Business Insight Tuesday May 14 2013
Global ambition Anne MacColl’s vision of the future for Scotland’s growing export market
World’s your oyster
Top opportunities for first-time exporters
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Tuesday May 14 2013 | the times
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Business Insight
Welcome
Ambition’s worldwide potential
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knows little? Are exports the route to company growth? And are they much harder to secure when recession bites? These are some of the key questions for businesses small and large, particularly at a time when the domestic economy is struggling. This issue of Business Insight examines them all. There is no lack of organisations able and willing to offer advice, and some of them, such as Scottish Development International, and GlobalScot, put forward their vision for the future, and identify where the greatest potential lies. But, as we conclude, in the end success still depends on individual companies, armed with a product, a plan, and the ambition to expand.
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This month’s National Export Week has the potential to allow Scottish SMEs to exploit new opportunities for their goods and services How does an emerging company gain a toehold in in a rapidly expanding world marketplace. a far-off market of which it Rob Stokes takes stock of potential business
Inside ... Times Business Forum
A panel of experts gets around the table to discuss challenges and opportunities Page 4
Cover story
Scottish Development International’s chief executive outlines her vision for our success overseas Page 6
Spanning the globe
The growing network of SDI locations and the markets they are addressing Page 8
Intelligence and imagination
A round-up of some diverse business sectors with the ambition to succeed Page 10
ndependent Scottish brewer BrewDog opened a bar in Sweden last month and marked a new milestone in the company’s emerging export success story. The watering hole in Stockholm is the first overseas bar for BrewDog, but it has deals in place to open others in Japan, Brazil and India before the end of the year to extend its brand, and raise awareness and drive sales of its beers. With BrewDog beer now selling in 38 countries, turnover in 2012 was £10.7 million and exports accounted for 62 per cent while growing in line with a stellar 95 per cent increase in overall sales. It is just the kind of success story involving a Small and Medium Sized (SME) business that Scottish Development International (SDI), the international Trade and Investment arm of the Scottish government, Scottish Enterprise and Highlands & Islands Enterprise, likes to hear. It is also a case study to encourage other SMEs to take the plunge into exporting during Export Week which is running across the United Kingdom from now through May 17 with a focus on highgrowth markets. These opportunities reflecting global economic shifts from west to east include Brazil, Colombia, China, Egypt, Hong Kong, India, Indonesia, Malaysia, Mexico, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Taiwan, Thailand, Turkey, United Arab Emirates and Vietnam. In making sure that Scotland has a wide range of events during the week, SDI has worked closely with UK Trade & Investment (UKTI), the UK government agency that spearheads Export Week as a key part of a national export challenge to encourage SMEs to look abroad for growth. The Scottish events are detailed online at www.sdi.co.uk/exportweek. The National Export Challenge aims to boost the percentage of SMEs that export, from around 20 per cent in 2011 to 25 per cent or more. Moreover, the Scottish government has set an ambitious target to increase the value of Scottish Exports by 50% by 2017. Exporting is a daunting challenge for any company, not least for SMEs, and public sector support is almost universally seen as essential. SDI, UKTI and other partners help companies plan strategies, make trade visits, develop networks, and enjoy continuing support overseas through SDI offices, some shared with UKTI. These efforts are well evidenced in some of the most impressive stories from Scotland. BrewDog gauged from the start that overseas markets for its style of beers were more developed than domestic ones, but nevertheless faced considerable hurdles. “It’s a logistical challenge as we use
only chilled shipping containers to make sure our beer gets to customers in great condition,” said James Watt, BrewDog’s founder and self-styled ‘captain’. “Also, as a young company exporting you have to be very careful who you give credit terms to and manage credit tightly. You need good companies to work with, ones that want to sell your product, but also buy into what you believe in as a company and are in it for the long term.” On support, he said: “SDI in particular has been fantastic over the past three years. We’ve only been able to grow so quickly overseas because of the help we’ve had from them in funding a few of our overseas initiatives and through the great network of overseas offices where you can get advice and support. We’ll definitely continue to use SDI as we continue to grow our business over the next few years.” With a new £7 million eco-brewery recently opened in Ellon, Aberdeenshire, BrewDog has the capacity to meet that growth in demand. Sweden, its top export market and Scandinavia as a whole is important to the company, said ‘Watt. “China, Brazil and Japan and some other Asian markets are also strong for us.” Dog Digital (‘Dog’), the award winning Glasgow and London digital marketing agency, is pursuing a strategy to become a global business and has invested heavily to establish an Asia headquarters in Singapore. “We turn over roughly four to five million pounds a year and are looking at growth moving into double digit percentages while we hope that 25 per cent of our business will come through the Singapore office in the next year or so,” said Gerry McCusker, managing director. “We’ll also be looking at other places, including the Americas.” Experience in selling to overseas markets has taught Dog how each market has its own nuances. “That’s particularly the case for cultural aspects such as the use of social media,” said McCusker. For example: Dog’s online campaign for the UEFA Europa and Champions’ leagues. “Particularly with the Europa League campaign on Facebook, we saw huge differences in how the different nations used social media,” said McCusker. “In some countries, like the Philippines, there’s huge penetration of mobile technology but not so many desktop PCs. In the UK you can talk to many demographics across multiple platforms, but when you cut some of that out, the market shape can be quite different.” Acquiring such knowledge has positioned the company as an agency that can deal with international businesses wishing to promote itself in different continents. His thoughts on exporting: “It’s not just the cash involved. There’s a lot of time, head-space and planning needed. For ex-
ample, never underestimate challenges involved in operating two main businesses with a seven or eight hour time difference between them and 14 hour flights.” In Singapore, Dog wanted to grow a team that was the Asian version of what it has in the UK, rather than a branch office. This involved a significant proportion of local hires including the company’s Asia managing director, Selene Chin, who is well networked in Singapore so that BrewDog was a player from the outset rather than the new guys in town who had just got off the aeroplane. “SDI and Scottish Enterprise (SE) have worked with us at key points in our international journey,” said McCusker. “They worked with us to create a strategy workshop and planning time where we formulated our company vision. We
Martin Keith and James Watt, the founders of BrewDog have proved their bottle as exporters
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a global shift Working with GlobalScots has allowed us to network with established contacts that have introduced us to key Asian players inburgh, London, Timisoara (Romania), Panama City, the Philippines and New Zealand, customers in some 50 countries, and also helps clients make money from multilingual material through channels such as foreign language internet marketing (FLIM), website and product localisation, and revolutionary translation technology. Lingo24 did £7 million in sales last year and has grown around 30 per cent annually for two years, according to founder and managing director Christian Arno. “Businesses of all scales can start to see if they can generate international sales at very low cost using our free web-based tools,” he said. “We’re covering the globe to source translators, service clients and sell more into regions where growth is quicker and there’s more opportunity than in Europe.” Lingo24 has received significant support from SDI through matched funding, advice, and connections. For example, when Arno was looking to develop the Americas market, some of the firm’s travel costs were 50 per cent funded. “We also received advice on the best regions for us to visit and I tapped into
The word is out ... to the world If communication is the glue that binds groups and societies together, Clyde Broadcast is doing more than its share for the world. And it’s doing so with the voice of experience — almost literally. For the roots of what is now a major supplier of radio stations to the world are still deep in Scotland’s west country, where in 1973 Radio Clyde began broadcasting in Glasgow before moving to its current Clydebank home and HQ in 1984. Having enjoyed a great local reception from these beginnings — and grown accordingly in confidence — it branched out with the name Clyde Broadcast intent on spreading its expertise not only to its own business advantage but to the social cohesion of less wellequipped societies around the globe. As a manufacturer of audio equipment for the broadcast industry since 1980 Clyde is unique in also being a system integrator, offering genuine turnkey installation services for radio stations of all sizes. Its experts can install a broadcast suite for as little as £5,000. Not surprisingly, customers are increasingly spread across the globe, says the company’s sales director Brian Rowan: “We are now doing business in Africa, India, Europe, Australasia and even America. I don’t think there’s a continent where we haven’t delivered a commercial broadcast radio station. “We have seen a great level of growth in Russia, and India is coming on very
then looked at international strategy and they provided consultancy support. SDI and SE have allowed us to accelerate growth. Working with the GlobalScots has allowed us to network with established business players and introduced us to key players in the Asian market that have led into pitches. You can’t ask more than that, but SDI also has a local presence in the Singapore market that can help you to open doors and we are continually working that.” GlobalScot is a world leading diaspora network established by Scottish Enterprise. It has also been useful to UK translation company Lingo24, which was founded in Aberdeen in 2001 and is now one of the fastest-growing translation companies in the world. Lingo24 has continental hubs in Ed-
strongly. A recent major project was the installation of 16 radio stations for Africa and, with these now completed, the same customers have come back for another 14.” The company’s expansive ambitions have been supported at every turn by the experts of Scottish Development International — and managing director Phil Collins is unstinting in his appreciation of their fruitful introductions work. “They have been absolutely fantastic,” he says. “I can’t sing their praises enough. As an organisation and as individuals, they have been quite superb. I would strongly advise any Scottish company with international ambitions to talk to them as a priority.”
