• "If you don't constantly develop, the company dies. You have no other chance, you have to develop"
Marketing Romanian products internationally represents a viable way of business development, provided that the companies have stability on the domestic market. Many national enterprises have already taken advantage of this opportunity, succeeding in recent years to successfully export significant quantities of products with Romanian specificity. Thus, they had the opportunity to address an extensive and varied clientele, a fact that led to an increase in profit. In addition, the large communities of Romanians in the diaspora represent a category of consumers willing to purchase the products that soothe their homesickness.
How much and how we export Romanian products
According to the data provided by the National Institute of Statistics (INS), in 2017, the preferred products for export were in the class "Bread, cakes and fresh pastriesit is". This included pastries, puff pastry and other specialties (over 22 million kilograms). The export value was equivalent to approximately 20% of the realized production. Regarding the category "Biscuits, cookies, cakes and preserved pastries", extruded or expanded, salted or flavored products were exported in the largest quantities (approximately 8 million kilograms, respectively 17% of production). On the other hand, the products with the lowest export demand were bakery products (37.500 kilograms), representing 0,05% of the realized production.
If we exported as much finished products as we export wheat...
Romanian agricultural harvests amount to millions of tons of wheat annually, and a large part of the total quantity is delivered to countries around the world. "We are large producers of wheat, we are at the top of European countries, but rather than exporting raw material, I think it is much better to export processed products, i.e. flour, pasta, biscuits, cakes and other pastry products", declared, last year, for Agerpres, Aurel Popescu, the President of the Romanian Board of Milling, Bakery and Flour Products Industry (BREAKING).
On the one hand, it is desired that national producers market a varied range of products in the country, so that consumers can find as many local brands as possible on store shelves. On the other hand, an extended, complementary approach involves the export of Romanian products. Business development, both internally and externally, is an opportunity for manufacturers to grow. Expanding the business to other markets can be based on the analysis of the number of Romanians settled abroad. The diaspora can represent an advantageous target audience for the business, because they know and appreciate national products, most Romanians living outside the country miss them.
A solution for business development
Aspects to remember, regardless of the type of business
The commercialization of products on foreign markets is based on o export decision. This, in turn, involves a series of actions undertaken by the company's management: assessing the ability to penetrate a foreign market, establishing the products that will be exported and the method of delivery.
Referring to the choice of products intended for export, the manufacturer must decide whether to sell exactly the product he produces for the local market or whether it must be modified, partially or totally, depending on the specifics of the market he wishes to penetrate. For example, in 2018, Gusto launched its range of organic fruit puffs in only five countries out of the 32 where the company is present on the market.
The manufacturer must consider and take into account its technological, financial and workforce availability needed for greater productivity. Financial resources are essential for the activity of marketing products abroad to be carried out successfully and in the long term. In addition to the budget allocated to the actual export, preliminary investments are necessary, essential for analysis and research.
The preparation of a general export strategies gives manufacturers an overview of the processes and activities to be implemented. Some of the benefits of such a strategy are: establishing and monitoring expenses, reducing potential risks, choosing the most suitable ways to enter the foreign market, maximizing profit, anticipating and/or solving problems that might arise, etc.
State involvement in the export of Romanian products
Although we can identify enough Romanian producers who export part of their product range, however, for us, this possibility of development is not a temptation nor a strong trend. Indeed, in general, there is a reluctance of entrepreneurs to export. In this sense, the former Minister for the Business Environment, Commerce and Entrepreneurship (IMM), Ştefan Radu Oprea, stated that Romania is at "below half of the European Union average regarding the number of exporting companies". His statement, evoked during the event "International Business Forum" (September, in Bucharest), was completed with the highlighting of the fact that one of the objectives of the mentioned ministry was the regaining of international markets where the Romanian product is known for its qualities.
Export represents the main form of internationalization of Romania, is one of the conclusions of the study "Development through internationalization: options for Romania", carried out in 2019 by a group of economists from the Faculty of International Economic Relations in Bucharest and researchers from the Ludwig von Mises Institute Romania.
In order to support the expansion of Romanian companies at the international level, the Ministry for the Business Environment, Commerce and Entrepreneurship has invested over 70 million lei in an internationalization program. The purpose of this project is to increase the visibility of Romanian producers on the regional and international markets and to create a favorable context for the export of Romanian products to the world.
Moreover, the financial aid received from the European Union (European funds) represents a real support for entrepreneurs who plan to step outside the country's borders.
The former Minister of IMM, Ştefan Radu Oprea, was of the opinion that the beneficiaries of Start-Up Nation financing will be Romania's future exporters. However, reality shows that the path from a newly established company, through the Start-Up Nation program, to a company capable of exporting is very long and complicated. To facilitate it, a greater involvement of the Romanian state would be needed. A few simple actions would mean real support for companies wishing to export. For example, our country should be present at all foreign fairs, where Romanian products can be promoted. However, our stands are almost non-existent at international exhibitions. Romania should have, in this sense, a coherently expressed policy, in order to instill in the foreign market confidence in the products manufactured here. For example, with the money spent by the Romanian state to create a leaf (Elena Udrea's famous leaf, worth hundreds of thousands of euros), one could certainly participate in many international events. The visibility of Romanian producers on foreign markets also represents aid to the Romanian economy, but this must be supported by competent state institutions.
Nicoleta Banu, editor of Arta Albă
