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EXPORTING
GLORIOUS GLOUCESTERSHIRE
Celebrating the global power of glorious Gloucestershire, we speak with some of the county’s leading experts on operating internationally...
IN ASSOCIATION WITH
SUPPORTED BY
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Plotting your path for growth? Our team offers genuine support to forward-looking businesses of all kinds throughout Gloucestershire and the South West including: } Restructuring } Workable strategic plans } Audit and accounts } Taxation planning and compliance } Succession planning } Expansion to new markets } Business plans and forecasts for finance raising If you are looking for high quality business advice based on knowledge and experience MYVT H Ă„YT ^VYRPUN PU WHY[ULYZOPW ^P[O `V\ JVU[HJ[ TL UV^ MVY H MYLL UV VISPNH[PVU exploratory meeting. Richard Austin 7HY[ULY *YV^L *SHYR >OP[LOPSS richard.austin@crowecw.co.uk
01242 234421
Find out more about us at
www.croweclarkwhitehill.co.uk
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Welcome Researched & compiled by Natalie Letch
With a word from our guest author, Suzanne Hall-Gibbins, Director of the Gloucestershire Chamber of Commerce.... There’s never been a better time for companies to trade internationally. The currency of UK goods and services is riding high following the huge success of the Olympics; our innovation and knowhow is world renowned and the demand for our branded goods has never been so high. In Gloucestershire we have leading companies that can take advantage of all of these things Research shows that exporting companies are more productive than non-exporters, achieve stronger financial performance, and are more likely to stay in business. More and more young companies are going straight for international opportunities from an early stage; almost one in five (17%) new companies currently active abroad are classified as ‘Born Global’ – so have been doing business overseas since the outset. Over a third (35%) of companies who export report significant growth due to exporting, with around 38% of companies saying that exporting delivered a level of growth not otherwise possible. With the support and leadership of partners locally and with the expertise provided by UKTI we have the best opportunity to increase the number of new exporters in the county and support those who already export to expand their markets. Often it is fear of the unknown that prevents business leaders from taking those first key step but with the support of experienced exporters and the professional community we can demystify the concept of exporting and come together in the county to support each other to grow. Suzanne Hall-Gibbins, Director Gloucestershire Chamber of Commerce
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“A TRULY GLOBAL BANK” Words by HSBC Gloucestershire Area Commercial Director, Andy Willett International trade is at the heart of HSBC – as a bank formed to facilitate international trade between Hong Kong and the rest of the world it is built into our heritage, and it forms a key part of our ethos today. We don’t just pay lip service to this notion. Over the past 18 months HSBC has invested heavily to help support businesses across the UK trading internationally. Last year we provided £5.1 billion of gross new lending via our dedicated International SME fund and I am pleased to say that we have committed to lend at least £5 billion via the fund again this year. In Gloucestershire, we have built a team dedicated solely to supporting businesses trading internationally. This skilled and highly experienced team includes Senior International Commercial Managers Steve Breckon and Richard Carruthers, and International Commercial Manager Samantha Keane. They are supported by International
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“International trade creates opportunities – such as opportunities to enter new markets, develop new skills for an employee base, diversify a business’s income stream or create a physical presence in another country.”
The Gloucestershire ICM team
Commercial Associates David Weston and Kathy Wilton. However, importantly, they are also supported by HSBC’s presence in territories across the globe. International trade creates opportunities – such as opportunities to enter new markets, develop new skills for an employee base,
diversify a business’s income stream or create a physical presence in another country. This is where HSBC excels beyond the basics of banking. Of course, we can help businesses finance their expansion overseas, but more importantly we can offer valuable local advice and insight to companies across Gloucestershire and the Cotswolds via our network of 7,000 colleagues in 63 global locations. We are a truly global bank and our International team in Gloucestershire can pick up the phone to colleagues in the majority of international markets and get on-the-ground advice, such as how to establish operations in that market, which professional services firms to use and the local customs and practices to be aware of. Such local insight is invaluable to our customers, even those that are experienced in international trade. Those small and medium enterprises that have the potential to take their products or services overseas face what initially appears to be a dilemma. They can maintain the status quo, striving to build their business in home markets that they know and trust, or they can also venture overseas, tackling the host of logistical, financial and MAY 2013
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cultural challenges that international trade entails. Stop to think for a moment and you’ll quickly realise that there’s no dilemma here at all and that businesses can enjoy growth on both domestic and international fronts. To explain why I think it’s vital for SMEs to explore foreign markets, let me start with the economic outlook. In China, India and Brazil GDP growth rates have slowed in recent months, giving emerging market SMEs reason to review their expectations for regional demand. Then again, those growth rates still dramatically outstrip those of the U.S. and Europe. As economic malaise cuts spending in the developed world, manufacturers are rethinking supply chains that were designed to meet demand from Northern consumers. In the future we expect to see a collective reorientation towards emerging markets from companies in developed and developing economies alike. Indeed, this is already happening. The Asia-Pacific region accounted for 7% of Apple’s net sales in 2009, for example, but in 2011 this share climbed to 21%. Here’s another example. Between 2000 and 2012 almost 17 million Brazilians started using private healthcare. That’s the equivalent to adding the population MAY 2013
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of the Netherlands to the world’s private healthcare and pharmaceuticals market. By 2050, HSBC research forecasts that the collective size of the economies we today call ‘emerging’ will have increased five-fold to eclipse those we now call ‘developed’. What this means for the emerging world is real wage increases and an expanding middle class with rising consumer power. For SMEs, it means a host of new challenges and – more importantly – new opportunities. The South West is the smallest exporting region in the UK, with Government figures showing companies from the region exported £12.3 billion worth of goods last year, down slightly on 2011. The South West accounts for 5.9% of all UK exports, but we must not let this overall figure mask the excellent work many companies across Gloucestershire and the wider region are doing in the export market. Gloucester-based Gantrail for example specialises in providing crane rail interface design and solutions. This company was formed 50 years ago but over the past 20 years has really pushed its export proposition and now generates 85% of its revenue from overseas clients, selling across the majority of the world’s largest economies. Managing Director Malcolm Trigg