Make new global connections
Christian Arno says new technology will help scale up Lingo24’s operations the GlobalScot network for advice from expat Scots who were keen to see people from the old country do well. Their insights really help and they give their time freely.” New technology due to be incorporated soon will allow Lingo24 to scale up more rapidly to exploit opportunities and to increase profitability, Arno said. One such tool is branded Coach. It is partly a translator’s workbench and partly a learning-management tool for young translators moving through the system. “It allows us to translate at lower cost by dividing up tasks that would have previously been done by one relatively expensive person,” Arno said. “It also lets us control quality tightly to a level between, say, Google Translate and professional translations that come at very different price points.” From his perspective, those businesses who really address international markets and understand the foreign language internet can make significant inroads. “Those who get it, really get it,” he said. The sentiment could equally apply to exporting in general.
Phil Collins of Clyde Broadcast
Scottish Development International Scottish Enterprise
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Scottish Enterprise www.scotentblog.co.uk Scottish Development International @ScotDevInt Scottish Enterprise
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Scottish Enterprise www.facebook.com/scottishenterprise Scottish Development International www.youtube.com/user/SDItv
Tuesday May 14 2013 | the times
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Business Forum
International ambition key to Scotland’s prosperity
The latest Times Scotland Business Forum met to discuss the challenges and opportunities for Scotland’s smart exporters. Graham Lironi listened to a passionate debate
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cotland’s exports have either slumped or are booming, depending on which figure you happen to stumble across. According to the latest quarterly Index of Manufactured Exports, the volume of goods sold overseas have slumped by almost 3 per cent over the past year, whereas the latest Scottish Global Connections survey, based on value of sales rather than volume, showed exports had shot up to almost £24 billion in 2011. But whether boom or slump, the Scottish government has set an ambitious target of a 50 per cent increase in the value of international exports by 2017. In terms of representing Scotland abroad, how good is government and what more could it do to help? Martin Johnson said that HIE always found Scottish ministers to be very supportive and always responded favourably to any request of help from them. Describing the 50 per cent increase in the value of exports target as ‘bold’, he pointed out that ministers are not only supportive of export support agencies, by attending trade missions overseas and other activities, but also of individual exporting businesses. Craig Clark mentioned that a recent trade mission to California organised by UKTI and SDI had helped him better understand the infrastructure that the government has around the world to support businesses exporting from the UK. “I work closely with David Willetts, the UK government minister for universities and science, and see that there is a drive to grow exports and there are people within the support network who are not career politicians but have a lot of business experience,” he said. “I think that some exporters expect something different from government whereas I see government as being almost
like another customer — I need something from government in order to benefit my company and I will treat achieving that goal as achieving a sale, whereas some companies seem to think that they will just put their hand out and they will be given something, which is completely the wrong way of going about it.” Steve Bracken noted that Alex Salmond has been extremely supportive of the Food & Drink sector, recognising that Salmon is the largest food export from Scotland. Neil Francis said that the government’s strategic commitment to increasing exports is very strong. “If Scotland is going to succeed and grow then we have to become an international Scotland,” he said. “While that means understanding what’s happening globally in terms of international trade, many of our exports are generated by companies which have invested in Scotland, so the trade side and the investment side are just different sides of the same coin.” He also noted that the international network of embassies, consulates and SDI’s own growing office presence give a fantastic footprint across the globe. Acknowledging the Scottish government’s export target, Ron Archibald noted that the UK target for exports is £1 trillion by 2020, which represents slightly more than double last year’s figure. “From a UK government perspective, I’ve been aware of a much more concerted effort across Whitehall of trying to pull together the interests of various export
Martin Johnson and Steve Bracken discuss the rising value of exports
departments, which wasn’t the case a few years ago.” Commenting that Scottish finance minister John Swinney had recently visited the Far East for the second time so far this year, Francis noted that ministers were keen to develop strategic alliances with certain parts of the international community to create frameworks that enable Scottish companies to gain access to export markets quicker. “These are some of the new models we’re beginning to see coming into play; international collaborations are going to be a real way forward for some sectors,” he said. Operating in a global market, is being Scottish-based immaterial, an advantage or a drawback? Clark found that being in Scotland was an advantage because most of his customers, no matter where they are in the world, are English-speaking and most European documents for his sector are written in English. “Much of our business is done in the US and a lot of problems with their export control due to International Traffic in Arms Regulations (ITAR) has made them wary of doing business overseas, which is an advantage to us because it means that we can sell more readily to customers all over the world,” he said. “I find that our customers like Scottish people and want to do business with Scottish companies and I do find that is an advantage for us.” Whilst making the point that for any company to succeed internationally it must have a great product, priced competitively and which fills a gap in the market, Francis stated that SDI is building a backdrop prop-
osition around Scotland’s exporting sectors that can make life easier for exporters. “The Scottish element is really important in whisky and, in food and drink, the whole notion of premium and provenance adds a valuable backdrop,” he said. “When we look globally at our key sectors, we can identify those markets that, for the sector as a whole, represent good opportunities and we can then invest some of our own energy in making sure that we have in-market resources in those key markets.” Has e-commerce made attendance at overseas trade fairs and exhibitions less important or do they go hand in hand? Clark revealed that his was the first space company in the world to have an online shop where customers from around the globe, including NASA, have bought satellite parts using a credit card. “Whilst it’s important for us to make sure that we’ve got substantial information on our website, we also want to meet the customer face to face,” he said. “The very first thing I did after establishing the company was to take a stand at a conference in Japan and we got one of our first contracts from that. You can’t just rely on the internet to communicate the brand.” Ros Donaldson agreed that trade fairs are important. “It’s about looking in the whites of somebody’s eyes and building that relationship,” she said. “The internet, Twitter, Facebook, LinkedIn, you can do it all, but there’s no substitute for actually sitting in a room talking with your customer, whether it be about the product you are selling or what they had for lunch that day; it’s that relationship that’s important. That’s where the trust and the loyalty will build from and I
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JAMES GLOSSOP for the times
Around the table The Business Forum was chaired by Magnus Linklater CBE, columnist for The Times Scotland, who was joined by: Neil Francis, International Trade & Investment Director, SDI Ron Archibald, Director of Tradeshow Access Programme, UKTI Martin Johnson, Area Manager for the Inner Moray Firth, HIE Willie Stewart, GlobalScot Iain Weir, Marketing Director, Ian Macleod Distillers Ros Donaldson, Business Development Manager, Tidalfire Craig Clark, Managing Director, Clyde Space Elaine Ferguson, Finance Director, Biopta Steve Bracken, Business Support Manager, Marine Harvest
Elaine Ferguson emphasises face-to-face contact in doing business overseas
