5 Easy Benefits of Exporting Your Products

Many businesses will have considered exporting to the EU after Brexit. Events seem to have overtaken this and amid the COVID-19 challenges, you may have more time on your hands than previously. Which makes this an ideal time to think seriously about your next move as a business.

There are many advantages to exporting your products. You may have thought about this briefly in the past or perhaps you are unsure if it’s worth the effort. Whatever your reasons, there has never been a better time to explore this area in more detail.

There are only a finite number of people or businesses you can target in the UK. It’s certainly easier to focus on your local market. You know how commerce works, the language is universal and you know how businesses operate. But if you have a product that appeals to a wider audience then exporting is something you should consider.

It might be that you have reached a saturation point within your local market. This could be from a competitor perspective or you simply can’t sell any more products at the scale you need to. Identifying new and possibly untapped markets could be a game-changer for your business.

That’s probably Brexit in a nutshell. Moving away from one market to sell your products and going back to deal with 27 individual member states. Again, that sounds a bit of a nightmare. But there are plenty of other opportunities, and you could argue less restrictive.

You will be able to choose those countries that are right for your product and negotiate individual contracts based on the value to your business. This will make you less dependent on the UK. The benefits of exporting in this scenario are increased sales, the ability to spread your risks and giving you a prime position for markets that might be growing.

If you’re moving into new markets, then inevitably you will need to increase production. That might sound counterproductive. What looks like additional expenditure that feels like you’re defeating your original objectives. But it’s all about the larger economies of scale.

The fact you are sourcing more raw materials to make your products will give you increased buying power. You will be reducing the overall production costs because you can now buy in bulk. There is also the opportunity to increase your margins. If you think about it, you are making the same products for less but still selling them at a competitive price.

Most products will have a natural lifespan. The reality for many businesses is they are marketing a mature product - it has come to the end of its lifecycle. Within your market, the signs to look out for are saturated demand, an increase in competition that is suffocating consumers, or you have seen a decline in sales. Any or all of these are contributing factors. 

One of the key benefits of exporting is to give your product a new ‘lease of life’. Targeting new markets and customers will expand the lifespan of your product. If you manage to make that move ahead of your competitors, you will have an advantage and early foothold in the market.

Operating in more than one market is a distinct advantage of exporting. What it means in practice, is you are less reliant on your local market. Any downturn in an economy can be offset by focussing your marketing effort in a different country. You are reducing your risks by switching your resources to enable you to continue selling.

Seasonality is another factor. You might have a product that customers only want at certain times of the year. The climate and weather are good examples here. Suntan lotion and swimwear will be in more demand during the summer months, which as we know can vary across the globe. Public holidays such as Christmas and Halloween, while these are fixed dates, it’s an opportunity to increase production. 

There are certainly more opportunities to sell your product if you operate in more than one market. Meeting more customer needs when it’s appropriate and when there is a demand. Something that could keep you busy all year round and if you make the right plans will certainly result in increased sales.

This is a large topic with lots to think about so worthy of an article on its own. But there are some key areas you should be thinking about if you are considering exporting.

• There will be more paperwork to complete. No getting around this one I’m afraid but it shouldn’t be a barrier, the benefits of exporting will outweigh any of this.
• You may need to modify your offering if you’re selling in another country. Being aware of and sensitive to cultural and language differences is important for your marketing.
• Greater exposure to your brand and products. You are entering new countries and will need to elevate your business from a local market to become an international player.
• Do your research and don’t just follow the crowd. Decide if a new market is viable for your business based on your analysis – if you’re not sure where I can help you. 
• Consider what you need from a process, system and people perspective. Think about what you need and how are you going to operate in a scaled-up business.

If you can see the benefits of exporting there is one other factor that you need to consider: our Union Jack. Your business will be boosted by simply using the Union Jack, an iconic symbol recognised all over the world. Exporting to the EU after Brexit may well be a catalyst. This current coronavirus pandemic is an opportunity for you to seriously consider your options. If you’d like to discuss any of

If you're interested in finding out more about developing international markets, we can help. Call our export management consulting team today on 01865 238 100, alternatively, you can fill out our online enquiry form, and we'll be in touch.