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explained that the company initially developed a product for domestic customers but quickly realised its products could be sold internationally anywhere a crane rail is required. The company has since developed a strong network of partnerships and divisions across the globe to effectively market, manufacture and distribute its product range at a local level. Malcolm stressed the company would not be in its strong position today if it had not developed its international markets, and also highlighted the importance of having a strong banking partner in HSBC to support it. Although the company’s relationship is managed out of Gloucestershire, it has accounts with HSBC in Dubai and China. Gantrail is an excellent example of a business that has grasped the exported nettle and its business has expanded as a result. With the right advice and preparation, international trade could be a critical element to business success in 2013 and beyond. CS
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000 Exporting Global Gloucestershire UKTI Edit May 13:Layout 1
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EXPORTING: aim high, act now Words by Russell Jones, Regional Director, UK Trade & Investment South West Research reveals that exporting brings with it numerous benefits, including improved financial performance, increased probability of survival and increased productivity. Businesses which export also tend to invest more in research and development and tend to innovate It is no secret that the South West lags behind its regional counterparts when it comes to exporting. And while there are many SMEs enjoying success all over the globe, we are still heavily reliant on Europe. While developed economies struggle with financial uncertainty and slow recovery, other emerging regions are undergoing rapid growth, creating opportunity and appeal for multinational corporations to expand operations into these high growth areas. At UKTI we know that striking out into new and unfamiliar markets can be daunting, but many more South West companies could and should be taking advantage of the opportunities out there. That is why we are hosting a second Export Week this month that is dedicated to High Growth Markets. High growth markets are changing the face of international business – it is these growing economies which offer tomorrow's opportunities. With so
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‘‘
At UKTI we know that striking out into new and unfamiliar markets can be daunting, but many more South West companies could and should be taking advantage of the opportunities out there many millions of potential new customers, low-cost communications, and improving infrastructure, the time to act is now. By waiting too long to invest, businesses will allow competitors to build a presence and market share in those areas, making it more expensive to commit resources and more difficult to compete effectively when they finally decide to take the plunge. Export Week is designed to help the
region’s businesses explore those markets that perhaps aren’t so obvious and to show how we can help you reach them. In the South West we have put together an interesting programme of events and activities that will inspire you to think about exporting to some of these countries, including Mexico, Brazil, Vietnam and Indonesia. Events will take place right across the region, from Cheltenham to Newquay, offering something for both the novice and experienced exporter - from seminars and master-classes to networking events. There is no doubt that the past year has been full of challenges for the region’s companies but I strongly believe that virtually any company can export its products and services – from singleowner operations to large corporations employing hundreds. I therefore invite you all to join UKTI at one of our many regional events during 13-17 May, to find out more about these countries and how UKTI can help your business grow. We have an array of support packages to help but the first step must come from business. So I would encourage you to take that step today and seize the challenge. Aim high and act now. CS You can find out more about Export Week events in the South West at www.exportweek.ukti.gov.uk To find out more about UKTI’s services and support packages, visit www.ukti.gov.uk
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Going GLOBAL The forecast for the economic climate wildly alternates between predictions of a triple dip recession and bright prospects for swift growth for SMEs in the future: banks are still relatively unwilling to fund new ventures without concrete evidence of financial return, so it’s no wonder businesses are turning to exporting goods and services abroad. Many Cotswold businesses have made the leap from local enterprises to international exporters, but this leap is not without its challenges. The Select Committee on Small and Medium Size Enterprises published its report Roads to Success: SME Exports earlier in the year. The report noted that at the start of 2012, the UK’s 4.8 million SMEs accounted for more than half of employment (59.1%) and almost half of turnover (48.8%) in the UK private sector. The Government is pursuing export-led recovery specifically through SMEs in an attempt to help the UK boost its economy after one of the deepest recessions the country has seen. However, there are a number of barriers and challenges which are not easy to overlook: access to finance, markets and information can be elusive in cross border exporting and
MAY 2013
Richard Austin
regulations can wildly differ between countries. Protection of intellectual property rights is another factor to consider. So how does a business begin exporting? Firstly, funding must be assured and in place. Recommendations in the Roads to Success report suggest that regional bank managers should be given more powers to assess local businesses in terms of their eligibility for funding, using judgement rather than formulae. Traditional financing routes aren’t the only choice: SME exporters should examine other options for funds, such as venture capitalists or business angels. Groups such as the South West Angel and Investor Network (SWAIN) can connect private investors with SMEs looking for investment to export. Secondly, SMEs should make connections with likeminded people and organisations. The Roads to Success report notes that SME potential is huge. Generally SME enterprises are “innovative, enthusiastic, creative and committed” – so seize any chances to network with Chambers of Commerce, exploiting relationships with twinned towns and countries, and taking advantage of services such as
Many Cotswold businesses have made the leap from local enterprises to international exporters, but this leap is not without its challenges
translation, market research and intelligence which are often presented by these organisations. The Institute of Directors also assesses export potential, markets and selling, distributing and transporting exports as well as organising the paperwork and legalities. Additionally, thorough research into potential destinations of exporting is essential to trade success. The Select Committee report recommends that the UK Trade and Investment (UKTI) should get the message to SMEs that there are significant commercial benefits to addressing language barriers between home and export countries. Placements for foreign students and use of translation services, as well as language lessons, help to strengthen relationships and improve communication. Lastly, SMEs should seek professional advice on legal and accounting matters in new markets. As a member of the Crowe Horwath International network, we are able to provide a global service to our clients across 109 countries. We can assist with matters such as branch registrations, recruiting local people and how to sell in overseas markets as well as ensuring compliance. All this should enable small business owners to take full advantage of alternative markets and make international trade commercially viable. CS For more professional export advice, contact Richard Austin at the Cheltenham office on 01242 234421, email Richard.Austin@crowecw.co.uk
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How we can help YOU to export....
