Are you a UK
company with
global ambitions?
@UKTI
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Exporting for Growth | 10 Steps to Success
Why
export?
UK
63,000,000
POPULATION
LESS THAN
1% OF ALL THE
PEOPLE ON
THE PLANET
Exporting for Growth | 10 Steps to Success
Are you ready
to export?
It is undeniable that expanding your
business domestically provides growth,
but to achieve substantial growth you
and your business must venture into
new, selective international markets
through exporting. By expanding your
sales footprint into new territories your
business will be protected from
domestic economic challenges. This
increase in productivity will increase
your businesses resilience, your volume
of sales and margins providing a better
bottom line.
The prospect of trading internationally
may feel overwhelming with a number of
key areas that strike uncertainty. That’s
why UK Trade and Investment (UKTI) is
here to work and provide guidance to UK
based businesses to ensure their
success in international markets through
exports. Start you export journey with a
UKTI International Trade Advisor (ITA)
with access to the resources that can
help you build a plan and achieve
success. This guide will provide guidance
on the 10 crucial areas for consideration
and planning.
Contact UKTI
by visiting www.gov.uk/ukti,
or by calling
+44 (0)20 7215 5000
(9-5 Mon-Fri)
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Exporting for Growth | 10 Steps to Success
Key considerations
Demographics
Competition
Disposable incomes
Understand what your products
and brand have to offer
New markets and entry options
Exporting for Growth | 10 Steps to Success
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Exporting for Growth | 10 Steps to Success
10 steps to success
Exporting for Growth | 10 Steps to Success
1. Research potential markets
Firstly you want to identify which market to target. Your ITA will help
you narrow down the best places to start in any given market and
which route to take. This will enable you to target your resources and
achieve the best returns.
1. Research potential markets
2. Export strategy and plan
3. Sales and routes to market
4. Create opportunities
5. Understand the admin
6. Get paid
7. Legal considerations
8. Financial
9. Logistics
10. Happy customers
UKTI offers a number of market research
services, which will help provide in-depth
information regarding the best route to
market. For example, UKTI’s e-Exporting
Programme will guide you on which
e-marketplaces are best to sell through,
allowing you to reach new customers online.
Contact your local UKTI office to arrange a
free meeting with a Digital Trade Advisor to
find out more.
Take advantage of UKTI offices where they
offer a number of market research services,
which will help provide in-depth information
regarding the best route to market.
Additional factors such as population density,
or groups with particularly high income levels
will also influence what market you choose to
take your business. Alternatively there may
be expats that are looking for traditional
home-grown brands.
UKTI’s ITAs provide businesses with first class
advice and guidance on each of these steps to
success. Located in 40 offices around the UK,
contact one of UKTI’s dedicated sector specialists
to start your export journey.
Contact UKTI
by visiting www.gov.uk/ukti,
or by calling +44 (0)20 7215 5000
(9-5 Mon-Fri)
Whether you opt for the
easier or more challenging
markets, one thing is certain –
they are growing very fast.”
Some markets are easier to break than others
and your ITA will help you discover what the
barriers to export in different geographies
are. This will help you identify the best ‘first
export’ market making your journey as easy
and smooth as possible.
For more information about potential
growth markets, visit www.gov.uk/ukti
and read through the individual country
guides to find out what it takes to export
to multiple countries.
To find out more about UKTI’s
e–Exporting Programme and
how it helps retailers and
brands grow their global growth
through online channels, visit
www.gov.uk/e-exporting.
Contact UKTI by visiting
www.gov.uk/ukti, or by calling
+44 (0)20 7215 5000
(9-5 Mon-Fri)
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Exporting for Growth | 10 Steps to Success
2. Export strategy
and plan
You’ll want to put together an export plan
covering the steps, targets and resources that
are attainable and worth investing in. UKTI
have a network of regional, overseas and
digital experts who specialise in your products
and services.
Your ITA will help assess the initial export readiness of your
business to move forth with working on your business plan.
UKTI also has Digital Trade Advisors (DTA’s) that can speak
to you about how to increase the reach of your brand globally
through e-commerce.
The consultation with an ITA or DTA is free, so you have
nothing to lose; just a whole load of insight, information
and new opportunity to gain.
