Brand BritainExport opportunities for UK businesses

3 Executive summary

4 Changing times: key market trends

6 The appeal of British products in global markets

8 The value of Brand Britain

11 Strategies for success

12 Case studies Wyke Farms

Joules

15 Key takeaways

Contents

2

This report is based on economic modelling conducted by Development Economics and market research undertaken by Opinium in each of the following markets: France; Germany; Republic of Ireland; USA; China; India; United Arab Emirates; and South Africa. 8,060 online interviews were undertaken between 30 November 2017 and 8 December 2017. The research focuses on the average price differential that consumers state they are willing to pay for British products of different types across these markets.

Here customers perceive British goods to be better quality and value for money. This translates into a willingness to pay a premium for British-made goods, which could make these destinations more profitable for UK businesses.

The future potential of these markets is also important. China and India are the world’s most populous countries, with increasing wealth and demand for western products. Both hold British goods in high regard.

Gateway to growth

Expanding a business’ international trade horizons is about more than growth. New revenue opportunities help diversify a business’ customer base and scaling-up offers increased efficiencies. Attracting talent and skills, and boosting innovation through exposure to new markets can also have a significant impact on a business’ long-term future, improving competitive advantage and stability.

For British businesses keen to seize the opportunities that exporting presents, our research shows the potential for growth beyond the UK’s traditional trading partners and how the perception of value and quality associated with Brand Britain can open doors to growth in new markets.

Executive summaryExports will drive UK economic and business growth and Brand Britain could offer a key value and price differential in new markets.

3

Baihas Baghdadi Global Head of Trade and Working Capital Barclays Corporate Banking

Increasing globalisation, the march of the middle class, flattening distribution channels and a more outward vision present opportunities for British businesses to grow exports. Demand for goods that are ‘Made in Britain’ and a willingness in key markets to pay a premium for these goods should be factored into the return on investment equation undertaken by UK firms.

As Brexit talks move on and we edge closer to the start of trade negotiations with the EU, the UK Government has also signalled its desire to strengthen ties with countries outside the EU, such as China, the US, and several nations within the Commonwealth, including India. Emphasising the advantages that UK businesses bring to the table, and the strengths of their goods and services is an area of increasing focus.

Export potential

We surveyed 8,060 consumers across eight international markets – France, Germany, Republic of Ireland, USA, China, India, the United Arab Emirates and South Africa – to find out the average price differential they are willing to pay for British products. We also asked what attributes they associate with products that are ‘Made in Britain’.

Our research shows that, while the EU and the USA remain important trading partners for the UK, there are significant opportunities for British businesses to grow exports in emerging, high-growth markets, such as China.

the potential added value that could be generated by promoting the

Britishness of products.

£3.45bnper annum

“A willingness for key markets to pay a premium for British-made goods should be factored into the return on investment equation.”

4

While UK economic growth slowed during 2017, it remained positive, with a gradual increase in net trade occurring between Q4 2016 and Q2 2017. The total UK trade deficit narrowed by £2.1bn to £6.2bn in the three months to November 2017, as exports (of both goods and services) increased. This included a 5.3% (£2.3bn) increase in exports to non-EU countries, while exports to countries within the EU remained relatively unchanged.

The Brexit effect

Following the EU Referendum in June 2016, the spotlight has increasingly focused on international trade. As an open economy, global trade (exports and imports) has accounted for between a quarter and a third of the UK economy over the last two decades. Membership of the EU has allowed the UK to trade freely with its 27 member states, including some of its nearest neighbours. Despite a fall in the share of UK exports of goods and services to the EU, from 54% in 2000 to 43% in 2016, the EU remains the UK’s largest trading partner.

As the UK prepares to move towards trade negotiations with the EU post-Brexit, the UK Government has set out its plans to strengthen its relationships with countries outside the EU, including the Commonwealth nations and large, high-growth economies. While the value of UK exports to the EU has fallen between 2011 and 2016 (from £243bn to £236bn), exports to the US, for example, have risen by more than 26% and UK exports to China increased nine fold between 1999 and 2015.

