Trade and Investment Publication |
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Sharing Trade Secrets |
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Export lessons from Carmanah Technologies
December 19, 2005
Export lessons from Carmanah Technologies
London, U.K. > Carmanah’s recent $1.5 million sale of solar-powered bus stop lighting
for the City of London was the result of a single phone call … and four years of hard
work. How a Canadian marine lighting manufacturer won the contract says a lot about
what it takes to succeed in export markets.
Carmanah Technologies, based in Victoria, BC, has a 10-year history of pursuing
international sales. In 1996, the company started making solar-powered LED (light
emitting diode) lights for marine navigation. The first marine lights came to market in
1998 and quickly became an international success. Today, Carmanah has installations in
110 countries, and offices in Canada, the United States and the United Kingdom. It has
also diversified, becoming a leader in renewable and energy-efficient technology, with
LED-illuminated signage that now serves the aviation, roadway and transit industries, as
well as marine.
Back in 2001, however, when London phoned Carmanah about a fledgling solar bus stop
scheme, the company was still only a marine lighting manufacturer. Someone in London
had seen Carmanah’s small, integrated solar marine lights on the Thames River and
wondered if they could buy those small solar panels to power bus stop lights.
Carmanah had no transit lighting division and no sales force in the U.K., with the
exception of a regional distributor for its marine products. Yet it was the first bidder to
deliver a prototype and one of the few selected for field trials.
Four years later, Carmanah won the contract to provide solar lighting systems for 1,200
London bus stops. It is the first instalment in a five-year, $16-million plan that would
give London the largest network of solar bus stops in the world.
Lessons Learned
Carmanah knew it was in the running for a potentially huge London contract and a whole
new vertical market for its technology. But it had to endure a four-year selection process
that CEO Art Aylesworth describes as “the most rigorous that Carmanah has ever
experienced.” Here’s what the process taught the company about going after international
markets.
Overcome the competitors’ home-turf advantage: Carmanah came to the U.K. with a
superior technology, but it was in a weak position as the outsider bidding against local
companies. Carmanah used visits and help from the Canadian High Commission to
overcome the competitors’ home-turf advantage.
Make frequent trips: Carmanah had to spend a lot of time in the marketplace, from the
installation of prototypes through to the contract award. Carmanah’s CEO flew to
London about every six weeks to build a relationship with the customer.
Establish a presence on the ground: With the first shipment of bus stops to London,
Carmanah also sent an engineer to manage the project. It later opened a London office
with a four-person team and a wealth of experience. With plans to build a U.K.
manufacturing facility, Carmanah will be poised to leverage its London success for
growth in the wider European market.
Engage the services of the Canadian High Commission: Early in the process,
Carmanah contacted Canadian trade officers at the Commercial/Economic Division of
the Canadian High Commission in London. Canadian trade officers helped in many
ways: providing contacts for U.K. media; meeting company staff on their visits to
London; promoting Carmanah to raise the company’s profile in the British market;
providing market research; liaising with potential U.K. customers; and offering facilities
for meetings and receptions.
Register with the Canadian Trade Commissioner Service: As a business client of the
Canadian Trade Commissioner Service, Carmanah received market research,
communications support, access to newsletters and customized on-line news through the
Virtual Trade Commissioner.
Be patient: The contract process took four years to complete, including a series of field
trials. In November 2003, Carmanah’s bus stop was “highly commended” in the BP
Innovation Award category at the U.K. Bus Industry Awards. At that time a contract
announcement seemed imminent, but came nearly a year later.
Make the international investment pay off in other ways: Carmanah turned every
challenge into a strength and spun off its gains to other markets. By the time the London
bus stop deal came through, Carmanah had established a new transit division. It had
already launched its i-STOP™ and i-SHELTER™ products in North America. It had sold
products to over 85 transit authorities. And it had a London base ready to tap the
European market for all of its products, not just transit.
For more information, go to www.carmanah.com.
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