OneWorldExpress
In the immediate aftermath of Brexit, UK businesses were less than optimistic. Afterall, ONS trading figures for January 2021 outlined a 40.7% year-on-year decline in UK exports to EU countries, thereby causing the UK’s overall exports to fall by 19.3%.
This decline was not unexpected. After all, Brexit brought about numerous complications including border delays, new customs checks and administrative processes, which likely made trading with the UK an unattractive prospect to EU partners (and vice-versa).
Under these circumstances, many UK businesses were forced to rethink their operations – including their international trading prospects. After all, those ONS statistics also revealed that while exports to EU countries declined, exports to non-EU that year countries remained steady – even modestly increasing the following year by 1.7%.
Within this context, some viewed Brexit as an opportunity to expand operations into new markets beyond the EU. Indeed, One World Express’ most recent survey amongst 752 decision-makers within UK businesses found that of the 61% of organisations already operating abroad, or planning to expand internationally within the coming 12 months, more than six in ten (62%) claimed that Brexit had encouraged them to expand their business beyond the EU.
Such optimism is certainly encouraging – however, is it warranted?
Justified confidence
Well, the evidence certainly suggests that UK businesses are justified in their confidence when entering international markets.
One World Express’ research found that 68% of exporters had experienced an increase in demand for their goods or services within international markets over the previous 12 months. Better still, 62% claimed that international markets outside of the EU are willing to pay a premium for their products.
It appears this rising demand for UK products is driven by “Brand UK”, which has garnered a reputation for quality amongst international audiences throughout the previous decade. Indeed, over two thirds (67%) of UK businesses have stated that having a British brand or UK-based operations have enhanced their organisations reputation and demand within international markets.
Such figures are certainly encouraging for UK businesses. However, it is important to remember that companies cannot rely on reputation alone to succeed in international markets. They must develop a sustainable expansion strategy as well.
Building your approach
Creating an international expansion strategy may seem like an obvious point to make, buta surprising number of companies overlook this important point – One World Express’ research revealed that almost a third (32%) of exporters do not have an expansion plan in place.
To begin with, research is vital. Ensuring that a company not only understands their target audience, but also the culture, currency, and legal conditions of their target market is vital. Failure to do so could result in unforeseen complications and hinder the business’ success.
Forging connections within target markets is also vital – be they prospective distributors, clients, or even a mentor who can help decision-makers better understand the market. This will certainly help organisations get their foot in the door.
Finally, a strong logistics plan must be developed. From tracking systems and returns management to shipping software, companies must assess the various options at hand to ensure they find a courier solution to suit their needs. And there are tools available to help with this; for example, Ship2world, which is powered by One World Express’ sophisticated Smarttrack software, which connects merchants to numerous courier options, enabling merchants to select the most efficient and cost-effective system to suit their needs.
Of course, the international success of UK businesses is never guaranteed, but if companies undertake careful planning and use all the tools available to them – like Ship2world – businesses should be able to successfully enter into, and flourish in, new international markets.