Changing times: key market trendsEconomic, political and social changes in global markets present both challenges and new opportunities for British businesses.

Three-month on three-month UK goods export values, volumes and prices, May 2013 to November 2017

Source: ONS

This is partly driven by low growth in the EU compared to the US and China, and also the relative size of the markets, rather than merely a reorientation of UK trade policy. The static nature of growth in UK exports within the EU, compared to other nations, is reflected in our research.

Counting the cost of uncertainty

Since the EU Referendum in June 2016, the downward trajectory of sterling has boosted the competitiveness of UK exports in many sectors. In manufacturing, for example, export volume grew 9% between Q3 2016 and Q2 2017, while turnover in current prices over the same period rose 11%. However, the depreciation of sterling has also increased import costs, so businesses importing goods or raw materials or those within a global supply chain may see any gains offset.

Exports to the US have risen by more than 26% since 2011 and UK exports to China increased nine fold between 1999 and 2015.

Export values

Export Volumes

Export prices2013 May

2013 Aug

2013 Nov

2014 Feb

2014 May

2014 Aug

2014 Nov

2015 Feb

2015 May

2015 Aug

2015 Nov

2016 Feb

2016 May

2016 Aug

2016 Nov

2017 Feb

2017 May

2017 Aug

2017 Nov

120

110

100

90

80

70

60

120

110

100

90

80

70

60

Volu

me

and

Pric

e In

dice

s 20

15=1

00

Values, £ billions, seasonally adjusted

5

Are you buying more or fewer British-made products today than you were five years ago?

China IndiaFrance Republic of Ireland

South Africa

United Arab Emirates

United States of America

Germany

11%

58%

13%

64%

15%

48%

15%

22%

16%

25%

19%

16%

15%

22%

19%

30%Net More

Net Less

Despite government attempts to encourage businesses to trade overseas, the number of registered UK businesses who traded internationally stood at 315,100 in 2013. This fell in 2014 to 310,800 and once again in 2016, to 305,200 businesses trading goods and services internationally. Current political and economic uncertainty surrounding future UK trade relations may also be discouraging businesses starting or expanding overseas trade.

This uncertainty extends to some extent to customers, with an almost equal split of respondents to our survey agreeing and disagreeing with the statement: “As a result of Brexit, I am not confident that I will be able to get British-made products in the future” (29% agree; 27% disagree). Meanwhile, those within the EU anticipate that they will be buying fewer British-made products than those in other countries following Brexit.

Respondents who anticipate buying more or fewer British-made products post Brexit:

EU

Anticipate buying more: Anticipate buying less:

France 13% Republic of Ireland 32%

Republic of Ireland 13% Germany 28%

Germany 10% France 20%

Rest of the world

Anticipate buying more: Anticipate buying less:

India 53% UAE 9%

UAE 39% South Africa 8%

China 37% US 8%

South Africa 21% China 6%

US 14% India 5%

Why Brand Britain is popular in emerging markets

There are many factors that contribute to the popularity and appeal of Brand Britain across new and emerging markets. Anecdotally, UK businesses are revered for their integrity, and there is a general perception that British-made products are to be trusted. Britain also has a reputation for innovation and quality based on tradition and longevity and, for its size, the UK boasts many top brands across food and drink, fashion, education, industry and other sectors. Many emerging markets are also members of the Commonwealth, made up of 52 countries overall, including South Africa and India. This means that English is widely spoken and British goods are more familiar.

Established markets, in contrast, tend to place value on their own brands across most categories, although they will still purchase specialist products, such as fashion or food and drink labelled as Made in Britain. Hence the enduring popularity of Scotch Whisky and British clothing retailers, such as Burberry.