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Suzanne Hall-Gibbins explains how Business West can help you to grow your business globally Business West is a regional business support company that specialises in helping companies grow and develop, also running a number of Chambers of Commerce’s, including Gloucestershire, Bristol, Bath and a business network in Wiltshire. The South West doesn’t export as much as other regions but the partners in the county including the Local Enterprise Partnership (LEP); UKTI & the Chambers are looking to change this. In Gloucestershire a number of initiatives are run by UK Trade and Investment (UKTI) for potential exporters and companies wanting to expand their export opportunities. The Gloucestershire Export Club run by the Chamber on behalf of the Local Enterprise Partnership (LEP) engages with new and existing exporters to inspire enthusiasm and offer support to realising a company’s own exporting potential. If a company is successful selling their products and services in this country, we can see what the potential is for interest abroad. The Export Club allows businesses to dip in and out and keeps them in touch with what’s going on, ensuring they are up to date with the available support and advice. Also sharing best practice with existing exporters. The Chamber of Commerce is an accredited agency so can an provide export documentation services, enabling companies to gain letters of credit and product confirmation, which many export markets require and also gives authenticity to their business, simultaneously highlighting their membership with the Chamber of Commerce. The UKTI have advisors in the UK and a range of specialist across
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Suzanne Hall-Gibbins
the world including staff in Embassy’s, with around 2,500 staff worldwide who help open doors to companies, introducing them to suppliers, customers and organising events. It’s a powerful message when an embassy calls a company to invite them to an event or meeting. Meanwhile they conduct desk based research through their databases, finding the right agents, distributors and suppliers. It’s a cost effective means of getting your foot through the door and can create a wealth of opportunity. Operating across a regional network Business West and its Chambers have developed their service including managing the UKTI contract for the South West. Within Business West there are over 200 staff with 40% involved in export activities. The potential to grow revenue from
The Olympics also provided a magnificant showcase for UK business and has meant there are great opportunities for branded goods, as well those in the service sectors, for example the growing middle class in such countries as Brazil and China who are eager to buy UK goods and services. exporting is huge and research has shown that companies who export tend to be more innovative; grow quicker and better manage turndowns in the market place as they spread the net slightly wider than other companies. The government is putting more support into exporting as they see growth in other countries continue to rise, whereas growth in the UK is relatively flat. It is also important to encourage companies to expand out of Europe. The Olympics also provided a magnificant showcase for UK business and has meant there are great opportunities for branded goods, as well as those in the service sectors, for example the masses of middle class people in such countries as Brazil and China are eager to buy UK goods and services. The best decision a company can make is to get in touch to see how we can help businesess expand. CS
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Exporting-Getting to Grips with the Legals Whether you are exporting for the first time or a seasoned exporter entering a new market, you will need to get to grips with the legal issues, both at home and abroad. Here is a brief guide to some of the most important ones: • Will you appoint an agent or a distributor, and/or will you be selling into the territory yourself, either directly or via the internet? All of these have their pros and cons but issues around competition and termination (see below) may have a bearing on which route to market you choose. What works for one territory may not work for the next one.
• Will your agent or distributor be appointed on an exclusive, sole or non-exclusive basis? How do you stay on the right side of any competition laws? This is a really important issue because getting it wrong can attract enormous fines. • Are there any particular local regulations to be aware of ? For example, are there things which you must, or cannot, put in your terms and conditions? Are there special rules around warranties? What are the rules on product liability?
