U.S. manufacturers can expand sales globally by using the intellectual property (IP) of their products as a competitive edge instead of viewing it as a potential weakness.
One of the concerns among exporters is that American-made products and brands are constantly replicated by customers and rivals in emerging markets. It is natural to say, "Why should we market our products if people overseas will steal our technology?"
The fear of losing IP seems justified at first sight. But consider how foreign sales of American-made products actually happen and this fear is less alarming. Manufacturers will also find that the IP of U.S. products turns out to be a competitive edge, not an Achilles' heel.
Go After Those that Value IP
The common misstep among U.S. companies is dreaming too big. Instead, start thinking about how to get initial, profitable orders even when they are modest. Whether it is the sale of seals, sensors, bearings, or springs, don't go after thousands of potential customers in any emerging market. Pursue the leading and most sophisticated customers in a foreign market that see the value of your quality, and, namely, your IP that is part and parcel of your products.
Take China as an example, where product piracy is chronic and well documented. To sell precision-engineered bearings into the market, for example, focus on China's top 10 original equipment manufacturers (OEMs) that need and want high-quality and engineered components for their machines, including turbines, compressors, and gear boxes. In a market of "billions," as China is often thought of, go after the dozen or so companies on which a profitable business can be built. This provides greater ROI than pursuing the hundreds of small and even midsize equipment makers that use locally made bearings that are replicas of highly engineered products.
Those who thrive in the China and Asian markets use the "search-and-learn" tactic. These exporters accept minimum orders and ask for prepayment in full before shipment. After decades of exporting U.S. products to China, it is Asia Marketing and Management's experience that customers in Asia and elsewhere buy - and prepay - because they need the "real thing" and not the "pirated versions."