The countries that feature in the research mirror those included in our 2014 Made in Britain report, with the exception of Brazil and Qatar, which have been replaced by India and the United Arab Emirates, two markets with high growth potential. The product categories are also similar. The amount of additional value that could be unlocked as a result of labelling products as ‘Made in Britain’ across the eight countries featured, has risen from £2.1bn per annum in 2014, to an estimated £3.45bn per annum in 2018.

“For its size, the UK boasts many top brands across food and drink, fashion, education and industry.”

6

We considered country of origin importance, perception and value across eight product categories: general food, alcoholic beverage, soft drink product, fashion item, high precision tool, automotive, homeware, and air travel.

In all categories apart from alcoholic beverage, soft drink product and homeware, country of origin was an important factor in the purchasing decision. It was most marked in general food (66%) and automotive (62%). Responses regarding the importance of country of origin were also similar across both established and emerging markets.

In contrast, however, products flying the British flag were more likely to be purchased in preference by respondents in emerging rather than established markets, highlighting the importance of visual identity in marketing British products.

The appeal of British products in global marketsWhat are the perceptions of goods that are ‘Made in Britain’? What emotional and practical appeal does the British flag evoke in consumers? Is there additional value to be unlocked in British-made goods?

China 61%British goods are perceived as high-quality, reliable, internationally respected, and good value for money.

India 67%

Markets where products flying the British flag are more likely to be purchased

UAE 62%

7

Respondents would pay more for goods made in the UK because they perceive the quality as higher.

Perceptions of quality behind Brand Britain

Compare that to perceptions in more established markets

in China57%

in UAE & South Africa

48%

64%in India

in France

29% 22%

in Germany and the Republic of Ireland

Respondents gave a number of reasons for their preference for British-made goods:

• High quality • Reliability • Internationally respected • Good value for money.

These factors were again most marked in emerging rather than established markets.

Belief in the superior quality of goods made in Britain is higher across all categories in emerging rather than established markets. The only categories where established markets perceive British-made goods as significantly better quality are in food and fashion and, even here, perceptions are outstripped by those in emerging markets.

Value and trust

Given the depreciation of sterling, it is perhaps no surprise that 39% of respondents overall see British-made products as offering good value for money. This is tied closely to the perception of both quality and trust, with value for money linked in this research to a lower risk of counterfeiting.

It is particularly high in emerging markets, where levels of trust in native products may be compromised. Both China and India, for example, have had issues with contaminated food products, which may in part account for the greater emphasis placed on the quality, reliability and trust inherent in British goods in these markets.

“Belief in the superior quality of goods made in Britain is higher across all categories in emerging rather than established markets.”

8

The value of Brand BritainCould promoting a product’s Britishness help businesses achieve higher margins?

Given the perception of high quality attached to British-made products generally and the preference for British products demonstrated by consumers, particularly in emerging markets, we looked at whether customers would pay a premium for a British product.

The research produced both net results, taking into account the fact that some customers in each market have a negative perception of a British-made product (and also that some are indifferent), and gross results, which takes account of ‘positive-only’ preferences, termed the average gross premium.

Net results

Taking the results across all product categories and from each country, the research highlights both results with a positive percentage number, showing that consumers are prepared to pay an additional premium for a British- made product of that type, as well as those with a negative percentage number, which implies that – all other things being equal – they would require a discount of that percentage to entice them to buy a British product of that type.

“The potential increase in value to be achieved by growing export sales to the countries most positive about Britishness is significant.”

Average net premium by product and country

13.4%

3.5%

1.8%

3.6%

3.5%

2.1%

1.2%

0.9%

3.8%

11.5%

4.0%

3.0%

2.5%

1.7%

3.7%

0.8%

1.9%

3.7%

10.6%

1.9%

3.4%

3.0%

1.3%

3.5%

2.2%

1.9%

3.5%

Average

Average

China IndiaFrance Republic of Ireland

South Africa

United Arab Emirates

United States of America

Germany

Emerging markets demonstrate the most positive attitude to British products

The three countries that show unambiguous positivity with respect to Britishness, with a positive premium for each product type, are emerging rather than established markets – China, India and the UAE. South Africa too shows near unanimous positivity, with only the soft drink category displaying a negative premium.

