Benefits of setting up overseas

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26/06/2017

If you’ve started exporting, setting up a physical presence in your overseas target market is a great way to establish a foothold in your target country.

Overseas options

It may seem a bit scary, branching out into foreign territory, but the potential rewards are worth it.

Being on the ground in your target country means you’ll get to know your customer base better. You’ll get a better idea of demand, and how your products can be tailored to suit the new market. You’ll have more opportunity to talk to your customers, getting a better idea of their buying behaviour.

There are a number of different ways to consider, each with different costs and responsibilities:

• Local warehousing or distribution centre – a central overseas location for holding product allows you to ship directly to your customers from in-country. This can save transport costs and reduce delivery time.
• Local employees – a central overseas location for holding product allows you to ship directly to your customers from in-country. This can save transport costs and reduce delivery time.
• Use a local distributor –partner with a local business who will represent your products and services on your behalf. This can be a low cost method to have ‘people on the ground’.
• Set up a manufacturing base – if shipping costs are excessive, or parts and delivery are time dependent, then setting up a manufacturing location might be beneficial.
• Joint venture with complementary businesses – investigate forming alliances with other local businesses who are also exporting as a way to mutually grow and expand. These UK businesses can then represent your interests on your behalf.
• Suppliers – an overseas branch means you have an opportunity to form relationships with local suppliers and make the most of the deals they can offer.
• Set up a physical office – often useful if you need your staff to physically be in the country to deliver services, sales or support.
• Buy a local supplier or competing business – an instant method to have local representation if aligned to your overall business.

Finally, being on the ground means you’ll get to know your customer base better, and a better idea of demand. You’ll have more opportunity to talk to your customers, understand their buying behaviour and react to local conditions faster.