Businesses that export benefit from increased revenue growth as well as greater innovation: new markets provide a bigger pool of customers with different needs and dynamics, which the business can sell to, which in turn, provides additional funds to invest in R&D. The exposure to international markets and competitors also helps companies to improve internal processes, customer service, and product development.
Many larger businesses may already export successfully and enjoy the greater financial stability that comes with it. Small and medium-sized businesses, however, can now more easily join the ranks of exporters by using the internet to their advantage. This could be in the form of an e-commerce website that can handle international transactions, video meetings with customers across the world, or even networking with other exporters online using business tools such as LinkedIn.
What should businesses consider before deciding to export?
Taking a long-term approach is essential when exporting to new markets. As shown in our infographic, there are many elements that require the business's time and resources.
Travelling to the target market (or researching online, depending on travel restrictions) helps to understand the culture and business environment in a new country; even different regions can have their own specific needs. It gives business owners and managers a chance to meet potential customers and understand the key factors to success in the local market: what product needs do customers have, and what pricing is expected. For example, within the hot-melt adhesive industry, a country with wide temperature variances (such as Brazil) may need a packaging adhesive that can withstand this broad spectrum of both hot and cold environments. Whereas a country with a hotter climate, low temperature performance may be less of a concern. It can also indicate what local regulations and taxes the company faces, and may even give the business an opportunity to meet competitors and discuss common challenges to the industry.
Deciding which is the most appropriate distribution channel will be informed by travelling to a new market. Common distribution strategies include using a local agent or distributor, selling directly from home territories, or establishing a local subsidiary, as we have done with Beardow Adams SAS in Colombia. Each option carries different levels of control and responsibility and may depend on the size and resources of the business, and the prospective clients.
Understanding the marketing requirements for entering a new country is another consideration for potential exporters. What marketing materials will need to be translated? Does the website need to be updated with a new language? Will additional training manuals and other literature be required? Many new distributors or agents would benefit from a training program that compliments their existing knowledge of their own market. Ongoing technical support for international customers should also be considered. Lastly, with all the above in mind, and with any good practice, the approach and strategy should be subject to continuous review and adaptation where needed.
Beardow Adams has been successfully manufacturing and exporting hot-melt adhesives for over 40 years; supplying over 80 countries and approximately 20,000 customers in industries as diverse as packaging, food and beverage, mattress and furniture, vehicle parts, and medical consumables and instruments, amongst others. Many of the lessons learned during these years are included in our new infographic which is available by clicking the link below.
Download our guide to export excellence