don’t know that there’s any getting away from that.” Francis suggested that the mix of ecommerce with in-market activity comes from having a clear strategy and understanding of what your objectives are and what your market looks like. “We do exhibitions, missions and learning journeys — and it’s all part of the in-market activity and, depending on the characteristics of the market, product and sector, that kind of mix has to be customised and specific to what you’re trying to do. Often people think that if they go to an exhibition they will meet a new customer and sign an order there and then — but that very rarely happens.” Donaldson agreed, observing that budgets typically have to be signed off by various management layers before a decision is made — rather than at a trade fair. “You might have a few ladders to climb and a few doors to open before you get that signature,” she said. Iain Weir agreed, suggesting that, rather than securing sales, an important part of exhibitions is to build relationships over time. “Business doesn’t happen quickly — it takes time. You have to attend trade shows and knock on the door, often over a number of years, before you build up the trust and the relationship, then all of a sudden the business really starts to take off,” he said. “I think the days of expecting to come home from a trade show with a full order book are gone. From our perspective, e-commerce is part of the overall marketing mix that allows access to more information and in certain markets allows access to purchase — and social media offers areas where you can continue to build your
Back row, left to right: Ron Archibald, Elaine Ferguson, Craig Clark, Martin Johnson, Iain Weir, Steve Bracken, Neil Francis Front row, left to right: Willie Stewart, Magnus Linklater, Ros Donaldson
relationship and get your brand and personality into the marketplace.” Bracken pointed out that, once a company takes a presence at a trade show, it needs to maintain it: “Because if you don’t appear one year, or if your exhibition stand is smaller than it was the previous year, then customers assume that you’re in difficulty — so you have to give it a lot of thought.” Elaine Ferguson noted that, for SMEs, getting out on the ground at various trade fairs and exhibitions around the world can be a challenge, whilst acknowledging the importance of doing so. “Our technology is for an emerging market so we generally make our sales in a face-to-face situation so that covering the ground is really important, as is having local market knowledge,” she said. Have companies in Scotland been pushed into exporting due to a depressed domestic market? Weir suggested that the recession has pushed exporting in the whisky industry, which is now looking to drive value more than volume – the biggest market by value is the US and by volume is France “Whisky sales in the UK are down 12 per cent, but export-wise we are doing
Ron Archibald and Iain Weir ponder government support and tariffs
fantastic business, maybe not in southern Europe, but we’ve been able to shift that stock elsewhere, to Asia, South America and other emerging markets. The industry has very much looked outwith traditional markets to continue to drive and develop.” Francis added that, despite the welldocumented economic difficulties of the southern EU countries, Scotland’s exports to the EU are actually up by 15 per cent, suggesting that exporters are continuing to find growth in the EU. How does an SME tackle the challenge of entering a new market with a different culture? Willie Stewart explained that there are a number of ways of entering a new market, such as contacting SDI and UKTI, which have in-country experience of all the opportunities available, online research and the GlobalScot network which connects exporters with Scots abroad with established networks of useful local contacts throughout the world. “It’s very important that, if you develop a relationship with a partner or agent in a new market, that you go and visit in person,” he said. “But before you do any of that, you’ve got to do thorough market research and develop a market analysis plan that lays everything out.” What are the barriers to exporting? Ironically, the fact that companies are ‘busy doing business’ can often mean there’s simply not enough time to focus on research and strategy, as the main focus is being on the frontline with customers. Archibald added, “securing talented people with the requisite skills and expertise” and “navigating the volume of support can appear overwhelming.” Not all support available will apply to every company, which is why it’s important to speak to the agencies directly. Francis added: “We are working with non-exporting companies to build capacity, capability and ambition through our Smart Exporter programme. We’re also working with over 2000 companies on their growth strategy with the aim of building a truly international Scotland.”
Exporting the gift of romance They surely wouldn’t have been the first to note a general need for higher-quality Scottish giftware but design entrepreneur Lyndsey Bowditch and former journalist Gillian Crawford were bold enough to do something about it. Inspired by love of Scotland’s history and heritage, they formed a business partnership, called their Edinburghbased company Tartan Twist, and proceeded to follow their vision to create a range of luxurious, affordable and authentic Scottish gifts. That was in 2008, and things happened super-quickly thereafter. In the same year their enterprise won Best New Product at Scotland’s International Trade Fair — a huge boost for a firm hardly off the launchpad, for although the pair had been thinking expansively, the show generated a surprising degree of global interest, with orders from North America and Japan. Further developments confirmed the world to be highly receptive to “romantic, dramatic and authentic” sterling silver necklaces, pendants and bracelets “inspired by Scotland’s windswept islands, desolate beaches and rugged mountain landscapes”. Not the least of these developments were the showcasing of their products at The Gathering and Year of the Homecoming in 2009, and being nominated Jewellery/Accessory Designer of the Year 2010 at the Scottish Fashion Awards. While capitalising on the reputation enjoyed by Scottish goods in the US, they were encouraged to undertake vital customer research on exporting. Gillian said: “Last year we undertook a six-week Smart Exporter programme through SDI that allowed us to put together a blueprint for overseas expansion. We knew we had a product with a strong export potential but were aware we had to plan our international growth in an organised and structured fashion, following our blueprint and identifying and focusing on our key target markets. “Working with SDI, we learned to approach such markets in a methodical manner, breaking them down into manageable sections, researching them thoroughly before visiting and building up contacts. The support we’ve received has been invaluable.” For more information on the Smart Exporter trade skills programme visit: www.sdi.co.uk/exporttraining
Tartan Twist takes style overseas
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Business Insight
Cover story ROB STOTHARD FOR THE TIMES
The chief executive of SDI explains her vision of promoting Scotland on the world stage to Ginny Clark
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flame-haired cartoon warrior princess has certainly proved a strong ally in selling brand Scotland recently. With Scottish export sales increasing to £23.9 billion last year, there is clearly much to be positive about. However, when it comes to increasing our global competitiveness, Anne MacColl, the chief executive of Scottish Development International (SDI), agrees some business sectors could do with a little of that warrior spirit … because in the pursuit of success, they are going to have to become a lot more Brave. The term “passionate” is often attributed to MacColl, when assessing her approach to the job of promoting Scotland globally, but “fervent” may be nearer the mark. This is no way a criticism; the SDI chief has the kind of determined optimism about Scotland’s economic potential, commitment to collaborative working, and utter belief in our ability to deliver, that at once dazzles and inspires. Just before taking over at the helm of SDI more than two years ago, MacColl was the organisation’s director of operations for Europe, the Middle East and Africa (EMEA), and crucial to securing online retail giant Amazon’s £60 million investment in Edinburgh and Dunfermline. At the time, Allan Lyall, vice-president of European operations at Amazon, said its decision to base such a major expansion in Scotland against stiff international competition, was not only because of the talented workforce available, but also the “impressive professionalism of Scottish Development International.” Of course, the role of SDI, and that of MacColl, is not just to attract investment, but to help boost trade and export globally, by raising the aspirations and ambitions of more Scottish businesses. “It’s about saying what can we do to help Scotland grow better, further and faster,” says MacColl. “The answer has to be international, through the development of both indigenous and inward investors. This has to be a good thing for Scotland. Every year SDI works hard to achieve high performance in helping international trade and export and bringing in international investment, and in this past year we’ve created jobs and increased the value of Scottish exports to the rest of the world. “We’re very engaged globally, and although the economy is still tough with difficult pockets such as Spain, Greece and Portugal still suffering in a global sense, there are positive signs. The Euro is starting to recover, and in Asia we have some of the biggest opportunities to make transformational change. “My job is making sure organisations know and understand the support they can access and that international companies coming here know and understand what the benefits are. Scotland has put a clear marker down — we are part of a global business community where, for a small country of 5.1 million people, we more than hold our own. However,