• How can you terminate? Will the agent or distributor be entitled to compensation? This is another important issue. In some territories a substantial payment can become due on termination. Usually you cannot contract out of this responsibility, but there may be ways to mitigate the risk. There is no getting away from it – exporting is an activity where you are going to need two lawyers, one here in the UK to guide you through the structure and contracts and one in the territory to help you with the local issues. If you choose an experienced UK lawyer first they will have a tried and trusted network and will be able to find and manage your overseas lawyer for you. CS MAY 2013
By Tim Walker,
CASE STUDY 1 Appointing an agent in Saudi Arabia Acting for G.B.R. Industries Ltd in appointing a sales agent in Saudi Arabia. There were many complications around this appointment, not least that the contract needed to operate in two languages and the Arabic version prevailed. “We sell products all over the world and that means engaging with foreign business partners and working with people you can trust. The team understands exactly what we are trying to achieve and have helped us facilitate and forge some strong business relationships overseas.” Jamie Wilde, Director, G.B.R. Industries Ltd
CASE STUDY 2. Terminating one distributor and appointing another in Canada Assisting Bottlegreen Drinks with replacing their distributor in Canada. This included dealing with Canadian lawyers on many legal issues including those relating to termination and exclusivity. “They offered clear, knowledgeable and sensible advice delivered with Bottlegreen’s interests at heart, and in return for reasonable remuneration.”
Partner and Head of Harrison Clark Rickerbys’ International Team
CASE STUDY 3 Warranty terms in Germany Advising Queens Award winner, Adey Professional Heating Solutions, on their warranty cards. Having made sure that they were compliant with English law, legal advice was required from German lawyers on the legal effect in Germany. “The team has been a fantastic addition to our team with local, cost effective and highly professional legal advice. Particularly guiding us on foreign law, dealing with other companies abroad and selling our products in other markets. We cannot recommend Tim and Chris highly enough.” Rebekah Howard, Operations Director, ADEY Professional Heating Solutions
Harrison Clark Rickerbys’ International Team has helped many local exporters. For more information or advice please contact Tim Walker: Direct Dial: 01242 246469 Email: twalker@hcrlaw.com Harrison Clark Rickerbys is a trading name of Harrison Clark Limited and Rickerbys LLP. Authorised and Regulated by the SRA
Simon Speers, Managing Director, Bottlegreen Drinks
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IN ASSOCIATION WITH
Simon Speers, Managing Director Bottlegreen Drinks Co
Bottlegreen, the delicious elderflower infused soft drinks that are presented in the iconic green bottle. Their simplicity, love of natural products and attention to detail is what keeps Bottlegreen at the top of their game. Starting life as an elderflower cordial sold to local delicatessens, Bottlegreen is now a global brand spanning Canada, Australia and Japan. The brand went global by accident, a cousin of the owners who resided in Canada decided to sell the product and is now their biggest market, “As the brand became better known in the UK, international buyers wanted it as they saw an opportunity for it in their markets”. To maintain their reputation and identity overseas, Simon comments “we keep the same look and feel in each country, our branding is consistent. We continue to produce more of the same, great tasting natural products wrapped in the most stylish packaging on the market, we are what you see in the product”. Personal contact with their customers extends to their markets, Simon notes, “once a year I’ll go to Australia and two to three times a year to Canada. The challenges of exporting make our processes better. It’s hard work exporting but in meeting their needs we improve the general quality for our home market”. Bottlegreen remain in Gloucestershire as they think it’s a real selling point with their markets, “for us it is the idyllic location in the English Cotswolds, that has broad appeal to our consumers in international markets. It’s so typically idyllic England and that attracts their attention”.
TOP TIPS
1. Listen to your partner in the market – they know their market better than you ever will. 2. Manage exchange rate fluctuations carefully! 3. Spend time in the market if you can with your partner and your customer base.
BOTTLEGREEN Frogmarsh Mills, South Woodchester, Gloucestershire, GL5 5ET Tel: 01453 874000 Email: info@bottlegreen.co.uk Web: www.bottlegreen.com
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Oli Christie, Founder and CEO Neon Play Ltd
Neon Play is a small company based in Cirencester with global appeal. Exclusively, we can reveal that Neon Play have just been awarded with the 2013 Queens Award for Innovation! The arrival of the iPhone inspired owner Oli Christie to focus on mobile gaming. Going global was always the intention, “the global nature of mobile App Stores means digital distribution is so easy - it’s literally just ticking a box. We now export to over 150 countries”. Neon Play was established in 2010 and has had nearly 50 million downloads of their games. Maintaining a global presence is instant, the logo and URL is on the loading screen of each game. Yet in a global market you have to adapt to survive. Oli’s eye is always on the future and of course with the growing interest from the Far East, Neon Play’s “latest game will be in 12+ languages, including Korean, Chinese and Japanese”. Without stock, there are no export costs, just prompt payment from Apple and Google. Oli says, “It’s an exciting and cost-efficient business model in a constantly growing market”. The location of Cirencester in Gloucestershire is ideal for Neon Play, “It was a local town and I believed you could grow a technology company here if you created the right culture, plus employ the best people”. Oli comments that another benefit of Cirencester is “it’s a great place to work and the Cotswolds is the best place to live in the UK. It’s centrally located and I'm chuffed that we’ve managed to build the company in a traditionally uncool place like Ciren. Hopefully we’re putting the cool into Gloucestershire”.
TOP TIPS
1. Use Skype - you can spend a fortune in phone calls when doing business abroad, so use email and Skype as much as possible as it will save you a lot of money. 2. Think digital - if there is any way your business can export digitally rather than in actual physical goods, there is so much less risk with stock and transport costs.
