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AN INTRODUCTION TO EXPORTINGCONTENTSIntroductionWhy Export? Advantages of Exporting Disadvantages of Exporting Who Exports? What to Export Where to Export Starting Out Distribution Agents Distributors Selling Direct Collaborative Projects Trade Shows Pricing Getting Paid Export Terminology Useful Reading and Sources of Further Information Useful Addresses for Exporters Regional Offices of the Department of Trade and Industry Appendix - A Country Guide IntroductionExporting, or marketing to outside markets, is what turns small companies into large companies, and large concerns into multinational operations.In itself exporting is a simple concept, and many excellent sources of advice and information are available to that person considering taking his or her products and services to foreign markets. Nevertheless many firms never consider the potential of exporting, all too often because their proprietors believe the situation will present countless and potentially insurmountable difficulties. Exporting can in fact lend itself well to operations large and small, and can provide a greatly increased market for all manner of products and services as most mail order dealers will realise from a browse through the several international opportuni ties magazines and newsletters available today, in which mailing lists, dropship services, and countless other services are advertised on a regular basis. Where products and services are suited to marketing entirely by mail, then exporting is little more complex than making your intentions known at the post office counter and letting the postal services do the rest. Where products are large and bulky - perhaps also expensive - then the exporter might enlist the services of any of a number of specialist export services able to help in all stages of the export process, from market study to soliciting orders, and from shipment to receiving and processing payments to suppliers. That title 'An introduction to Exporting' is just that; an intention to provide nothing but a simple understanding of an equally straightforward process, one you might utilise to full extent for whatever goods and services you currently offer or might consider offering in the future. Why Export?Businesses enter the field of exporting for many and varied reasons, not the least of which might be to extend the market for a product that has proved popular on a domestic level. If the product or service is applicable to a wider market and it has been tested in the UK, chances are exporting it will prove similarly profitable. Not so good a marketing strategy however, is the decision to export something because it has not proved popular in the domestic marketplace.Some businesses begin with export marketing included in their corporate plan; others slip gradually into exporting, perhaps having been approached by an overseas buyer with whom a profitable business relationship emerges, and it subsequently becomes clear that other exporting avenues might also prove profitable. Advantages of Exporting
Disadvantages of Exporting
Who Exports?Though the benefits of exporting can apply to companies large and small, it is generally accepted that no small company should consider exporting until the company is well established in the domestic sector, or at least until one of the proprietors h as sufficient knowledge and experience of exporting to make a concerted effort in overseas markets.What to ExportSelling abroad bears very little difference to selling in the UK; a need must be identified and a service or product introduced to fill that need.Few restrictions are placed on what can and can not be exported from Britain, other of course than defence supplies to certain countries, and restrictions on livestock and agricultural products. Where uncertain as to whether or not restrictions might be placed on particular products or services, the entrepreneur will obtain excellent advice from: The Export Licensing Branch, Department of Trade, Millbank Tower, Millbank, London, SW1P 4QU, 071 215 8070 What restrictions and limitations the exporter is likely to encountering are more likely to be placed by that country into which one seeks entry for whatever products and services are concerned. Developing countries might place restrictions designed to protect their own growing industries. Import controls might reveal themselves in quotas, customs tariffs or complicated technical and documentation requirements. Information and advice on technical