It’s about saying what we can do to help Scotland grow better, further and faster
Looking upward but no room for complacency there is no room for complacency in trade and investment, we have to work really hard in close collaboration with all agencies to deliver more transformational change.” Change has begun. Scotland’s oil and gas industry has witnessed a 14th year of growth in supply chain exports and Scottish firms are now active in more than 100 markets across the world, and figures show international activity accounting for almost 50 per cent of total sales. “The achievements by the oil and gas industry have been very significant but
there are other elements to Scotland’s energy story,” says MacColl. “We have fantastic natural energy, and although our renewables development is nascent it is more than finding its feet. International companies such as Gamesa, Mitsubishi, and Samsung have all announced plans to invest in Scotland to develop renewable technologies. Our oil and gas sector is a mature and highly professional world class industry, but the way in which we continue to develop that globally is crucial. There are challenges, with growing competition in some countries where
there have been discoveries; however challenges can also be seen as opportunities. We are saying to countries such as Ghana, Australia and Brazil, that we have the professional expertise and experience that is also of great value.” Scottish food and drink exports, meanwhile, reached £5.31 billion in 2012, the second highest on record, according to SDI, with whisky accounting for around 80 per cent of that after a record 12 months where values reached £4.27 billion. “Food and drink exports have done fantastically well over the past five years,”
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says MacColl. “Scotch whisky is loved all around the world, and exports have increased by 87 per cent over the past 10 years. The global retail value of Scottish farmed salmon has also surpassed £1 billion, which is a massive jump. Our salmon and seafood, together with whisky, are all high value niche products, and are not only in demand across Europe, but also increasingly in emerging markets.” Breaking the food and drink export markets down shows a changing pattern over the last year. The US has now overtaken France as Scotland’s top market, growing by 12.5 per cent to £817 million, beating France at £675 million. Singapore has also soared up the rankings to No.3 with exports of £340.5 million, with whisky accounting for £339 million of that. The £5.31 billion total for food and drink exports in 2012 was a 1.4 per cent drop on 2011, although an increase of 18 per cent on 2010, with that slight decrease explained in part by the problems in some European countries. Yet exports did increase in Germany, up by 16 per cent, and parts of Eastern Europe, with Estonia, for instance, up 28 per cent. “The broad picture is upward but we have to be aware of the challenges,” says MacColl. “There is a bit of difficulty with the eurozone, but the main challenge is helping exporters to lift their eyes and look at Asia. Last November we had a trade mission to Tokyo and Shanghai, and some of the people we took had real trepidation about going and had never boarded a plane to sell their businesses before. When I spoke to them at the end of it, they said how transformational the
trip had been, putting them in front of buyers for hotels and restaurants where their products were very well received. “Perthshire company The Scottish Deli had already started supplying langoustines and lobster to Japan three months before the trip but after meeting their importer in Tokyo, the company has tripled its next order and added another five topend fish and shellfish products to its export range to Japan. It’s just a small snapshot of what happened in one week, but just imagine what can still be achieved. “My message is: ‘If you’re not exporting, why — and what can we do at SDI to help overcome any barriers?’ Some of the barriers are more about perception. Some companies say to me it’s too difficult to think about trading overseas because of language and other differences, but I’d say it’s more risky right now for many producers to stay here rather than to look at China, India or Brazil. They need to turn that risk on its head, and if they want to survive they need to think about exporting.”
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ast year SDI opened seven new international offices. Some — such as Ghana, Brazil, Stavanger and Calgary — point very specifically to oil and gas opportunities. However, SDI is also looking to place Scotland strategically, where the gaze of the world will be, for example, Brazil during the 2016 Olympics and the 2014 World Cup. For MacColl, it’s all about seeing opportunity — and grabbing it. For Scotland to do that most effectively, she believes we still have a job to do in developing
Multinational skills Anne MacColl was appointed the chief executive of Scottish Development International (SDI), the international Trade and Investment arm of the Scottish Government, Scottish Enterprise and Highlands & Islands Enterprise, in December 2010. She joined SDI as the Regional Head for Southern Europe in 2005, becoming the organisation’s Operations Director for the EMEA (Europe, Middle East and Africa) region in 2007, based in Paris.
Before this, she lived and worked for two years in Madrid and also for three years near Toulouse, France, as a management consultant to the French Chambers of Commerce network, and as part of a national private Spanish consultancy, Soluziona. Born in Oban, MacColl first gained a degree in French, Spanish and Portuguese at the University of Glasgow, then an MBA at Strathclyde Graduate Business School.
our collective international mindset. She certainly sets a good example, having set up home near Toulouse, in France, in 1999, where she worked with Chambers of Commerce across the country, before moving to Madrid to work with business consultancy Soluziona. “I do think as a country, we could do better,” she says. “My son and daughter are lucky enough to speak French and Spanish — and English with a Scots accent! I’d love to see more young Scottish people embracing an international mindset. This can be about languages or exploring the world from different angles, to study, see job opportunities — to look beyond Scotland. I recently spoke to some young people at Balfron High School, focusing on why there are five good reasons to learn another language, not just for communication, but also to widen
your world , to help you see things differently, to understand another culture, and to understand the opportunities available through living in a different country. If you can understand and embrace a culture, then doing business is easy. “Look at the success of Glasgow company Aggreko, why wouldn’t a young Scottish engineer want to go and work for them in Brazil — or to Edinburgh company MESL Microwave who now export more than 70 per cent of their products? I’m very passionate about the importance of an international mindset, and if we can help the younger generation see these possibilities are within their grasp, that has to have benefits for the Scottish economy.” Despite her optimism, MacColl is still aiming for that “transformation”, and is quite clear that she — and Scotland — have a lot of hard work ahead. “While the value of exports has increased, the number of exporters is not increasing at the rate we need for transformational change. Every company, whether product or service, should be thinking about international trade as a given, in their nuts and bolts strategy for the future; if not a given, then where do they want to be in five years’ time? “Come and talk to us, look at some of the services we offer — missions, exhibitions, courses, workshops, business plans. We can put companies in touch with staff in our global offices who understand markets, just ask how we can help and see what opportunities it offers. “Many companies need to be a bit braver, as many successful Scottish companies already have been.”
