REBOOTING A DORMANT MARKET
Overview:
JOB Corporation, a Japanese manufacturer of portable x-ray equipment did everything right yet in the space of a few years industry consolidation and changing market trends undid their hard work.
The equine market for veterinary products is a profitable niche in the larger animal health market. Close to 5 million horses are still used for recreation, work, and sport in the United States. The care and maintenance of those animals is in the hundreds of millions. Sales of portable x-ray generators is estimated to be in excess of several million annually.
JOB was fortunate to attract the interest of Milburn Equine, a respected specialty distributor to the market. JOB’s sales reached a high just as Milburn was acquired by a much larger distributor. That distributor, however was less committed to selling equipment than Milburn and over the next 24 months JOB’s sales dropped to zero. Asia Business Group was brought in to reboot the distribution channel and restart sales.
Asia Business Group started by learning about how equine products are distributed in the US, then created profiles of the major distributors and their typical customers. It became clear that the big distributors were more interested in the pharmaceutical side of the business than the equipment side. Clear too was that veterinarians are smart buyers, loyal to a fault, and very concerned about value. Our mission was set; find a small equipment distributor with a Rolodex full of veterinarians and a reputation for honest, forthright dealings. Easy to say, but hard to do. Yet we did.
Results:
Conclusion:
Luck can play an important part in any business. Asia Business Group was lucky to find a distributor with the right contacts, integrity, product and market knowledge. Lucky yes, but we knew what we were looking for and were able to recognize it when we saw it. Judging the character of a business partner is hard enough when you share the same cultural expectations. Doing that cross-culturally adds another layer of complexity that requires and intermediary with your best interest in mind.
That’s what Asia Business Group does for its clients on both sides of the Pacific.
JOB Corporation, a Japanese manufacturer of portable x-ray equipment did everything right yet in the space of a few years industry consolidation and changing market trends undid their hard work.
The equine market for veterinary products is a profitable niche in the larger animal health market. Close to 5 million horses are still used for recreation, work, and sport in the United States. The care and maintenance of those animals is in the hundreds of millions. Sales of portable x-ray generators is estimated to be in excess of several million annually.
JOB was fortunate to attract the interest of Milburn Equine, a respected specialty distributor to the market. JOB’s sales reached a high just as Milburn was acquired by a much larger distributor. That distributor, however was less committed to selling equipment than Milburn and over the next 24 months JOB’s sales dropped to zero. Asia Business Group was brought in to reboot the distribution channel and restart sales.
Asia Business Group started by learning about how equine products are distributed in the US, then created profiles of the major distributors and their typical customers. It became clear that the big distributors were more interested in the pharmaceutical side of the business than the equipment side. Clear too was that veterinarians are smart buyers, loyal to a fault, and very concerned about value. Our mission was set; find a small equipment distributor with a Rolodex full of veterinarians and a reputation for honest, forthright dealings. Easy to say, but hard to do. Yet we did.
Results:
- Within the first 18 months the distributor captured roughly 15% of the available market.
- JOB went from a virtual unknown to an up-and-coming market player.
- JOB’s sales are steadily increasing as its industry connections and product offerings grow.
Conclusion:
Luck can play an important part in any business. Asia Business Group was lucky to find a distributor with the right contacts, integrity, product and market knowledge. Lucky yes, but we knew what we were looking for and were able to recognize it when we saw it. Judging the character of a business partner is hard enough when you share the same cultural expectations. Doing that cross-culturally adds another layer of complexity that requires and intermediary with your best interest in mind.
That’s what Asia Business Group does for its clients on both sides of the Pacific.
