As Britain enters back into recession, this is a clear indication of just how important it is to economic recovery that UK companies look to overseas markets for growth. The proportion of UK firms doing business overseas has risen over the past two years and whilst there is an increased awareness and interest in High Growth Markets such as the BRIC countries and other developing markets; relative to our competitors, UK businesses don’t export enough particularly to these markets.
Furthermore the UK’s biggest export markets, Europe and US, have themselves become sluggish and thus UK companies will find themselves in a vicious circle of stagnancy if they don’t break free from this reliance and exploit the booming consumer wealth and appetite for western products and brands evident in these developing markets.
Throw into the mix that the UK’s share of global exports over the last decade has fallen (it now stands at around 4%) whilst Germany’s share has risen to nearly 9.5%, and it becomes clear that the UK needs to export more in order to boost the economy and for UK companies to accelerate growth.
Whilst the opportunities can be plentiful they can also be challenging.
In his interview with LondonlovesBusiness, Matt Jackson, High Growth Markets Practice, KPMG in the UK explains the benefits UK companies can enjoy by taking advantage of the export agenda as an avenue for growth in the current tough climate. Matt talks about the benefits for business, popular destinations to export and what businesses must consider when exporting overseas in particular some of the nuances that can be expected and how they can be mitigated.