Exporting when the time is right…Brexit or not

23 October 2019

Could this be the best time to think about exporting to Europe for the first time?

Whatever the Brexit deal with the EU, the only certainty is that the European market will still want British products and services.

Research published by the Institute of Chartered Accountants in England and Wales (ICAEW) showed that a staggering 96% of non-exporting companies had no plans to start in the coming year, despite a Government campaign designed to raise awareness and an ambition to increase the value of exports to £1 trillion by 2020.

Perhaps more worryingly, 41% of the non-exporting companies stated their belief that they had sufficient market in the UK to make exporting unnecessary, even though the ICAEW predicted weaker domestic demand in 2017 onwards.

So much for statistics, what about the opportunities for first time exporters?

Let us begin by dispelling a few myths;

It’s too risky at this uncertain time – Well, there is no denying that the times are indeed uncertain but business will carry on no matter what the details of the post Brexit arrangements. Many companies based in countries outside the EU operate profitably in Europe and by opening your business up to Europe you will be raising your profile at home.

There’s too much paperwork – Surprisingly, one of the most common misconceptions remains that the EU is wrapped up in red tape. The Government is investing millions to ensure that the process is easier than ever. In addition, the British Chambers of Commerce has departments dedicated to offering practical assistance with legislation and paperwork…the help is out there, and in most cases, it’s free.

I have a friend at the Surrey Chambers of Commerce, I thought I would ask him his view…

“There is very little paperwork you need to export within EU, mainly due to the free movement of goods/services within the EU. The only increase in paperwork is when the goods leave the EU and are exported to a ‘third’ country i.e. rest of the world, where the level of documentation requirements is usually country-specific. Product Compliance will be the same across the EU, so if the product meets UK compliance tests, then it will be compliant in the EU” – Gary Hayes, International Trade Manager Surrey Chamber of Commerce

There are cultural differences – Perhaps an argument could have been made for this, 50 years ago but not any longer. The development of the City of Brno in the Czech Republic, historic capital of Moravia is typical of the type of progressive attitude to business prevalent across Europe. The City boasts no fewer than 13 institutes of higher learning, modern manufacturing facilities and an international transport network as well as Government departments dedicated to dealing with British companies.

All of my contacts are UK based – Well, at the risk of overt self-promotion, what you need is good data…Kompass can help. The basics remain the same, assess the market, gauge demand, define your customers, understand the competition and get in touch. What works in the UK will almost certainly, with a little refinement, work in Europe.

There is too much competition – Competition is great, it raises standards and promotes initiative, all you need to do is know your competition and work on your points of difference, exactly as you would at home. When considering the competition for any new market it pays to know who they are, how they market or promote their services and what makes them work. In addition it is worth assessing the size of your market competition, too many and it may be too crowded, too few and there may be a low demand.

Also, remember to have a look at your UK competitors, how many of them export and where do they export to?

So, that is a few questions answered but what about the really big one…how do I get started?

The HM Government ‘Exporting is Great’, the site lists tendering requests from companies, organisations, associations and government departments across Europe and beyond. Here you will see requests for everything from electric vehicle components in Portugal to textile printing for a company based in Slovakia, helicopter pilot training for the Croatian police officers to tourism management in Belgium.

In addition to European opportunities there are tender requests from Australia, India, the United States and China – literally a whole world of opportunities.

A quick visit to this site will give you a broad understanding of the level of demand, there may even be opportunities to start applying immediately. In most cases the process is very similar to tendering for UK contracts, (Kompass can assist with this too) companies are looking for dependability, keen prices, a proven track record and the quality synonymous with British manufacturing and services.

An invaluable resource for companies starting out on the road to exporting to the EU is the European Trade Export Helpdesk website. Here you will find information about tariffs, quotas, visa and trade agreement requirements and statistics relating to each of the other 27 countries in the EU.

A note of caution for first time exporters might be appropriate at this stage. It may appear at first glance that the official language of the EU is ‘bureaucrat’ and while there is indeed a good deal of jargon, there is plenty of help available. A particularly rich source of information and assistance can be found by visiting the British Chambers of Commerce (BCC) website. This site is packed with practical advice and tips for those companies wishing to trade internationally, their representatives offer a true market insight based on many years of sound experience and specialist business knowledge.

In addition to their work in this country, the BCC can give your company direct access to your chosen markets via trade shows, missions and hosted events in just about every company in the European Union. These events, often grant supported, allow the first time exporter to see for themselves the level of interest in their products or services ahead of making any commitment to production or export.

My friend Gary commented…

“The support and guidance that your local accredited British Chambers of Commerce can offer you is invaluable, especially to those businesses that are taking their first steps into exporting to Europe and are ready to take advantage of huge opportunities available to them.” – Gary Hayes, International Trade Manager, Surrey Chambers of Commerce

The European Union is the world’s largest single market and the competition is fierce, however, the opportunities for success remain as real as ever and now might just be the time for your company to consider exporting.

Read the latest advice on preparing to export goods from the UK to the EU from January 1 2021

Kompass is represented in over 70 countries and our global B2B services can offer business intel at a local level in every conceivable market which can be extremely valuable to those exporting. EasyBusiness is a powerful global B2B search platform that will help you to plan your sales, marketing campaigns and lead generation activities. Our advanced yet straightforward online tool will help you to create targeted company data lists and our unparalleled experience will keep you informed of changes in buying behaviour and new opportunities.

Need more information?

Are you looking for more in depth information on global exporting? Guidance as well as online information about exporting is widespread, so it is vital that you make the most of the knowledge that is available from experts.

This will be especially important given the ongoing global political changes as well as Brexit, for these will undoubtedly impact both European and global trading markets for UK exporters.

The UK Trade & Investment site is a great place to find support and you can also check out their #ExportingIsGreat campaign for more information as well as these key exporting resources.

• Your Local UKTI Advisers are key contacts to help and give advice on exporting
• B2B Central work with partners to bring the benefits of B2B eCommerce to British SME’s
• Your Local Chamber of Commerce can help with export documentation and finance
• UK Export Finance provides trade finance and insurance for exporting
• The Institute of Export gives advice, guidance, offers courses and qualifications

Author: Ian Blyth Managing Director C & H Marketing