However, for the European countries and the US (the UK’s established trading partners), the opposite is the case. With the exception of the food product category, there is, in nearly every case, a negative premium attached to the Britishness of products. The only exception to this is the category of alcohol within the German market.

7.7%

-0.6%

-1.9%

-2.3%

-2.1%

-2.1%

-3.0%

-2.7%

-1.0%

11.0%

0.7%

-1.2%

-1.7%

-0.1%

-3.5%

-1.7%

-1.4%

0.3%

11.6%

2.5%

0.2%

2.3%

1.5%

2.1%

1.0%

1.0%

2.7%

12.1%

-0.9%

-0.4%

-0.6%

-2.0%

-0.7%

-2.2%

-0.3%

0.6%

11.1%

1.4%

0.5%

0.8%

0.4%

0.4%

-0.4%

-0.1%

1.8%

10.7%

0.4%

-0.3%

-0.4%

-0.4%

-1.9%

-1.3%

-2.2%

0.5%

General food products

Alcoholic beverages

Soft drinks

Fashion items

High precision tools

Automotives

Homeware

Air travel

9

“The largest positive premiums are, on average, attached to food products, automotives and alcoholic beverages.”

If we rank countries overall, we can clearly see the countries with the most positive views regarding the Britishness of products:

China (3.8%)

India (3.7%)

UAE (3.5%)

South Africa (2.7%)

The very positive response to the general food category shifted the weighting with regard to Germany (0.3%), the Republic of Ireland (0.5%) and the US (0.6%), making them net positive. If we exclude this category, then Germany (-1.3%), Ireland (-1.0%) and the US (also -1.0%) would have a net negative overall average response.

The French market has the most negative perception of Britishness. Even when the general food category is included, the overall average response was negative (-1.0%). However, when food is excluded, the average response across the French market is -2.2%.

The only positive response from France was in the general food category, a perception that matches the experience of Somerset-based cheese manufacturer, Wyke Farms. Their emphasis on quality has been essential in establishing France as one of the company’s largest markets (page 12).

Gross results

These results across all countries and product categories show the average premium for those customers who do have a positive preference for a British-made product.

The results show that, among those customers who are positive towards British products, the largest positive premiums are, on average, attached to food products (21.8%), automotives (10.1%) and alcoholic beverages (9.3%). The lowest premiums are attached to soft drinks and homewares (both 7.5%).

The most positive average responses across all product categories are from the UAE (11.9%), China (11.1%) and India (10.8%), with the lowest response coming from France (8.3%).

“The three countries that show unambiguous positivity with respect to Britishness are China, India and the UAE.”

Average gross premium by product and country

22.1%

8.7%

6.8%

7.4%

7.6%

8.5%

6.8%

8.1%

9.5%

21.5%

10.5%

8.1%

9.7%

7.8%

10.8%

8.0%

9.7%

10.8%

21.3%

11.1%

9.9%

10.8%

9.9%

11.8%

10.0%

10.8%

11.9%

22.4%

8.0%

7.8%

8.4%

7.7%

10.9%

7.1%

9.7%

10.3%

22.1%

9.4%

7.0%

9.2%

8.8%

11.4%

7.7%

9.7%

10.7%

21.8%

7.7%

6.9%

8.4%

7.4%

9.5%

6.7%

37.8%

9.5%

22.9%

10.5%

47.7%

10.2%

9.7%

10.7%

8.3%

8.6%

11.1%

20.1%

5.7%

5.9%

6.5%

6.0%

7.4%

5.7%

7.1%

8.3%

21.8%

9.3%

7.5%

8.8%

8.1%

10.1%

7.5%

8.9%

10.3%

Average

Average

China IndiaFrance Republic of Ireland

South Africa

United Arab Emirates

United States of America

Germany

General food products

Alcoholic beverages

Soft drinks

Fashion items

High precision tools

Automotives

Homeware

Air travel

10

Estimated annual value generated using average gross premium (£m)

Turning positivity into a price differential

By segmenting markets to exclude those with a negative (or at least a non-positive) perception, then much more value can be achieved across a wider range of product areas.