To set up a meeting with your local ITA,
visit www.greatbusiness.gov.uk/ukti/
To join UKTI’s e–Exporting Programme,
visit www.gov.uk/e-exporting
Exporting for Growth | 10 Steps to Success
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Exporting for Growth | 10 Steps to Success
Exporting for Growth | 10 Steps to Success
3. Sales and routes to market
Have you considered if you would need to set up a direct sales force,
or whether an agent or distributor would be a better route to market?
There are five options open to you:
1. Selling directly
This involves a direct local sales force, but
equally could mean simply setting up a
website and selling online, or regularly visiting
and selling at trade shows. Direct selling
doesn’t have to mean you incur the cost and
management overheads of hiring local
people, complete with the local contract laws
and payroll or taxation requirements. It
means you sell your goods directly to an end
user, without the need for a middleman.
2. Sell to a distributor
Perhaps the simplest option, as once you
have sold your goods to the distributor, they
take title and it becomes their responsibility
to sell them on to their customers. As the
distributor takes on maximum risk for this
option, the margins you will make is likely
to be the lowest of all the options.
3. Use a sales agent
They will sell the products on your behalf or
put you into contact with potential customers.
While they will stock and sell the products
they never take title nor do they accept
responsibility for your profit or loss. They
will make a commission on every sale.
Direct, distributor, sales agent or joint
venture, the best option depends on
your goods and the market.”
4. Create a joint venture
In some markets this may be your only option,
but is often very complicated and expensive.
Essentially you will set up a brand-new
business with another local company taking
a share of the management and profits. In
countries like China this is a typical practice.
5. Exporting through e-marketplaces
Did you know that 3.7bn parcels were sent
in Europe in 2013, one in 20 retail dollars
are spent online in the USA, approximately
83% of Japanese internet users visit retail
websites and Marks and Spencer is one of
the fastest growing womenswear brands
on Chinese e-marketplace Tmall?
Demand for British goods from online
consumers around the world is growing fast.
In reaction to this, UKTI is now providing
UK retailers and brands with a unique
perspective on how to meet world-wide
demand for your products.
Find out how to access free support
and advice by visiting gov.uk/e-exporting
as well as gather insights on the future
of e-commerce and how it will affect
your business.
To set up a meeting with a
Digital Trade Advisor, visit
www.gov.uk/e-exporting
Contact UKTI by visiting
www.gov.uk/ukti or by calling
+44 (0) 20 7215 5000
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Exporting for Growth | 10 Steps to Success
4. Create opportunities
Trade shows and market visits
Trade fairs, both in the UK and abroad
create opportunities to meet buyers
and generate new business. Grants may
available to subsidise the cost of exhibiting,
or perhaps you could share the cost of a
stand with another business. Contact your
ITA for further information on possible
funding available to support your
attendance at these missions.
To set up a meeting with your
local ITA, visit www.gov.uk/ukti
There are four tips for anyone looking to
make a market visit:
1. Do your homework about your product
and their USPs compared to the competition,
the market and the potential customer.
2. Take two or three different sets of
packaging for the same product and test
out which is more appealing to buyers.
This feedback could mean the difference
between modest exporting success and
fantastic growth.
3. Prepare a compelling sales pitch
persuading why a potential customer would
use your service.
rade shows are one of
T
the best places to promote
your products and services.”
4. Adverts can be placed in business
directories or product catalogues to help
you gain exposure and start selling.
Exporting for Growth | 10 Steps to Success
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Exporting for Growth | 10 Steps to Success
Exporting for Growth | 10 Steps to Success
5. Understand
the admin
To avoid any unexpected tax bills, there are a few
admin obligations that are essential you get right.
Get in touch with HMRC as well as the British Embassy of the
destination country to clarify what requirements they have around
customs registration, forms, payments, and so on. You’ll want to get
this right and make sure that your reporting practices are watertight.
The documentation needed to comply with local and domestic
import/export and tax requirements will vary considerably across
different markets.
As a first step contact your ITA who can provide you with
recommendations about which freight- forwarding companies can
deliver your products.
