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Exporting cultural products
The golden rule: Be well prepared and know how to target your markets

The cultural sector occupies a growing place in the Canadian economy, with sales now surpassing $22 billion. It is not surprising then that, between 1996 and 2002, exports of Canadian cultural products soared to $5 billion.

This strong growth could lead you to believe it is relatively easy to sell our cultural products abroad, but that is far from true. Of course you must start out with a distinctive, original, high-quality product, but you must also be armed with patience and know exactly what you are doing.

A targeted export plan
As with other types of commercial undertaking, exporting cultural products requires careful preparation based on a knowledge of the markets you wish to penetrate. “First of all, you should go there as an observer – whether at trade fairs or other types of event – to learn what is going on there and have a clear idea how to position your product in a given market,” notes Hélöise Côté, cultural trade commissioner, Department of Canadian Heritage. “Among other things, a good market penetration strategy may be based on a partnership with a local producer to ensure the product offered really meets a demand among the targeted public.”

For example, if you are targeting the United States, you must not make the mistake of assuming it is a homogenous market. “The United States is not “one” market,” specifies Côté. “It’s a host of small markets, each with their own characteristics, tastes, and requirements.”

And whatever market you hope to penetrate, patience is a must. “You’ve got to think long term,” affirms Danielle Demers, CEO, Productions Mille-Pattes, the record label for La Bottine Souriante, which is enjoying great success in many parts of Europe and now has fans in New England, Louisiana, and the American Midwest.

“You can’t expect to hit pay dirt right away, and even if it works the first time, there’s no guarantee it will continue,” continues Demers. “You’ve got to hang in there, find yourself good bookers and agents in the target market, and not be afraid to lose money in the beginning.”

An often complex process
Right now, one of the biggest success stories involving the export of a Quebec cultural product is without a doubt the equestrian production Cavalia. After a series of shows last year in Shawinigan, Montreal, and Toronto, Cavalia moved its “big top” to the west coast of the United States. Since last February, the troupe has given about 150 performances in San Francisco, Los Angeles, Seattle, and back in San Francisco. It is now preparing to spend a few weeks in San Diego before returning to Los Angeles.

“It was no accident that we chose to launch our U.S. tour in California,” explains Normand Latourelle, the creator and producer of Cavalia. In 1987, he organized the first U.S. tour for Cirque du Soleil – also on the west coast. “Our show is avant-garde, with a poetic, dreamlike quality, and we thought it would be best received in California, particularly San Francisco.” Latourelle’s intuition proved correct, and Cavalia attracted more than 100,000 people in 70 shows in that city.

Latourelle points out that markets aren’t the only factor needing to be targeted: communications must be as well. “You mustn’t spread yourself too thin or spend too much on communications too soon. In our case, we’ve always waited until we arrive on site to do the media positioning of the show, and we do it over a very short period.”

But, according to Latourelle, the greatest danger faced by Cavalia in the United States was more organizational than business-related. “In terms of logistics, we had to transport some forty horses and as many semis, and bring in a hundred people, all of whom needed permits to work in the United States. And since we produce ourselves, we also had to establish an American corporate structure. That’s complicated and expensive.”

Government support
More than in other economic sectors, exporters of cultural goods are basically small- and medium-size enterprises that have a lot to lose, financially, if they fail. “SMEs need our help the most,” explains Côté. “We guide them as much as we can. We open doors for them, and help them take advantage of our network of contacts in foreign markets.”

The export of Quebec’s cultural products is growing, and during its 2004-2005 season, the World Trade Centre Montréal will offer seminars to help our cultural companies take advantage of business opportunities in foreign markets.

But, as in other sectors, money is often the crux of the matter. To export Cavalia to the United States, Latourelle received loans from Canada Economic Development – Export Assistance Program – and Investissement Québec, obtained financial assistance from Tourisme Québec, and took advantage of certain job-creation programs. “It was vital,” he says. “We couldn’t have done it otherwise.” He hastens to add, however, that all of the loans obtained have already been repaid in the form of taxes.