This reveals that around £3.45bn of additional value could be generated per annum through targeted market segmentation across the eight countries included in our survey. Within individual product categories, £1.85bn could be contributed by the food product category and £1.35bn from the sale of cars and other automotives.

Business potential

The additional value estimate calculated by multiplying the estimated gross premium by the most recent data for average UK export sales to each country market for the specific product types shows the potential increase in value to be achieved by growing export sales to the countries most positive about Britishness is significant. Exports to the countries with the most positive attitude to British-made products have shown net growth over the past decade.

The potential increase in value from trading with those countries who perceive British-made products as better presents real opportunities for UK firms. Although trade with emerging countries presents more challenges than trade with established countries, the potential return on investment is greater.

Keen to broaden UK trade horizons, the UK Government is supporting exporters to establish business in new and emerging markets. Secretary of State for International Trade and President of the Board of Trade, Dr Liam Fox, has held talks with countries including India, China, New Zealand and Japan in recent months. Meanwhile, UK Export Finance and a number of other providers have committed to extending support to UK exporters, establishing trade ties and providing access to trade finance.

The current study estimates potential additional value of £3.45bn per annum across the eight featured countries. However, there are opportunities for UK businesses far beyond this. In addition to the major emerging economies such as China and India, there are fast growing economies and pockets of the aspirational middle-class in Africa and the Far East. These markets are hungry for products that are ‘Made in Britain’, with the perception of quality and value that they portray.

If we were to examine more countries as potential trade partners, the true scale of the opportunity for UK businesses could be even greater.

The other significant category is alcoholic beverages (£169m), with the other five groups yielding an estimated £80m per annum in total. The most significant source of value by country market is the US (£961m) followed by Ireland (£728m) and France (£581m).

254

14

1

2

6

216

2

6

502

39

11

0

1

4

32

1

5

93

36

15

0

2

2

35

1

2

92

414

70

1

2

2

467

1

6

961

18

9

0

1

3

34

0

1

67

655

12

2

1

1

56

1

1

728

46

4

0

1

4

366

1

3

426

388

35

1

2

4

48

1

4

581

1,849

169

6

11

25

1,353

9

29

3,451

Total

Total

China IndiaFrance Republic of Ireland

South Africa

United Arab Emirates

United States of America

Germany

Trading with those countries who perceive British-made products as better presents real opportunities for UK firms.

General food products

Alcoholic beverages

Soft drinks

Fashion items

High precision tools

Automotives

Homeware

Air travel

11

Strategies for successFor British brands, getting your exporting strategy right can help your business grow more quickly.

Fly the flag

Visual branding is particularly important in promoting the Britishness of your products in emerging markets. Displaying the British

flag on your goods could increase preference to purchase.

Choose your market

When researching potential markets for exports, it’s worth considering attitudes to British-made products

and perceptions of ‘Made in Britain’ goods as part of the mix, alongside levels of competition, logistics

and general product demand. It could improve the ROI achievable.

Think about marketing messages

Consider the key attributes that your target market perceives with regards to British-made goods (for example, the levels of quality, integrity and trust)

and use these as part of your marketing communication strategy. That way your product message will be tapping into pre-existing opinion and attitude.

Price decisions

How will the market’s attitude to British-made goods impact on your pricing? Would discounting devalue the customer’s opinion regarding the quality of your product? Would a premium pricing strategy be more

appropriate to underpin their perception of the Britishness of your product?

Plan ahead and communicate

Post-Brexit trade challenges and opportunities remain uncertain, so scenario-planning is essential.

The uncertainty spreads to customers too, so communicating your plans to manage any potential

supply interruption and to reassure them of the continued quality of your products is essential.