EXPORTING
3. Crack the UK first - before you try to expand, make sure you have a solid foundation in the UK.
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Joanna Jones, CEO Room 58 Ltd
Room 58 are as Joanna Jones states “One of Cheltenham’s best kept secrets!”. Understated by name, it reflects how the company prefers to complement rather than dominate its clients brands. Their corporate identity is the work they produce which has led to Room 58 becoming a global marketing brand. Exporting globally, Joanna says “Was an evolution rather than a revolution. It started with one particular client, by exceeding clients’ expectations - all the things you’d hope to do and being proactive with technology. The niche was an opportunity to keep the brand at the heart of the business so there wasn’t a de-centralisation of creativity, which can make a brand diluted. We specialise in emerging growth markets, our objective isn’t to get business worldwide, but to do really good, creative work”. Room 58 embraces the Cotswold lifestyle, believing the approach and quality of their work stands them in a comparable position to any top London marketing firm, “These days nobody cares where you are, particularly in the digital world. If you’re doing a good job, have a good product, are priced competitively and it’s efficient to market, then it doesn’t matter where you are”. Exporting globally places Room 58 in a unique position in the market, “There aren't many people working within the geographic reach that we do who are accessible, manageable for smaller clients as well as bigger clients. We have clients in over 30 countries, many of them in emerging markets and we operate over 130 websites in more than 20 languages. When you scratch the surface, exporting has really changed our profile. We just take everyday as it comes and continue to solve problems for our clients”.
TOP TIPS
Mike Burgess, MD Parlane International Ltd
Parlane International Ltd was established over forty years ago and moved to Bourton on the Water twelve years ago. Mike Burgess has worked for Parlane for nearly thirty years, and has been Managing Director for most of that time. However, Mike and his wife Caroline had the opportunity to buy Parlane and have been running it together with their team in Bourton ever since. Beginning life as a specialist glassware business, Parlane has expanded globally creating a wide range of stylish home accessories. Managing director, Mike Burgess always knew their company was to be international. Mike says they develop their “own unique style of products and the brand is gaining recognition all of the time”. Mike reveals the importance of travelling to his markets, “We work hard at “spreading the PARLANE word” and I spend a lot of time travelling!”. Another benefit of exporting is, as Mike notes, “the additional critical mass for production of our own designed products and of course it helps to keep our turnover up when the UK market starts to flatten out”. “Parlane has its own business in the Mediterranean serviced by a showroom and office in Barcelona, as well as exporting to the Middle East, Mexico, Australia, South Africa, Canada and Scandinavia and are planning to be in Poland and New Zealand this year. As for why Parlane remain in Gloucestershire, Mike says, “We’re in a great location - couldn’t be better! Our overseas visitors love the unique Cotswold countryside and we have a superb choice of hotels and restaurants for entertaining”. He also adds that due to the logistics of the motorway infrastructure and airports, Gloucestershire is in an ideal location.
TOP TIPS
1. Focus on why you do things, not what you do.
1. Visit as many international trade fairs for your market sector as possible.
2. Don’t let anything go out the door that you are not proud of.
2. Be prepared to offer special export prices for large full container loads.
3. It’s hard work, geography can work against you as well as for you - be brave and believe you’re the best.
3. Look to open Euro and US$ bank accounts so that you can sell in different currencies.
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PARLANE INTERNATIONAL Unit J, Bourton Industrial Park, Bourton on the Water, Gloucestershire, GL54 2LZ Tel: 01451 812700 Web: www.parlaneinternational.co.uk
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IN ASSOCIATION WITH
Paul Hollingworth, Sales Director, Kohler Mira Ltd
Kohler Mira have captivated global markets with their high quality showering products and have become, as Paul Hollingworth states, “a significant exporter of our innovative products around the world”. The importance of investment in research and development is key to their success in the export market, Paul says, “Kohler Mira are actually the 4th largest investor in R&D in the UK, making Cheltenham the centre of excellence for Global showering for all Kohler companies worldwide”. Referring to Rada, a sister brand also designed and manufactured in Cheltenham, “Rada products are designed for heavier commercial applications. Rada has subsidiaries in the Netherlands and Germany, plus export customers in Scandinavia, Middle East, South Africa, Australia, Japan, Hong Kong, Eastern Europe, USA and Canada”. Their success, Paul reflects “is due to our constant investment in research and new product development. The company is proud of their base and facilities in Gloucestershire. Our Head Office and main manufacturing facility in Cheltenham is well established having opened in 1937 and ideally located for servicing all of our domestic and export customers. We have a logistics centre located in Gloucester, and recently opened a “European” administration facility in Brockworth, which manages a number of shared services such as finance, and purchasing for all of our Kohler UK and European subsidiary businesses.”
