements). Moreover, local production could serve as an export platform to neighbouring countries as you expand geographically to continue growth.

In this hierarchical approach a company may accept lower profits to fast-track the initial stages, with the intention of maximizing profitability during the growth stage after investing in local production. This is often referred to as the “market entry fee”.

Not many companies will consider foreign direct investment (FDI) without first establishing a sustainable and scalable business model.

Again, it’s important to be patient. Establishing a foundation for a business could take three to five years.

5 pricing strategies to consider

Price positioning options should be evaluated, and a pricing strategy selected during the trade readiness – situational analysis and strategic planning stage.

There are many different price positioning options available, depending on:

• route to customers
• layers of distribution – retail or wholesale
• business-to-business (B2B)
• business-to-consumers (B2C)
• type or nature of the business

As an example, if you’re selling through a distribution network, the business model is business-to-business-to-consumer (B2B2C).

Multiple layers of distribution can be effective at reaching large or remote target customer segments. However, additional layers increase consumer cost, and it’s crucial to be mindful of this when selecting a pricing strategy.

There are many pricing and price configuration strategies to consider, and a business needs to decide the most effective strategy to achieve financial and non-financial objectives for each market and segment.

Selling directly to consumers or through a distribution network will also influence the price strategy choice. Most businesses entering the Southeast Asia or Indo-pacific region will sell through a distribution or channel partner network.

The most popular and relevant pricing strategies are premium pricing, penetration pricing, competitive pricing, cost-plus pricing, and value-based pricing.

1. Premium pricing

Premium pricing sets a high price for products or services reflecting superior quality, customer experience, and exclusivity. This strategy works well in the luxury goods segment where products are highly differentiated and unique with strong consumer brand affinity.

However, in most emerging and developing markets there are three distinct customer segments – premium, mid-level, and economy (figure 2).

The premium segment may be profitable, but it may also be the smallest customer segment with limited growth potential. Product and price positioning must be organizationally aligned with target markets and customer segments.

2. Penetration pricing

Penetration pricing is a strategy that sets the price lower than marketplace pricing to more quickly gain market-share. The idea is that lower prices will attract a larger number of customers. The profitability focus is higher-volume lower margin percentage, but higher margin dollars based on volume.

As an example – $1m sales at 50% GM = $500k margin dollars. $3m sales at 40% GM = $1.2m margin dollars. Ten percentage points lower, but 140% or $700k additional margin dollars.

The premise is as market share is built and brand equity develops and customer loyalty is gained, you can gradually increase your prices.

This strategy can be highly effective at penetrating intensely competitive markets where lowest price prevails and is the determining factor in deciding brands and suppliers.

However, it will be extremely challenging at any time to increase prices without alienating customers, especially if you’re the only one increasing. On top of that, competition will retaliate and it becomes a race to the bottom, and a race that’s unwinnable – in most cases local manufacturers will have lower cost structures.

3. Competitive pricing

Competitive pricing is a strategy that prices products similar to brands already available in the market. You should also review products that are dissimilar that could be used as an alternative.

As an example, a nut and bolt and a rivet, both are mechanical fasteners similar in functionality but different. The rivet might be more expensive but it’s faster to install and offers an overall consumer cost-savings (the value proposition).

Alternatively, you could price your products slightly lower as you would with a penetration pricing strategy, but Southeast Asia or Indo-pacific markets are intensely competitive, and competitors will respond aggressively.

4. Cost-plus pricing

In my opinion, this is the most overused and simplistic method to establish pricing. This strategy factors in all contributing fixed and variable costs to establish a selling price to distribution with a fixed margin.

In most cases incoterms are FCA (free carrier), channel partners and customers arrange to have loaded containers collected from the manufacturer, trucked to rail yard, railed to port, and port to export destination.

The strategy is simple and generally applies to all products across all regions, markets and segments. The downside to this strategy is that it doesn’t take the consumer or market price into consideration. The strategy also excludes regard for channel partner margin, and if your product line is not profitable and salable, channel partners will soon lose interest.

5. Value-based pricing

Value-based pricing is grounded on target customers’ perception of value. I have found this strategy to be most effective in determining the right price to drive revenues and maximize profitability for companies and their channel partners.

The price point is determined using a demand curve that illustrates the relationship between demand at different price points. Corelate that data with VOC (voice of customer) to determine the threshold of affordability – in essence what the target customers are willing to pay for the products or services, considering the added value being delivered.

Figure 3 compares cost-plus and value-based pricing strategies.

The difference is determining the market price first as the threshold of affordability, then working backwards. Subtract distribution margin,  duties (if applicable) and logistics cost. That will determine the distribution selling price or distribution cost of goods.

The difference in profit between the two is cost-plus delivers 50% margin, and value-based 42%. As explained in the penetrating pricing section, you may need to accept a lower margin to increase demand.

The goal when determining a pricing strategy is to rapidly develop market share and drive profitable revenues for the business and any channel partners while considering the threshold of market and customer affordability.

As mentioned, this might take some experimenting before you get it right, that’s to be expected. Take the time to get it right, pay close attention to competitors and fully understand their key differentiators and value propositions.

Let research and data and a logical thought process drive your product and pricing decisions.

It’s not a rhetorical question. At least not if you’re talking about a specific form of fog: fogponics technology, which increases water efficiency when growing plants. The technology comes from NASA, originally part of a project to grow food on the International Space Station. And at Plantaform, an Agritech startup employing fogponic technology for the at-home gardener, fog is a game-changer.

Plantaform, a cleantech startup based in Gatineau, Quebec, Canada, is the brainchild of co-founders Alberto Aguilar, Kiwa Lang, and Georges Hamoush. While reading an article about fogponics during his studies in industrial design at university, Lang immediately recognized how water-efficient it might make a home garden.

He became obsessed.

“He made [fogponics] his entire thesis,” reports Aguilar, who first met Kiwa while attending high school together in Dubai.

“When he was initially developing this project we were living in two different continents. But Kiwa knew I had an entrepreneurial background and I used to work in a startup which I co-founded—working on bacteria mutation for cannabis—and he reached out asking me if we could start a business with this technology.”

With Canada importing 90% of its leafy greens from Mexico and the U.S.—and the UAE importing some 98% of its leafy greens from neighboring countries—it seemed like a revolutionary technology for an underreported problem.

And it all comes back to a simple idea:

The Nespresso machine.

The product: Understanding Plantaform

Plantaform is an indoor gardening system similar to a Nespresso machine. With a touch, you can grow up to 15 different varieties of plants—the same way you might brew a single cup of coffee.

Plantaform works by inserting capsules into the system, adding some water, and then clicking a button. The plants can be ready to harvest as soon as four weeks later. What’s revolutionary here is “fogponics,” the new technology pioneered by NASA.

This has become the most water-efficient technology in the world—using a suspension of nutrient-laden water to deliver the oxygen and nourishment each plant needs at a root level.

The concept is similar to aeroponics, except instead of using mist action to deliver these nutrients, the sustenance is delivered through a steady fog.

“I found the concept fascinating,” says Aguilar of the early prototypes for Plantaform. “I never saw a product like it. It looked very futuristic.”

Plantaform now offers a variety of plant pods. Herbs. Basil. Mint. Leafy greens and edible flowers. This diversity gives Plantaform’s users fresh, organic produce year-round, complementing their home gardens and reducing food waste.

“Food waste is a major issue,” Alberto explains. “We aim to minimize this by allowing people to grow what they need and avoid the common problem of produce spoiling before it’s used.”

With a revolutionary way of growing greens indoors and a prototype in hand, they decided to start Plantaform. By October 2019, they spent every day doing research on the problem of unsustainable or inefficient plant cultivation.

“We saw a huge problem that we could address with this product,” says Aguilar. “And that problem was sustainability.”

Understanding international business through the carbon footprint lens

Leafy greens are big business. With Canada importing 90% of its leafy greens and water-poor countries like the UAE relying even more heavily on imports, the transportation system is under increasing strain to deliver plants to the people who need them. This is a problem. Greens are being shipped internationally via carbon-intensive trucks. Fogponics could make leafy greens a cinch to cultivate at home.

According to Aguilar, self-sustainability was one of the key reasons for Plantaform. But shipping their product across borders proved to be an unexpected obstacle.

“We’ve faced a lot of challenges when exporting an agritech product and consumables.”

Exporting produce—especially seeds—is complicated. “Seeds are a very delicate matter when exporting. And so our first export was actually to the U.S.—and that device did not make it through the border.”

The problem? Regulatory load. Plantaform did not have its phytosanitary certification, which meant the products were sent back. And when the products were returned, they didn’t arrive in great condition.

