International development in the GCC area.
The client is a manufacturer of outdoor paving and vibro-compressed cement. When transporting such large and heavy material to foreign countries, the cost is particularly important, as weight affects the selling price in the destination country. BDB Network also assisted the company during a difficult time in which the company was emerging from a corporate restructuring procedure.
In particular , the company was selected by the GCC to the countries of the GCC (a Union that consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) country as a destination target: if the company had sold directly to the market, it would have had great difficulty finding customers because of the high cost of transportation from Italy to the Gulf countries. In fact, the competition in those countries is represented mainly by companies that produce locally, or by-products that come from countries with low labor costs, poor quality, and poor reliability.
There were two goals:
1) To relaunch the company, which found itself without a highly developed market in Italy at that time
2) To find new forms of revenue through the creation of production franchises, i.e., agreements with outdoor flooring manufacturers present in different states, selling to them, who are interested in having an Italian product of very high quality but at far lower costs than having to import the finished product from Italy.
BDB Network supported the company to create new ways to enable the export of their products, to the countries of the GCC without having the problem of high transportation costs and also significantly reduce the cost of labor. This is thanks to the new production franchising formula implemented by BDB Network, and applicable to anyone in the field.
All companies that produce machinery or construction elements on which transportation costs, as well as production costs, have a strong impact, can turn to BDB Network to find local partners that can produce their product, and at the same time secure the construction of a commercial network either directly or through a distribution agreement with the same producing partners.
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