TOP TIPS
Philip Johnstone, Chief Executive, Trackwise
Based in Tewekesbury, Trackwise’s first export customer was in South Australia. Trackwise have since spread their wings to the USA, Europe and China even opening a new joint venture, Trackwise Epitome India, proving that Trackwise are firmly established and ever growing in the export market. Philip Johnston explains what initially inspired him to begin exporting, “At the time that Trackwise started exporting there was a very strong UK competitor, who was several steps ahead in just about every respect. Growth via export was, therefore, the only option. Trackwise’s first export customer, found as a visitor, not as an exhibitor, at a trade show, was in Melbourne, South Australia. They became Trackwise’s largest customer and underpinned our export growth that led to a Queen’s Award in 2005”. Becoming an exporting company has been fruitful for the company, Philip notes, “competing in a global market, going head to head with global competition in a decade of manufacturing price deflation, has forced Trackwise to be highly lean, highly efficient, highly innovative”. Retaining their corporate identity in a competitive global market means they have to be adaptable, “until a recent innovation required a change in company branding, the Trackwise corporate strap-line was ‘Global RF PCB Solutions’. Our customers are, in general, global companies with global operations and Trackwise’ corporate identity reflects that”.
TOP TIPS
1. The barriers to export are far lower than you think.
1. Be prepared to modify or change your UK product to tailor it for your export market.
2. The same attributes that underpin your success in the UK are in demand worldwide.
2. Take it one market at a time.
3. If physical export is an issue then there are other models, JV, Licensing etc that will allow you to profit from overseas demand.
3. Be prepared to invest time in a lot of desk research to identify the right markets.
MIRA SHOWERS Cromwell Road, Cheltenham, Glos, GL52 5EP Tel: 0844 571 5000 Web: www.mirashowers.co.uk
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GLORIOUS GLOUCESTERSHIRE
Rhydian Pountney, International Sales Manager Renishaw Plc
Renishaw is one of Gloucestershire’s biggest global businesses that develops pioneering engineering products that aim to advance their customers’ operational performance. Today it has over 60 offices in 32 countries. Rhydian says, “As we exported from such an early stage in our history, it has just been a natural process for us”. Exporting has also provided many benefits including, “having to meet the highest quality standards for our products and services, spreading business risk as growth rates and economic cycles can be different across the globe; and by helping us to identify opportunities for new products by being close to customers in many different markets.” Renishaw maintains a consistent corporate identity which it makes accessible to several countries, including China which is one of their biggest markets “representing around 20% of sales.” Rhydian explains, “In some countries we use phonetic translations of the name Renishaw, so in China for instance we use 3 characters which are sounded as ‘Le ni shau’, but the Chinese characters always appear alongside our registered English language trademarks on marketing collateral and trade shows graphics.” Their success, Rhydian believes “has been built on three key pillars – innovative products, high quality cost-effective manufacturing, and the ability to provide local customer support in all its key markets around the globe”. Gloucestershire is significant to Renishaw, as it placed them in a good location for recruitment; “The West has a rich heritage in engineering and manufacturing, therefore, many of the skills that we’ve required over the years are found in the Gloucestershire/Bristol/South Wales area”.
TOP TIPS
1. Research the opportunities - investigate the market, use the internet, local exhibitions, trade associations, UKTI support; local trade advisors. 2. Agree strategy and investment levels internally - be realistic on levels of return, costs and timescales involved; decide which sales channels are appropriate e.g. Agent/Distributor/Joint Venture; consider establishing own entity e.g. representative office, wholly owned subsidiary 3. Be aware of business risks & follow due diligence – bribery and corruption act.
EXPORTING
GLORIOUS GLOUCESTERSHIRE
MAY 2013
Miles Dunkley, MD SLG Beauty
SLG Beauty is a family owned business specialising in cosmetic manufacturing. Creativity is at the heartbeat of SLG and alongside their own range of designer brands, they also create bespoke private label collections and licensed product ranges. Reflecting on how SLG initially became a global exporter Miles Dunkley says, “Exporting was always of particular interest and was enhanced when we bought one of our major competitors in 1998: which was a company largely based on export business. SLG has expanded both through UK and export markets. By tapping into different markets we are able to organically grow our customer and product base”. SLG’s corporate identity is of particular importance, Miles explains, “Working with many high profile private label companies, we fully appreciate the importance of branding. Our strategy is to keep a consistent corporate identity both in the UK and worldwide. This is synonymous with customer recognition and continues with the building of trust in our brand”. SLG continue to grow as a company and so we were keen to learn how they sustain their success and what gives them an edge in their sector, “We’re still able to take advantage of raw materials from Europe and the UK and continue to manufacture 40% of our turnover in our Gloucestershire factory. This combined with our unique design-led manufacturing capability and a world class in house creative team gives us the edge to create and supply high fashion beauty brands. Our success is sustained by designing and manufacturing beautiful products for the beauty industry, giving the customer a top class service”.
TOP TIPS
1. Tap into your local Chamber of Commerce for any queries you have on the market you are entering. 2. Use any government funding available to exhibit your products in the new market and meet new contacts. 3. Find an experienced Agent or Distributor operating in the new market to help promote your products. This is often achievable at trade exhibitions.