“I’m telling you,” says Aguilar, “It was destroyed.” Customs had reportedly opened the box and turned the device upside down, resulting in scratches everywhere and a device that was no longer salvageable.

The U.S. wasn’t the only problem. Plantaform experienced the same problem on a shipment to Italy, having sent a custom device to a new investor and partner, Formula One driver Yuki Tsunoda. The product was bounced back at the border. The issue? Once again: certifications.

If Plantaform was going to succeed, it needed to start creating an export plan—and dealing with the certification processes.

Certifiable: Blazing Plantaform’s path through international trade

Aguilar and the other co-founders knew that the key to getting Plantaform’s products to their international customers was to obtain the proper certifications. And they’ve found some strategies that have worked:

• Shipping in bulk. Plantaform knows that if its company is going to succeed, it’s going to have to achieve scale. And while one or two machines might have gotten across borders at the prototype stage, larger orders are more likely to raise red flags. “One of the ways that we’ve addressed this challenge has been shipping [products] in bulk,” reports Aguilar. This makes it easier to obtain one phytosanitary certification for each batch. According to Aguilar, that strategy is currently in place for Plantaform’s U.S. expansion.
• Developing an international presence. Plantaform has also expanded its global footprint. They recently registered a new corporation in Florida and are shipping “loads” of new inventory to a 3PL warehouse in Vermont. Once the products are in Vermont, it’s much easier to ship locally within the U.S. without concerns over any new certification issues.
• Add-your-own-seeds. The original device came with its own seeds, which made it more convenient. This was essential since the Plantaform systems are capable of adapting their cultivar conditions to each seed. But now Plantaform is experimenting with an add-your-own-seeds approach. The device can use machine learning (ML) to learn what’s growing, adapt to its needs, and adjust the cultivar conditions independently. It’s still a hands-off approach for the consumer. And since this system doesn’t require specific seeds to ship with the devices, there will be fewer shipping rules to worry about.
• Training. When Plantaform started, they weren’t aware of FITT, which offers training for handling the difficult logistics of dealing with customs. Aguilar has dubbed their learning process one of “trial and error,” with continuous adaptations as they learn the risks inherent in global trade. They’re also being proactive with how they learn, taking advantage of the Feasibility of International Trade course and the Creating an Export Plan course to be more systematic and avoid costly pitfalls

It’s been a long process of learning and adaptation for Plantaform. The company has learned that compelling technology isn’t always enough to make business success happen at scale. But thanks to these innovations, the future for fogponics is looking clear.

It’s a global market, and Plantaform’s seven-person team based in Gatineau, Quebec, has big ambitions. Plantaform manufactures its product in a factory in Montreal, so it’s fully Canadian and Quebec-made.

It’s a point of pride for the team—but it has led to some challenges. One of the appeals of creating a fogponic system for growing greens at home is that it can separate plant lovers from an intensive global supply chain. But to extend its reach to those customers—including those who need it the most—Plantaform has had to embrace a new challenge. They have to learn how to extend products and services to a global market.

Helping the world deal with the sustainability crisis

Pick up a piece of fruit at the store. The sticker likely won’t read “locally grown.” In fact, chances are good that the fruit came from another side of the planet.

“Every piece of produce that you buy in the supermarket has traveled an average of 2,400 kilometers just to get to your door,”

And that’s a major problem. It’s hard to get serious about environmental concerns like carbon dioxide removal when something as simple as purchasing an orange at the store may require ridiculous amounts of carbon just to make the logistics work. With geopolitical concerns weighing on the feasibility of international trade in the long term, the world is in dire need of sustainable solutions for cultivating fresh produce.

Plantaform’s goal is to make at-home produce more convenient and accessible—like starting up a Nespresso pod. For starters, growing produce at home reduces greenhouse gas emissions. Rather than relying on an extensive trade network that brings produce from one area of the world to another, people can enjoy fresh, organic produce year-round. If users are growing their greens at home, there’s also less food waste.

The idea is simple: put more control in the consumer’s hands. “We can try to buy organic products,” says Aguilar, “but how do we know if it’s truly organic? How many hands have touched it? I would challenge anyone to buy a bunch of cilantro or basil from the store, put it in water, and shake it up a bit. You’ll be amazed at all of the dirt that comes out of it—not to mention the microbes and chemicals from pesticides that you can’t see. That’s all stuff that you put in your body.”

It’s a sad truth about our modern agriculture. And while pesticide residue or dirt might not kill the consumer overnight, it’s certainly not helping. The industrial practices that lead to this kind of cultivation can lead to soil degradation at mass scales.

With Fogponics, there’s no need for cultivating soil, and there’s no need to continue to buy produce from companies who aren’t committed to a sustainable future.

Funding the products that change how we live—that just might stand a chance.

And all that R&D that goes into developing and improving their technology goes to good use, whether it makes it into their final products or not.

“Every Wednesday, we donate all the produce from our R&D lab to two incredible local organizations, the CRC Rideau-Rockcliffe CRC and Ottawa Good Food Box, both of which are fighting to make a difference in our community. At Plantaform, we’ve committed to donating hundreds of pounds of freshly harvested produce every year,” explains Alberto.

Finding inspiration in new technology—and new solutions

Planting greens in your own home is a small-scale solution. But Plantaform’s ambitions are at scale.

Aguilar points to a company he admires, Bowery and Aerofarms, as inspiration. “They’re incredible,” says Aguilar. “They’re in every corner of the world.”

As one of the largest vertical farming companies in the world, Bowery has a global presence that Plantaform would love to emulate. Aerofarms has partnered with companies like Emirates Airlines, growing produce for the airline’s flights straight from Aerofarms produce. Aguilar mentions that the goal isn’t to feed a thousand. The idea is to give people such at-home growing capabilities that Plantaform’s indoor gardens eventually feed millions of people.

Changing the world one plant at a time: People are beginning to notice

If you’ve seen Plantaform before, it may have been from Startup Canada. This national, grassroots organization aims to empower entrepreneurs across the country—providing resources like mentorship and networking opportunities to companies with great ideas who might not have the resources to grow themselves.

Plantaform pitched during the Startup Global program in 2022, performing extremely well—and even making it to the finale. Aguilar reports that Startup Canada has been following the Plantaform journey ever since. In fact, Startup Canada reached out to Plantaform and asked them to be part of a panel to help support other entrepreneurs in the agritech field as part of a  Sustainability Industry Advisor Circle.

Plantaform has already received considerable attention for its product. It was featured as “Startup of the Year” by Faces Magazine, won the 2023 “Next Big Thing” award at the Best of Ottawa Business Awards, and “Tech Smallbiz of the Year” by Zenbooks. It earned the aforementioned semi-finalist status at Startup Global and additionally won “Ottawa’s Green Initiative of the Year” from Faces Magazine.

Plantaform’s journey from a university thesis to a global player in indoor gardening shows just how much is changing around the world. Innovation, adaptability, and understanding international markets are going to be more important than ever as the 21st century unfolds. With a clear vision for the future and a commitment to sustainability, Plantaform is poised to make a lasting impact on how we grow and consume our food.

Without adequate CO2 reduction and removal techniques, Earth is bound to become dangerous and uninhabitable in certain areas. Even now, impacts like extreme weather, widespread extinction, and social, economic, and political breakdown are already starting to happen and are expected to worsen.

For these reasons, we need trailblazing companies and professionals to step in and affect change on a global scale.

Startup Carbon Lock Tech, helmed by Kevin Danner, has answered the call and is working to develop the technologies to help slow down and reverse the negative outcomes associated with CO2 accumulation.

In this company profile, we will take a deep dive into Carbon Lock Tech’s journey from start-up to the present. We’ll cover the founding story, the mission, values, and mechanisms that drive Carbon Lock, their international expansion, the science behind carbon dioxide removal, and much more.

The Opportunity Hidden in Organic Waste

At its core, Carbon Lock Tech is a cleantech startup that uses an innovative, nature-based solution for removing carbon from the atmosphere and locking it away. But that’s just the tip of the iceberg.

Organic waste, fossil fuel combustion, deforestation, and livestock farming result in an excess of carbon in the atmosphere.

Why is this important? Think about the carbon cycle. Plants absorb carbon dioxide and expel oxygen. The animals then take in that oxygen and release carbon dioxide. This cycle has been self-balancing for hundreds of thousands or years, but that’s no longer the case as greater and greater amounts of carbon dioxide are being added to the atmosphere each year.

Fortunately, a good portion of that carbon is absorbed through photosynthesis and is stored in plants’ leaves, branches, seeds, fruits, and roots. That same carbon then circulates through our economy in the form of products and consumables like food, textiles, clothing, and other organic materials.