requirements might be available from: The British Standards Institution, Technical Help to Exporters, Linford Wood, Milton Keynes, MK14 6LE, 0908 220022 Where to ExportMost newcomers to exporting opt for the relative ease of supplying to English-speaking countries of the old Commonwealth and North America. In many cases British traditions and customs are still very much in evidence and the fact that many British banks and financial institutions have branches in these locations can greatly ease the assimilation process.The European Community might however present the greatest opportunity for new and smaller export firms, and will doubtless prove a more realistic and attractive option with the removal in 1992 of all customs barriers. Third World and developing countries present particular problems. Payment facilities and procedures are rarely uncomplicated and locating suitable distribution channels can prove difficult, time-consuming and costly. The most likely first venues for marketing abroad might well be those arising from unsolicited enquiries from potential foreign customers, and information obtained from trade publications, newspapers and specialist export publications. Starting OutExports can obviously increase markets for one's goods many times over, but for the newcomer exporting can also present numerous complications and learning difficulties. Though the temptation might exist, the newcomer is usually advised to gradually enter the export field, perhaps starting with one overseas market and gradually increasing the range of destinations in which one's products and services are offered.The newcomer's first port of call for information on exporting in both general and specific terms should be regional offices of the Department of Trade and Industry, details of which are provided at the end of this text. The all-important initial market research to assess the suitability of your product or service to overseas markets, is one that might well be aided by a visit to a trade show in the country of intended export. There the exporter can speak to foreign and international business men and women and obtain copies of relevant trade publications. The exporter might well find the product requires some modification to suit overseas markets, and that an import licence is required before certain products will be allowed into some countries. All can be discussed with export information and advisory bodies on the entrepreneur's return to Britain. Amongst the more useful sources of information and advice for newcomers and established exporters are Chambers of Commerce, most of the largest of which are able to provide group selling facilities, fact finding services, organised trips abroad, shared telex arrangements, documentation advice, and so on. It is advisable to join one of the larger Chambers of Commerce, such as those in London and Birmingham, as opposed to Chambers of Trade which though generally available in all main towns, are usually composed of retailers with no experience or interest in exporting. Many Chambers of Commerce hold regular meetings at which members can benefit from the experience and advice of fellow members and longer-established exporters. Additionally, many Chambers hold regular seminars on matters related to exporting, some aimed at relative beginners and therefore offering a more than useful insight into the ins and outs of this particular marketing method. All of the major banks offer free literature and guidance to intending and established exporters, and many have specialist advisers available to answer whatever questions you might have in your beginning days as an exporter, as well as problems you might encounter as you begin venturing into new and untested markets. Distribution Once having made as reliable an assessment as possible of the suitability of your product or service to overseas markets, then comes the decision as to exactly how marketing will take place. The range of possible options include: agents, distributors, selling direct, collaborative projects and trade shows, all of which we might now briefly consider.
PricingCosts of exporting can of course make products far more expensive than when sold in domestic markets. Pricing must therefore be carefully monitored and controlled and take into account costs of freight, shipping insurance, overseas agent's commissions, and other incidental expenditure. Product insurance is essential and can be arranged through insurance brokers.As a rough illustration of what factors make for accurate pricing controls, the following must be taken into account:
