As part of the cluster strategic directions to explore new export markets, the cluster has performed a competitive analysis and mapping for the potential export markets. This analysis identified a set of competitive dimensions for the cluster products including cost, quality...etc. for some of the identified markets. The European market was one of the key markets for the cluster to focus on, as they would have some advantage.
Accordingly, the mapping of the study has identified key selling points for the Salfit cluster to make them more competitive and to ensure for them to stand out from another national and international manufactures in the European market. These selling points are availability of products, quick delivery, and availability of different wood finish, styles, colors, special packing and point of sales marketing that can be supplied to the retail stores or website to increase market visibility.
Accordingly, the study also had clearly pointed out in order to penetrate the European market the cluster product has to be on ground in Europe as the potential customers (retails, show rooms) needs to see the products and make sure that there will be stable supply for the purchased items.
Based on the study recommendations, the cluster has tried to establish ground operation in Europe that includes a warehouse and advance selling point. Accordingly, back in April 2016, the cluster organized an investigation mission to the Europe to assess the recommendation of the study. The mission visited Belgium and France as the most recommended places to start with. During the mission, the cluster members has visited a number of show rooms, compared their products with what being offered and lead the discussion with a potential lead toward establishing cooperation in the European market. As well with the support from the potential lead in Belgium. The mission also investigated some potential places and scenarios for the ground operation in Europe. The most preferred location, as seen by the mission, was in DIKSMUIDE city of Belgium. It is a warehouse of 1,200 Square meters and close to the second important port in Europe. While the second is in VEURNE in Belgium at the space of 5,000 square meters.
Furthering to this mission, the cluster has received a proposal for joint venture with the Belgium partner, who have facilitated their mission in April. It is a limited company called CAPRICORN CONSULTING Bvba and based in Belgium city of KOKSIJDE (http://www.capricorn-consulting.com/). This proposal has includes a different scenarios for cooperation including establishing a joint venture within the current CAPRICORN structure or establishing a new company for the cluster.
Therefore, the cluster recruited the services of an international expert, to assess the feasibility of such structure in Europe for Salfit furniture cluster who developed a business plan with most appropriate scenario for establishing this operation in Europe.