But when we are done using these materials, much of it ends up decaying in a landfill as waste. As it decomposes, methane (which is 25x more potent than carbon), is released into the atmosphere. Methane may also be released when plants die.

Using a patented pyrolytic reactor system, Carbon Lock Tech intercepts this waste carbon and transforms it into biocarbon, which reduces methane formation. This biocarbon can then be used as a soil amendment, incorporated into cement-based materials, or used for reclamation projects. In these applications, the biocarbon works to lock away carbon from the atmosphere and reduce downstream emissions.

Carbon Lock leverages a method that the Canadian government recognizes as a viable solution in “Capturing the Opportunity: A Carbon Management Strategy for Canada.” Per the strategy, proper carbon management involves “CDR (carbon dioxide reduction) approaches that remove CO2 from the atmosphere and store it durably in natural carbon reservoirs, such as rock formations, soils, plants, oceans, or long-lived products.”

The goal is to help the world reach net zero by 2050 and avert the worst of the climate crisis.

The journey from initial concept to international venture

Carbon Lock Tech founder and CEO Kevin Danner first became engaged with the issue of climate change in the late 1980s while taking a course on international efforts to address the ozone layer issue. He followed up with additional studies into evidence-based decision making before pursuing a career in government. Kevin worked as a risk manager and policy analyst for the Department of Natural Resources Canada and the Department of Fisheries and Oceans Canada and then as a policy advisor for the Manitoba government on the Made-in-Manitoba Climate and Green Plan.

Throughout his tenure, he has focused on climate change and carbon management. But after becoming frustrated with the slow progress toward achieving net-zero and Paris climate commitments, he needed to make a change. He then left the government sector, co-founded Carbon Lock Tech, and began to develop systems and technologies for converting organic matter into stable biocarbon and sequestering it away for good.

The idea of focusing on biocarbon (sometimes called “biochar”) that eventually grew into Carbon Lock Tech started with the UN Climate Change Conference COP21 and the Paris Agreement. While watching the conference, he heard the French AG minister mention “biochar.” Soon after, he began researching the topic further to find out more about the carbon offsetting made possible simply by putting more carbon in the soil.

Testing Process

Danner then bought some biochar for home use, successfully grew some plants, and was approached by a curious neighbour, whose uncles had designed and built a simple backyard kiln that could make biochar. “I still have it [the machine] at the farm. Do you want it?” the neighbour offered.

Ramping Up

Danner accepted the machine and, with co-founder Terry Gray, began making biochar in his backyard. They eventually brought on investors and hired a few engineers under the ECO Canada program and the NRC Industrial Research Assistance Program. Together the team designed and built a continuous model, secured a patent, and completed a pilot project. Through grant funding, they were able to hire more engineers.

Stepping into international expansion

Today, Carbon Lock Tech is advancing its technology and work with mining companies and concrete companies to explore sustainable applications for “locking” the carbon away. They are also searching for commercial partners, collaborating with international companies, and looking to participate in the carbon dioxide removal credit market. In fact, the company is in talks with a Silicon Valley carbon dioxide removal organization that’s considering signing a CDR credit agreement.

This would be the very first agreement, and the team expects to see more and more of these over time.

This business venture hasn’t gone unnoticed. Carbon Lock Tech won the Startup Canada Pitch event earlier this year, and are set to compete live against nine other finalists for $70,000 this October.

Current challenges and goals for the future

Carbon Lock Tech is an international startup creating technologies and carbon removal services for a global market. So, it’s crucial to get a good handle on navigating global trading systems, complex business landscapes, and diverse cultures. In addition to that, there are other challenges to consider.

Building a cleantech startup isn’t easy by a long shot, and it takes a considerable amount of time and sustained hard work to take a venture from a concept to a profitable company. But the biggest challenges arise when one or more of the following factors is missing:

• Access to smart, patient capital.
• Support from funding programs and stable government policies.
• Market demand from end users.

As for the goals going forward, it’s all about scale and impact.

“From here, we are looking to scale this to the megaton scale. And then, who knows, eventually the gigaton scale, which is where the world has to get if we want to make it to net zero by 2050.”

As you can see, the goal is to make substantial change on a global scale.

A primer on Carbon Dioxide Removal (CDR) credits and how they work

Carbon dioxide removal (CDR) credits are service exports where a company sells the service of carbon removal to firms in other companies or governments around the world. These buyers seek to purchase such credits in order to offset their own emissions or meet climate targets.

CDR credits are similar to traditional carbon credits, which have been in existence for about 20 years, since the Kyoto Protocol, which worked to encourage innovation and efficiency by facilitating emissions trade within a cap-and-trade system or a government-regulated compliance market. The difference is the CDR credits can only be generated and sold by systems or technologies that remove carbon from the atmosphere, as opposed to emissions reductions or avoidance practices. It’s a distinction that makes a major difference, because there is no way to reducing the total amount of carbon already in the atmosphere other than carbo dioxide removal.

Today, the CDR credit market is a voluntary market where businesses that want to reach net zero can purchase credits from carbon removal businesses. Unlike cap-and-trade and government-regulated markets, the voluntary market is only a few years old – major tech players like Google, Microsoft, Shopify and Facebook participate strongly in this market.

Companies typically pre-buy CDR credits as either an offtake agreement or advanced market commitment. They sometimes pay for the credits upfront so that the CDR companies can accelerate their technologies – they then enjoy priority access to the first credits produced.

Carbon removal certification and government intervention

Puro.earth is a Finland-based registry that certifies carbon removal suppliers according to their “Puro Standard.” NASDAQ just bought the company, so stock markets are getting involved.

These international markets exist without relying on national policies or structures. So, any Canadian company could generate CO2 removal credits and sell them to any other company, or country, regardless of their location. Therefore, this is a market mechanism as well as a service export.

Kevin Danner weighs in on standardization in this area, saying that, “if governments are able to create the policy framework around this to bring more standardization, more rigor, I believe that will strengthen the markets, and that’s already happening in Europe and to some extent in the U.S.”

Though policy isn’t necessary for scaling up in this industry, standardized government frameworks could be beneficial. It could enable the integration of funding across agriculture and economic development, as well as Environment and Climate Change Canada.

Building a policy infrastructure in the carbon dioxide removal space could position Canada as a trusted provider of sequestered carbon and bring substantial revenue to the country from the production and sale of carbon credits.

The international sale of carbon credits

Selling carbon credits internationally can be complex, given the variety of markets, regulations, and types of credit systems. Certain regions have cap-and-trade mechanisms. Others have internal compliance markets. Still others are developing credit registries that act as clearinghouses – once credits are registered, they can be purchased and retired, preventing resale and ensuring no double-counting. These latter are important, because while small-scale transactions can be easy and informal, large-scale carbon transactions require formal registries and life cycle analyses. These analyses evaluate:

• Feedstock origin
• Transportation emissions
• Sequestration timeframes
• Technology verifications

A proper registry ensures that the credits reflect the actual amount of carbon sequestered.

Reporting and verification: Registries require rigorous reporting and verification to maintain the quality of biocarbon production, including sample validation and machinery checks.

Carbon accounting: Carbon accounting firms help companies measure their emissions and balance them with credits to achieve sustainability goals.

Government requirements: Governments may soon mandate companies to register and report carbon usage. Proactive companies are already building a pipeline of credits to comply with anticipated regulations.

Planning for different domestic and export markets

Carbon Lock Tech sees the potential markets and product adaptations that could be on the horizon.

Like dollars, carbon credits are meant to be “fungible.” This makes for more straightforward transactions. Still, there will be projects that command a higher premium.

One example would be companies that work with a First Nation community to convert their waste into carbon and use it for water filtration. In this case, green jobs are created, and sustainable development goals are met. These projects will attract companies interested in both carbon credits and the ESG aspect.

Here’s another example – setting up a carbon removal facility in the Amazon could help the local community preserve their forest by helping them develop an alternative source of incomes – carbon removal credits. Forward-looking companies would be willing to pay a premium for such impacts that extend beyond carbon offsetting.

The challenge for Carbon Lock Tech will be in creating an effective export plan from assessing their target market to positioning themselves for a competitive advantage, and crucially, identifying relevant legal and regulatory issues.

Carbon Lock Tech is at the forefront of a global solution for climate change

To date, much of the focus on addressing climate change has been in the area of emissions reductions. This is critically important and needs to be a priority at every level of government. At the same time, the concept of carbon removal allows us to address  the climate issue head on, turning turn what would have been a risk into an opportunity. And the Carbon Lock Tech team is working to bring this opportunity to reality.