Getting PaidOne of the major attractions of dealing through domestic export houses or buying agents in one's own country is the relative certainty of being paid promptly, and in sterling. Extended credit is not usually encountered. Exporting direct on the other hand brings certain problems, mainly of ensuring payment and avoiding risks incurred from fluctuating currency exchange rates. It is no secret that some countries have a reputation for speedy payment, whilst others prove quite the opposite. Advice in this respect is available from the following section of the Department of Trade and Industry:Export Credit Guarantee Department, Export House, 50 Ludgate Hill, London, EC4M 7AY The normal procedure with a new customer to whom one exports, is to use either Letters of Credit or other documentary collection handled and co-ordinated by banks. If you plan to offer credit, you should take up references in the same manner as would be the case for a new UK customer. Amongst the many methods of payment for which the exporter might opt are the following:
Export TerminologyExporting employs a unique body of words and phrases, all of which the beginner will soon become familiar with. For the time being we might briefly consider a few of the more common terms used in exporting circles:
Useful Reading and Sources of Further Information'Marketing Without Frontiers' is the title of an excellent - and free - book issued by the Post Office. Providing a useful insight into exporting to most other countries, this document might be obtained from:Marketing Without Frontiers, Royal Mail International, 12 - 15 Fenton Way, Basildon, S15 4BR Periodicals and regularly updated publications of interest to exporters include the following: 'Direct Marketing International', 3 Bridgefoot, Market Deepong, Peterborough, PE6 8AA 'Direct Response by George!', Greenhouse Publishing, 4 Market Place, Hertford, Herts., SG14 1EB 'Direct Response Magazine', Greenhouse Publishing, 4 Market Place, Hertford, Herts., SG14 1EB 'Precision Marketing', Centaur Communications Ltd., St. Giles House, 50 Poland Street, London, W1V 4AX 'Eurotrade', 25 Helen Road, Hornchurch, Essex, RM11 2EW 'Export Courier', Stoke and Lindley Jones Ltd., 36 Stonehills House, Stonehills, Welwyn Garden City, Herts., AL8 6NA 'Export Digest', Croner Publications Ltd., Croner House, London Road, Kingston-upon-Thames, Surrey, KT2 6SR 'Export Times', 4 New Bridge Street, London, EC4V 6AA 'Export Today', Setform Ltd., Europa House, 13-17 Ironmonger Row, London, EC1V 3QN 'International Freighting Weekly', Maclean Hunter Ltd., Maclean Hunter House, Chalk Lane, Cockfosters Road, Barnet, Herts., EN4 OBU 'Euromarketing', Crain Communications, 75-77 Cowcross Street, London, EC1M 6BP 'Overseas Trade' is a monthly magazine published by the Department of Trade and Industry, aimed at keeping exporters up to date with tariff changes and opportunities in global markets. Contact: The Department of Trade and Industry, 1 Victoria Street, London, SW1H OET 'Croner Reference Book for Exporters', is one in a large series of loose-leaf reference documents, regularly up-dated and available on subscription from: Croner Publications, Croner House, London Road, Kingston upon Thames, Surrey, KT2 6SR 'Enterprise Initiative' is a government sponsored scheme providing the entrepreneur access to experts in various fields of business and marketing. A free booklet is available by telephoning: 0800 500 200 Government literature is also available free to those interested in marketing in Europe. Telephone: 081 200 1992 Useful Addresses for ExportersAssociation of British Chambers of Commerce, Sovereign House, 212a Shaftesbury Avenue, London, WC2H 8EWBritish Exporters Association, 16 Dartmouth Street, London, SW1H 9BL (Publishes and distributes a useful 'Directory of British Export Houses') British International Freight Association (Incorporating the Institute of Freight Forwarders), Redfern House, Browells Lane, Feltham, Middlesex, W13 7EP Croner Publications, Croner House, London Road, Kingston upon Thames, Surrey, KT2 6SR (Publishes useful directories and sources of information of use to exporters) Department of Trade and Industry Export Initiative (British Overseas Trade Board), 1 Victoria Street, London, SW1H OET Institute of Export, Export House, 64 Clifton Street, London, EC2A 4HB SITPRO (The Simpler Trade Procedures Board), 2nd Floor, Venture House, 29 Glasshouse Street, London, W1R 5RG This organisation