WE SPEAK FLUENT EXPORT. The move from national to international business is an exciting step which can significantly grow your business. At Smart Exporter, we can help you boost your profits in UK markets and beyond. Discover your export potential with our free resources and export training. Visit www.sdi.co.uk/exporttraining or call 0800 019 1953.
Smart Exporter services are funded and delivered by Scottish Development International (SDI) in partnership with Highlands & Islands Enterprise (HIE), Scottish Chambers of Commerce (SCC) and the European Social Fund (ESF).
Tuesday May 14 2013 | the times
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Business Insight
International network
Time zones no obstacle to success of new exports Scottish Development International’s worldwide presence is pivotal to growth in a range of exciting overseas markets, writes Rob Stokes
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DI has been expanding its network of overseas offices providing valuable in-country intelligence, advice, support and networking opportunities. The expansion is evidence of the Scottish government’s economic strategy which sets a target to assist an increase in the value of Scottish exports by 50 per cent by 2017 and to support growth companies to extend their exports, particularly into fast growing markets. Scottish international exports in 2011 (excluding oil and gas) reached £23.9 billion, £1.6 billion more than in 2010. The top five destinations are all in Scotland’s traditional markets: 1, the US; 2, Netherlands; 3, France; 4, Germany, and 5, Belgium. However, potentially faster growth prospects are seen in emerging economies. SDI is now based in 16 countries out with the UK and has been ploughing resources into opening up high-growth markets for a wide range of Scottish SMEs and sectors. The women and men who staff these bureaux are at the sharp end, where everything that SMEs may have learned through free training support from SDI’s Smart Exporter programme is put to the acid test in alien business environments. To hear about opportunities first hand, Business Insight caught up with the SDI executives with oversight of two of the newest offices, one in Asia, the other in Latin America: Rooma Bussi, SDI director for north and east India, and Nicola Sartini, senior business development manager at SDI’s Paris office, who will manage the new office in Rio de Janeiro, Brazil, from next month. Bussi’s bailiwick now includes the new SDI office in Hyderabad, South India, which opened in February to add to existing agency presences in New Delhi
We saw a 30 per cent annual increase in the companies wanting our support to work in India – Rooma Bussi
and Mumbai in the world’s second fastest growing economy behind China. Bussi said that Hyderabad would “expand and further mutually benefit collaboration between Scotland and India, to share knowledge and expertise to support economic development goals of both countries”. The percentage increase in the number of Scottish companies targeting India to expand their businesses and grow is higher than for any other Asian country. “We saw a 30 per cent annual increase in 2011-12 in the number of companies wanting our support to work in India and there might be many others who would work independently in the market,” Bussi said. In February, SDI said it expected that the 2012-13 total would be 25 per cent higher again. Scottish companies who have offices in South India include Carbon Masters, Peak Scientific and Clintech International. Life sciences, ICT, business services, education and the renewable energy sectors are key targets for these, Bussi said. There is strong growth in the knowledgebased sectors in South India and the new SDI office gives Scotland its own eyes and ears there for the first time. Comfort factors for doing business in India include the widespread use of English as the language of business, and the stable political and legal system. SDI advises getting to grips with the impact of regionalism, culture and business etiquette in order to do business in India. SDI offices are well placed to advise on such aspects. Understanding cultural differences are also a major factor in getting the best out of doing business in Brazil, said Nicola Sartini, who will shortly be managing SDI’s new office at the British Consulate in Rio de Janeiro. Sartini, who has spent the last five years with SDI in Paris, France, said: “You need good relationships to do business with people, but it’s perhaps even more important in Brazil. They like to get into really personal discussions about aspects of your life — family, holidays — that is how people interact. It takes time to gain trust here. It’s not like you have a good product, have a meeting then sign a deal.” Professional and social life is very interlinked.
“Perception of time is different too. It can take longer to get things done and meetings may not start on time.” The world’s sixth largest economy has returned to growth, if not quite at the rapid rates seen in recent years, but the underlying fundamentals make tempting reading for exporters. Brazil is the fifth largest country in the world with a population of around 185 million people. GDP per head is higher than in India or China. “There’s a large number of people moving out of poverty into the middle class,” Sartini said. “There’s also a lot of wealthy people. They are forecasting one million millionaires in Brazil by 2020. There are rising opportunities for imported foreign consumer goods such as Scottish food and drink. Brazil was the fastest growing market for Scottish whiskies last year.” Scottish exports to Brazil were worth £435 million in 2011, making it the country’s 13th most important overseas market. Most of that was food, drink, and energy services sold into the booming oil and gas industry. Other opportunities include creative industries, electronics, vehicle components, textiles, biosciences and medical devices, and chemicals. Massive infrastructure projects are in train: Rio will host the 2014 FIFA World Cup and 2016 Olympic Games. “Many companies need to improve their workforce, so there will be lots of opportunities for training companies and
colleges,” Sartini said. “They are talking about a number of new hospitals being built, which implies a good number of new medical devices to be bought. The whole healthcare market is forecast to grow 35 per cent per year over the next 10 years.” Some 40 Scottish-based companies known to be operating already in Brazil include Hydrasun, Wood Group and Caley Ocean Systems. Others will be back for follow-up or first visits on an SDI organised trade mission in June. “The main reason for being in Rio is on the back of the oil and gas opportunities,” said Sartini. “Many of the international oil and gas companies — Petrobras (the Brazilian national oil and gas company) in particular — have their headquarters here and much of the future oil and gas developments will be off the coast.” It is very early days, but Sartini is already thinking about how SDI may cover more of Brazil. “There is a lot of work to be done in Rio but I am thinking that if there is enough demand after a year, then we could perhaps also have someone in São Paulo, which is the business centre of Brazil for finance and industry.” The World Cup and Olympic Games spell opportunity for IT and services companies as much as construction. While Scotland’s expertise in oil, gas and whisky are well understood in Brazil, there is work to be done raising awareness of other strengths, Sartini said
the times | Tuesday May 14 2013
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To Russia with test solutions
after a recent Scottish textiles visit to the country. “Brazilians have not really been aware of Scottish textiles,” Sartini said, “so there is a need to raise awareness of what Scotland can offer in the market. This will be an important part of our work.” That said, Sartini expects to continue working together with UKTI who are also based in the British Consulate and who have until now provided support on the ground, for example for oil and gas missions. “Being co-located with them demonstrates that we want to work together. We want to complement what UKTI does as a partner organisation. ” Other SDI offices in high-growth markets of recent years include: Calgary: in 2012, this became SDI’s second Canadian office after Toronto, which hosted the SDI organised trade mission to the USA and Canada in April; Canada is a top 20 export market for Scotland, worth around £320 million; SDI assists more than 50 Scottish firms annually to develop and grow business in Canada; Calgary’s province, Alberta is the fastest growing province in Canada and has a booming oil and gas industry, innovative R&D, and strengths in life sciences and creative industries, a good fit with Scotland’s strengths Dubai: works alongside UKTI from the British Embassy in this go-ahead, diversifying Middle East economy; covers Gulf Cooperation Council countries
(GCC), e.g. Saudi Arabia, UAE, Qatar, Bahrain, Oman and Kuwait; opportunities include sustainable buildings and clean technology; infrastructure design engineers and architects; oil and gas; financial services including fund and investment management; education and training in line with rapid population growth and 65 per cent of the GCC population being under 25. There is an SDI organised trade mission to UAE and Qatar in September this year. China: Three SDI offices in Shanghai, Beijing and Hong Kong testify to the importance that the Scottish Government sets on developing exports to the world’s fastest growing economy, and which is on course to become its largest; key opportunities include financial services, renewable energy, life sciences and biotechnology, enabling technology and creative industries, education, food and drink niche markets, textiles niche markets. Taiwan: the 24th largest economy in the World; globally third in design patents and lags only the US, Japan, and Germany in Invention Patents, so is a good partner for Scottish SMEs to develop technologies and products for the global market; opportunities include electronics and semiconductors, displays and lighting, communications and software, financial services, renewable energy, life sciences and medical devices, education, and food and drink.