“In Canada we have a major advantage,” says Danner. “We have the knowledge, the technologies, the people, the resources, and the land. We can play a major role at the forefront of carbon dioxide removal, developing an entirely new industry capable of removing and sequestering gigatons of carbon, right here in Canada, and generating international revenues from it – if we do this right.”

Politics drives economic policy and economic policy guides business decisions. Its critically important during geopolitical influenced economic uncertainties that we minimize assumptions and emotional biases to our products and companies and make data driven decisions and choices.

These decisions should be based on facts derived from keen research and analytics and a logical thought process. There is no shortcut, you need to do or contract-out the work.

Focusing on Southeast Asia markets

After living in Singapore and working throughout the Asia Pacific region for more than 20-years, I offer my opinion based on my experience and expertise to help companies navigate the inherent challenges and barriers and  successfully compete and win in the fastest growing region on the planet.

In particular, the ASEAN, Indo-Pacific, or Southeast Asia region has emerged as the global growth engine of the next decade and beyond.

Companies worldwide should be pivoting to the region to take advantage of new and emerging growth opportunities.

Export is crucially important to any growth-minded company. It establishes the first step to entering a new market. As your business scales you can decide upon progressive steps like establishing a local sales office, bonded warehouse, or local manufacturing. In most cases exporting leads to foreign direct investment (FDI) in local manufacturing assets, either greenfield or acquisition.

Southeast Asia is not a homogenous marketplace. Each country is a different ecosystem, with its own vibe and set of preferences, values and norms. New entrants must be capable of understanding and embracing social and cultural diversity.

One-size-fits-all cookie-cutter strategies fail in Southeast Asia, – you need to tailor your approach to each unique market.

Don’t just adapt to Southeast Asia, become a part of it. Take the time to understand the culture, the history, and the emotions behind customer buying behaviors.

Getting started with market research

So where do you start? The first step is to identify, validate and quantify opportunities, and determine your company’s export readiness. The second step is to craft your market(s) entry or go-to-market strategy and business plan – think of strategy as your logic and compass, and your plan the roadmap or process.

The third step is to develop a distribution network capable of reaching your target customers. If you’re selling B2B2C you need channel partners. This article will delve into the first step of evaluating export markets for your business.

Finding the best sources of secondary research

Normally, when I approach a new research assignment, I purchase two industry reports. A typical and focused market survey or industry report will cost between $2,000.00 – $3,000.00 US.

Industry reports are a market assessment tool that provide a comprehensive examination of a particular industry in specific countries.

In my Indonesia example below (figure 1), the company wants to sell its fiber cement exterior finishing products. The total market volume for exterior finishing products is 79 million M², fiber cement products represent 4% of the total market volume. The company’s addressable market in Indonesia is 3.16 million M². I then convert volume into economic value, (volume x wholesale cost per M².) Most reports will provide compounded and annual growth rates and trends.

Other valuable sources for secondary data are Export Development Canada (EDC),  Asia Bank, IMF, government websites, Channel News Asia, and a few of my favorites that require a subscription are Nikkei Asia, Oxford Business Group, Focus Economics. I also use a segment specific project and leads directory when needed – as an example in the Asia Pacific construction segment I use BCI Asia. Secondary research data can cost between $8,000.00 – $10,000.00 US, depending on the scope of the research project.

Presuming we now have loads of secondary data, the data now needs to be translated into quantifiable, meaningful and useful information that can be shared and understood cross-functionally.

Analyze your data using the PESTLE model

One of the most useful analytical tools to evaluate markets is the PESTLE model, (Political, Economic, Social & Cultural, Technology, Legal, and Environmental factors.)

The PESTLE tool has evolved over the years, starting as a PEST analysis more than 20 years ago, then to the SLEPT analysis, and to what is used today the PESTLE analysis. An interesting and important addition is the Environmental factors.

The importance of Environmental factors and compliancy and how this can be leveraged or translated into differentiation and customer value should not be underestimated.

Southeast Asia customers make brand choices based on personal value perceptions and the environmental benefits and impact of your products. In addition to the PESTLE model, I use a weighted scorecard to visually organize and present my findings.

In my abbreviated example below (figure 2) I am only comparing three countries, all countries under consideration must be evaluated. Each main factor will have five to ten sub-factors. Each sub-factor is weighted on importance and given a score, the scores are tallied, then each main factor is calculated. In my example the total score for Singapore main factor political is 36.

We then create a graph chart (figure 3) to visualize our comparative and quantitative analysis. Every company’s analysis will differ due to different metrics or criteria. Each company will also have a threshold, in my example my minimum threshold value is 120, so Indonesia and Singapore would be selected as my target markets for further evaluation.

Further evaluation would come in the form of primary data collection, so get your passport ready, you need to travel to meet the potential customers you intend to sell to.

Get your passport ready for primary research

The best source for primary data collection is “voice of customers” (VOC), and I am a strong supporter of trade shows in the Southeast Asia region. However, trade shows are expensive, and the merit of a trade shows needs to be carefully considered.

In the post-Covid environment trade show costs have increased to pre-Covid levels. Trade show space and booth design cost will vary, I try to cap this cost at $15,000 US. You also need to consider travel expenses, and that cost could be $10,000 per week including airfare.

Considering this, we need to establish clear and attainable goals or outcomes to justify the expense. For me my goals are to:

1. understand the market and customers and begin building relationships
2. interview potential customers
3. identify key competitors, and
4. recruit distribution and channel partners.

I have learned from past experience to add a week post trade show to follow up with contacts and prospects gleaned from the event.

As an example, prior to Vietnam’s economic awakening, we identified Vietnam as a rising economy and attractive market. We attended a relevant trade show and then the following week was filled with business development activities, visiting potential distributors and customers, and we appointed two new distributors.

At this point we have conducted our initial PESTLE analysis through secondary data collection, participated in our first overseas trade show, visited potential customers and channel partners, and we can now amend our PESTLE analysis based on the more comprehensive information gleaned from our overseas trip. Next, we need to assess our capabilities and ensure we are correctly positioned and aligned to capitalize on the opportunities uncovered. Are we export ready?

Evaluating your export readiness

Being export ready is more than a mindset, it’s a commitment of resources and funding to support a successful export endeavor. The export ready self-evaluation process will help define your strategy and plans. FITT’s Feasibility of International Trade course provides thorough and contemporary training on how to assess organizational readiness. Typical questions

• Are you willing to invest in resources, people, time and capital without an immediate return on investment (ROI)?
• Will your pricing strategy enable you to compete profitably?
• Is product customization required to meet specific market or customer needs?
• Are your products compliant to relevant codes or standards?
• A new one for me recently, will your bar-codes scan in overseas markets?
• If exporting to a non-FTA country, what is the duty impact to market pricing and profitability for you and your partners?
• What are your trade terms and conditions, do you need credit insurance?
• Have you established clear, relevant, and attainable goals?
• Do you have senior leadership and cross-functional support?
• Do you have an international freight forwarder?
• Do you have experience with export documentation, do you understand incoterms?

Each company is unique and will have specific questions relevant to their business and chosen markets. Go beyond the superficial qualitative narrative and translate the data into actionable quantitative information.

The next step is to craft your market-entry strategy and business plan. Remember each market is unique, and the Southeast Asia marketplace is not just about products and price-points, it’s about people and relationships founded on symbiotic trust, confidence and collaborative partnerships.

I will share my thoughts on strategy and plans in my next article.

For more valuable tips and concepts follow me on FITT, LinkedIn, or my website.

These books cover vital subjects like supply chain management, geopolitics, leadership, business strategies, the AI economy, cultural diversity, and the historical context of global trade, offering valuable perspectives for navigating the complexities of the worldwide market.

1. The Culture Map: Breaking Through the Invisible Boundaries of Global Business by Erin Meyer

Erin Meyer’s book “The Culture Map” explores cultural differences in the workplace, emphasizing the importance of understanding nuances for effective communication and collaboration. She introduces “authentic flexibility” for adapting to diverse cultures while staying true to oneself. The book provides insights on virtual communication in multicultural teams and offers practical tips for successful cross-cultural interactions. Meyer’s work is a valuable resource for enhancing intercultural competence and succeeding in diverse professional environments.

2. The Value of Everything: Making and Taking in the Global Economy by Mariana Mazzucato

The Value of Everything” by Mariana Mazzucato critiques how economic value is measured and the blurred line between value creation and extraction in the global financial system. The book examines cases from Silicon Valley to pharma, illustrating how this confusion impacts innovation and inequality. Mazzucato calls for a re-evaluation of capitalism, public policy, and value measurement to promote sustainable economic growth. She challenges the idea that market prices reflect true value and argues for a re-politicization of value as a social and political concept. Professionals importing or exporting are well versed in the myriad of complexities in valuing products, services and components. This book offers a fascinating perspective on the whole system.

