Preparing to Export. Everything you need to know about exporting... almost. Wednesday 20th May 2015, Leicester Racecourse Suzy Bolton & Chris Carr
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1 Preparing to Export Everything you need to know about exporting... almost. Wednesday 20th May 2015, Leicester Racecourse Suzy Bolton & Chris Carr
2 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
3 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
4 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
5 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
6 Reactive approach Respond to opportunities Can t plan production May not be able to fulfil orders Lack of control
7 Proactive / strategic approach You are in control You select and decide which markets You control speed of growth / allocation of resources
8 You need... Established market base in UK Good product / service Sound financial base Resources: time, commitment and enthusiasm
9 Quiz Name the top global market for East Midlands businesses
10 USA ( 2.9bn) Germany ( 2bn) Belgium ( 1.3bn) Ireland ( 1.2bn) Singapore ( 1bn)
11 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
12 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
13 Quiz What percentage of East Midlands exports go to the European Union?
14 44.5%
15 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
16 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
17 Quiz How many companies in the East Midlands export their goods or services?
18 5,589
19 Routes to market Direct sales Agent Distributor Licence Franchise Internet sales / e-commerce Via UK contacts Trade shows
20 Finding customers, agents & distributors Networking Internet research & marketing Business opportunities UKTI research done by trade officers Competitors websites Trade shows
21 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
22 Quiz How many cities in China have a population in excess of one million?
23 102 Europe: 35 USA: 9
24 Pricing for export markets: factors Production / modifications Shipping / packaging / insurance Bank charges / currency exchange / credit insurance Warranties Agents commission Discount structure Shipping / Incoterms
25 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
26 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
27 Payment How soon? Payment method suited to market / industry Costs of payment Currency issues
28 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
29 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.
30 Quiz How many markets are UKTI based in?
31 110 With over 1200 staff overseas
32 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!
33 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
34 Thank you for coming Suzy Bolton Chris Carr Tel: Web:
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