O Canada

Entrepreneur,  March, 2000  by Moira Allen

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Why it makes good sense to sell to the Great White North

Seeking a wider market for your product or service? You don't have to look too far from home. "Any exporter should consider Canada a first stop," says Linda Archer, Toronto representative of the U.S. and Foreign Commercial Service in Canada.

Many do. Canada is the United States' largest trading partner, with $154.2 billion in 1998 exports and $175 billion in imports. No doubt these figures were boosted by NAFTA's phase-out of trade tariffs in 1998, eliminating customs duties for U.S. entrepreneurs exporting to Canada.

While similarities between the countries are a natural advantage, it's important not to overlook the differences. "If your product sells well in the U.S., [that's no guarantee] it'll sell well in Canada," says Archer. "You have to know whether Canadians import widgets or manufacture their own. And, if they do import widgets, are they from the U.S. or somewhere else?"

Another crucial step, says Archer, is determining "whether [your target market] even exists in Canada."

Fortunately, there's no shortage of information on Canadian businesses. The U.S. and Foreign Commercial Service in Canada works primarily with small and midsized businesses, helping them find contacts, attend trade shows, set up business meetings with prospective buyers, learn the culture and understand the regulations and paperwork involved in shipping products across the border.

KNOW THY NEIGHBOR

Where to start? Visit Canada yourself. You can also study Canadian media for popular products and marketing approaches or do research via the Internet.

According to Kathleen Keim, deputy director of the U.S. Department of Commerce Trade Information Center, some market insights should help you. For example:

* Trends get to Canada a little later. If something's hot in the United States today, it may not be hot in Canada for another six months.

* Because Canada is bilingual, most imported products must include information in English and French. If you have a Web site, offer a French (Quebecois) version and include a Canadian suffix (.ca) to emphasize your company's Canadian focus.

* Canadians often have less disposable income than U.S. consumers, because taxes are higher. Consequently, Canadians are interested in products that offer exceptional quality at a good price.

* Because Canada has a considerably smaller population than the United States (less than 30 million), Canadian retailers may be more selective about the products they carry.

* Canada offers a burgeoning market for mail order and e-commerce, as Canadians purchase more products by mail per capita than U.S. consumers, and will spend $7.8 billion online annually by 2003, according to experts.

* Canadians tend to dislike excessive promotion. Skip the hype and focus on facts, and avoid making negative comparisons between Canadian products and your own.

Moira Allen is a freelance writer in Mountain View, California, and editor of Global Writers' Ink, an electronic newsletter for international writers.

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