Support offered as part of UKTI’s e- Exporting Programme:
• Expertise and advice on building your online and
e-commerce presence
• A fast-track government programme enabling you to sell your
products on many of the world’s leading e-marketplaces
• Better than market rate commercial terms with e-marketplaces
and social media platforms
• Access to a free government database with information on over
450 B2C e-marketplaces
• Access to a list of online service providers, helping to increase
the efficiency of your e-commerce presence
• Global retail/e-commerce events and online resources
• Regular news on e-marketplace promotions and recruitment
exercises designed by UKTI
To join the e–Exporting Programme
visit www.gov.uk/e-exporting
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Exporting for Growth | 10 Steps to Success
6. Get paid
After you’ve done all of
your work identifying the
market you wish to sell into,
ensuring that your products
are appropriate, developed
your marketing and enforced
the right distribution and
sales engine, the orders will
start flowing.
Exporting for Growth | 10 Steps to Success
Training courses in all of the practical
elements of exporting are run by the British
Chambers of Commerce and your ITA and the
e- Exporting programme will be able to
provide details on documentation
requirements and advise on specific
expectations for payment terms relating to
your e-commerce presence.
seller to agree details on the terms of sale and
prevent any future misunderstandings or
disputes. Broadly they will set out who is
responsible for the cost of transporting goods
including any insurance, taxes or duties, where
the goods should be picked up from and
transported to, and who is responsible for the
goods at each step during transportation.
To set up a meeting with your
local ITA, visit www.gov.uk/ukti
2. Export documentation
There are a few practical elements you
need to understand about terms of sale:
1. Incoterms
These are internationally agreed rules setting
out delivery terms for the goods being traded
across borders. They allow both the buyer and
Make sure you establish the types of
document you’ll need to provide to enter
the market.
3. Written quotation
Provide a written quote which deals with the
particulars of your product including the size
and packaging formats. Setting out the price
and delivery terms (incoterms), the estimated
date of shipment on arrival and payment
terms and conditions is vital if you are to
avoid any disputes further down the line.
Within the EU, payment terms are fairly
similar to those in the UK where you may
have an expectation that they will settle their
bill within 30, 60 or even 90 days. Be sure you
know what currency they will be paying in and
have the requisite facility in place to accept
payment in that currency.
When orders are fairly small, customers from
outside the EU may be happy to pay upfront
and there are other mechanisms for getting
paid which can help to reduce risk to both
parties, such as Export Finance.
Contact UKTI by visiting
www.gov.uk/ukti, or by calling
+44 (0)20 7215 5000
(9-5 Mon-Fri)
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Exporting for Growth | 10 Steps to Success
Exporting for Growth | 10 Steps to Success
7. Legal considerations
Many companies say that one of the biggest
hurdles they faced at the start of their exporting
journey was around legal considerations.
Having a thorough understanding of the legal and regulatory
environment in all countries you’re considering exporting
to is really important. Thankfully there are a number of
organisations that can help to advise you on how to avoid
the pitfalls and turn these perceived hurdles into easy steps.
Getting the right legal advice early on
can prevent legal issues from becoming
a barrier to successful exporting.”
Legal considerations
Understand the legal and
regulatory environment
Contracts
Cover for product liability
Use an experienced
international lawyer
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Exporting for Growth | 10 Steps to Success
Exporting for Growth | 10 Steps to Success
8. Financial
With any new business venture there are
always risks. UKTI can help advise how
to minimise these risks. As an exporter
the majority of the risks sit with you so
making sure you have adequate protection
against non-payment or for any loss or
damage of goods
Contact UKTI by visiting www.gov.uk/ukti or by calling
+44 (0) 20 7215 5000
There are a number of insurances that can help. Most
insurers will offer products covering damage and loss of
payment so check with your current insurer first. If they
refuse or you can’t find adequate cover from elsewhere
then you can contact UK Export Finance who may be able
to assist. Transportation companies or freight forwarders
usually assume limited liability for any loss or damage when
shipping goods.
Although you will have carried out credit checks this won’t
guarantee that payments are made so it’s also recommended
that you protect against non-payment in order to minimise
impact to your cash flow and business. You can take out
insurance against the customer becoming insolvent or being
unable to pay for reasons such as natural disaster.
Make sure you have adequate
protection against non-payment or for
any loss or damage of goods in transit.”
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Exporting for Growth | 10 Steps to Success
Exporting for Growth | 10 Steps to Success
9. Logistics
International transport can be complicated and
getting this right can depend on the agreement
you put in place with your customer.
