“The UK has 0.8% of world population and without International Trade your business is missing out the other 99.2% of potential buyers for your product/service”Luis Mulet – Overseas Business Development Specialist
Why Export? and indeed, why should you?
If your home market still offers as much opportunity as your firm can cope with, you might be wiser to cover that demand first. Exporting does, however, spread the risk. Declining demand in one market may be replaced by increasing demand in another. And once you are established in export markets, you will be meeting overseas competition on its home ground and will have more confidence that your home market is not suddenly going to be undermined by imports.
The decision to commence exporting is neither easy, nor one which should be taken lightly. The export market must be seen as an extension of your natural market, not one you can sell to when the home market is a little slow and then forget about when it picks up again. You must, from the start, be as committed to the export market as you are to the home market. Remember that if there is a demand, it will be satisfied by someone. If you do not satisfy it, your competitors will be there, ready and more than willing. I could go on here, but I think you’d better digest this first.
5 reasons to export:
- Exports are a bright spot in the UK economy and are a driver of economic growth. 2020 trade figures brought the UK’s total goods and services exports to £574 billion 1. The EU, taken as a whole is the UK’s largest trading partner. The UK had a trade deficit with the EU of £51 billion in 2020 and a trade surplus of £43 billion with non-EU countries. 2
- There is vast untapped potential to increase UK exports, as well as many reasons for UK businesses to pursue opportunities in worldwide markets: The UK is the ninth-largest by purchasing power parity (PPP), and twenty first-largest by GDP per capita, constituting 3.3% of world GDP. This means that more than 70 percent of the world’s purchasing power is outside of the United Kingdom 3. When we consider how best to grow the UK economy and support Britons’ jobs, it makes sense to look at markets beyond our borders where demand is growing.
- Exporting is profitable for businesses of all sizes: UK businesses which declare international trade in goods were around 70% more productive on average than non-traders. 4 Companies that export are generally more resilient to economic fluctuations than those that do not.
- British products and services are in demand worldwide: UK exporters benefit from the cachet of “Made in the UK.” UK companies are known throughout the world for high quality, innovative goods and services, after-sales customer service, and sound business practices. These products and services are helping improve lives and livelihoods around the world.
- The export process is more streamlined than ever: Many companies don’t export or realise their full exporting potential because they believe it to be too burdensome or complicated. Today, however, the exporting process is much simpler with the Internet, multiple new shipment options, trade financing, and programmes that can assist with every step of the process.
International Trade Matters provides a range of courses and services that help companies form an export startegy and access new markets for their products and services. Read more about how we can support you to complete market research, arrange missions and delegations or perform deep analysis and development for export through Global Sensemaking
Luis Mulet has been at the centre of international business development, business strategy and trade consulting for more than 20 years. Get in touch with him today via the form below: