Guidance

Exporting in the digital age: Helping UK companies to succeed globally

Updated 18 July 2014

This guidance was withdrawn on 20 May 2019

This page has been withdrawn because it is out of date.

1. Welcome from Helen Dickinson, Director General of the British Retail Consortium

I am delighted that the government recognises that British retail is world class and that it is continuing to make a serious commitment to promoting our fantastic industry around the world.

Visit the gleaming new malls of the Gulf and Asia and you will find familiar British retail names such as Topshop, Marks & Spencer and Rolls Royce. Supermarkets like Tesco and Waitrose are also helping to transform the retail environment in Europe and beyond, bringing choice and value to consumers and promoting efficient and sustainable supply chains. And thanks to the internet, even the smallest business can now sell its goods around the world to customers hungry for the UK’s world class products.

In 2013, British retailers sold more than £4.2 billion worth of goods over the internet to international customers. That is more than any other country, with the exception of the United States. We are the vanguard of online commerce and enjoy a trade surplus of more than £500 million in internet retail trade. And we know that there is potential to develop this trade further.

British retailers are certainly well equipped to win in increasingly competitive markets, but they need help. The British Retail Consortium, UK Trade and Investment (UKTI), and the retail industry are working together to provide practical support and information along with first class expertise to British retailers of all sizes, helping them to exploit these great business opportunities and grow their business through international trade.

We want British retailers to become as successful overseas as they are at home. And by utilising the skills and expertise from Government and our vibrant sector we can make this a reality.

2. Helping UK retailers to succeed through export

If you are planning to sell your products to international customers, or looking for cost effective ways to grow your business, UK Trade & Investment can help.

We are the government department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high-quality investment to the UK – acknowledged as the best place in Europe to succeed in global business.

UKTI also has a network of advisers and experts that can help you to accelerate the export growth of your business.

We can provide you with:

• access to networks and new business opportunities

• help to enhance your digital capability and ability to sell through multiple channels

• funds for you to visit new markets and meet new clients/customers

• practical support to develop your export potential

If you are part of the creative industries, retail, luxury, food and drinks sectors and want to accelerate the growth of your business, talk to us at consumerretail@ukti.gsi.gov.uk or follow us on Twitter @UKTIRetail @UKTIFoodDrink

UKTI gave Trunki invaluable support when we started exporting, and helped us to see the wood for the trees. Our products are now in 97 countries worldwide.

Rob Law, MD, Trunki

We represent some of the UK’s most trusted brands and by working with UKTI, we are able to increase export potential for some of our members in the world’s fastest growing markets.

Richard Peck, Secretary, Royal Warrant Holders Association

3. Success in numbers

• retail generates 5% of UK GDP

• 9% of UK businesses are retailers

• the UK is the world’s largest outward investor

• exporters have 59% faster productivity growth than non-exporters

• the UK is the 10th largest exporter of goods

• 70% of companies find that overseas business leads to fresh ideas and innovation

• 85% of companies say that UKTI services have enabled them to achieve higher growth

• additional sales generated through UKTI support in 2012/13 was £50 billion

• 2013 saw £32 billion online retail sales in the UK, of which £4.2 billion was to international customers

• 46% (175 million) of Europeans shop online, 55% (171 million) of Americans shop online

• the UK has the highest share of online retailing in the world

• a company is 11% more likely to survive if it does business overseas

• consumer electronics, appliances and apparel account for 44% of online retail sales

• China has the most online shoppers at 220 million and the most internet users at 517 million

• global online retail sales have increased 17% yearly since 2007

Sources: UKTI, BRC-KPMG, IMRG-Cap Gemini, BRC, ONS, Centre for Retail Research, IORMA

4. How UKTI helped me to untangle China

Photo courtesy Tangle Teezer

Shaun Pulfrey, inventor of Tangle Teezer, explains how being listed on Chinese e-marketplace Tmall has driven record sales for his business.

Our innovative product which detangles fragile hair is now taking China by storm, thanks to digital and online opportunities.

