Exporters tell their success stories

Business America, July 20, 1987

Exporters Tell Their Success Stories

Finding that aquarium keeping is a popular hobby in many countries, Ekkwill Tropical Fish Farm, Inc., of Hillsborough County, Fla., now air freights more than 4 million live fish overseas; it exports one-third of its production. The fish go to Europe, the West Indies, Mexico, South America, Canada, and Asia.

Timothy K. Hennessy, President of Ekkwill, explains, "At first, we sold mostly in the United States, where aquarium keeping is the second most popular hobby, after photography. In time, we discovered that in many other countries 5 to 10 percent of all households have aquariums-- 10 percent in Japan.'

Hennessy, who is engaged in the business with his wife Sherry and his brother Mike, says export success has come from "keeping our noses to the grindstone.'

In shipping a perishable product like fish, Hennessy considers it particularly important to gain the confidence of overseas customers. "They're buying blind,' he explains, "and they want to know who we are.'

Hennessy, his wife, and brother travel overseas frequently to get acquainted with the wholesalers who buy their fish and resell them to pet stores. When the wholesalers visit the United States, the Hennessys play host. They also make friends by participating in the activities of international associations, such as Ornamental Fish International.

To ensure that the fish reach their destination in good shape, Ekkwill is careful to use the latest technology in shipping preparations, such as tranquilizers and top-quality water.

Ekkwill obtained new business contacts by Mike Hennessy's participation in a trade mission, arranged by the Foreign Agriculture Service of the U.S. Department of Agriculture. It went to France, West Germany, Sweden, and Norway.

Appealing to Japanese "Yuppies' is the approach used successfully by American Natural Beverages, Inc., of New York City in marketing a "natural soda' in Japan.

The firm had to contend with these realities: a variety of soft drinks already was available to Japanese consumers; and its product, Soho Natural Soda, was likely to be more expensive than competing products.

The firm arranged for XPORT, an export trading company operated by the Port Authority of New York and New Jersey, to take care of its export business. XPORT, which specializes in export services for small and medium-sized firms, works in close cooperation with the U.S. Department of Commerce (International Trade Administration) District Office in New York.

Alice Gordenker of XPORT, who handles American National Beverage's account, explains, "To appeal to the health conscious, we emphasize "all natural.' To make the product appear new and different, we gave the soda attractive, trendy, art-deco packaging, developed by prizewinning designer Doug Johnson. And to give the product a unique image in Japan, we used the slogan "Taste of New York.''

Another reason American Natural Beverage is making a breakthrough in Japan is that it has found a way to bypass the multi-layered Japanese distribution system. The importer of the soda distributes it directly to Japan's restaurants, up-scale supermarkets, and department stores, thus cutting costs and keeping prices competitive. This strategy of direct sales was recognized by the Japanese External Trade Organization (JETRO) as a prime example of innovative exporting. JETRO included Soho's export campaign in a video tape about successful exporters to Japan for viewing in the United States.

In the past three years, American Natural Beverages's exports to Japan have increased 400 to 500 percent.

The company also is focusing on the Hong Kong and West German markets.

Patience and persistence best describe the efforts of Ederer, Inc., of Seattle in building a profitable business relationship with the People's Republic of China. The 100-employee crane manufacturer spent seven years exploring business possibilities in China before signing a contract. Now the firm has a Chinese partner company officials like very much, and they look forward to a long-term collaboration and sustained export growth.

Company officials travelled widely in China before making any decisions. They finally decided they could work well with the managers of a factory in Szechuan province under the Power Ministry. They signed a $6 million contract to build a dam that involved $5 million worth of U.S. exports; 800 tons of equipment might comprise one Ederer shipment. Ederer provides engineering, technology, and technical equipment, and it helps the Chinese to build some of the basic equipment needed for the project.

Ederer technicians live in China, and a Chinese official works at the company's factory in Seattle.

Don Miller, President of Ederer, says, "We tell the Chinese about our philosophy--our concept --of building dams.' He has nothing but praise for the "performance and quality' of the work and products of the Chinese partner.

"Our premise is that the enterprise must be mutually beneficial,' Miller says.