What is Export Management Company or EMC and what services does it deliver:

  • An Export Management Company (EMC) functions as an external export sales department, which represents your product along with various other non-competitive manufacturers.
  • Export Management Company is a domestic or a foreign company that works in the capacity of a sales agent as well as a distributor for those exporters that are domestic. Specifically refers to international business.
  • Export Management Company is an independent firm, which acts as the exclusive export sales department for noncompeting manufacturers, and is working hard to develop a successful export business to a client.
  • Export Management Company usually has a formal agreement with manufacturers to “manage” their exports. EMCs can represent all of a manufacturer’s product line, or only some part of it. According to clients’ needs, the EMC generally receives exclusive rights to sell in all foreign markets, but not always.
  • Export Management Company is consulting company that acts as an outsourced export division for other firms, enabling these firms to take advantage of the consulting company’s specialized experience and knowledge in the field of exports. Export management consultants typically do not hold title to exported goods, making money instead from commissions paid on each export.
  • Export Management Company allows your business to achieve attractive long term sales and earnings with far less upfront costs than you would incur going it alone.
  • Export Management Company have long established sales network abroad. And sometimes established foreign sales and warehousing subsidiaries as well. Most commonly EMC appoint export agents, or representative, and networks of exclusive distributors and dealers in each foreign market.

Typically Export Management Company acts in two ways:

  • As an Agent – the EMC establishes the marketing presence in foreign markets soliciting orders from foreign customers in the name of the manufacturer. Invoicing is done in the name of the manufacturer and the EMC helps the manufacturer with all the details of the export transaction. The manufacturer bears the risk on nonpayment, and may be asked to extend credit to foreign customer. The Agent EMC are paid a commission on export sales. The EMC may suggest the export price, but his principal has final say on even whether to accept the order;
  • As a Distributor – EMC can operate as an exclusive distributor on a “buy-sell” basis. The EMC buys from the manufacturer at a set price and resells to foreign customers at price established by the EMC. In this case, the EMC is responsible for invoicing and bears the risk of nonpayment. It is very important to note, that when the EMC is acting as a distributor, the manufacturer may have no control over the export price and not even know who the foreign customers are.

It is important not to confuse Export Management Companies (EMC) with Export Trading Companies (ETC), because ETC are very similar to Export Management Companies, but have some important differences.

  • Export Trading Company is an organization that specializes in procurement on behalf of foreign clients. An ETC has no “loyalty” to a particular manufacturer. They are seeking the best terms for their clients.
  • Export Trading Company is more likely to take title to the product and pay you directly.
  • Export Trading Company tends to be demand driven and transaction oriented.
  • Export Trading Company identifies what foreign buyers want to spend their money on and then searches domestic sources willing to export, in comparison with Export Management Company, which attracts buyers.