Best practices for market entry strategies encompass the following:
Secure an agent, representative, or distributor in Ecuador. Sales to the Ecuadorian government require the company to have a local representative in Ecuador. Given the small territory, one distributor nationwide often suffices. Focus on formality, personal relationships, and trust when negotiating agreements and contracts.
Select a law firm early on to provide legal support in different areas like taxes, political/economic analysis, contracts, labor laws, sanitary registrations, and legislative/regulatory reforms.
Communicate with the U.S. Embassy’s Commercial Unit regarding specific concerns, such as regulatory issues.
Consider retaining a firm that specializes in public and corporate affairs, issues and crisis management, and trust and reputation building.
Conduct thorough due diligence to know the partner and understand the market. The U.S. Embassy’s Commercial Unit offers a host of services to assist companies with the due diligence process.
Visit the market often and take advantage of Ecuador’s geographic proximity to the United States and connectivity of Ecuador to North America and neighboring markets.
Recognize challenges in business planning due to changes in Ecuador’s tax, commercial, investment, and economic policies and regulations.
Attend functions of local business promotion organizations such as the American Chambers of Commerce (AmCham). AmCham has five chapters in Ecuador (Quito, Guayaquil, Cuenca, Ambato, and Manta).
Recognize the distinctions between the two regions in Ecuador (the mountain and the coastal regions), which can influence consumer behavior, personalities, buying patterns, hobbies, language, and political ideologies.