12

Case study: Wyke FarmsFamily-owned Wyke Farms have been crafting cheese for over 150 years to the same unique recipe. Rich Clothier tells us after launching its first exports in France in the mid-1990s, the company now sells its award-winning cheddar in 150 countries around the world.

Selling cheese to the French may seem a little like taking coal to Newcastle, but after attending a few UK Department for International Trade (DIT) events in France and allowing people to taste the cheese, Wyke Farms Managing Director, Rich Clothier, found that there was a real appetite for the company’s strong Vintage Cheddar.

France was our first overseas market and remains one of our largest. In fact, we’ve probably got greater distribution in France than in the UK. One thing the French taught us is the importance of celebrating our identity – not just our Britishness, but our regional identity too – just as someone from Normandy would do. Being from Somerset is a big part of our cultural identity, with the wholesome, natural image that goes with that.

British flag – a mark of quality

Britishness has become increasingly fashionable over the last five years. If you look at the Asian markets, the Union flag is an icon in its own right. There are Minis being sold with Union flag roofs and young people wearing Union flag t-shirts and skirts.

There’s also been a rise in celebrity chefs talking about the virtues of British food and taking that to audiences around the world, and we can boast global icons such as Jaguar-Land Rover and Aston Martin, which are inherently British.

Driving all that is the perception that we do things properly in the UK. So, if an overseas customer buys something made in the UK, it’s perceived as being of the highest quality and standard. We’re happy that our cheese fits with that.

When we sell overseas, our cheese is packaged with a Union flag film, so it really highlights its Britishness. That’s especially important when you go to places like China and India, where the British have cultural ties that go back centuries.

Collaboration is crucial

The family business model is also a lot more familiar overseas than in the UK, which helps boost the product’s image. Another benefit of being a family business is that we like to collaborate with people and we’re used to that way of working, so we work with other people within the region and we work with other partners to try and trade in other regions. As an example, we sell Yeo Valley yoghurts abroad and we’re also selling products from other cheese companies.

Potential to improve margins

Given the importance of the provenance of our products, we often welcome visitors from overseas. It’s important for them to see the region and what it is that makes Wyke Farms cheese so special, and allows it to sell as a premium product in their countries. That’s important for us as a business. In the UK there’s a lot of consolidation in the retail food sector and high levels of competition, which make it difficult to generate strong margins. Despite it being a longer route to market, trading overseas, especially for independent businesses, can help expand margins and create a loyal customer base.

Exporting is certainly worthwhile if you have the commitment. It can sometimes take five years to develop a market to the point where you’re starting to see some sensible commercial sales. And there are challenges.

13

Rich Clothier Managing Director Wyke Farms

It took us three and a half to four years to get our sales going in Russia, for example, and then suddenly there was a trade ban. Exporting is like anything else; you’ve got to put the work in at the front end, but it’s worth it when you succeed.

Opportunities for growth in expanding markets

Exports now account for around 30% of our business and that’s helped us balance our UK trade, where the environment is very cut-throat. We also see big opportunities ahead despite the uncertainty. The global population is growing and most of that is outside the EU. The challenge for the government is to do trade deals that give us access to that and to the growth markets where there are more and more affluent people.

Potential food shortages and higher prices as the global population rises means that we’re seeing a change in attitude to the availability of food, with people looking for partners in the UK that they can work with and longer-term agreements. To benefit from that we need to adopt a world export mindset and get closer to these markets. If we’re to ride the wave of this desire for British-made products and have a role in global trade in the future, our politicians need to become more ambassadorial in their attitudes, whether that’s to Europe or the US. There are pockets of opportunity in South America, Asia and Africa, and we want to be there from the very start, so we need a cohesive approach from businesses and government.

“If an overseas customer buys something made in the UK, it’s perceived as being of the highest quality and standard.”

14

Case study: JoulesAs a premium lifestyle brand, Joules’s combination of quality, style and a unique British quirkiness is proving a winner in overseas markets, as CEO Colin Porter explains.

