5 minute read
ROCKIN' ALL OVER THE WORLD
Exporting is complicated, but the benefits can be huge
by Nicky Godding, Print Editor, additional reporting by Pete Davison
Fewer than 10 per cent of UK businesses currently export.
That’s according to the CBI, but companies that trade internationally open up new markets for themselves, are more productive, more innovative and diversify their risk profile.
With tough economic challenges ahead for us all, why wouldn’t a business look overseas for expansion?
The CBI has called on the government to work with business. Ensuring companies of all sizes seize global trade opportunities will be crucial for growth and resilience, it said.
Will McGarrigle, Head of Global Trade, CBI, said: “The UK’s innovation, creativity and outstanding goods and services have never been more relevant to a changing world.
Whether it’s leadership in environmental services or expertise in advanced manufacturing, the UK is home to products in demand overseas.”
Exporting for the first time? It's complicated
Selling in the UK is relatively easy. The culture and geography is familiar, the legal framework understandable and it’s easier to chase payment if the purchaser uses the same time zone and language.
None of that is true if you want to enter new markets overseas.
Companies new to exporting need to understand the potential new markets and how to reach them – both selling to them and then shipping the goods (no mean feat if you want to sell to the European Union now that the UK has Brexited).
You also need to understand the culture of the new market, trade terms the UK government has agreed with that country, its local customs and regulations, and then set up a fail-safe method of getting paid.
One Oxfordshire company opened its first overseas factory in 2015. Despite investing heavily in consultants, the process was initially fraught with problems, but persistence prevailed and med-tech company Owen Mumford has since become a highly successful exporter.
Jarl Severn, the company’s Managing Director, said: “One of the challenges in setting up abroad is that you don’t know what you don’t know – and nor does anyone else. You can’t totally rely on consultants, however expert they appear to be.
“You must visit the countries, be prepared for unknown factors and have enough buffer in your plans.”
Brexit heralded a new age for exporters… and far more paperwork
With more than 30 years’ experience in the field of international trade in both the private and public sector, Anne White is Head of International Trade and Compliance at Thames Valley Chamber of Commerce. She is responsible for the development and delivery of The Chamber’s extensive portfolio of International Trade Services.
The Chamber of Commerce is the first point of contact for many businesses within the Thames Valley and beyond.
The team have extensive knowledge across a wide range of products and services, including giving expert advice and guidance to those new to exporting and organisations looking for the latest information.
“In terms of exporting, it is important to consider a number of different factors, especially if you are a business who is looking to begin their exporting journey,” she said.
Will McGarrigle, Head of Global Trade, CBI.
“Information can come from a number of different sources, so it’s important that the guidance received is clear and concise and businesses are able to apply this to their own operations and internal plans.
“Brexit heralded a new age for exporters, with changes to rules and regulations and new processes across the globe.
Businesses found themselves dealing with individual countries within the EU and with that, an increase in paperwork.
“A survey conducted by the Chamber found that 80 percent of those questioned said that additional paperwork was having an impact on their business, with 57 percent saying that the time taken for border checks was also impacting day-to-day operations.”
Understand the process, choose the right markets and plan, plan, plan
“Understand the process. It may sound simple, but it is important that businesses understand the full export process, from sales through to contract and fulfilment,” Anne continued. “It is about managing supply and demand and also taking into account reputational damage to the business if fulfilment cannot be secured.
“Planning also plays a key role. Moving those goods, whether within the EU or globally, means making important logistical decisions.
‘How the goods will travel needs to be clear as well as ensuring you have the correct documentation in place, in order to not further delay the movement of the goods, which in turn affects the bottom line.
“Know your digital presence. Over the past few years, the way we do business has changed significantly.
“By embracing digital tools and building a strong online presence, companies are more likely to stay in business longer and achieve growth rates not achievable by working solely offline.
“When looking to increase export revenue a well-constructed and internationalised site is fundamental to build relationships with both potential clients and online search engines.
“Choose the right markets. While some believe in the benefits of localisation, others feel that market diversification is the best route to success.
“Experts are warning that limiting your market to one country or region may reduce your sales, especially if your base market is a small portion of the global market.
“To ensure a successful export strategy it is imperative that you export to the ‘right’ locations and international market research is crucial in driving your overseas market selection and decision making.
“Ultimately selling to a new market without the right information can cost time and money.”
Over the next four pages we list and celebrate 100 successful exporters from across the region.
They’re not selling ice to Eskimos, but they are selling valuable British-developed innovations, technology and a host of other services to countries around the world.
