Preparing to Export Everything you need to know about exporting . . . almost.

Wednesday 20th May 2015, Leicester Racecourse

Suzy Bolton & Chris Carr

Preparing to Export

• UK Trade & Investment: who are we, and why export ?

• Developing a plan and researching the market

• International communications

• Routes to market

• Pricing, payment and practicalities

• Visiting the market, and next steps

UK Trade & Investment: who are we ?

• Government organisation helping UK-based companies to trade internationally and assist overseas companies to bring their high-quality investment to the UK.

• We help you develop your overseas trade by providing tailored advice, information and on-going support (present in 110 markets)

• We help you identify international opportunities for your products and services.

• Help you overcome the barriers to achieving success in new markets.

• Provide a range of services for your company

Why export ?

• Increase sales / profits

• Spread risk

• Exploit growth markets and opportunities

• Raise your profile

• Use up spare capacity / market or seasonal cycles

• Sharpen your competitiveness

• Economies of scale

But watch out . . .

• Not always a quick return on investment

• Can take time and money

• Higher costs than UK sales

• Risks re currency and getting paid

• Need to balance with protecting home market

Reactive approach

• Respond to opportunities

• Can’t plan production

• May not be able to fulfil orders

• Lack of control

Proactive / strategic approach

• You are in control

• You select and decide which markets

• You control speed of growth / allocation of resources

You need . . .

• Established market base in UK

• Good product / service

• Sound financial base

• Resources: time, commitment and enthusiasm

Quiz

Name the top global market for East Midlands businesses

USA (£2.9bn)

Germany (£2bn)

Belgium (£1.3bn)

Ireland (£1.2bn)

Singapore (£1bn)

Developing a plan and researching the market

• Develop an action plan for your business – Passport Programme developed with UKTI

• Tailored to your company

• Set clear, simple, achievable objectives

• Review dates and activities

• Change / amend as necessary

• Access UK Trade & Investment services

• Do SWOT analysis to assess priorities

Researching the market

• Market selection: based on market demand, access, logistics, pricing.

• Research. Research. Research.

• Talk to contacts, visit trade shows, internet research, press, suppliers, competitors, providers.

• Talk to your UKTI trade officers in market or Derby / Leicester!

• Overseas Market Introduction Service (OMIS)

• European Enterprise Network (EEN)

• Export Marketing Research Scheme (EMRS)

• Gut Feel and Hard Facts

Quiz

What percentage of East Midlands exports go to the European Union?

44.5%

International Communications

• Which market / language

• Marketing message

• Marketing materials: website, brochures, trade stand, business cards, invoices

• Phone calls

• Reception

• Basic words and phrases

• Cultural differences

• Key staff

International Communications (cont.)

• Online presence: internationalise your website

• Domain, translation, images, SEO, culture, social media

• Cultural issues when building relationships: meeting & greeting, body language, business conduct

• UKTI workshops, advice, Export Communications Review

Quiz

How many companies in the East Midlands export their

goods or services?

5,589

Routes to market

• Direct sales

• Agent

• Distributor

• Licence

• Franchise

• Internet sales / e-commerce

• Via UK contacts

• Trade shows

Finding customers, agents & distributors

• Networking

• Internet – research & marketing

• Business opportunities

• UKTI – research done by trade officers

• Competitors websites

• Trade shows

E-Exporting / selling via internet

• Optimise and internationalise website

• B2C

• B2B Emerging

• Suitable for certain products / services / business models

• UKTI subsidised export communications review for your website

• Digital advisers

• E-commerce Programme – 400 global platforms

Quiz

How many cities in China have a population in excess of one million?

102

Europe: 35

USA: 9

Pricing for export markets: factors

• Production / modifications

• Shipping / packaging / insurance

• Bank charges / currency exchange / credit insurance

• Warranties

• Agents commission

• Discount structure

• Shipping / Incoterms

Pricing for export: market research

• Comparable and substitute products / services

• Perceived value - UK brand ?

• Market characteristics

• Strength of competition & their pricing policy

• Research via internet, networking, retail

• Import duties / taxes

• Strength of British Sterling vs local currency

Pricing for export: information sources

• Advice from UKTI trade officer

• Trade associations

• Suppliers, distributors and customers

• Competitor websites

• Retail stores

• Press and media

• Trade shows

Payment

• How soon ?

• Payment method – suited to market / industry

• Costs of payment

• Currency issues

Protecting your Intellectual Property

• Copyright – written form, software, creative work – media and music

• Design – visual appearance of products

• Patents – technical and functional aspect of product

• Trade marks – signs which can distinguish product from others

• For guidance see www.gov.uk/intellectual-property-an-overview/overview

Shipping / Incoterms

• Key part of sales contract with overseas customer

• Determines who is responsible for the shipping of the product from supplier to customer and points along the route – cost / insurance implications

• Incoterms 2010 – includes :

- Ex Works

- FOB

- CIF

- DDP etc.

Quiz

How many markets are UKTI based in?

110

With over 1200 staff overseas

Visiting the market, and next steps

• Market research

• Sales trip

• Trade shows and conferences

• UKTI organise trade missions

• UKTI sector missions

• Language and Culture briefings and workshops!

UK Trade & Investment

• International Trade Advisers

• 20 advisers in the East Midlands alone

• Support over 12 months through Passport to Export (for companies exporting less than 25% of turnover)

• Specific strategy and market queries

• Help instigate export advice for your company

Thank you for coming

Suzy Bolton Chris Carr

Tel: 0345 052 4001

Email: info@uktiem.co.uk

Web: www.gov.uk/ukti