Joules is very much a British brand, with concept, design and operations firmly in the UK, but it’s always had the potential to appeal to a global audience.

The figures have borne out that potential; sales in overseas markets have increased to 11%, moving steadily towards our medium-term goal of 20%. It marks a sea-change in our strategy, which has always seen some international business that grew naturally from Tom Joules starting out 30 years ago as a man in a van selling on the UK and European equestrian circuit. Around five years ago, as a result of looking at private equity as an investment opportunity, we started to take a more commercial approach to international trade.

We genuinely believed that Joules was a brand that could travel. So we took a step back and focused on the markets we really wanted to grow in: North America and Germany.

Britishness – an added brand benefit

Research with our UK customers identified the brand values Joules exudes – Britishness, heritage, family togetherness and quirky humour – and these really resonated with customers in the US and Germany when we undertook research into those markets. Although it didn’t play out strongly for our UK customers obviously, when you’re going abroad, firmly having Britishness as part of your brand is an added benefit.

Perception of quality

It plays out particularly strongly for us in terms of that perception of quality, and because everyone overseas thinks that it rains every day in Britain, a British outdoor brand with a USP of outerwear and with a Right as Rain collection including wellington boots and rain coats, is particularly well received. When we look at product sales, it’s these that have really hit the mark in our international markets.

Maintaining a brand that’s attainable

Recent years have also seen a more level playing fieldbetween UK and international pricing. Gone are the days when wholesalers could add a 30% premium on UK brands selling overseas. The web has increased transparency and prices are much more driven by logistics costs and duty rates.

The currency fluctuation we saw after the UK’s EU Referendum was certainly challenging. Particularly, given our brand value of attainability, we were keen not to push price increases through to existing or new customers. Appropriate hedging and working closely with suppliers allowed us to mitigate those challenges and maintain our key price points.

We cannot say with certainty what will happen as Brexit unfolds. But what we do know is what our customers want and, as long as your products are attractive, there will be ways of overcoming the practical impacts of tariffs and duties. If the customers are there and the demand is there, then you have to find routes to make it possible.

“If the customers are there and the demand is there, then you have to find routes to make it possible.”

Colin Porter CEO, Joules

15

• Growing exports in targeted markets where British products are desirable could increase margins, particularly for sectors where high levels of competition or market dominance in the UK create downward pressure on prices

• This could boost profitability for firms and grow the UK economy, not only through improved margins, but also through wider market access to high-growth economies

• UK businesses should explore new markets, moving beyond traditional areas to exploit demand for British-made goods in countries where perceptions of products made in Britain are positive. This offers the potential to unlock additional value

• UK Government and finance providers offer support for businesses trading in new and emerging markets, including information, trade missions and trade finance, which can help mitigate risk and realise opportunities

• Brexit presents opportunities for businesses to export to new markets, in addition to existing trading partners, but communicating product availability and commitment to these markets is important to reassure customers and establish secure relationships.

Key takeaways

To find out more about how Barclays can support your business, please call 0800 015 4242* or visit barclayscorporate.com

* Calls to 0800 numbers are free from UK landlines and personal mobiles, otherwise call charges may apply. To maintain a quality service we may monitor or record phone calls.

The views expressed in this report are the views of third parties, and do not necessarily reflect the views of Barclays Bank PLC nor should they be taken as statements of policy or intent of Barclays Bank PLC. Barclays Bank PLC takes no responsibility for the veracity of information contained in third-party narrative and no warranties or undertakings of any kind, whether expressed or implied, regarding the accuracy or completeness of the information given. Barclays Bank PLC takes no liability for the impact of any decisions made based on information contained and views expressed in any third-party guides or articles.

Barclays Bank PLC is registered in England (Company No. 1026167) with its registered office at 1 Churchill Place, London E14 5HP. Barclays Bank PLC is authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority (Financial Services Register No. 122702) and the Prudential Regulation Authority. Barclays is a trading name and trademark of Barclays PLC and its subsidiaries.

February 2018. BD06745-01.

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