
Why should businesses be looking to as a market for export China?
Exporting should be a key consideration for any ambitious business. Companies who export are more resilient and tend to see faster rates of growth than their domestic counterparts. Exporting allows businesses to reach a much larger consumer market and can also help to manage seasonal fluctuations in demand. The advantages specific to China are vast. The sheer size of the market and its changing demographic mean there are plenty of opportunities for UK businesses. China’s ever-increasing middle class (expected to reach 600m by 2020) is causing the economy to shift from being driven by manufacturing to consumption, leading to a higher demand for luxury goods and high-end fashion. This increase in demand for western brands means that UK businesses can enjoy a higher margin on their products than they may in other markets, and the “Made in Britain” label is particularly strong in China, meaning that customers are willing to pay a premium for UK products. Buying goods from China to UK Other sectors where demand for imports are high are dairy and alcohol. Fake alcohol is a prevalent issue in China, and recent government crackdowns are leading to increased demand for imported alcohol. The Chinese are also becoming more and more health conscious and dietary supplements have grown in popularity in recent years.New export country series: Getting your share of the exciting Indian market
So there are a lot of opportunities, but what do you see as the main obstacles when exporting to China?
One of the biggest obstacles for UK businesses when entering China is finding a local partner. When there are so many options to choose from, it can be difficult for a foreign business to know where to look and who to trust. UK businesses may be used to receiving government support from the likes of UKTI or UKEF, but in China, it is not always as easy to know where to look – which can make entering the market more difficult for UK businesses. That’s not to say the support does not exist, however, and UK businesses should consider seeking support from China-Britain Business Council which, as the name suggests, specifically focuses on the Chinese market. An interesting point to raise is that although it is often perceived as a barrier, language does not create as much of a problem as people may think. Whilst in rural China it may be hard to find fluent English speakers, it is widely accepted that English is the international language of business and so this should not deter UK businesses from exploring opportunities in the region.New export country series: Cracking the sought-after US market
So you’ve mentioned some of the obstacles that UK businesses may face when exporting, how can these be overcome?
Any final comments?
China is an exciting market for UK businesses and can offer a wealth of opportunity. The key is to research as much as possible before you go and make the right connections in country. For more information on how Santander could help you to achieve your global aspirations, visit our site. We’re still to hear from Santander about exporting to Brazil – so stay tuned for more expert advice.Share this story