3. How the World Ran Out of Everything: Inside the Global Supply Chain by Peter S. Goodman

The book “How the World Ran Out of Everything” by journalist Peter S. Goodman explores the complexities and vulnerabilities of the global supply chain. Through gripping storytelling, Goodman exposes the intricate pathways of manufacturing and transportation that bring products to our doorsteps, while also unveiling the ruthless business practices that have left local communities vulnerable to disruptions. Highlighting recent events like the pandemic-induced shortages, Goodman illustrates how financial interests, market opacity, and deteriorating working conditions have placed the supply chain on the brink of collapse. By following the journeys of individuals from factories in Asia to striking railroad workers in Texas, Goodman advocates for a reformation of the supply chain to ensure reliability and resilience.

4. Scale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life, in Organisms, Cities, Economies, and Companies by Geoffrey West

Geoffrey West, a pioneering physicist in complexity science, unveils the hidden laws governing the life cycle of diverse systems, from living organisms to cities. Contrary to the complexity of these systems, West’s discoveries reveal an underlying simplicity that unites them. By applying the rigor of physics to questions of biology and mortality, West found that mammals, despite their diversity, follow scaling laws that relate their size to various biological characteristics. This groundbreaking insight extends beyond biology to include cities and businesses, where similar laws of scalability apply. West’s work offers a unique perspective on the fundamental principles governing diverse systems, relevant for professionals working in global business. “Scale” is a captivating journey through fundamental natural laws that connect us all in profound yet straightforward ways, illuminating how cities, companies, and life itself are governed by the same principles.

5. Pivot: The Only Move That Matters is Your Next One by Jenny Blake

If change is the only constant, let’s get better at it.

In “Pivot: The Art and Science of Reinventing Your Career and Life,” Jenny Blake, a former career development manager at Google, shares practical strategies for navigating career transitions effectively. In today’s dynamic economy, where job roles change frequently and career plateaus are common, Jenny Blake introduces the concept of the “pivot” as a way to methodically make your next career move. Drawing from her experience in Silicon Valley and as a career consultant, Blake presents the Pivot Method, a framework for taking small, strategic steps towards a new direction in your career. Whether you’re considering a new role, starting your own business, or transitioning to a new industry, this book provides actionable advice to help you move forward with confidence.

With practical guidance and real-life examples, Blake empowers readers to embrace change and chart a path towards greater career satisfaction and success.

6. The International Business Culture Pathfinder: A Practical Guide to Navigating Cultural Differences in Global Markets by Marvin Hough

Written by experienced CITP Marvin Hough, The International Business Culture Pathfinder is a collection of concise business culture guides for 11 countries, including Brazil, Canada, China, UAE, South Africa and more.

This book provides a comprehensive overview of each nation’s business landscape, cultural traits, and practical scenarios demonstrate the impact of culture on business. Whether you are a seasoned global business professional or just embarking on your international journey, this resource is indispensable for grasping negotiations, communication norms, relationships, management approaches, and time management in varied cultural settings.

7. Power And Prediction: The Disruptive Economics of Artificial Intelligence by Avi Goldfarb, Ajay Agrawal and Joshua Gans

In “Power and Prediction: The Disruptive Economics of Artificial Intelligence,” Avi Goldfarb explores the “Between Times” of AI evolution, highlighting the necessity for systemic changes in decision-making processes within organizations. Despite the transformative potential of AI, its widespread adoption has been delayed, akin to past technological revolutions such as electricity and computing. Goldfarb stresses the need for complementary innovations alongside AI advancements.

8. Dare to Lead: Brave Work. Tough Conversations. Whole Hearts by Brené Brown

Leadership goes beyond titles, status, and authority. A true leader is someone who takes on the responsibility of identifying potential in individuals and ideas and has the bravery to nurture that potential.

Renowned author Brené Brown, a four-time #1 New York Times bestseller, has dedicated decades to studying emotions and experiences that add value to our lives. For the past seven years, she has collaborated with transformative leaders and teams worldwide. In her book “Dare to Lead,” she delves into how courageous leadership entails recognizing potential, staying open-minded, sharing power, and embracing vulnerability. The book stresses the importance of cultivating human qualities like empathy, connection, and courage in a society dominated by scarcity and fear. It presents four essential skill sets for courageous leadership and advocates for choosing courage over comfort.

From the humblest middle manager to the CEO of a fortune 500 company, anyone who wants to lead effectively could learn from this book.

9. Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail by Ray Dalio

A few years ago, Ray Dalio observed unique political and economic conditions, leading to his exploration of repeating patterns in wealth and power shifts over the last 500 years.

“Principles for Coping with the Evolving World Order” delves into the most tumultuous economic and political eras in history to explain why the future is expected to be markedly distinct from our own experiences, yet reminiscent of past occurrences.

Ray Dalio discusses unique circumstances leading to global changes and offers advice on navigating upcoming challenges. Dalio’s analysis covers major empires and historical patterns to provide practical principles for preparing for the future.

For professionals working in international trade, navigating the turbulent geopolitical and economic environment is part of the job. Learning more context for how things evolve may just help you get ahead of the curve.

10. Prisoners of Geography: Ten Maps That Expla in Everything About the World by Tim Marshall

Journalist Tim Marshall’s book “Prisoners of Geography” explores how physical characteristics of countries like Russia, China, the US, Latin America, the Middle East, Africa, Europe, Japan, Korea, and Greenland and the Arctic, their strengths, vulnerabilities, and leaders’ decisions. In ten chapters and ten maps, the book delves into geopolitics and how geography shapes global strategies and historical events. It highlights the impact of geography on nations’ destinies and provides a fresh perspective on world affairs, something that is incredibly helpful for anyone doing business in foreign markets.

Knowledge is power, and continuous learning is the cornerstone of success in the evolving world of international trade. Share with us your top reads in 2024!

While every business is unique, taking inventory of what worked for other successful enterprises, and what didn’t, can help you keep your business on the right track and even boost it to the next level of profitability, growth, and customer approval ratings.

Keep in mind: learning from mistakes doesn’t just apply to our personal lives.

Let’s take a look at common mistakes international businesses make, and how trade finance can relieve some of the financial stresses that come with the territory of being an entrepreneur:

1. Poor cash flow management, the #1 reason small businesses fail

So many parts of running a business rely on a healthy cash flow. Working capital is not only used to cover everyday expenses like payroll and electricity, but it is also needed to pursue bigger plans like growth and expansion into new markets.

There are a couple of factors that can impair cash flow, however, leaving a company with a lower reserve of liquidity than it would like.

In fact, according to a report from Jessie Hagen, previously of US bank, 82% of failed small and medium-sized businesses went under due to poor cash flow management.

Too much growth, too little capital

Growing too much, too quickly, in some cases, can actually be detrimental for a business. Rapid growth may have the adverse effect of drying up cash and might ultimately send a business hurling towards bankruptcy.

This, in fact, happened to the ice cream brand Ample Hills, based in Brooklyn, New York. The company grew from a single local scoop shop to having a footprint of 17 stores nationwide, links with Disney, a presence in grocery retail outlets, and a stamp of approval from Oprah Winfrey, according to the New York Times. Though this brand never ended up expanding overseas, rapid growth without the right support can hurt businesses trading internationally just the same.

Brian Smith, Ample’s co-founder, revealed to the Times, “We made every mistake it is possible to make.”

This included an ill-placed location in Los Angeles and switching up packaging from a traditional round container to a square one. Even with the Ample Hills brand skyrocketing to success, decisions like these ultimately sapped the company’s cash.

Trading with long payment terms in place without the right oversight and support

While the demands of rapid growth may be one culprit for leaving a company cash-strapped, long payment terms with buyers can also drain a company’s liquidity if not managed correctly.

Today, many commercial transactions occur on open account terms, which means buyers are allowed to pay their bills months after an invoice is generated.

Recent data shows that large U.S. buyers take an average of 54.7 days to pay their invoices.

While giving customers the freedom to pay later can help a business win and retain orders, a company must be vigilant of the cash gap that can occur with such terms in place. Many businesses may find themselves needing to pay their vendors upfront, while still waiting on payment for their sales.

Without a keen awareness of the overlap in outgoing and incoming payments, cash flow might be jeopardized.

2. Selling domestically or internationally without having the demand needed to succeed

It can be the aspiration of many growing companies to expand domestically, or even enter new markets abroad. But without the demand overseas or at home, your product may turn out to be a flop.

