OneWorldExpress
In the aftermath of Brexit, many UK businesses have been forced to reconsider their international strategies. Indeed, changes to customs regulations, border checks, and delivery delays were enough to make any business rethink their international operations.
As such, organisations have begun to rethink their presence within international markets and set their sights on expansion beyond the EU. According to research from One World Express, 45% of companies plan. to expand their operations beyond the EU in the coming years.
These figures are encouraging. After two years of economic turbulence fuelled by the UK’s exit from the EU, and the coronavirus pandemic, business ambitions and confidence appear to be on the rise once more.
So, with business leaders’ ambitions set beyond the EU, we must ask ourselves, which international markets are most appealing?
New targets
According to a recent survey of over 1,000 UK businesses conducted by HSBC, the most sought after international markets outside of the EU are the USA, Canada and China.
Such figures are not exactly unexpected. After all, these markets all have booming eCommerce markets. This will also allow UK companies to easily tap into target demographics and enter their product or service into the market. Online marketplaces, such as eBay, Amazon or Pinduoduo, to name a few examples, all allow businesses to connect with their customers and market their products.
However, the sheer size of these markets would suggest that they are highly competitive. So, whilst it may appear easier to enter, it will also be more difficult for businesses to develop a competitive edge for consumers; particularly as consumers within these markets prefer domestic products. For example, a recent study found that 70% of Americans prefer US-made goods. Similarly in China, studies have shown that over 50% of consumers are more inclined to purchase domestic brands over foreign ones.
So, perhaps UK businesses may consider alternative markets, whether their product can offer a competitive edge in less saturated markets.
The road less travelled
The success of many businesses’ international expansion is largely dependent on the demand for their goods or services. Of course, other factors, including logistics strategies, resource allocation and thorough cultural, political, and social research also play a part; however, if there is no demand for the good or service itself, the expansion will fail.
Luckily, however, there is a growing demand for UK products within international markets. And importantly, this demand is strengthening within some of the world’s fastest growing-markets.
In India, for example, a recent study found that 67% of consumers have strong associations with the quality of British products. What’s more, said individuals are also willing to pay a higher premium for UK products. This will certainly be reassuring for many businesses, who may be concerned about whether the shipment costs will add an unattractive premium to the cost of products.
India is not the only country open to paying more for British produce. The likes of Australia, the UAE and South Africa are also willing to pay a premium to secure quality British products. And with the UK continuing its current trade deal strategy to latch the country with the “economies of tomorrow”, it is likely that such positivity will only fuel further international demand and pave the way for businesses to tap into more lucrative markets.
And of course, once a business has thoroughly researched the market and established a clear demand for their product or service, they can then work to develop a comprehensive entrance strategy – and of course, One World Express is always on hand to discuss courier concerns and develop logistics strategies!
The international success of a UK business is not guaranteed. It takes time to carefully research potential markets and develop and implement an expansion plan. However, given the heightened demand for “Brand UK” within certain markets beyond the EU, it is highly likely that many more UK businesses fulfilling their international ambitions over the years to come.
