1. INCREASE REVENUE AND MARKET GROWTH
By exporting to new markets, you can increase your market size, which can lead to massive revenue growth. The UK is currently the 5th largest market in the world and the 2nd largest in Europe (the top 5 markets are: United States, China, Japan, Germany and France). If you decided to start exporting to France then your potential market would double.
2. INCREASE PROFIT BY USING FULL PRODUCTION CAPACITY AND BRINGING COSTS DOWN
By exporting to larger markets, you can increase production, reduce costs and ultimately increase your profits. If you don’t plan on increasing your capacity just yet then exporting to overseas markets can be a great opportunity to sell excess products.
3. BENEFIT THE UK ECONOMY
UK companies which export account for 60% of national productivity growth and more than 70% of UK business research and development. By exporting to new markets, you can increase your revenue and help the UK economy. High economic growth leads to increased profitability, allowing more money to be spent on research & development, benefiting both the customer and the firm.
4. DEVELOP NEW INNOVATIVE PRODUCTS
Exporting products to new markets often leads to innovation, in many cases you will come across new ideas and opportunities which will kick start you to develop new and modified products to meet international demands. Research has shown that businesses are 11% more likely to survive if they export. Exporting will give you an insight of products or services that may be in high demand and allow you to develop new innovative products to target specific cultures.
5. GROW YOUR BRAND AND BECOME A GLOBAL PRESENCE
Exporting overseas can help you build an international brand name and gain a presence in the global market. It will allow your company to develop a strong brand reputation and increase your brand awareness.
6. GET AHEAD OF THE COMPETITION
The UK can be a saturated market to work in, by expanding internationally you can get a head of your competitors by accessing untapped markets before they do. Many overseas markets have fewer competitors (especially in emerging markets) and competitors may under value the potential profits of exporting or be overwhelmed by working out the logistics for selling overseas. This leaves you with a fantastic opportunity to start international exporting. You may already be manufacturing at less than capacity and the minimal cost of increasing capacity can allow you to gain market share at a relative bargain.
7. REDUCE SEASONAL AND ECONOMIC DOWNTURNS
Seasonal products can cause headaches (and more) for many businesses and exporting to overseas markets with different seasonal shifts are a great way to keep revenue coming in and reduce the dreaded ‘seasonal slowdown’. If this is done well, you can create a selling schedule which will optimize seasonal market shifts. For example, selling summer products in Europe throughout May to September & then exporting these products to countries such as Australia from October to March. This rules out the possibility of losing business through the UK winter.
8. EXTEND THE PRODUCT LIFE CYCLE
Many products (especially clothing and tech products) gradually lose popularity within the market and sales start to drop off, often companies turn to advertising/marketing to try and boost sales, but this can be costly and often unsuccessful. By exporting to new markets, you can take advantage of delays in the global market, for example, products which lose popularity in the UK could be becoming popular in Latin American markets. Exporting is a great way of selling your product when UK sales are slowing down.
9. EXPORTING CAN BE MORE THAN GREAT FOR BUSINESS
It can be very exciting exporting to new countries: you could visit your overseas distributor, try new foods, make new friends and learn about new cultures. Overseas trade can be good for all parties involved, by establishing friendships, lowering costs and making economies and businesses more productive, competitive and profitable.
10. WITH TUSCOR LLOYDS AS YOUR SHIPPING AGENT EXPORTING COULDN’T BE EASIER
Tuscor Lloyds has been helping UK (and overseas) companies grow year on year by providing simple, cost-effective export solutions. Providing easy access to new markets and working out the best logistics methods for your goods. We can handle everything from warehousing to overseas transportation, cargo insurance, supply chain management, customs clearance and documentation. If you need exporting goods or services from the UK then contact Tuscor Lloyds today and get your free quote!
Contact us for an export quotation and advice on +44 (0) 161 868 6000 or email: websiteenquiries@tuscorlloyds.com
Sources:
https://www.businesswest.co.uk/blog/top-3-reasons-why-your-business-should-start-exportinghttp://data.worldbank.org/data-catalog/GDP-ranking-tablehttps://data.gov.uk/dataset/02c83a1e-dbe9-4089-916e-a94499059cf2/ukti-s-internationalisation-strategies-barriers-and-awareness-survey https://worldpopulationreview.com/countries/countries-by-gdp https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/246788/0024.pdfhttps://www.tuscorlloyds.com/blogs/post/10-reasons-uk-companies-start-exportinghttps://www.economicshelp.org/macroeconomics/economic-growth/benefits-growth/