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.