Marketing
1. Distribution and Sales Channels
Efficient distribution channels exist for U.S. goods to enter the Haitian
marketplace. In accordance with the Haitian Commercial Code, a
number of international firms, including major U.S. manufacturers, have
official agents and/or representatives in Haiti. Additional distribution and
sales channels used include franchising, licensing, wholesaling and
retailing. Most local representatives of foreign firms are located in Port-
au-Prince and distribute products to the main provincial cities.
Frequently the north of the country is supplied directly from agents in
Cap Haitien and the south from agents in Jacmel.
The defined marketing "areas" of Haiti include the provinces of the north
(le Departement du Nord) around the city of Cap Haitien; the "Artibonite
Department" (le Departement de l'Artibonite) around Saint-Marc and
Gonaives; the central part of the country around Port-au-Prince (le
Departement de l'Ouest); and the south around the cities of Cayes and
Jacmel (le Departement du Sud-est et du Sud-ouest).
2. Use of Agents and Distributors (Finding a Partner)
As mentioned above, many firms do business in Haiti through an agent,
a relationship subject to Haitian law. The two parties are free to
negotiate a contractual agreement, with the agents usually appointed
specific tasks and duties. Agents are almost always compensated on a
commission basis, as opposed to a salary system or other compensation
packages. Arrangements used between the parties is at their own
discretion and does not have to be supervised or approved by the Haitian
Government.
Finding a partner in Haiti is possible through a number of channels
including business/industry associations in the country (please see section
V.), as well as through the Commercial Section of the U.S. Embassy.
The Commercial Section offers an array of programs and services
tailored to assist U.S. firms.
3. Franchising
Franchising does exist in Haiti, but at this time there are no specific
regulatory laws. The government allows any private national to enter
into a franchising agreement and does not require the submission of
specifications on the contract, nor does it require technical specifics on
machinery and equipment used.
4. Direct Marketing
Direct marketing is not common in Haiti. The inefficient Haitian postal
system and the overburdened telecommunications system discourage local
and foreign companies from engaging in telephone and direct mail
solicitation.
5. Joint Ventures and Licensing
Foreign investors are permitted to form joint-ventures with the local
partner of their choice. There are no regulations regarding this subject.
Although the distribution of shares is a private matter between the
foreign firm and the local partner, the selling and the buying of company
shares is regulated by mutually agreed by-laws.
6. Steps to Establishing an Office
Establishing an office in Haiti depends on the nature of the company's
business (banks, manufacturing, etc). Retailing, for example, is not open
to foreigners. In general, in order to establish an office to do business
in Haiti, a foreigner needs a residence permit, a work permit and a
license.
To obtain a residence permit, the applicant should write to the nearest
Haitian Consulate. The Consul will send the request to the appropriate
Haitian officials. The applicant will be notified of acceptance or denial
of his/her request within one month. If the request is made while the
applicant is in Haiti, the application must be submitted directly to the
Ministry of Interior.
To obtain the work permit, the applicant must go to the Ministry of
Social Affairs with his/her passport, residence permit and job offer. A
one time payment equal to half of the monthly salary must be paid to the
tax office.
To obtain the license, the applicant goes to the tax office with the work
permit in order to buy an identity card and to pay for the license. A
foreigner owning a business in Haiti must write to the Ministry of
Commerce describing the activity in which he will be involved and
provide name, title, nationality and two photographs. The applicant must
include the receipt or photocopy of the residence permit, identity card,
and license fee. Approval is generally granted within two weeks.
7. Selling Factors - Techniques
Shop hours are not regulated by law in Haiti. The work day is usually
from 8:00 am to 5:00 pm. Shopping malls are very rare and commercial
activities are mainly conducted in informal settings. Successful
marketing tools used to sell products or services in Haiti must take into
consideration Haiti's cultural and social background, and the low
educational level of a significant portion of the population.
Due to the limited purchasing power of the vast majority of the Haitian
population, pricing is very important. It is crucial that any company
interested in launching products or offering services on the Haitian
market give special attention to the marketing plan and the publicity
campaign. Radio advertising (publicity spots or musical jingles) is the
most popular and most widely used form of publicity in Haiti.
8. Advertising and Trade Promotion
Many Haitian advertising companies have successfully helped U.S. firms
sell their products and services into the Haitian market. American firms
that are looking to penetrate the Haitian market should seriously consider
using a local advertising/PR firm. This will ensure that the product is
introduced to the target market in a way reflective of the culture and
values. U.S. consumer goods are viewed by the general public to be of
good quality. The morning and evening news are considered prime time
advertising hours. Radio advertising ranks first among the advertising
media.
Haiti's main daily newspapers are "Le Nouvelliste" and "Le Matin."
There are three weekly newspapers edited and printed in the United
States - "Haiti en Marche," "Haiti Observateur" and "Haiti Progres."
There are no economic or commercial daily publications.
There are several private AM/FM radio stations, but only the state-
owned radio station covers the whole country (Radio Nationale d'Haiti).
There are four private TV stations operating in the capital and one state
owned station (Television Nationale d'Haiti). U.S. cable channels are
available through Tele Haiti, a private station.
Billboards have become a very popular form of sales promotion and are
used throughout the capital and the provinces. Commercial fliers are
sometimes used, especially when targeting the upper social classes. Store
displays play a significant role in retail promotion.
9. Sales Service/Customer Support
Agents for foreign brands often offer customer services (appliances, cars,
computers, technical equipment, radios, TV's).
10. Selling to the Government
The Haitian Government has the liberty to make its own contracting
arrangements but frequently uses a bidding procedure, especially for large
procurements. National and foreign firms are usually welcome to bid
directly for contracts with the Haitian government.
11. Protecting Products from IPR Infringement
The Haitian Constitution recognizes certain intellectual property rights.
Article 38 provides that scientific, literary, and artistic property are
protected by the law. Haiti is a signatory to the Buenos Aires
Convention of 1910 and the Paris Convention of 1883 with regard to
patents; and to the Madrid Agreement with regard to trademarks. Haiti's
patent law dates from 1922 (Law of December 14, 1922); and its
trademark law is the Law of July 17, 1954 on trademarks, as modified
by decrees in 1956, 1960, and 1970.
Special manufacturers' marks, trademarks or the right to a business name
should be registered with the Department of Commerce and Industry.
Haitian law provides penalties for infringement, fraud and unfair
competition. Haitian law also protects copyrights and inventions as long
as they are legally filed with the Ministry of Interior and National
Defense (copyrights); or patented by the Department of Commerce and
Industry (inventions, designs and models).
Any new discovery or invention from any industrial branch grants to its
author, Haitian or foreigner, the exclusive right for use as established by
the title or patent delivered by the government.
Any manufacturer, businessperson, merchant, or company is entitled to
register a trademark for his product. Prohibited from use or adoption as
trademarks are: distinctive signs already registered or which could be
confused with association; phrases, names, or slogans constituting a
commercial name or one of its essential parts; national or municipal flags
or badges; and immoral or scandalous figures.
Poor enforcement significantly erodes protection offered by IPR
legislation. Moreover, Haiti's weak judicial system makes it difficult to
obtain remedy in cases of copyright infringement.
12. Need for a Local Attorney
Counselling from a local attorney is recommended for foreigners doing
business in Haiti. Many Haitian lawyers are fluent in English and many
law firms are familiar with U.S. law. The U.S. Embassy's Commercial
Section can provide a list of law firms.
International Trade Association (U.S. Dept. of Commerce dedicated to helping U.S. businesses compete in the global marketplace.