£435m Value of Scottish exports to Brazil in 2011
£320m The value of the growing Canadian export market to Scotland
£1.6bn Increase in Scottish international exports 2010-2011
South Korea: An SDI office in Seoul advises on potential in an economy where generally rising demand for energy resources, infrastructure, technology and goods and services creates partnering opportunities, particularly in renewable energy and life sciences. Many Koreans enjoy imported high quality foods and drink, with Scotch whisky a firm favourite. Other opportunities include chemicals, electronics and wellness technology. Singapore: the SDI office works in partnership with the Scottish Business Associations of Singapore, Malaysia and Thailand, a fast-growing region; key opportunities are in life sciences and biotechnology, financial services, Scottish luxury products (textiles, food and drink), and education. 750 British companies are based in Singapore, including the regional headquarters of Scottish product or services groups. The office also advises on high growth and high potential markets in Vietnam, Indonesia, Malaysia and the Philippines. Other SDI overseas offices are in: Australia; Denmark; Norway; France; Germany; Japan; Russia; USA (Boston, Chicago, Houston, New York, San Jose). Scheduled SDI organised trade missions include: Brazil, June 2013; Turkey, September 2013; China, September 2013; UAE and Qatar, September/October 2013; India, February 2014; Africa, February 2014.
It was barely three years old and still focused on domestic work when its rapidly expanding customer base earned Probe Test Solutions Limited (PTSL) Lanarkshire’s Best New Business Award 2012 — a moment that coincided with the fielding of more and more enquiries from abroad. How to respond? As a leading supplier of test hardware solutions to semiconductor customers, its directors realised that potential for expansion in Russia and Eastern Europe was enormous and, despite lacking experience in this market, boldly decided to pursue such international development — but to seek expert help in adopting a strategic approach. Enter Scottish Development International in the shape of international business executive Brian Price, who worked closely with the firm to help form its strategic action plan. Also, the SDI office in Moscow proved invaluable, providing introductions to Russian contacts and organisations while overcoming language and cultural barriers. The firm also received a contribution towards travel and attendance at trade shows in Russia and Eastern Europe, which enabled executives to follow up leads and contacts. And there was funding support to employ an International Manager for Hire (IMFH) — an industry expert with 20 years’ experience who thoroughly researched the market, identifying the logistical issues surrounding shipping in and out of Russia, as well as potential pitfalls such as non-payment, product certification and the general business culture. “Funding support has enabled us to visit Russia twice during the one-year project, and we are about to secure the first order for £100,000 with several more in discussion,” says the company’s European sales manager Jordan Mackellar. “The support allowed us to hit the market at the right time, just as significant investment was going into our potential customers in Russia. Without SDI’s phenomenal support we might have been slower to market and missed this fantastic opportunity.” He added: “It certainly helped us to expand more quickly by offering the right combination of funding, advice and other support.” This project has indicated an estimated increase in sales opportunities of £1 million over a three-year period, and PTSL is now working on a similar project for the US and European markets.
PTSL’s operations director, Gordon Stirling and European sales manager, Jordan Mackellar, with the Award for Lanarkshire’s Best New Business 2012
Tuesday May 14 2013 | the times
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Business Insight
Developing sectors
From Scotland – all with
Their appeal has created global demand, but food and drink don’t tell the whole story of our exports. Rick Wilson looks at some newer home-grown developments
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n the face of it, none of them have much in common. But university education, bionic hands, sand management and Harris Tweed are just four exports — featured here — that are enhancing Scotland’s name around a world that once expected harder stuff from us, and not just whisky; muscular Clyde-built ships were what made the country’s global name similarly robust. Those great steel leviathans may now be in decline but that reputation for quality lives on, according to experts in the field who see a ready acceptance of Scottish know-how wherever they have a spread-the-word job to do. Education is a cogent case in point. A good Scottish schooling was historically seen abroad as well worth aspiring to, and the legacy of that is certainly a big plus for those now extending the branches of our modern tertiary education tree to far-flung places. Heriot-Watt University Example: the capital’s widely respected Heriot-Watt University. With over 34 per cent of its Scottish-based students at its campuses in Edinburgh, the Borders and Orkney coming from overseas, it traditionally enjoys a distinct cosmopolitan flavour that sits well with its outgoing ambitions and growing reputation for world-class education. Currently delivering Heriot-Watt degree programmes outside the UK to around 14,500 students in 150 countries, Heriot-Watt’s strong international profile is justified by the quality of its education and research, links to business, and thorough preparation of graduates meeting the needs of global industry. It was the first university to establish a campus in Dubai International Academic City — in 2005. Invited by the government because of its strengths in engineering and reputation for quality, it now has 3,300 students at its Dubai Campus on programmes in a diversity of disciplines such as engineering, management, the built environment, textiles design and fashion. Students come from the United Arab Emirates, the Gulf region and beyond. Malaysia is also circled conspicuously on the Heriot-Watt world map. Creating a new campus in Putrajaya is an important milestone in the university’s grand plan, providing access to world-class education for students across Southeast Asia. The state-of-the-art campus. which has an exceptional range of facilities is due to open in September 2014, and is expected to reach its full capacity of 4,000 students by 2018.
