Trading Company
Trading Companies buy goods and services in their own right and sell
them on foreign markets by taking on both logistic and commercial
activities. They represent one of the most important indirect
marketing channels for companies that do not have the capacity to
access foreign markets. It is estimated that one quarter of the entire
world trade is managed by Trading Companies. Their strengths are the
ability to realize economies of scale (they are generally large
organizations), a high degree of knowledge of foreign markets and
specific competencies on foreign trade themes. Generally they are able
to handle complex contracts such as
countertrade (trade of goods / services against goods /
services without the use of currency as a payment instrument). The
Trading Companies’ homeland is Japan, both for traditional reasons and
because the largest Trading Companies worldwide are mainly Japanese.
In Italy, more than a thousand Trading Companies operate.
Exporting via a Trading Company is similar to exporting via a Buyer:
it does not require any particular logistical and commercial
expertise, but it is unlikely to rely on the continuity of production
sold through this system. It is a strategy that can be useful in
solving situations of temporary lack of demand.