10/06/2009 - Are foreign markets an opportunity in the recession?

Are foreign markets an opportunity in the recession?

10/06/09

64% of ICT companies planning to export in next 12 -18 months
36% want to explore first time exporting
40% choose to export to EU
30% choose to export to US/Canada

Some SMEs do not see the need to trade abroad. Some are deterred because they believe they are too small or are put off by the potential complexity of international business. However, as globalisation occurs, and the world becomes metaphorically smaller, exporting has become a reality for any size of business and there is a wealth of support on offer to facilitate successful entry into overseas markets.

Earlier this year the ICT Cluster conducted a survey into the level of export activity amongst ICT companies in the region. A healthy number, 84% of respondents, are already successfully exporting ICT products across the globe – from Europe to Asia and Africa. Amongst those companies that do not currently export, 64% stated that they plan to do so within the next 12-18 months and the remaining 36% expressed interest in learning more about how to export for the first time.

The results are encouraging. When sales are down, companies need to be innovative about finding new markets. ICT is a global opportunity so if a product is successful in the UK, the chances are there are potentially lucrative new markets overseas. However, entering any new market requires careful research and planning.

Some companies end up exporting almost by accident through overseas demand but it’s far better to have anticipated issues in advance. The best starting point is to research and develop a smart business plan. It’s important to really understand your product; how it adds value; where potential customers are; and identify key decision makers. On top of this it’s essential to know the country you’re targeting including; cultural, language and regulatory issues.

The West Midlands ICT Cluster is dedicated to stimulating and supporting international trade and can direct SMEs to support schemes for all aspects of exporting including: developing the business plan for the international market; financial support; legal and regulatory assistance; international market knowledge; overseas office space; export and cultural training and business networking and introductions. Assistance is available for SMEs currently exporting, those that are ready to engage in international trade and SMEs that have yet to export.

A full list of international trade support services available to West Midlands ICT SMEs can be found in the International Trade section on the ICT Cluster website. The main organisations are:

Of those listed, UKTI and British Chamber of Commerce are the main providers in the region and for many should be the first point of contact. Staggeringly 84% of the survey’s respondents were unaware of UKTI’s “Passport to Export” programme for new and first time exporters. Both UKTI and the Chambers offer export advisory services, mentoring support, market intelligence, training courses for potential exporters, opportunities for international networking and marketing, and grants for SMEs to attend trade missions. International support schemes (ie. non-UK) for SME internationalisation are also available to the region’s ICT companies. The main provider is the European Commission (EC) which offers a number of schemes aimed to encourage cross-border trade and investment between EU member countries.

A further finding of the ICT Cluster research was the identification of the EU (40%) and USA/Canada (30%) as the most important export markets for existing ICT exporters. Most of these companies were selling through agents, partners or joint ventures. As many European countries are faring better than the UK they offer potentially large markets for Midlands companies. France, for example, has seen a relatively minimal increase in unemployment (only 0.7 per cent), there is economic stability in Belgium, the Netherlands and Sweden are also looking strong through the downturn. These markets are facing some challenges but not on the same scale as the UK. Meanwhile, Germany, one of the biggest European markets, is doing better than most during this period of change and may be a key market for companies in the areas of manufacturing and engineering, automotive and electronics or related fields.

In recognition of the interest in exploring international markets, there are a number of scheduled events supporting trade in these regions, of which the following are some examples:

The Canada Opportunity 02 July 2009 at Aston Science Park (free event)

The UK is Canada’s primary European trading partner. Canada is the UK’s 11th largest market, with exports reaching £3.3bn in 2007. The UK is the second largest foreign direct investor in Canada after the US.

