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Five tips on international trading for SMEs

Where next? Before jumping into a foreign market, try running a Facebook campaign there to gauge interest - © Andrew Unangst / Alamy Stock Photo
Where next? Before jumping into a foreign market, try running a Facebook campaign there to gauge interest - © Andrew Unangst / Alamy Stock Photo


Whether you’ve been trading internationally for years or are considering taking your first steps, here are a handful of tips from companies that have been there and done it.

1. Seek support

Emma Heathcote-James, founder, The Little Soap Company

“For small and medium-sized businesses (SMEs) that are looking to trade internationally, don’t be afraid to ask for help, because there’s so much available. First, talk to people who are already exporting to understand the challenges that they’re facing.

“I would recommend the Government's Department for International Trade website and programmes such as GREAT, which helped me understand product pricing, legislation, VAT rules and even helped me with funding to get my websites and labelling translated.

“I also got some useful guidance on how product specifications are different depending on where you export to. For example, if you export to Asia, your product has to go through different testing than that required in the UK.”

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2. Add a personal touch

Nicole Szekeres, co-founder, Fusion Bags

“If you’re attending an international trade show, draw potential distributors to your stand by contacting them personally beforehand. We prepared by using the power of the post and sent letters to potential distributors worldwide with personal invitations to meet us.

“Each invitation was hand-signed and contained a rubber keyring and a brochure, in which we pitched our business and products.

"On the day, distributors got a first-hand look at our product. It was a low-cost, but highly effective, marketing method. Some made an appointment on the day; some contacted us years later, but they all mentioned that our letter with the rubber keyring separated us from our competitors.”

3. Know what you’re signing up for

Jan Morley, co-founder and owner, Perkins & Morley

“Trading internationally can seem like a daunting prospect, but it’s just about asking the right questions and figuring out whether you can make a profit at the price that clients are looking for.

"Do your homework before meeting them and get an idea of what they normally sell. But remember: they want to import your products.
Don’t drop your prices dramatically just to get a sale.

“Also, make sure that you know what you’re signing up for – for example, who’s paying for the shipping? Are you expected to get your products to the shipping company, or are they are being collected
from your premises? Will the products require different labels? These are all things that have to be costed and accounted for. We listen carefully to our customers’ requirements, don’t make promises we can’t keep, and try our best to give an excellent service.”

4. Utilise local networks

Shaherazad Umbreen, founder, 18hourheels

“SMEs should use experts within the countries that they’re targeting. Before I approached any new foreign markets, I ran a Facebook campaign in lots of different countries to see where I got the most interest. Kuwait was a top hit.

“I was introduced to the Kuwait British Business Centre (KBBC) through the Passport to Export programme, which coached SMEs on export best practice. The KBBC was crucial in helping me approach local businesses, meet other companies and connect with local Kuwaiti women, which I wouldn’t have been able to do otherwise.

“I gained feedback on what customers looked for in my products,
and I now run ‘Secret Style Parties’ for Kuwaiti women when they visit London on holiday, to drive export sales.”

5. Hop on the plane

Geraldine Grandidier, founder and chief executive, Tidy Books

“While trade bodies and external agencies are a good starting point for networking and understanding cultural practices in other countries, SMEs should also do the legwork themselves.

"So be prepared to travel and take time doing your research. For example, we found through networking and speaking to potential customers in China that it’s common practice to bring a gift when you meet your potential suppliers and retailers.

“We made this personal connection with every one of our suppliers. They treat us well in return and are ready to accommodate our production as we grow. They’ve been able to scale up our production capacity by halving our manufacturing faults rate, which has improved our efficiency and, ultimately, customer satisfaction. They’re also responsive in making new product and colour samples to accommodate market demands.

“This happens because we have carefully built personal relationships and are committed to treating our producers well.”

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