According to a recent Forbes article titled “Small Business Statistics of 2024”, inadequate market demand is the second most common culprit for business failure.

Inadequate market demand is the second most common culprit for business failure.

“For a small business to be successful, it’s imperative not only to have adequate capital to sustain operations in the early stages but also to ensure there is a consistent and growing demand for its products or services,” the article states.

Given this common mistake, it’s imperative to conduct sufficient due diligence before launching a new product or service. A business must take the necessary steps, like conducting a market gap analysis and gaining a full grasp of the demographics they’re trying to reach, in order to set itself up for success.

3. Skipping credit protection

As we’ve seen in the past couple of years, several big-box retailers have gone out of business. These famously include Bed Bath & Beyond, Christmas Tree Shop, and Lord & Taylor.

When doing business with these large buyers, credit protection can come in handy if bankruptcy is looming for the retailer.

It’s not always easy to predict if a retailer will shutter, but the pandemic taught us that large brands can go bankrupt, and if they don’t fully collapse, then they can still be tardy on their payments to suppliers or skip paying them completely.

How trade finance can help businesses stay the course

Trade finance is a tool that can help businesses better manage their cash flow, reduce trade risk, and accelerate their growth, among other things. Companies of all sizes can take advantage of this financial resource, but small and medium-sized enterprises are especially known to benefit, since traditional banks may require them to meet stricter borrowing criteria.

If a business opts to use trade finance services, here’s how it works:

A financial intermediary will purchase their unpaid invoices and will provide them cash upfront in exchange. This sum of cash will equal up to 95% of the invoice amount.

By receiving this cash advance on the payment they are owed, a business can pay their own supplier on time, or on an earlier schedule. Retailers and other buyers can still enjoy longer windows to pay their invoices since the financial intermediary is able to close the payment gap.

What’s more, trade finance also includes credit protection and collections services.

This means that a business is guaranteed to get paid even in the case of buyer insolvency, as the financial intermediary absorbs the risk in this case and will ensure the business gets paid.

Since running a business requires a lot of focus on marketing, R&D, and customer service, accounts receivable management that comes as part of trade finance packages can take the burden of collecting payment from customers off the business.

The Upshot

Operating a business has its challenges, but it also comes with many rewards. Paying attention to the mistakes that other businesses have made can certainly protect a company from falling into the same pattern.

To get a better handle on cash flow, secure an extra layer of security, and get more freedom to focus on running core business activities, a company can consider trade finance as a solution that can clear hurdles and pave the way for success.

With a recession being predicted to hit the U.S. economy in late 2023 and early 2024, the job market is slowing down as fears continue to mount. The tech industry in particular contributed to mass layoffs this year, driven by some of the biggest names in the world including Microsoft, Meta, Google, Yahoo, Amazon etc.

Google’s parent company Alphabet reduced their workforce by approximately 12,000 roles. CEO Sundar Pichai wrote in a letter to Google employees “we hired for a different economic reality than the one we face today.”

The global economy is slowly recovering from the aftereffects of the COVID-19 pandemic and grappling with situations like regional conflicts and disrupted trade routes. This also means that the international trade landscape is evolving drastically and so is job insecurity.

In such a dynamic job market, there are certain roles that are growing increasingly popular. The demand for skilled professionals in these job roles is skyrocketing.

So, if you’re looking for jobs with good scope and stability globally, consider exploring international trade. Let’s look at some of the fastest growing international trade jobs in 2023 globally and how you can break into these thriving sectors.

Marketing international trade jobs

The global marketing landscape is more diverse than ever before. A career in marketing usually involves good pay and quick growth. According to the U.S. Bureau of Labor Statistics there is expected to be a 10% employment growth rate for marketing managers from 2021 to 2031. Professionals who understand international markets and consumer behavior are in high demand. Here are some of the most in demand global trade jobs that in the  marketing sector.

1.    Global Growth Manager

As an increasing number of businesses continue to expand globally, the demand for multifaceted professionals who can identify and capitalize on opportunities for expanding businesses internationally is greater than ever. Forbes talks about hiring the right leaders as one of the keys to getting global expansion right. Here is where Global Growth Managers come into the picture. They meticulously research market dynamics, consumer behavior, and emerging trends to formulate strategic plans for global expansion. By leveraging data-driven insights to navigate international business landscapes, they are indispensable assets in the quest for sustained global growth.

2.    International Business Development Executive

International Business Development Executives are instrumental in fostering global growth for companies operating in today’s interconnected world. Their job role involves nurturing strategic partnerships, collaborations, and alliances with businesses and organizations worldwide. With a deep understanding of international markets and the skills needed to identify new business opportunities in various regions and industries, these executives are at the forefront of forging international connections and creating synergies in the global marketplace.

E-commerce international trade jobs

E-commerce has become a cornerstone of international trade. With global e-commerce expected to show an annual growth rate of 11.17% from 2023 till 2027, it’s safe to say that it’s a thriving industry. Hence, it’s no surprise that the demand for skilled professionals to fill e-commerce jobs is at an all-time high right now. So, let’s explore some jobs that are increasingly growing in demand in e-commerce.

3.    E-commerce Operations Manager

At a time when e-commerce is thriving, E-commerce Operations Managers act as the driving force behind the seamless functioning of online businesses across borders. The U.S. Bureau of Labor Statistics reports that approximately 2,300 new jobs will be added for general and operations managers in e-commerce between 2016 and 2026. E-commerce Operations Managers are responsible for orchestrating and optimizing the day-to-day operations of e-commerce platforms, ensuring efficient order processing, inventory management, and timely delivery to customers around the world.

4.    E-commerce Business Analyst

Analytics is taking the world by storm and more businesses are recognizing the importance of leveraging big data in their expansion strategies. According to the World DataScience Initiative, about 80% of global enterprises are investing in a data analytics division, creating a great demand for analysts. E-commerce platforms collect a wealth of data and here is where E-commerce Business Analysts come into the picture. They are responsible for deciphering and decoding data and transforming it into actionable insights that drive strategic decisions. They are the analytical minds behind the success of international online businesses.

5.    E-commerce Project Manager

Project Managers are a crucial part of every organization and industry and e-commerce is no exception. The Project Management Institute’s ‘Project Management Job Growth and Talent Gap 2017–2027’ report predicts that by 2027, employers will need nearly 88 million individuals in project management-oriented roles. E-commerce Project Managers take on the responsibility of planning, executing, and overseeing critical e-commerce initiatives. Their role is pivotal in delivering projects on time and within budget, which is a necessity in today’s rapidly evolving e-commerce landscape.

International supply chain jobs

The supply chain sector is the backbone of international trade – transactions within global supply chains account for 76% of world trade. This is why it comes as no surprise that in today’s rapidly evolving global marketplace, supply chain professionals are at the forefront of ensuring that businesses can adapt, grow, and remain competitive. Here’s an in-depth look at the top supply chain jobs that are growing in prominence.

6.    Director of Procurement

Procurement is an essential aspect of the supply chain and the role of Director of Procurement is a crucial one. These individuals are responsible for securing the necessary materials and resources for businesses to operate on an international scale. This includes sourcing products globally, negotiating contracts, and managing supplier relationships.

7.    Supply Chain Analyst

Several predictions highlight that the demand for supply chain graduates will go through the roof in the next two years due to the fragility of global supply chains. Those will the skills of a Supply Chain Analyst should have no trouble landing a position. Supply Chain Analysts are experts who gather and analyze data on inventory, transportation, and production to identify bottlenecks and inefficiencies. They use this data to make informed decisions that enhance the supply chain’s efficiency and responsiveness to market changes.

8.    Process Improvement Manager

Process Improvement Manager is a relatively new job role but one that is rapidly growing in popularity. Their key responsibility is to find ways to enhance the overall efficiency of supply chain operations. They do this by identifying opportunities for streamlining processes, reducing waste, and improving the overall productivity of the supply chain. By implementing Lean and Six Sigma principles, they strive to drive continuous improvement, in an effort to make supply chains more agile and cost-effective.

International trade finance jobs

The finance sector in international trade has grown leaps and bounds over the past decade, with professionals playing a pivotal role in both financial management and technological adaptation. Diverse job opportunities and the integration of technology into financial practices means that the finance sector offers a promising career path for those seeking to navigate the financial frontier of international trade. Let’s look at some roles gaining more attention.

9.    Financial Risk Analyst

According to the Association for Financial Professionals Risk Survey, financial risks were among the top four risks having the greatest impact on earnings in the next three years. Financial risks can often make or break a business and this is where the role of Financial Risk Analysts becomes crucial. These professionals identify and manage the financial risks associated with international trade, including currency fluctuations, credit risk, and market volatility. They also curate risk management strategies to protect businesses from adverse financial events and help them navigate the complexities of international markets.