provides information and advice on documentation and payments procedures, customs regulations and import rules and regulations. Export Licensing Branch, Department of Trade, Millbank Tower, Millbank, London, SW1P 4QU FIS Publications Ltd., Adelphi Chambers, Houghton Street, Southport, Merseyside, PR9 ONZ Issues a guide to all major exporters listed by country. Overseas Status Report Services, British Overseas Trade Board, Department of Trade and Industry, Ashdown House, 123 Victoria Street, London, SW1E 6RB Provides extensive services to exporters looking for foreign agents and distributors. Fairs Promotions Branch, Dean Bradley House, Horseferry Road, London, SW1P 2AG Regional Offices of the Department of Trade and IndustryDTI South East (Greater London)Bridge Place, 88 - 89 Eccleston Square, London, SW1V 1PT 071 215 0575 DTI South East (Reading, Berkshire, Buckinghamshire, Hampshire, Isle of Wight and Oxfordshire) 40 Caversham Road, Reading, Berkshire, RG1 7EB 0734 395600 DTI South East (Kent, Surrey, East Sussex and West Sussex) Douglas House, London Road, Reigate, Surrey, RH2 9QP 0737 226900 DTI East (Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk) Building A, Westbrook Research Centre, Milton Road, Cambridge, CB4 1YG 0223 461939 DTI North East Stonegate House, 2 Groat Market, Newcastle upon Tyne, NE1 1YN 091 232 4722 DTI North West Sunley Tower, Piccadilly Plaza, Manchester, M1 4BA 061 838 5000 DTI North West Graeme House, Derby Square, Liverpool, L2 7UP 051 224 6300 DTI Yorkshire and Humberside 25 Queen Street, Leeds, LS1 2TW 0532 443171 DTI South West The Pithay, Bristol, BS1 2PB 0272 272666 DTI West Midlands 77 Paradise Circus, Queensway, Birmingham, B1 2DT 021 212 5000 DTI East Midlands Severns House, 20 Middle Pavement, Nottingham, NG1 7DW 0602 506181 DTI Northern Ireland Industrial Development Board for Northern Ireland, Export Development Branch, Marketing Development Division, IDB House, 64 Chichester Street, Belfast, BT1 4JX 0232 233233 DTI Scotland Industry Department, Exports Division, Alhambra House, 45 Waterloo Street, Glasgow, G2 6AT 041 242 5495 DTI Wales Industry Department, New Crown Building, Cathays Park, Cardiff, CF1 3NQ 0222 825097 AppendixA Country GuideNote: Though embassies and representatives of foreign governments are not usually able to assist with specific information regarding exporting to their country, most will provide addresses and information relating to such as Chambers of Commerce and various business and export information services of use to the intending exporter. The following is but a brief selection of Embassies, Consulates and High Commissions with bases in Britain. Argentina 49 Belgrave Sqauare, London, SW1X 8QZ Australia Australia House, Strand, London, WC2B 4LA Austria 18 Belgrave Mews West, London, SW1X 8HU Belgium 103 Eaton Square, London, SW1W 9AB Brazil 32 Queen Street, London, W1Y 4AT Canada Macdonald House, 1 Grosvenor Square, London, W1X OAB Chile 12 Devonshire Street, London, W1N 2DS China 49-51 Portland Place, London, W1N 3AH Denmark 55 Sloane Street, London, SW1X 9SR Finland 38 Chesham Place, London, SW1X 8HW France 58 Knightsbridge, London, SW1X 7JT Germany 23 Belgrave Square, London, SW1X 8PZ Greece 1a Holland Park, London, W11 3TP Hong Kong Hong Kong Government Office, 6 Grafton Street, London, W1X 3LB Hungary 35 Eaton Place, London, SW1X 8BY Iceland 1 Eaton Terrace, London, SW1W 8EY India India House, Aldwych, London, WC2B 4NA Republic of Ireland 17 Grosvenor Place, London, SW1X 7HR Israel 2 Palace Green, London, W8 4QB Italy 14 Three Kings Yard, London, W1Y 2EH Japan 43-46 Grosvenor Street, London, W1X OBA Kuwait 45-46 Queens Gate, London, SW7 5HB Libya 119 Harley Street, London, W1N 1DH Luxembourg 27 Wilton Crescent, London, SW1X 8SD Netherlands 38 Hyde Park Gate, London, SW7 5DP New Zealand New Zealand House, Haymarket, London, SW1Y 4TQ Norway 25 Belgrave Square, London, SW1X 8QD Portugal 11 Belgrave Square, London, SW1X 8PP South Africa South Africa House, Trafalagar Square, London, WC2N 5DP Russia 13 Kensington Place Gardens, London, W8 4QX Spain 24 Belgrave Square, London, SW1X 8QA Sudan 3 Cleveland Row St James, London, SW1A 1DD Sweden 11 Montagu Place, London, W1H 2AL Switzerland 16-18 Montague Place, London, W1H 2BQ Syria 8 Belgrave Square, London, SW1X 8PH United Arab Emirates 20 Princes Gate, London, SW7 1PT United States 24 Grosvenor Square, London, W1A 1AE Uruguay 48 Lennox Gardens, London, SW1X ODL Venezuela 1 Cromwell Road, London, SW7 2HW Yugoslavia 5-7 Lexham Gardens, London, W8 5JU |
