Promised lands: Trading overseas

Key figures in the export industry gathered in the UKTI lorry, which was parked in Victoria Gardens, Leeds, to discuss the pitfalls and positives of companies selling their goods abroad. PictureS: Tony Johnson

First came the BRICs and business leaders were encouraged to target Brazil, Russia, India and China. Each of these countries were enjoying huge growth while much of the western world languished in recession and were eager to buy Brand Britain. While that was true, they all presented significant challenges for the experienced and uninitiated exporter alike.

Many Yorkshire businesses have done very well in the BRIC economies – Radio Design, Fired Up Group and Harrogate Water are some fine examples. Exports to ‘emerging economies’ account for 11.85 per cent of Yorkshire’s international trade but the reality is that these markets are complex and require significant investment. Many businesses are reluctant to commit to this type of challenge and, worse still, these BRIC economies are now either slowing dramatically or are stagnating.

Similarly, the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) and the MINTs (Mexico, Indonesia, Nigeria and Turkey) followed the excitement and media hype around the BRICs. Again, each of these economies presented some great opportunities but some major challenges.

Fastest growing or biggest spenders?

At this point I should say that none of these challenges are insurmountable. UKTI has a wealth of expertise and resources here in the UK and in nations around the globe and we can help any business get the information, skills and support they need to seize on an opportunity.

However, businesses must consider where they target opportunities and that’s why I ask ‘what is an emerging market?’

Should we just be looking to the fastest growing economies and label them as an emerging opportunity before then creating a catchy acronym?

Should we dig deeper and look at the forgotten cities in established markets and say there are opportunities in this regional emerging market? Or, should we follow the trends and say this market is seeing a huge rise in export deals – this is the new emerging market?

We also have a new generation of ‘Frontier Markets’. These are the relatively untouched nations were we are starting to see big increases in spending on British products.

Finally, how long can a country be ‘emerging’? The BRIC acronym was first coined in 2001 – can China really have been emerging for 15 years or has it arrived?

Following emerging trends

For me, it’s all about following the money. There are some great opportunities nearer home and we are seeing a big rise in enquiries or spending in a number of key European countries.

For example, Scandinavia has rapidly grown to become the  biggest export food market for Yorkshire after Western Europe. Exports to Belgium have soared by 62 per cent over the past year and Sweden has a raft of major opportunities after unveiling massive infrastructure  and development plans.

These markets aren’t going to get included in an acronym, but they have rapidly emerged as great opportunities for exporters in Yorkshire.

Looking further afield and the USA remains hugely popular. Our cousins over the Atlantic generate  more interest, more exports and double the business wins of all the emerging economies combined for Yorkshire businesses. However, much of that trade is concentrated around the cities we all know – like New York, Washington, Chicago, etc.

There are hundreds of huge cities all over the world that most exporters overlook, some of these have bigger economies than the traditionally classed ‘emerging markets’ we so frequently refer to.

These present huge opportunity for exporters in Yorkshire looking for relatively simple overseas deals.

The secondary cities in every country have remained relatively untapped and these could also be seen as the next generation of emerging markets.

Don’t rely on the next acronym

The truth is that there are a wealth of opportunities for Yorkshire businesses in every market around the world.

The definition of an ‘emerging market’ could vary wildly from one sector, industry or business to the next and depends on where the greatest opportunity lies.

What this means is that business leaders need to identify the strongest market for their product or service and do their research.

Speak to UKTI, your peers or local and sector business organisations and understand where the money is being spent.

Don’t just wait for the next exciting emerging market acronym...

Read The Yorkshire Post’s special UKTI eight-page supplement in full (PDF)