The US is renowned for being a tough export market, but it is the one that many UK firms are determined to break into.
Crucial to their success is having a strong product and a robust export strategy, which is what the experts on the judging panel of this week’s Guardian Small Business Network and UPS Trade Mission competition to take ten small businesses stateside, will be looking for.
So, what makes a strong export product? It’s well known that Americans have a fascination with all things British. It is also true that when it comes to exporting goods across the Atlantic, the ‘Made in Britain’ label can be an advantage. However on its own, it is not a guarantee of success.
George Willis, managing director (UK, Ireland & Nordics) UPS, says it is important to remain customer-focused – success abroad, not just in the US, depends on your ability to serve customers efficiently, wherever they are. “Small businesses should utilise technology tools to streamline the business process and to proactively communicate with your customers so they know they can rely on you,” he adds.
A recent UPS survey has found that UK SMEs exporting outside of the EU can outstrip the competition in increasing turnover, but becoming a successful multinational is reliant on building a consistent and loyal customer base.
Serial entrepreneur Emma Sinclair, co-founder of Enterprise Jungle and a member of the judging panel of the Trade Mission, suggests that there may be a degree of scepticism among US retailers about the level of support for UK manufacturers, and in particular, whether exporters have sufficient budget to put behind their products in the US.
She says: “A good product is a good product whichever market it is sold in. The US is a big market and permeating it typically requires scale and investment. That initial pitch therefore has to positively address those concerns head on and deliver a compelling pitch and future narrative for that business or brand that leaves its potential impossible to ignore.”
A firm believer in focusing on the three P’s: product, price and promotion, she adds: “You need to ask yourself, is what you are selling meeting the need of a customer hitherto unmet? Does it represent good value? And can you promote it?”
British companies also need to develop a compelling offer in terms of functionality and service that American consumers are not able to source at home.
Lara Morgan, chairman of business growth agency Company Shortcuts, says that unique IP-protected products that solve problems around time saving are well received in the US.
“Focus on products that are simply communicated, offer community value and engagement from a web perspective, and deliver great service that meets high US expectations from the outset, or don’t bother,” she says.
Price is another important factor when exporting to the US. Americans can be price conscious and will often just go for the cheaper option.
“Pricing is key,” says Shaun McCabe, international director at ASOS and a judge in the Trade Mission competition. “For a new brand entering the US market you will need to be competitive. Give customers a reason to try your product and make it accessible to a wide audience online.”
While there is no substitute for a truly innovative idea, in today’s competitive market it is important to remember that a great idea alone probably isn’t enough.
“Bringing the idea or product to market in an effective way is critical,” McCabe adds. “Digital marketing using Google, and other search engines depending on the market, and working with the right affiliates who can promote your product to the right audience, will generate the customer traffic that you’ll need to be successful,” he says.
As the small business finalists pitch their export ideas, the judging panel will be focusing on the strongest contenders with the best chance of gaining a foothold in the US.
Annette King, chief executive officer of Ogilvy & Mather UK and trade mission judge, will be looking for strong business propositions that can cross the cultural divide and meet a core human or business need outside of the UK.
She says: “I want to see businesses that are crystal clear about what they do and maniacally focused on doing just that, i.e. not trying to do too many things. I’ll also be looking for leaders who’ve done their homework on the similarities and differences between those that buy their products/services here and those they are targeting outside the UK.”
Knowing just how challenging it is to break into the US export market, especially for a first time exporter, Emma Sinclair will be judging the people behind the businesses and the export products.
“A great product is important but a great team is imperative,” she says. “A large part of the judging process for me will be about the team; backing people. The benefit of this competition is that the winners will have expert advice and credible, high level introductions and international brands behind them.”
She adds: “That is invaluable as it will give potential customers additional confidence that these first time exporters are going to be able to deliver. You can never undervalue or underestimate time served, experience and specialist expertise.”
Content on this page is paid for and produced to a brief agreed with UPS, sponsor of the Exporting to New Markets hub on the Small Business Network.
