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.

What Do You Have to Offer a Potential Joint Venture Partner?

What are your fields of expertise? What business process have you mastered? Have you developed a new and useful product? When you form a joint venture, you need to bring your strengths to the table and find a way to leverage those strengths with your joint venture partner to benefit both parties. 

A joint venture can result in changes to your own business, or require you to build on the resources you already have in place to make the venture a success. However, it’s important to have a strong strategy and know where your strengths can best be utilized before taking on such a partnership. 

Disney Breaks into Russia through Joint Ventures

Want to break into new markets? Here’s an example where the Walt Disney Company utilized its marketing strengths to form a joint venture with Media-One Holdings Limited. Media-One is a major broadcaster in Russia who owns and operates over 30 televisions stations throughout the country. Disney proposed a joint venture with Media-One to launch a Disney-branded television channel to be broadcasted in Russia.

Disney offered to use marketing, content support, and programming to design a family-oriented channel. Disney would also provide cash and acquisition support for a 49% stake in the venture. Media-One would hold a majority stake and receive the benefit of Disney’s name brand and media experience.

As a result, Media-One’s knowledge and operational experience in Russia, broadcast station portfolio, and advertising sales expertise created a unique family entertainment channel that plans to launch in 2009 with great success. 

The goal of this joint venture was to become the most popular free television channel to kids and families in Russia, and create a large and profitable revenue stream from advertising sales. The strength of Disney’s brand name and outstanding programming capabilities are sure to make it a success.

Mom and Pop Stores to Disney Conglomerates: Joint Ventures Work

Your combined strengths in a joint venture can very well increase your productivity, help your business grow faster, and produce greater revenue. Choosing the right partner can be the key to the success of the venture. In the above example, Disney chose the Russian television-broadcasting leader to ensure that the proposed channel would reach the biggest markets. That doesn’t mean you try to form joint ventures with only Fortune 500 companies. However, you should take a look at the success of your potential partner.

A JV partner should compliment your strengths as well. Do both of you reach completely different markets?  Does each of your products or services fit well together? Your best chance at a successful joint venture is one where both parties can offer something to the other resulting in financial rewards for all. 

Joint ventures aren’t a way for one party to depend on the other to do the work. Make sure you are willing to share your expertise and time, and ensure that your potential partner is willing to do the same. With combined strengths, your joint venture equation could most certainly be 1 + 1 = greater than 2.

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.

Tapping Into New Client Networks Through Joint Ventures

Being a joint venture partner has many benefits to you and your business. When you enter into a joint venture agreement, you agree to share strengths, creativity, and efforts for the prosperity of all parties. However, what are the main benefits of the teamwork and cooperation between joint venture partners?

Increased Revenue

Certainly the main goal in forming a joint venture is to increase your revenue. By sharing resources, your joint venture partner and you hopefully can experience more revenue streams in one or both of the following ways:

  • Revenue Sharing – A joint venture may be one where products or services are combined and packaged for sale to clients and customers. A package deal of services or products could result in more sales, and thus, more revenue for you and your joint venture partner. Though you would be splitting a portion of sales, don’t think of it as a smaller percentage of profits, but a percentage of a much bigger piece of pie.
  • New Business – Your joint venture partnership could be using the talents and strengths of each other to increase each of your respective businesses. For example, you could be sharing your graphic design expertise to provide great brochures to your partner, while he gives you access to lead lists of potential customers.  The result of this type of joint partnership is measured individually rather than combined.

New Networks

Your joint venture can lead to new networks of potential business partners and customers, which can benefit your business. It could bring your products or services to new channels of customers who otherwise would not know your business exist. Find ways to market to your joint partner’s mailing lists. Perhaps provide a free sample to your joint venture partner’s regular and loyal customers. But don’t forget to do the same for your partner.  Promote his or her business to your current customers as well.

Your combined networks could also allow you to find other ways to improve your business with other joint ventures. You could find other affiliates or individuals with strengths that could result in another business relationship. This may take time and effort outside your joint venture purpose, but sharing your partner’s business contacts can be beneficial as well. Just be sure not to steal or sour any business relationship for your joint venture partner.

Joint Venture Case Example: Saving Money and Increasing Clients

As an example, John was a freelance writer who found that he could offer copywriting services to his joint partner, Michael, in exchange for free web hosting that Michael’s company provided. While working with Michael, John was introduced to Joyce, who was a CPA and performed Michael’s bookkeeping. John approached Joyce in a similar manner and offered his copywriting and promotional services in exchange for tax advice for his freelance business. Joyce agreed, and the result was increased business for both Michael and Joyce, while John saved heaps of money on accounting and web services.   

Save Time and Money

Your joint venture is a way to combine efforts and resources. By doing so, you could save money on your own marketing budget if you share marketing costs. And you can save time by sharing the required tasks with your joint venture partner. Freeing up your time and money to focus on other ways to grow your business, or even to spend more time with family, can be one of the best benefits you enjoy.

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.