We recognised that our current distribution methods in China and Hong Kong – an online store and through department stores, were limited so we decided to look at online channels to scale up our business.

A figure quoted to us by UKTI was that there were more than 260 million Chinese consumers shopping online every day. It was clear that young Chinese consumers were going to Tmall, owned by Alibaba – with online sales exceeding those of Amazon and Ebay combined.

Through a UKTI event in London, we were able to meet directly with the buyers for Tmall, who were looking to find more UK brands. They have a department specifically to help international brands set up on Tmall, and helped to guide us through the process and even speeded it up for us. We have been delighted with their support and assistance.

Within a month, Tmall had approved the launch of our Tangle Teezer official store on their platform. Design of the store, and setting it up was easy. Really, it’s no more difficult than setting up an Amazon shop.

The next step was to think about building brand awareness and demand for Tangle Teezer online in China. Social media is incredibly important in China, more so than in the UK in influencing purchasing decisions. We worked with a digital marketing agency who specialise in the China consumer market and have created fan pages upon two of the biggest social media platforms in China – Weibo and Weixin. Our experience with China and Tmall has been nothing short of fantastic.

If all predictions about the China consumer market come true – then there is no doubt the China online market will be our biggest global market of any type by the end of 2015.

Within four weeks, we had sold more Tangle Teezers than the previous 12 weeks.

Within 12 months, at current forecasts, we will triple our sales within the China market year on year.

Within one week we had over 6,000 followers in China online.

We have been able to shorten the supply chain and increase our margins.

Want to find out how UKTI can help you to accelerate your international growth? Visit www.gov.uk/ukti or follow us @UKTIRetail

5. UKTI’s E-Exporting Programme

More and more UK companies are engaging in digital opportunities to accelerate their global export potential. By 2020, the value of UK e-commerce is estimated to be £68 billion (from £10 billion in 2013).

Being at the vanguard of e-commerce, UK companies are well placed to take advantage of digital opportunities that will allow them to access international markets.

Retailers are now adopting an omni and multi-channel approach, where goods and information are delivered to the consumer through all available shopping channels, including mobile devices, bricks and mortar and TV and radio.

UKTI’s E-Exporting Programme will support the brands and retailers to take advantage of these opportunities:

• digital advisors available across UKTI’s network, available to meet with UK companies

• ongoing support and advice through an e-passport programme

• e-commerce advice available on UKTI’s YouTube Channel (www.youtube.com/UKTIweb) and www.opentoexport.com

• online Communications Review to ensure that your online presence is maximised for international markets

• bespoke events, both online and face to face – find out more about our events by following @UKTIEvents on Twitter

• industry news, statistics and advice available through @UKTIRetail and @UKTIFoodDrinkon Twitter

As part of the E-Exporting Programme, UKTI is also building relationships with the world’s leading online marketplaces, which allow UK companies to list themselves and export their goods to new international markets.

UK brands such as Burberry, Marks and Spencer, Karen Millen, Barbour and Fred Perry are already selling through online marketplaces and are seeing growth in sales due to global demand for British goods.

UKTI’s E-Exporting Programme is the first and only programme of its kind in the world to fast track the setting up of brands on these platforms and to position UK retailers at the forefront of international e-commerce.

6. Physical export Helping UK companies access new markets through bricks and mortar

Photo courtesy of Tesco

While the route to growth is increasingly through the screen, UKTI continues to support companies seeking a physical presence in the market of their choice.

• Tesco in South Korea: with the help of UKTI, Tesco is exporting its food products to countries across Asia and beyond.

• Marks & Spencer in Mexico City: when Marks and Spencer decided to expand its Extra Special range to Latin America, UKTI were on hand to support them in working with partners to stock their items in local supermarkets.

Need help finding a physical location in an international market? visit www.gov.uk/ukti

7. UKTI export services

Interested in exporting? UKTI can help make doing business internationally as easy as possible. Find out about our services.

Want to know more? Speak to your local International Trade Adviser or visit www.ukti.gov.uk/tradeadvisers.