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Take Your Joint Ventures Global
Forming a joint venture partnership is a great way to combine efforts, resources, and ideas to make greater sales for both parties. The more people you reach with your JV effort, the more likely that your sales will improve. Why not make a global JV partnership and have access to potentially millions of people in another country?
Taking Textiles Global
The India-headquartered textile giant, Raymond, is a $500 million a year company that sells designer wool fabrics and readymade garments to over 55 countries. They went from being India’s most respected textile company to a world textile leader through strategic joint venture partnerships with companies across the globe. Their joint ventures use a combination of technology, manufacturing and marketing that help both Raymond and its partners earn great financial rewards.
Working with Leading Partners
In one of their biggest joint ventures, Raymond teamed up with European denim supplier, UCO NV, to form a new company; Raymond UCO Denim Private Label Ltd. UCO NV had access to large European markets with a high reputation for quality. UCO NV also brought the strength of European design skills and integrated manufacturing processes. Through their synergetic strengths of sourcing raw materials and combined use of machinery, Raymond UCO created a strong global position and has become an international supplier of denim fabrics.
In Italy, Raymond has partnered with cotton fabric manufacturer, Cotonificio Honegger, and wool manufacturer, Lanificio Fedora. Cotonificio is part of a high fashion textile group that supplies leading shirt fabric for designer makers worldwide. Through that joint venture, Raymond set up a designer cotton shirt fabric in India. Combining wool manufacturing with Lanificio has resulted in a more worldwide business of woolen blankets, shirts, and jackets.
Japan has a strong market for designer clothing and fashion. Using their garment manufacturing facilities in India, Raymond formed a joint venture with Flex, Japan’s leading dress shirt manufacturer. With their combined efforts, Raymond and Flex produce more than 1 million shirts per year.
Using Joint Ventures to Open Doors of Opportunity
Raymond is proud of their joint venture efforts to expand their own business to global markets. They strongly advocate the use of joint ventures to open new markets. Through strategic joint venture efforts, Raymond says that a company can have access to technology, marketing expertise, and manufacturing capabilities that otherwise would be prohibitive in entering foreign markets.
Foreign joint ventures can be risky and potentially unstable due to differing cultures and business values. When considering a foreign joint venture, you should always consider first the possibility of making arrangements to do business yourself through contracted local help.
If you decide that a joint venture is a good option, you may want to “test” a joint venture by doing business together informally to see if the partnership is a good fit. And finally, always set up a mutually agreeable exit strategy for you and your joint venture partner if the venture does not work.
Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
To discover more Joint Venture Marketing Strategies join his free JV Wealth e-zine.
Global Blanket Drive for Rural India