The support also increased the number of overseas trips which speeded up entering a market
“We aim to develop it as a major centre reflecting our activities world-wide,” says Professor Andy Walker, senior deputy principal. “Such expansion of international activities is crucial to our long-term strategy … and Scottish Development International has been enormously helpful in pursuit of this ambition; indeed it was instrumental in bringing us the specific opportunity for the Malaysian campus. “Subsequently, to aid its development, SDI provided market survey resources and even project management assistance. It has given us a helping hand in all sorts of ways.” Touch Bionics Of course, helping hands can come in a more literal form. Such as the “i-Limb Ultra” prosthesis with its moveable-digits solution for people with missing fingers. Touch Bionics is the enterprising Scottish company making and supplying such products to a grateful 4,000 people around the world, and its latest growth figure of 17 per cent, largely attributable to 95 per cent of sales being overseas, suggests it’s a very focused exporter. “Yes, we export almost all our prosthetic hands,” says Ian Stevens, the chief executive officer based at Livingston, the firm’s global headquarters boasting about 50 staff. It also has similarly-staffed operations in the US, which accounts for 70 per cent of sales, helped by a reimbursement environment that permits funding of such advanced prosthetic devices. “Of the rest, there is significant European demand from Germany, Spain, France and Italy; other important markets are Australia, Brazil, Argentina, South Africa, India and China — while sales in the UK can’t be seen as especially buoyant, as the products are perceived by the NHS as expensive.” There are many reasons for “helping hands” being required — accidents, congenital conditions, sepsis, war wounds — but regarding the last, exports to smaller war-troubled lands are not huge, as wounded soldiers are usually sent to more developed lands for rehabilitation. “For those whose injuries extend to loss of a limb, the prosthetic solution will come afterwards.” The Touch Bionics product range covers full hands, partial hands and skin covering, the last courtesy of the acquisition of US company Livingskin, which provides the lifelike prosthetic coverings for the i-Limb hand. The company’s New York facility is now its primary base for production of this silicone-based “skin”, while general UK manufacturing, research and development and administration continue in the Livingston HQ. Meanwhile — “as exporting is the prime driver for our growth” — trading opportunities are being actively pursued in fast-developing countries by the company that was originally a spin-out from the NHS. “China, Brazil, India … those are markets we’d like to have a stronger presence in and they’re growing for us at the moment, thanks to the applied energies of Scottish Enterprise, Scottish Development International and UKTI. They have all been very effective in assisting us with trade missions and key introductions. “Last summer, helped by SDI staff, we had several events in India and China —
exhibiting and visiting potential distributors — and they also helped to organise industry reports about the actual markets.” Sand Monitoring Service It was not originally inspired by the fine coastal sands of north-east Scotland but the rapid growth of Aberdeen company Sand Monitoring Services (SM— from a go-it-alone venture less than a decade ago to 42 heads today — owes much to its two directors, Alistair Moncur and Andrew Kinsler, seeing the North Sea as “our stomping ground”. But according to Mr Moncur, SMS has significantly widened that ground since its 2004 beginnings, providing a range of sand management and monitoring services — “notably ensuring compliance with HSE guidelines on sand” — to the oil and gas sector, with field services providing the focus of international growth. They now supply their quality-control powers to the industry’s practitioners in West and East Africa, the Middle East and South-east Asia, where Malaysia is seen as their latest ground for fruitful development, starting with the opening of a branch office. But how did these markets open up to SMS? Existing contacts had made the pair aware of new market opportunities there and, while keen to make approaches, as a small company they were under-resourced and needed a coherent strategy to target the would-be customers effectively. Enter, Scottish Development International. Names made available through its
support system helped SMS manoeuvre through challenging business cultures. Contacts in High Commissions and through the GlobalScot network proved valuable not just in providing advice, connections and introductions but also in understanding local cultural differences. SMS also received funding for overseas trips. Effective strategic planning ensured these were equipped with full agendas and clear expectations. “The support also increased the number of overseas trips that were possible, which in turn speeded up the rate at which we could enter a market by demonstrating commitment to it through face-to-face meetings,” says Andrew Kinsler. “The ability to meet the GlobalScot contacts and gain first-hand understanding of market challenges was incredibly helpful. The strengths of the contacts we were introduced to certainly fast-tracked our entry into the Malaysian market and ensured opportunities were not wasted by lack of cultural understanding.” Harris Tweed It’s the most iconic — and domestic — of Scotland’s industries, as Harris Tweed is still woven by local people in their island homes; but its prime movers’ mindset has had to change radically to win back international respect lost at the mercy of relatively recent fashion trends. Now, however, the main producer, Harris Tweed Hebrides, sells not just for traditional gents’ jackets but highly stylish creations, from tight-waisted ladies’
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brains and imagination Andrew Kinsler and Alistair Moncur are now adding Malaysia to Sand Monitoring Service’s global footprint
jackets and colourful waistcoats to yellow Kindle covers. With the help of its switched-on creative director Mark Hogarth, it is conquering the world’s fashionable markets in a way that any super-cool textile industry anywhere would envy. It exports 85 per cent of its product, while 40 per cent of that goes to Japan and much of the rest to the US, Germany, France and Italy – as well as vibrant new markets like Brazil, Russia, India and Korea. And now Russia. “That’s currently the most exciting target of our promotional efforts,” says Brian Wilson, company chairman and former UK government energy minister. “We’re gradually building a presence in some new markets and Russia is probably the most promising one, where we are hiring a good agent who knows how the market works and is confident with all the complications of getting stuff through Customs and so on. “There’s such a strong potential there. It ticks all the boxes, climatically and in terms of there being a kind of prestige attached to the product that suits such a newly aspirational society.” The North American challenge is about rebuilding a brand that had an assured cachet and high market share there 30 years ago — “something like 90 per cent of all Harris Tweed produced went there — and that was 90 per cent of a much bigger production volume than now, so there’s a real heritage and awareness there which we can tap back into. “What we’ve done is to get top design houses taking up Harris Tweed again, such as Rag and Bone, J. Crew and Canada Goose; and when such high-end companies use it, the pattern is that main-
Missions to a wider world of opportunity cross-sector opportunities; and the Two hundred years after the launching of new products. birth of legendary explorerTrade missions are a great way of-Africa David Livingstone, to learn more about international Scotland’s adventurous spirit markets and help in the developlives on — particularly in the ment of an export strategy. business world. How does a mission work? While Now the name of the game is arranging delegations of Scottish trade missions: carefully planned companies from a range of busiforays into often far-flung ness sectors keen to visit overseas countries that offer promising markets, SDI helps find funding business opportunities. and support for the trip, provides More and more Scottish commarket insights, advice on marketpanies are looking to grow their ing in addition to introductions to business internationally, taking business contacts in the market. advantage of exciting opportuniA trade mission usually follows an ties in the traditional export initial market research exercise markets of North America and — which is vital in identifying Europe and emerging markets appropriate opportunities and like Asia, South America, the providing a snapshot of local Middle East and Africa. market and sector opportunities to Scottish Development Internamaximise the value of a visit. tional (SDI) can help foster such A trade mission to the United Arab Central to the success of a trade growth opportunities abroad as Emirates is scheduled for this autumn mission is the SDI’s network of its trade missions programme skilled international trade and UK partners based offers an excellent platform to visit potential export around the world. Their local language skills, market markets, to conduct market research, appoint agents or knowledge and extensive political and commercial distributors or visit existing clients. contacts put them at the heart of the programme that By attending such a mission backed by the SDI — and helps Scottish companies become successful exporters. UK Trade and Investment (UKTI) — a business can more So what’s coming up? There’s a trip to the United Arab easily identify new opportunities in developed and Emirates, which will take place between September 28 emerging markets around the world. and October 4 and before that, in June, there’s a trade The benefits are many, such as the boosting of a mission to Brazil. company’s profile with key customers; development of Any Scottish-based company with a business eye on important trading relationships with distributors and either of these countries is invited to email other potential partners; the testing of new markets; a SDIMissions@scotent.co.uk for further information. chance to conduct market research; the tapping into
stream names follow suit,” says Wilson. Chief executive Ian Mackenzie adds: “Motivated by necessity and vision, we saw it was all to do with image and that the answer was in working with such cutting-edge designers. Harris Tweed had been around for a century and a few years ago was seen as just a fabric for old men’s jackets. Our challenge was to stand that negative image on its head.” He is also is quick to acknowledge the catalytic role played by Scottish Development International in the industry’s comeback. “SDI’s help was invaluable, backing up with action its strong commitment to promoting Scottish textiles. Its many excellent people in global offices have intimate knowledge of local markets, talents and tastes. In Russia, for instance, we have been guided towards supplying fabric for interior furnishings. “Thanks to them, we have been highly visible at endless events for UK luxury goods at British embassies in places like Tokyo, Moscow, São Paulo and Seoul. So they have helped us to achieve our twin aims — the opening up of new markets and the revival of once-strong ones.”