EXPORTING
GLORIOUS GLOUCESTERSHIRE
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IN ASSOCIATION WITH
Louise Toshack, Brand Account Manager Tudor Rose International Ltd
Exporting is at the heart of Tudor Rose International (TRI). Developing from introducing Cadbury Biscuits to the Middle East 28 years ago, TRI has become a partner of choice for brand owners who want to reach out to global markets. Louise says “We purely export products across the globe every year we have grown as a company, both in new and emerging markets. We export brands on behalf of many large UK manufacturers therefore it’s our suppliers brand that we are representing and we do this as if it were our own brand. TRI distribute to 79 countries using 194 different customers, therefore our company identity and reputation is extremely important, and we are aware of cultural and religious differences in the countries we manage”. Recently featured on the Top 100 Gloucestershire companies list, Louise says, “Our success comes from working with highly reputable suppliers, brands and in-market customers. Working closely with all of our partners to ensure that we export products that are right for our markets to ensure as positive sales as possible. We continuously adapt to changes in legal and cultural legislation and this allows us to progress and grow in many markets. Many of our traditionally large markets are going through extremely challenging times and we have to be able to change strategy quickly”. In terms of logistics, Gloucestershire is ideal, “We have good transportation links to our suppliers and haulage companies. We’re also close to many UK airports to enable us to travel to our markets”. Evolving with the brand is essential, “Over the years, as the company has got bigger, we have had to change; naturally this has meant an increase in staff, changes to systems and new processes. We face challenges and working in so many markets mean that things change quickly, so our company has definately progressed since the early days!”
TOP TIPS
1. Understand local law, legislation and cultural differences 2. Be adaptable.
EXPORTING
3. Keep on top of the news – what is happening in market can have a knock-on effect on your sales.
GLORIOUS GLOUCESTERSHIRE
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Richard Muller, MD Prima Dental
Prima Dental is a world leading dental manufacturer that exports around 80% of their products to over 100 countries worldwide and consistently invest in research, development, infrastructure and recruitment. Richard says, “The UK market has never been big enough, so we’ve always targeted overseas markets”. Prima Dental maintain their identity consistently, which establishes them in the global market, “Our consistent and well-recognised brand, with a reputation for innovation which remains the same throughout the world. The Prima Dental ‘face’ as part of our logo sets us apart from our competitors. We recently refreshed our brand identity with a subtle change to our well-recognised ‘face’, giving the brand a universal look, enhancing us as an established global exporter” Richard says, “The key to our success is the high quality and innovation of all our dental products, high levels of investment in high tech machinery and our constant drive to make them even better for dentists, and ultimately their patients. We continually invest and develop our product range through vital research, enabling us to constantly innovate and launch new bur designs”. Embracing digital technology keeps Prima Dental ahead of their competitors, “We just launched a new multi-tier website, pioneered new e-learning tools and a new iPad App – the first of its kind in our sector, reinforcing our reputation for innovation and doing business differently”.
TOP TIPS
1. Tap in to experts in your industry - UK trade bodies like UKTI and relevant country-specific bodies like China British Business Council as early as possible. 2. Patience and tenacity are key ingredients because it can take months if not years (particularly if you are considering markets like Russia) to get a foothold into a new market. 3. Visit potential clients and contacts in person and invest significant time and resources into building up really good relationships with them.
PRIMA DENTAL Unit E, Stephenson Drive, Gloucester, Gloucestershire, GL2 2HA Tel: 01452 307171 Web: www.primadental.com
MAY 2013
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EXPORTING
GLORIOUS GLOUCESTERSHIRE
John Little, MD Fluid Transfer
Fluid Transfer, based in Nailsworth, are global exporters providing refuelling solutions for aviation, marine and ground fuels. However, they didn’t initially set out to become global exporters. The opportunity derived from supplying their equipment to Shell and Air BP in the 1970’s and seeing that their orders were for locations overseas. John says, “Perhaps one the most successful trips was joining the Middle East Association Trade Mission to the region in 2003. With support from UKTi in each of the six countries visited, delegates were assisted in identifying potential agents, distributors and end customers with meetings arranged in the surrounds of the UK embassy in each country. John says that they have a consistent brand and corporate identity since that is effective within their niche sector, “We are part of the privately owned Sturrock and Robson Group, which is an important marketing tool during initial discussions and introductions. In some market areas we appoint agents to represent our business following a robust due diligence process to ensure they are best fit”. In order to make exporting successful they have had to adapt and look for alternative markets to sustain business, “Following the Strategic Defence and Security Review in October 2010 we had to look for other customers in existing and alternative markets. Today 83% of our sales are export bound on a growing turnover. We have been traditionally strong in the Middle East and Far East regions, and continue to enjoy success there”. Exporting also benefits their staff, “Exporting provides us with growth leading to increased employment opportunities. An increasing number of our staff have experienced the thrill and challenges of travelling to different countries in support of our equipment and our local in-country partners, learning new cultures and means of communication”.
TOP TIPS
1. Use the UKTi and in-country chambers of commerce to assist and support. 2. Travel to each country you are targeting, trade missions are a great way for first time exporter.
EXPORTING
3. Understand the culture and way business is conducted.
GLORIOUS GLOUCESTERSHIRE
MAY 2013
Debra Drew, MD Fabric Architecture Ltd
Fabric Architecture was created through a gap in the market that Nigel Browne, Debra’s husband and co-owner, discovered when needing a ‘cool’ looking fabric structure to take out on a road show to take his museum exhibitions to school children in Australia. His designs soon became award winning products and have led to immense global success. Debra says, “People began to ask if they could have that but in a different shape or a different size, so we naturally fell into the business through his design and expertise. It was really in its infancy, nobody was doing it. With the two of us, and both having a passion for new cultures, we love doing business in places we never have before, we find it stimulating and interesting”. Projects often lead them to a new market, Debra says, “If we think there is the opportunity, sometimes we use the DTI or the UKTI to do market research and other times it depends on the sophistication of the market. Fundamentally, we have to enjoy and think it would be a fun and interesting place to do business and know that there is a demand”. The organic, family nature of the business transcends throughout the company and embraces its roots, “The design, the essential hub of the business will stay in Gloucestershire. This is where our designers and engineers are - it’s where the heart and soul of the company is. It will have other hubs, other children, but the family home is here!”