10.    Fintech Consultant

With the global fintech market being expected to reach a market value of $326 billion by 2026, the need to leverage this innovative technology in international trade is becoming imperative. Fintech Consultants help businesses achieve this by advising them on how to harness financial technology (fintech) solutions to improve their international trade operations. They help companies adopt digital payment systems, blockchain, and AI-powered financial tools to enhance efficiency and reduce costs.

Navigating the fast-growing world of international trade jobs

International trade is flourishing and so are opportunities for those equipped with the right skills and knowledge. If you have the right training and credentials, you’re one step closer to landing one of these lucrative jobs. Invest in specialized education, such as degrees in supply chain management or finance, to get the foundational knowledge needed to excel in these fields.

In addition to that, credentials that show you have knowledge and skills in key competency areas of international trade will give you a competitive advantage in this job market.

Staying informed about the latest industry trends and global market developments is also crucial. Follow trade organizations on social media (we recommend connecting with FITT’s growing LinkedIn community), sign up for industry newsletters, and look for networking events in your area.

Lastly, hone your language skills, especially if you want to land import and export jobs, as proficiency in multiple languages can enhance your appeal to global employers. Once you have developed the skills to grow your global trade career, the world of international trade jobs is yours to explore.

In the aftermath of a global pandemic and with the context of shifting geopolitical landscapes nations struggle with what looks like slowing trade. In this article we examine the current state of global trade, weighing the optimistic strides made against a backdrop of challenges.

Progress in August

First, the good news – it looks like significant progress in global trade growth was made in August, as several factors appear to support broader international trade – according to the WTO’s August 2023 trade report.

For example, Ukraine has initiated a significant move by opening a “humanitarian corridor” in the Black Sea for cargo ships. It’s a marked change when considering the recent collapse of the Black Sea Grain Initiative: Russia’s exit from the grain initiative and its subsequent blockade on Ukraine.

On a broader trade front, the WTO stated in the same report that services trade is witnessing what looks like more robust growth compared to merchandise trade. This difference is particularly accentuated thanks to export restrictions on key goods, including food and fertilizers.

In fact since 2020, there has been a significant increase in export restrictions. For instance, 63 such restrictions are in place for food, feed, and fertilizers.

Last year, the services trade saw a remarkable 15% boost, decisively outperforming the 2.7% growth in merchandise trade.

When combined, the total trade experienced a 13% surge, accumulating to an impressive $31 trillion.

Challenges in many corners

Diving deeper into global trade intricacies, we see a few pinch points – including a reminder of how physical pinch points such as the Suez and the Panama Canal can restrict global trade.

A severe drought at the Panama Canal is causing significant disruptions to global trade. In practice cargo ships have waited for extended periods, sometimes several weeks, to traverse the canal – which delayed cargo significantly, and led to a build-up of vessels.

The Panama Canal Authority (ACP) has had to limit the number of vessels using the canal and impose restrictions on ships’ depth, limiting the cargo they can carry, due to water scarcity. The ongoing drought situation is described as presenting “unprecedented challenges”.

The canal, which connects almost 2,000 ports across 170 countries, is pivotal for international trade, with major traffic from across the globe but in particular countries such as the United States, China, and Japan.

The drought’s impact on the canal emphasizes the increasingly disruptive consequences of the climate crisis on global supply chains.

Trade volume under policy pressure

China, a major player in the world’s economic scenario, registered a sharp decline in both exports, by 14.5%, and imports, by 12.4%, in July. One event that may have contributed is the US decision to curtail its investments in some pivotal Chinese tech sectors.

Also in the East, Japan and Qatar are keenly focused on strengthening their trade ties, but there’s a cloud of uncertainty between Japan and the US due to disagreements over whaling practices.

The changing global climate has also been exerting pressure on trade. Rising temperatures have escalated food prices, with soybeans, olive oil, and rice facing severe shortages.

The emphasis on climate-aligned foreign direct investment (FDI) is now seen arguably at the core of sustainable growth of developing nations.

A noteworthy development from the West is the recent downgrading of the US’s long-term credit rating, which poses intriguing questions about the behemoth economy’s future borrowing and investment capabilities.

IMF comment underlines global concerns

In the aftermath of a global pandemic, the world finds itself grappling with unprecedented challenges. Recent research from the Kansas City Federal Reserve paints a challenging picture of the post-pandemic global economy, highlighting issues like soaring government debt, geopolitical tensions, and an unsettling trajectory for technological innovation.

With the backdrop of geopolitical disruptions like the Russian invasion of Ukraine and escalating U.S.-China tensions, global trade appears to stand at a tough crossroads.

Pierre-Olivier Gourinchas, the International Monetary Fund’s chief economist, underscores the fragility of the current state, noting that countries are drained after battling the pandemic, and that policy-driven forces and decoupling between China and the West add further strain.

The looming danger is a possible stagnation where parts of the world fail to progress, leading to demographic and migration pressures. Economists, including Gourinchas, believe that global growth might stagnate around 3%, a disappointing rate compared to the past where China’s rapid development drove figures above 4%.

Existing trends amplified by COVID-19

The impact of the pandemic amplified certain pre-existing trends. A paper by Serkan Arslanalp of the IMF and Barry Eichengreen from the University of California, Berkeley, reveals a troubling statistic: the ratio of public debt to global economic output surged to 60%.

This was largely driven by pandemic spending by governments. Such unsustainable levels of debt threaten to divert vital resources away from developing nations that have burgeoning populations but lack capital.

Recent geopolitical events, notably the Russian aggression against Ukraine, have also fragmented the longstanding belief that trade fosters lasting international partnerships.

COVID-19 had, of course, a huge impact on global trade flows and arguably became a movement where many participants in global trade decided that near-shoring is also the equivalent of de-risking.

It led to a pattern of nearshoring but World Trade Organization Director-General Ngozi Okonjo-Iweala cautions against the current trend of reordering global production patterns. While diversifying trade might seem appealing, it’s essential to extend opportunities to those nations historically sidelined in the global trade arena.

What does global growth look like?

Global economic growth is a natural driver of trade growth. From an economic standpoint, recent economic projections from the IMF shows global growth decelerating, with projections declining from 3.5% in 2022 to 3.0% for 2023 and 2024.

Although inflation in developed economies shows signs of slowing, trade volumes are down. Manufacturing sectors worldwide are experiencing a slowdown, and while services are expanding, there’s noticeable deceleration.

The ripple effects of the pandemic also extend to the future of work, affecting urban economies. Demand for office spaces in major cities like New York, London, and San Francisco is dwindling, with average office attendance dropping significantly.

In general it could be suggested that global growth is somewhat anemic – and there are also signs that China may not offer much support in the near future.

Debt may continue to weigh on trade

Despite the myriad challenges facing global trade, and an ongoing recession threat, it’s worth considering the resilience shown by key economies. Growth in certain sectors, like the services trade, offer a beacon of hope.

The commitment of nations to navigate these complex issues, combined with the need to diversify and include historically sidelined nations, has the potential to reshape and strengthen global trade patterns for a more inclusive and prosperous future.

For organizations dependent on global trade it therefore depends on the ability to harness opportunities – which, though under pressure, will still be out there to harness.

Canada, being the world’s second-largest country in terms of land size, boasts an abundance of natural resources. This rich landscape offers a wealth of water, underground treasures, and harvests vital for global momentum. Yet, when we look at the economy, Canada appears smaller. Its economy is ten times smaller than that of our neighbor to the south. As a G7 member, Canada possesses the smallest real GDP among its peers. There are about 1.3 million Canadian businesses; however, fewer than 5% are export-ready.

According to Innovation, Science, and Economic Development Canada’s annual report, exports drive Canada’s economic growth and correlate with real GDP growth. Moreover, exports allow businesses to expand beyond Canada’s modest domestic market.

But there’s a catch: few Canadian businesses export, and of those, over 85% heavily rely on the US market.

This over-reliance becomes uncomfortable considering external factors like the Buy American Act and severe competition, which diminishes the appeal of exporting.

The aim of this article isn’t to deter but to spotlight the value of an export strategy, urging Canadian businesses to look EAST – namely, the Indo-Pacific Region.

Why Indo-Pacific?

The Indo-Pacific region, with its 40 economies and over four billion people, amounts to CAD in economic activity, making it the world’s fastest-growing region. By 2040, the region will account for over half of the world’s GDP and more than 65% of its population.

Recognizing this, the Canadian government unveiled its Indo-Pacific strategy in late 2022, signaling a shift in export direction and resource allocation. For Canadian businesses, seizing this opportunity not only ensures sustainable growth but also bolsters the national economy for future generations.

