A beginner’s guide to exporting

For many manufacturers, it’s the thrill of clinching that first order from a far away land which makes exporting so exhilarating.

For others, it’s the satisfaction of boosting growth by establishing your product in overseas markets - and then receiving repeat orders - which makes exporting so worthwhile.

Certainly, the Northwest has a strong track record when it comes to overseas sales.

Last year, exports of manufactured goods from the Northwest were £23.8bn making us the only UK region to achieve positive growth.

But while there is no magic formula guaranteeing success for companies wanting to export, there are several basic questions that seasoned exporters suggest that manufacturers ask themselves prior to launching an overseas sales push.

These are:
•Will you need to change your product to suit overseas markets?
•Are there any regulatory requirements you need to be aware of?
•How will you select the most suitable markets to begin your quest?
•What effect will language and culture have on your ways of working?
•Will you be able to find customers directly or will you need an agent or distributor?
•Will it be important to have stock in the country to satisfy customer demand and will you need to have people on the ground to provide after sale service?
•What marketing channels will you have to use?
•How will you be able to protect your intellectual property?
•How will you get paid?

Seasoned exporter Peter Thompson is the managing director of Preston-based Evans Vanodine which sells its leading range of cleaning and hygiene chemicals for the janitorial and livestock protection industries to more than 50 countries around the world.

He said that ‘scrupulous planning’ is essential before launching an exporting drive.

Mr Thompson said: "For manufacturers, the most important thing is that they get over the fear surrounding exporting and realise they have everything to gain.

"Down the years, it has become very obvious to me that British products are highly regarded outside the UK - overseas companies want to talk to you sensibly from the moment you walk through the door.

"But I do think that there’s a misconception that Europe should be your first market.

"We have found it far easier to export to parts of Asia than to countries like Spain and France which are on our doorstep.

"I think that this is largely down to language and cultural issues. When you arrive for a business meeting with a company in Asia, you tend to be the honourable guest and that firm has normally hired a translator to assist with the meeting.

"By contrast, it has taken us quite a while to get into Spain. Our first and second approaches were rebuffed - and it was only when we hired a translator that we suddenly found that we were in a position to establish our products there.

"The English language does seem to be spoken in most parts of the world - but there are still parts where it pays to adhere to local conventions."

Mr Thompson said that the ideal way for new exporters to gain an insight into overseas protocols is by consulting one of UKTI Northwest’s advisors.

This is the government body - which is funded in equal parts by the Foreign Office and the Department of Business - that supports companies involved in overseas trade.

UKTI provides the following ‘check list’ for manufacturers who are new to exporting.

It’s vital to understand:

•Where are the most opportunities? This may not be the biggest market.
•How different are customers’ needs and attitudes to your tried and tested markets?
•What are the trends in buying patterns, colours styles, etc?
•Will cultural differences affect the buying decision?
•Are there any regulations or legislation affecting you?
•How will you protect your intellectual property?
•What are your competitors up to?
•Is pricing different and how will you get paid?

Clive Drinkwater, Director of UKTI Northwest, said: "Addressing these points before proceeding further will require effort but it will pay off.

"Successful exporters use market research, are aware of their overseas competitors, are not fazed by letters of credit and deal efficiently with export/import barriers.

"By preparing well you will know early on whether you need to modify your products or services for export, and you won’t be surprised by transport costs or price-setting.

"In essence, serious research is required. Whether that’s desk research, using the trade press, internet, external researchers or help from UKTI - it is vital that you utilise every tool at your disposal."