If you are new to exporting, where do you start? On Wednesday 18 November the Guardian Small Business Network hosted a seminar in Birmingham for UK manufacturing businesses wanting to break into new markets.
A panel of experts, including Luis Arriaga, UPS’s district manager for the UK, Ireland and Nordics, Stewart Ferguson, head of research at the China-Britain Business Council, Richard Halstead, regional director, Midlands and the east, EEF and Richard Heald, chief executive, UK India Business Council, shared their advice at the Trade Boost event, which was sponsored by UPS. Here’s a selection of their top tips:
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Be proactive not reactive
Many businesses start exporting in response to customer demand, but if you make the decision yourself, says Arriaga, “it allows you to go to market very quickly and understand the potential challenges that could exist and how to remove those barriers.”
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Don’t spread yourself too thinly
It’s better to focus your resources on a small number of key markets.
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Look beyond Europe
Joseph Jackson, international trades manager at Barclays, cited the example of a small business importing football kits from China and selling to the UK market. The business planned to start exporting to Italy, another country with a strong footballing culture, but it would have meant new premises and additional staff. UKTI advised it instead to look at the Far East, where the football season starts at a different time of year. The business did so, and is now successfully exporting to the Far East without having to expand.
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Research your markets thoroughly
Other countries may have particular infrastructure and regulatory challenges. Heald says of India: “You can’t get off the plane and treat it like a European market.”
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Take time to understand different cultural attitudes
Ferguson says: “In China, and much of the Far East, business is developed out of a good personal relationship. No matter how lovely your product or service is, if the person you’re meeting who has to sign the cheque doesn’t personally like you, they will never do business with you.”
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Choose the right partners
Brompton Bikes has outlets in other countries, but only partners with people who care about the product. In Taiwan, CEO Will Butler-Adams turned down the opportunity to partner with an experienced business in favour of an architect with a love of bikes. He now has 18 shops and is also the company’s partner in China.
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Get close to the market
UPS’s Matt Guffey advises travelling to different markets to improve your understanding. In particular, take advantage of trade missions.
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Establish a clear digital strategy
And make sure it is specifically tailored to your targeted customer or targeted market. “Website design is very important, including current exchange, and also delivery information. The end consumer wants to know when their goods will arrive, whether it’s B2C or B2B,” says Guffey.
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Sell to other businesses
The B2B e-commerce market is growing twice as fast as B2C.
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The best markets aren’t always the obvious ones
Ferguson told delegates that while companies often assume Hong Kong is a good fit, Hong Kong has a population of seven million, whereas Shenzhen alone, a city in the Chinese province of Guangdong, has a population of 11 million, with a higher disposable income. It “dwarfs the opportunity in Hong Kong”, he said.
The Guardian Trade Boost: Manufacturing Competition is offering one small business the chance to win a tailored package of media and exporting advice designed to help their business thrive in new markets. Enter here
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