Selling overseas offers a recession safety net

One side-effect of recession is for business to consider if its customer base is wide enough. As sales are hit in key markets like the UK, Europe and USA, the economies of the emerging market countries, such as China and India, seem to offer new opportunity.

For the uninitiated it's a daunting move. There are plenty of hurdles, not least, language, regulation and tax. If you can get over them, however, then there is plenty of scope for some excellent returns.

For Tony Attard, founder of Panaz, it starts with thinking big. He says: "It takes a lot of time, effort and strategic thinking, but if you do it, then you can create a global brand that can help you in difficult times. It's not an exclusive world."

The company began exporting in 1991, shipping an immense portfolio of flame retardant fabrics for drapes, bedding, upholstery and accessories. It has pursued other export markets as well as new fabrics; developing new permanently-anti-bacterial fabrics for healthcare environments. From modest beginnings, Tony has grown the business, with export sales hitting £40 million and a network of international distributors in more than 40 countries.

"Export has to be very much part of a company ethos to do it," directs Tony. "It's essential to know where your market is, and it pays to know what drives that market in terms of innovation and price." Tony insists this forward thinking is the key to success.

So why export? "There are situations that act as catalysts for things to happen," suggests Tony. "This recession will be seen as a catalyst for many business people to alter major thought processes. It's a paradigm shift on overall business models. That's the stuff that makes export successful."

"I think one of biggest problems is encouraging enterprise. If you've got a small company then you have to be focused on global opportunity and have a business mantra."

Being small, however, he believes can be an advantage. "When I was at university in the 70s we learnt about how successful the Italian manufacturing industry was at the time - how it was all based on innovative SMEs focusing their goals. Many global brands came out of that time." Today there is plenty of support from UKTI (UK Trade and Investment) for anyone considering developing overseas.

In 2008, the UK was still the sixth largest manufacturer in the world by value of output as ranked by the UN Council for Trade and Development. The current climate, Tony believes, is offering us all room to grow. "We can add value by design and process while capitalising on what places such as Asia have to offer. The days of taking a product to market on your own are gone. And the world market offers fantastic opportunity. That's what it's all about."

Did you know?
Panaz clients include brand leaders such as Hilton and Holiday Inn to Sheraton and Hyatt, who utilise the fabrics for myriad applications in bars, restaurants, and bedrooms.