TOP TIPS
1. Have a bank that understands the challenges of doing business internationally is fundamental. 2. Abraham Lincoln quote: “It’s a challenging time, we need to become un-enamored with all we know” - Do this when going into a new country, invest in personal time with your client, get to know people. Train your staff to improve their interactions with people. 3. Use local suppliers - Don’t ever underestimate the challenge of finding great local suppiers that meet your expectations - Respect the local market.
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IN ASSOCIATION WITH
Are You Thinking Of Exporting? Here Are Our Top Tips
Julia House, Trade Mark Attorney, Albright Patents LLP
Based in Eagle Tower, Cheltenham, Albright Patents LLP are a forward thinking patent & trade mark attorney practice offering specialist services and expertise to protect your creative vision, innovation and investment and obtain related Intellectual Property Rights (IPR). ‘IPR’ encompasses patents, designs, copyright and trademarks. Albright has a strong client base in Gloucestershire, and our attorneys always welcome the opportunity to discuss issues ‘across the table’. In today’s electronic world this can make a pleasant change. In addition, Albright has established a significant portfolio of national and international clients, and built up a network of trusted foreign associates. Many of Albright’s clients have already taken steps to protect their IPR beyond the UK. They can concentrate their efforts on the commercial aspects of their export plans with confidence that their IPR are secure in the countries where they are looking to develop business opportunities. IP rights are territorial, and protection cannot be assumed to exist where registration has not been sought or granted. Nothing will frustrate marketing plans more than discovering critical IPR are not available for use or registration in a particular country. At Albright we are often asked whether ‘worldwide’ IPR protection can be obtained. There is no such thing, but there are several very cost effective strategies that can be used for widespread protection. The experienced attorneys at Albright Patents LLP will review the requirements of each of our clients and provide tailored advice.
TOP TIPS
1. Secure your ‘home’ market first. This will open up access to the most cost effective filing routes. 2. Take advantage of the 6 and 12 month ‘priority periods’ to backdate foreign Applications, and spread the cost. 3. Optimise the protection for your IPR at the outset. This will provide security and cost savings.
ALBRIGHT PATENTS Eagle Tower, Montpellier Dr, Cheltenham, Glos, GL50 1TA Tel: 01242 691801 Web: www.albrightpatents.co.uk
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Research & Understand Potential Risks Is it the right time for you to expand overseas? If so, do you have existing contacts where you want to export too? It is wise to travel to the intended destination, personal contact can go a long way. The political landscape will also differ and you could encounter challenges along the way. Consider hiring a local accountant and solicitor who is already familiar with the financial and legal environment. Know Your Market Throughly Ensure you know your market inside out. Identify any potential competitors and examine how you could do things differently to stand out from them. Be sure that there is space in the market for your company. Pace Yourself Take small steps when expanding and avoid the tendency to rush. This will enable you to avoid making any crucial mistakes, ultimately, allowing for small changes that may need to made. What may work perfectly for you in the UK will not necessarily have the same success overseas. Remember Your Core Business There could be a inclination to become preoccupied with your expansion but try not to neglect your commitment to your core business. If your new venture requires your full engagement, ensure that you have someone who you trust completely, taking care of your business. Cultural Differences Consider cultural barriers such as language, religion, ethical standards and how such things can influence business decisions and processes. If you maintain respect for cultural differences, it can only benefit you - it could be the difference between making or breaking a deal.
Retain Your Corporate Identity – Check Your Freedom To Use Check to see that you can use your brand name in any potential market, as if someone has existing rights to your brand name they will be in a position to prevent you from exporting there. Likewise, the next thing to do will be to register your trade mark to prevent imitators and anyone that tries to undermine your brand. Get professional advice when doing so, as there may be fairly different legalities from what there is in the UK. Look Into Further Advice Having support and advice during ever stage of the process will be crucial. Become familiar with HMRC’s advice and liaise a export consultant who will work with your to realise your company’s opportunities and risks and whether it is the right time for your company to export.
MAY 2013
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MAKING YOUR ‘LIGHTBULB MOMENTS’ LAST A LIFETIME In today’s competitive marketplace entrepreneurs and their precious ideas need guarding. Harrison Clark Rickerbys’ Intellectual Property team can make sure your ‘next big thing’ isn’t over before it begins. The team has produced a free guide to Intellectual Property, from creation through to expansion and beyond and is essential for anybody who sees potential in their bright ideas.
To request your copy contact:
ip@hcrlaw.com 01242 246494 www.hcrlaw.com Cheltenham Hereford Ross-on-Wye Thames Valley Worcester
ONE VISION TWO LEADING NAMES IN LAW THREE COUNTIES AT OUR HEART Harrison Clark Rickerbys is a trading name of Harrison Clark Limited and Rickerbys LLP Authorised and Regulated by the SRA
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Specialists in Business IT Support
01452 720 250 www.ssl-uk.net
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