UK small businesses must take advantage of export opportunity
Just one in five small businesses in the UK are planning to do business overseas in the next year, according to research by Alibaba Group.
The Chinese e-commerce giant says that companies risk missing out on the potential of export to support their growth and recovery through the Covid-19 pandemic, due to common misconceptions related to cost, complexity, and even cultural barriers.
It surveyed 1,000 small businesses and found that 27% believe their size puts them off exporting. Meanwhile, 20% fear there isn’t strong enough demand for their products overseas, while 19% say it’s simply too confusing.
19% of small businesses planning to export to new markets will do so in an effort to counter the impact of Brexit, while 12% say the Covid-19 pandemic has pushed them to look for new international opportunities. A further 19% note that maximising growth in their current markets has caused them to look overseas.
Europe tops the list as the most popular target market, with 52% saying that is where they’ll be looking to sell their product next. Just 17% of small businesses with global ambitions are looking to South America, and just 7% to China.
From luxury goods to health and beauty and nutrition, Chinese consumers hold ‘Brand Britain’ in extremely high regard for its quality and heritage. This demand has remained resilient over the course of this year, and through the coronavirus outbreak, Alibaba Group says.
David Lloyd, General Manager of UK, Nordics & The Netherlands, Alibaba Group, comments: “Large companies have always been good at exporting their products around the world.”
“Now, technology is making it just as easy for small businesses – who may not be recognised brand names in their home market – to tap into demand for British products from overseas and to shine on a global stage.”
“We helped British brands sell an incredible $494 million worth of products in just eleven days during our 11.11 Global Shopping Festival this year. As consumption increasingly shifts online, businesses of all sizes need a digital strategy, to allow them to tap into and maximise growth potential in new markets.”
“As small businesses build their growth plans for 2021 and beyond, I would strongly encourage them to explore the role and potential of export within this, and consider how they can take advantage of strong economies in less familiar markets. The opportunity is there: it’s easier than you think and it’s too big to ignore,” he concludes.
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