Harris Tweed is going places fast — including Russia
Enlightening the Constitutional Debate The Royal Society of Edinburgh, in partnership with the British Academy, is hosting a series of discussion events to enlighten the public debate on Scotland’s constitutional future. 29 May 20 June 24 July 24 August 25 September 17 October 20 November February 2014
Defence & International Relations The RSE, Edinburgh The Real Economy The RSE, Edinburgh Currency, Banking & Financial Services BA, London Culture & Broadcasting Edinburgh Borders, Immigration & Citizenship The RSE, Edinburgh Science & Higher Education Aberdeen University Welfare & Public Services Strathclyde University, Glasgow Historical, Legal & Constitutional Issues BA, London
The Scottish events are free to attend and open to the public. Please register your attendance at www.royalsoced.org.uk or phone 0131 240 2780
Further information about the series and reports of events that have taken place is available at: www.royalsoced.org.uk
The Royal Society of Edinburgh, Scotland's National Academy, is Scottish Charity No. SC000470 The British Academy is a registered Charity. No. 233176
Tuesday May 14 2013 | the times
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Business Insight
Infrastructure
in association with NASA
Scotland’s GlobalScot network is a vital source of support for new exporters, writes Heidi Soholt
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cotland’s world-class reputation for innovation and high quality products continues to ensure that the country retains a highly competitive presence on the global stage. Increasing numbers of businesses are recognising lucrative opportunities offered by overseas markets. Supporting Scottish organisations to capitalise on these opportunities is a pioneering organisation dedicated to improving Scotland’s standing in the international business community. The GlobalScot network encompasses over 600 business leaders who freely lend their time and expertise to Scottish firms wishing to develop export functions. The network is also committed to supporting business growth at home. The 600 plus GlobalScots are all leaders in their own fields, with expert knowledge of the export market. Membership includes; general manager of the Hyatt Regency Dubai & Galleria, John Beveridge; Texas-based Derek Blackwood, head of Americas operations for Wood Group PSN, the largest provider of brownfield services to the oil and gas industry; and former Tesco chairman, Sir David Reid. The GlobalScot network, established by Scottish Enterprise in 2001 and consists of individuals who are either Scottish or have a close affinity to the country. GlobalScots are chosen for their seniority, experience and track records in Scotland’s most promising growth industries. Membership is by invitation only. In addition to giving advice, contacts, assistance and support to organisations overseas, the network also assists SDI and its partners in ensuring that Scotland continues to be a top destination for investment from overseas. Here Business Insight speaks to oil and gas industry expert, Willy Findlay, and globe-trotting businessman, Angus Robertson, about their contributions to the GlobalScot network. transatlantic skills set As a former president of a major USbased engineering corporation, Willy Findlay is aware of the competitive advantages to be gleaned from partnerships with globally-experienced individuals. GlobalScot Findlay worked his way up the ranks of the oil and gas industry after starting out as an apprentice engineer in Edinburgh. The 65 year old from West Lothian went on to become the president of Flow Management Solutions, a division of global oil and gas supply firm, Cameron International. The division operates as a stand-alone business with a $650 million per year turnover. Years of experience in setting up and developing businesses in countries including Russia, France, Singapore and the US made Findlay a natural candidate for the GlobalScot network. Recently retired, Findlay has newly returned to West Lothian, having been based in Houston, Texas, for many years. His involvement in GlobalScot now spans five years, during which time he’s
Eye on the world supported many Scottish businesses. During his time in the US, Findlay was able to offer advice directly through his attendance at major trade shows. “During the past few years I’ve met directors interested in developing their businesses in the US through my support of Scottish Enterprise at oil and gas shows. I’ve been able to offer business advice and contacts,” explains Findlay. “I’ve also attended events where I’ve given feedback on areas such as business plans, and help with setting up in the US. “The role of a GlobalScot includes being a mentor and can also involve being a business angel. There are GlobalScots who hold positions on company boards, and provide financial advice. It’s also about providing a different perspective. You try to help people get an accurate picture of what they’re going into, in order to avoid costly mistakes.” Findlay continues: “It’s very difficult for smaller companies to break into the multinationals without some kind of personal introduction. “Getting your voice heard is extremely hard — even if you have the best idea in the world. That’s one of the ways the GlobalScot team can help: giving a hand up by ensuring someone is talking to the right person, which can save an awful lot of frustration and time wasting.” Findlay believes that Scotland has much to offer. “There’s a lot of respect for technology coming out of Scotland right now and there are tremendous opportunities out there. The North Sea industries are getting stronger. Scotland has experts in both the technical installation of platforms and decommissioning. Renewables is another area I think could become successful, if handled correctly. I think there’s a real respect for Scottish engineering and technology and the big oil firms recognise the North Sea’s track
record. They want our business and technology — it’s now about confidence and getting on with it.” “It’s not about overnight successes,” he adds, “it’s more about giving small companies some help up the ladder. It is tremendously fulfilling to see companies avoiding mistakes and realising their ambitions a little bit quicker.” asian consultation GlobalScot Angus Robertson’s involvement with the network came almost by default, after decades of promoting his home country overseas. Dundee-born Robertson returned to Scotland in 2009 after spending more than 30 years with insurance firms throughout the world. Today he works as an independent insurance consultant, providing underwriting development, training solutions and special contract work to firms in the UK and overseas. Robertson has lived and worked in countries including Nigeria, Saudi Arabia, Indonesia and China, for companies including Royal & Sun Alliance (RSA) and Phoenix Assurance. In China he was actively involved with the British Consulate and British Chamber of Commerce, as well as organising Shanghai Scots. Through these he was able to assist individuals and companies find their way in the Chinese business world. “To succeed in places like China you need to learn to work with the local people and firms, not have them work for you. There’s little point in going out there and expecting things to work the way they do back home. When I first went to Shanghai, with RSA, the city had improved immensely over the previous 10 years or so when living conditions were somewhat tougher. “My Chinese wasn’t great but I knew
Willy Findlay, top, and Angus Robertson are providing advice to those new to exporting
enough to get by — the fact that you were making an effort was appreciated. We socialised with the Chinese, got to know them, and in that way created a good bond. By getting to know your customers you understand their business. Some companies that came out were quite imperious, an approach that didn’t work.” He continues: “We worked closely with local brokers and organised tutorials and training workshops. Our efforts worked both ways: we assisted them and it got our name out there as a China-friendly insurance company.” Robertson believes that there is always an element of risk involved in setting up abroad. “There are many examples of where a company has been taken for a ride. You need to do your research thoroughly before you go in. Make sure you know who you are dealing with, ask around about them. If dealing with someone from the local consulate, find out how long they have been in the area.” Robertson says that the GlobalScot network can be invaluable. “Even if the person you are talking to doesn’t know your business, they may know someone who does.” He points to South East Asia as an area where opportunities are emerging. “Also, in places like America the Scottish brand has always done well. But it’s not just about the traditional things like shortbread. Products are getting much more diverse. “Fish farming is a growth area in places like China, where lots are modelled on the salmon farms here. There’s also much exchange in terms of renewables where Scotland has an excellent reputation. The life sciences also have a good name.” Adds Robertson: “At the end of the day it’s about working hard and taking the time to get to know your market – that way it is possible to succeed.”