Growth in many areas of ICT continues to increase and is fostered by collaboration among the ICT industry itself, government and academic institutions. Example segments for opportunities for West Midlands ICT companies include:

Wireless/mobile telecommunications
ICT security
E-Health/healthcare ICT
Interactive/digital media

Gilda Carbone, the Trade Officer (ICT, E-health, IT & Games) from the British Consulate in Toronto is coming to UK for this event to help West Midlands ICT businesses to tap into opportunities in Canada. Following the presentation a limited number of 1 to 1 meeting opportunities will be taking place. More details available here.

Market visit to Toronto, Canada - 4 - 9 October 2009 (Market Visit Grant up to £600.00 available)

Companies from the West Midlands are invited to join an UKTI supported ICT visit to Toronto, Canada, to research the market place, obtain new clients and develop partner relationships.

Whilst in Canada, RIM (Makers of Blackberry) has invited the companies participating in the trade mission to their HQ in Waterloo. The objectives of this visit to RIM are to understand.

How to partner-collaborate with RIM,
How to work with RIM & its supply chain
How to tap into Blackberry Partners Fund
Application / Product Development for Blackberry & Mass Licensing etc…
Included tour of R & D department of RIM

Networking events & an official UKTI reception have been organised for West Midlands ICT companies with the Ontario region’s two largest technology associations, Technology Triangle & Communitech and their members.

Reference the event flyer for more information and detailed programme.

TechnologyWorld09 – at Ricoh Arena, Coventry 23 - 24 November 2009

As one of the largest technology 'speed meeting' events in the UK, TechnologyWorld has helped over 500 buyers and sellers to do business each year.

The event provides a highly effective platform for companies to identify and build new international business and partnership opportunities. It brings together UK and non-UK based companies from across the globe to do business via a 2 day, focused 'speed meeting' event.

TechnologyWorld09 will also include a world-class seminar/panel discussion programme and the opportunity for businesses to use the Soapbox to promote their technology.

Technology areas at TechnologyWorld are:

Communications - covering the broad spectrum of the sector but with a focus on Mobile/Wireless and Broadcast Technology.
Electronics - focusing on Photonics; Optoelectronics & Displays; Embedded Systems and Telematics.
Enterprise Software, Systems & Services - focusing on IT Infrastructure; Business Intelligence; CRM and include Information an Network Security
Mobile Health - focusing on applications of mobile/wireless technology to a range of health and well being situations: primary care, hospital, social care, and consumer products.
Low Carbon Technology - including technologies and applications for energy reduction and conservation covered by Green IT. Also covers the innovative design of products that provide low power and energy efficient functions and applications described as Cleantech (cleantechnology) as it relates to ICT.

TechnologyWorld 08 generated around £30 million of expected business from the 400 participating companies in 2 days.

Visit http://www.technologyworld09.com/ for more information and booking. SUBSTANTIAL EARLY BIRD DISCOUNTS UNTIL 1st JULY.

More information for all events outlined above can be obtained by contacting Bineet Desai, UKTI’s West Midlands lead for the ICT Cluster: T:024 7665 4192, M:07789 514 927 or at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Trading with Asia Pacific Region - Meet the experts – 21 September 2009 at Aston Science Park, Birmingham

The UK is Asia Pacific’s strong trading partner; countries within the Asia Pacific Region are among the UK’s largest international markets.

Growth in many areas of ICT continues to increase, which is fostered by collaboration among the ICT industry itself, government and academic institutions. Example opportunities include:

Wireless/mobile telecommunications
ICT security
E-Health/healthcare ICT
Interactive/digital media
Photonics
RFID
Informatics

Following the presentations on the various country markets, there will be opportunities for 1 to 1 meetings with the Commercial Officers from the Asia Pacific region.

A number of market visits are also planned to Europe including Belgium in September 2009, Spain in February 2010 and Germany in March 2010. Further details will be announced in due course.

More information for all events outlined above can be obtained by contacting Bineet Desai, UKTI’s West Midlands lead for the ICT Cluster: T:024 7665 4192, M:07789 514 927 or at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

For the full survey report, please visit ICT Economic and Export Survey Results May 2009.