With £534 million growth in the export of goods from the East of England to China over the last ten years1, UK Trade & Investment (UKTI) is using Export Week 2014 to encourage more businesses from the region to build on this success and consider the potential for big wins in China.
“We often hear about the huge opportunities for British companies in China so it is great when we see , East of England companies, like organisational development consultancy t-three, making significant progress in this market,” says Interim UKTI East Regional Director Thinley Topden. “Successful exporting can be the key to growth for a business and it can be a real catalyst to making that business more efficient and profitable in the UK too.”
He continues: “There is a massive opportunity for East of England businesses to export to China. The Chinese economy has grown at just under 10 per cent a year for 32 years, overtaking Japan in 2010 to become the world’s 2nd largest economy.”
“China has a population in excess of 1.3 billion. It has no fewer than 274 cities with a population of more than one million. Its industrial and economic progress over the past few decades has been staggering - towns have become cities, and small fishing villages have turned into busy urban centres. However, amid this boom there are gaps and niches looking to be filled by savvy entrepreneurs. Though cultural and language differences remain, it is continuing to become easier for UK companies to reach Chinese consumers: online retail increased by 50 per cent in 2013; China’s infrastructure, including its high speed rail network, is continuing to expand; and a free trade zone has been proposed in Shanghai.”
UKTI offers tailored support to companies that wish to grow their business in China and elsewhere, with an extensive network of specialists in the UK and in British Embassies who can help businesses of all sizes and sectors to get on the fast track to export success.
Cambourne SME almost doubles its international turnover through sales to China
Support from UKTI has enabled Cambridgeshire organisational development consultancy t-three to secure business in China worth £180,000 in less than 12 months.
Founded in 1996, the company, which employs a team of thirty-eight people, partners with a number of high profile clients to deliver leadership development and large organisational cultural change programmes.
Until 2012 the company’s international activity had been reactive. Group Director Anthony Walker explains: “We did a small amount of international work through a few of our clients asking us to work with their international subsidiaries but this was sporadic. We decided that if we were serious about working internationally we needed to be much more proactive but didn’t quite know where to begin and needed some guidance. With the support of UKTI, and working alongside a number of our global clients based in the UK, we designed and developed a targeted international offering that supports managers who work for global organisations to lead effectively across cultures.
He continues: “China was of interest to us because we already had a track record of working there and had formed a good number of contacts and trusted relationships within the consulting sector. We knew it was a large market with the potential to grow further and that there was a demand for a western approach to management and leadership skills. In addition, English is often used as a second business language.”
On the recommendation of a friend Anthony got in touch with UKTI and was introduced to International Trade Adviser Martin Keepfer who recommended he sign up for Passport to Export, a twelve-month programme which provides new or inexperienced exporters with support to grow their business overseas.
As part of the Passport to Export programme Anthony attended a two-day ‘Winning and Delivering Export Business’ workshop, which gave him an excellent introduction to some of the key business considerations when approaching export markets, such as market research, selecting an appropriate route to market, finance, language and cultural issues.
“Along with all the useful advice I received on developing our readiness for international trade, the workshop was a great networking opportunity. The time available for discussions with other delegates really gave me an insight into what other companies were doing and their experiences of exporting,” comments Anthony.
In November 2013 Anthony made his first fact-finding trip to China, visiting Shanghai and Beijing over a two week period in order to gain a better understanding of the market, gauge interest and ultimately win new business.
“We received matched-funding from UKTI to make the trip, which paid for flights, accommodation and some business expenses whilst there. Without this, it would have been hard to justify the high costs of making the visit,” says Anthony. “Prior to the trip UKTI helped set up nine separate meetings in the two cities with the HR directors of both Chinese national and international companies - including Volkswagen and Unilever - through its trade service partner, the China-Britain Business Council (CBBC). This was crucial in ensuring our success in China because turning up in a new market with no contacts would have been a waste of time. Before the meetings UKTI provided background information on all the companies, which really cut down on the amount of time and money we needed to spend on research.”
The meetings went extremely well and t-three decided to advance their business interests in China. As a result of the positive contacts made through the meetings, their newly appointed delivery partners in China were subsequently able to secure significant business wins.
“In 2012 our international revenue was £250k but in 2013 this increased to £600k, so it has more than doubled in just a year. £180,000 of this is directly attributable to new sales from China,” says Anthony. “It can be really daunting for inexperienced exporters to navigate their way around Chinese regulations and, indeed, repatriating money back into the UK. Martin was there every step of the way to give us support and guidance. He helped prove to us that China was within our reach.”
t-three continues to expand its business in China and to work towards its goal of having a major presence in this emerging market. By the end of 2014 it hopes to open its first office in Beijing.
“British companies have long been market leaders and pioneers all around the world. Our reputation for excellence, innovation, design and ambition is well recognised in China,” says Chris Cotton, China-Britain Business Council Director and Life Sciences Lead, East of England.
UKTI supports East of England companies with sector-specific market expertise for China
To help East of England companies understand and maximise their trading potential in China, UKTI runs regular events and trade missions tailored to particular sectors. For instance, small or medium sized life sciences companies and pharmaceutical enterprises from the region are being given an opportunity to join a Biopharma Trade Mission to China.
The mission, scheduled for 24th-27th November 2014, will help companies to understand and pursue trading opportunities available in the world’s third largest pharmaceutical market. Following a pre-visit workshop, the Trade Mission will include presentations by companies based in China on funding collaborations, clinical development and working with the government in China. There will be opportunities to meet officials from the British Embassy and hold individual meetings as well as attending briefings and other events.
Chris comments, “As business relations between the UK and China reach new heights, there has never been a better time for Chinese and British companies to make use of the support available from UKTI and CBBC – and what better opportunity to find out more than by attending UKTI East’s trade mission.”
Chris will also be present at the ‘Explore Export’ event in Newmarket on 11 November 2014, at which new and experienced exporters can develop their international sales by attending seminars and booking one-to-one meetings with a broad selection of overseas experts from British Embassies, Consulates, companies and partner organisations.