Your respective obligations should be clearly written down
in the contract using Incoterms, which are standard trade
terms denoting who is responsible for transportation,
insurance, paying duties and customs clearance. The type
of products you sell will determine which method of transport
is best for you, although you may need more than one, as
items shipped via sea will then require either train or lorry
transportation to their final destination. Make sure that the
goods are packaged adequately and that labelling is clear
and visible.
Either you or your logistics provider will be responsible for
UK customs procedures, clearing customs in the customer’s
country, freight, and insurance, and all of these should be
incorporated with the correct incoterms, along with the
quote in the contract.
The simplest way to ensure that all of these things are
covered is to use a specialist freight-forwarder, but make
sure you confirm exactly what they will do for you and
whether they could handle all the documentation and other
processes. Do some vetting and ensure that whoever you
choose exports regularly to the market you’re going to.
This may mean that they can consolidate your goods with
other consignments into a single container, thereby reducing
your costs.
Using a specialist freight forwarder
can simplify logistics.”
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Exporting for Growth | 10 Steps to Success
10. Happy customers
Now you are in new markets, you have
overseas agents or distributors, and customers
are buying your goods! You should use every
opportunity to increase your chances of getting
repeat business, build brand awareness and
reputation as a reliable international exporter.
Some ideas to help you achieve this are:
1. Build brilliant relationships
Making regular visits to the market to review progress with
your customers will create lasting relationships. You should
treat them just as you would a UK customer with regular
contact, product updates and offers.
2. Delivering on time
You’ve spent a lot of time and money getting everything in
place and now you’ve got customers who are falling over
themselves to buy your product. Nothing is going to annoy
them more as they expectantly wait for their goods to be
delivered. Sometimes delays cannot be avoided, particularly
if goods are being shipped via sea, but even if things are not
going quite right you should make sure you communicate
early and often with your customers.
Exporting for Growth | 10 Steps to Success
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Exporting for Growth | 10 Steps to Success
About UKTI
UKTI helps UK-based companies
succeed in global markets and
enables overseas businesses to
invest in the UK with a global
network of over 2,400 staff in
101 markets.
UKTI provides many thousands of businesses
with free support to help them achieve
success overseas, and can also deliver more
bespoke chargeable services, tailored to
specific client needs.
UKTI provides companies with the ability to:
• Understand how to do business overseas
• Identify opportunities and open doors
• Reach customers/business partners not
otherwise accessible
• Raise their profile and credibility overseas
• Overcome barriers to entry or expansion
• Improve overseas marketing strategy
• Gain access to information not otherwise
available
• Understand the competition
101
• Access powerful research to inform
management decisions
• Have the confidence to explore or expand
in overseas markets
markets
Over 2,400
staff
Contact UKTI
www.gov.uk/ukti, or by calling
+44 (0)20 7215 5000
(9-5 Mon-Fri)
Exporting for Growth | 10 Steps to Success
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gov.uk/ukti
UKTI
UK Trade & Investment is the Government Department that helps
UK-based companies succeed in the global economy. We also help
overseas companies bring their high-quality investment to the UK’s
dynamic economy acknowledged as Europe’s best place from
which to succeed in global business.
Disclaimer
Whereas every effort has been made to ensure that the information in
this document is accurate, neither UK Trade & Investment nor its parent
departments (the department for Business, Innovation and Skills, and
the Foreign and Commonwealth Office) accept liability for any errors,
omissions or misleading statements, and no warranty is given or
responsibility accepted as to the standing of any individual, firm,
company or other organisation mentioned.
© Crown copyright 2014
You may re-use this information free of charge in any format or medium,
strictly in accordance with the terms of the Open Government Licence.
To view this licence, visit:
www.nationalarchives.gov.uk/doc/open-government-licence or
e-mail: [email protected].
Where we have identified any third party copyright information in the
material that you wish to use, you will need to obtain permission from
the copyright holder(s) concerned.
Any enquiries regarding this material should be sent to us at
[email protected] or telephone +44 (0)20 7215 5000.
This document is also available on our website at www.ukti.gov.uk
Published January 2015 by UK Trade & Investment
UKTI HEAD OFFICE
General enquiries:
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London
SW1H 0ET
Telephone:
020 7215 5000
Email:
[email protected]
Contact form:
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