However, every opportunity presents challenges. Penetrating a new market, especially an exotic one, isn’t simple. But Canada has an edge – strong ties to the region. Thanks to our immigration policy, 20% of Canadians have sort of connections there. Additionally, Canadian products have historically been well-received. An effective approach for Canadian businesses is to capitalize on e-commerce as a market-entry strategy.

The Indo-Pacific e-Market

The expansive realms of the Indo-Pacific market are responsible for an overwhelming 90% of the global e-commerce growth. Adopting cross-border e-commerce as a market-entry strategy therefore stands out as not just practical but crucially essential. The evidence is compelling:

The e-commerce market of Greater China alone dwarfs many, equal to three times Canada’s entire GDP.

Powerhouse brands such as Alibaba and JD.com are not merely platforms but are reshaping the very fabric of consumer behavior. As we gaze towards Japan, the transformation becomes even clearer. The island nation has seen its e-commerce landscape grow by nearly 30% in the share of retail distribution. Platforms like Rakuten and Amazon Japan have stepped up as the new-age shopping titans, gradually overshadowing traditional retail outlets.

South Korea’s digital footprint is equally noteworthy. In a span of five years, from 2017 to 2022, the nation’s cross-border e-commerce market made a remarkable leap, soaring from US$ 2 billion to a staggering US$ 4.5 billion. The success stories of platforms like Coupang and Gmarket illuminate this trajectory, with an average annual growth rate of 23%.

And then there’s Singapore, a beacon for the Southeast Asian e-commerce domain, dubbed  the “e-commerce gateway” to its larger region. Projections suggest that eCommerce sales in this region will skyrocket, possibly quadrupling from US$ 38 billion in 2019 to an expected US$ 172 billion by 2025. This, combined with the fact that 70% of the region’s population is now online, paints a vivid picture of the digital revolution in play.

With the inherent characteristics of e-commerce, from the invaluable real-life data tracking to the immediacy of end consumer interaction, it is rapidly establishing itself as the preferred channel for market exploration.

Given the sheer purchasing power and wide acceptance among consumers, e-commerce isn’t just another platform; it can be the core of your omnichannel strategy. Such a strategy can seamlessly dovetail with traditional channels like physical stores, offering an enhanced customer experience. This synergistic approach, when infused with the allure of authentic Canadian products, promises not just sustainability but a pronounced edge in the competitive marketplace.

3 Steps to Develop Your E-Commerce Strategy for the Indo-Pacific

So far, we have delved deep into the macro-level benefits of leveraging e-commerce to enter the Indo-Pacific region. Moving forward, I want to introduce a tailored framework that can guide your e-commerce strategy development.

Think of it as a three-step process designed to provide a clear pathway: from integrating your business into the region’s e-commerce ecosystem to managing e-commerce operations and marketing activities once you’re established.

1. Strategizing

This initial phase is all about exploration. Dive deep into understanding your export readiness, assessing the feasibility of potential markets, studying the competitive landscape across both traditional and digital channels, identifying risks, formulating the most effective pricing strategy, and forecasting your financial performance.

• Readiness and Feasibility Analysis: Begin by evaluating your business’s readiness to venture into the Indo-Pacific e-markets. This entails an assessment of internal capabilities, gauging the product-market fit, and pinpointing potential barriers.
• Pricing Strategy Development: Weigh various pricing models, from cost-plus to competitive pricing. Consider aspects like local purchasing power, competitive landscape, import duties, and taxes.
• Financial Performance Analysis: Project potential revenue streams, costs, and profit margins. Account for initial investments, sustained operational costs, and expected returns.
• Market-Entry Strategy Compilation: Decide on your entry strategy. Are you targeting a couple of countries first or aiming for a more expansive reach? Your resources, willingness to take risks, and market insights will guide this decision.

2. Integrating

The foreign e-commerce markets you’re targeting operate on platforms that might be unfamiliar to western businesses and occasionally aren’t even accessible via common channels like Google. There’s also the challenge of navigating diverse cultures and languages. Not to mention ensuring the protection of your product ideas and brand. This stage emphasizes ensuring you’re on the right platforms, effectively reaching your target audience, communicating appropriately, and operating within legal confines.

• Platform Application Management: Determine the e-commerce platforms that dominate in your target Indo-Pacific areas. Think Alibaba and Lazada, but also keep an eye out for niche platforms tailored to specific locales or products.
• Ecosystem Onboarding & Integration: Grasp the entire e-commerce ecosystem of the region, which encompasses payment methods, delivery mechanisms, and review systems.
• Brand & Marketing Material Adaptation: Localize your branding. It’s more than just translation; it’s about resonating with local traditions, sentiments, and values.
• IP Protection Measures: Intellectual property norms can differ significantly across markets. Ensure you’re compliant by familiarizing yourself with local regulations.
• Platform Configuration & Optimization: Customize your online store to align with local preferences. This might mean adjusting your site’s design, improving its mobile-friendly features, or incorporating region-specific functionalities.

3. Managing Day-to-Day Operations

E-commerce operations in overseas markets, akin to the one in Canada, demand regular oversight and consistent nurturing. Navigating multiple, especially as vast as several Asian e-markets, can be tricky. Challenges range from language barriers and time zone differences to intercultural communication nuances.

As business owners, agility and adaptability are key. You might often find the need to collaborate with local experts to bridge cultural and linguistic divides, synchronize business processes effectively, and expedite your international business’s growth. Regardless of whether you’re handling tasks in-house or outsourcing, there are crucial areas of focus:

• Marketing Management: Craft and roll out localized marketing strategies, leveraging tools like SEO, PPC advertising, social media, and collaborations with local influencers.
• Operation Management: Ensure the smooth functioning of daily operations, from inventory management and prompt order processing to effective customer service.
• Supply Chain Management: Familiarize yourself with the logistics landscape. Establish relationships with dependable local suppliers, manage warehousing facilities efficiently, and prioritize timely deliveries to enhance customer experiences.
• Quality Control & Reporting: Consistently assess the caliber of products or services you’re offering. Set up comprehensive reporting systems to review sales data, gather customer feedback, and monitor other critical performance metrics, ensuring continuous improvement.

Why not seize the opportunity in this untapped market?

The Indo-Pacific is an untapped market with tremendous growth potential. As countries like the UK, US, Germany, Italy, and France increase their footprint, Canada is well-positioned to capitalize on this opportunity. E-commerce offers an efficient and economical route for Canadian businesses to make inroads. With the framework provided, businesses have a head start. And remember, the governmental agencies like Export Development Canada and Trade Commission Services are available to assist throughout the exporting journey.

By meticulously crafting your strategy, smoothly integrating into the Indo-Pacific e-commerce ecosystem, and managing daily operations efficiently, Canadian businesses stand to capture the immense potential this burgeoning market presents.

As every year comes to a close we like to take a moment to look back at the key trade issues people were talking about – and therefore, reading about. It was another year of changes and uncertainty, which is likely why two of our most-read articles were about risk.

But it was also a year for plodding ahead and looking to a brighter future. People were reading about business planning, investment and negotiations in a changed global business environment.

What was also heartening to see was the interest in articles about investing in your personal and career growth. Two of our most-read articles were about career success and upskilling.

So without further preamble – here are the top 10 most-read articles of 2022. Read on, enjoy, and let us know what you think most people will be reading about in the year ahead in the comments.

1. 10 Global trade trends we’ll be watching in 2022

10 Global trade trends we’ll be watching in 2022

2. The most common forms of foreign direct investment (FDI), including ownership-based investments and investments based on strategic alliances

The most common forms of foreign direct investment (FDI), including ownership-based investments and investments based on strategic alliances

3. A Guide to Preparing an International Business Plan

A Guide to Preparing an International Business Plan

4. Identify and mitigate the 4 types of financial risk: commercial risk, foreign currency risk, country risk, and bank risk

Identify and mitigate the 4 types of financial risk: commercial risk, foreign currency risk, country risk, and bank risk

5. The 11 political risks that could sink your imports and exports

The 11 political risks that could sink your imports and exports

6. What should be on every bill of lading

What should be on every bill of lading

7. 5 Canadian Trade Commissioners talk about their career success

5 Canadian Trade Commissioners talk about their career success

8. Pros and cons of using subcontracting as a market entry strategy

Pros and cons of using subcontracting as a market entry strategy

9. Top 7 reasons to become a CITP according to CITPs

Top 7 reasons to become a CITP according to CITPs

10. 10 tips for negotiations in a virtual meeting environment

10 tips for negotiations in a virtual meeting environment