How to Write an Export Strategy A step by step guide to exporting

Working internationally should be both exciting and profitable but can be a steep learning curve even for an experienced maker not familiar with the paperwork or planning involved. The Crafts Council has put together an Export Toolkit to guide you through the trickier parts of the export process so you can make an informed decision about your international plans – even when an export opportunity comes out of the blue. This section sets to help you to understand what an export strategy should look like and how it can help your business. Growing your international presence takes time, research and investment. There are many routes to market, and through your export strategy research you will find the best route for you.

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‘Working internationally meant I made contacts that I would never have made in England. The landscape is different in so many ways and usually the shows have participants from all over the world so your reach is much wider than that of just the host country.’

Lubna Chowdhury, site-specific ceramics

How to write an export strategy for your craft business

What is an export strategy? Why do I need one? If the words ‘export strategy’ are not off putting enough then add to that the fear of shipping a precious cargo of work half way across the world, the confusion and complexity of customs documents, and the worry about getting paid by someone in a different currency and country, and it is a wonder why anyone choose to work overseas at all. It has to be said that working internationally can be fraught with worry, but there are also opportunities, rich rewards and connections that can literally transform your business.  

‘My visit to China vindicated much of my existing knowledge as well as adding to it substantially. There is huge potential there and I found in the ceramics world there is a hunger for shared experiences between China and the West.’

Jo Davies, ceramics

Perhaps you have been approached by an overseas buyer at a UK trade event? Maybe someone has asked you to consider an international exhibition, or you are keen to explore collaborations with international artists. For many makers, their first export experience is often a reactive one – caught slightly off-guard when someone asks if their products are available in the States, or how much the shipping would be to South Africa. Whatever the reason, it is better to be prepared and proactive.

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What is an Export Strategy? Top Ten questions

On the following pages the Crafts Council has complied useful questions and answers to help you take the first steps to expanding your creative overseas or review your current export experience.

•  An export strategy is simply a plan for selling your work overseas.

•  It will help you to make decisions about why and where you could sell your work.

 

•  It will identify any lack of knowledge or skill shortages you have and help you think about how you can tackle them.

 

•  It will help you to research how you can approach a new market.   •  It will help you to identify measurable targets and goals.  

•  Your export strategy is also a useful document to show funders, business partners or collaborators that you are prepared and have realistic expectations of the export process.

What does your export strategy need to include? Each craft and design business is different but there are 10 key considerations that will be relevant for any new exporter.

 

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‘International recognition gives you a better platform to working in the UK.’

Anita Carnell, leather, gilt thread

1. Is my business ready?

What skills and knowledge do you already have and what do you need to improve? A review of what skills and knowledge you already have will help to find the best way forward.

Use a SWOT analysis of your business to identify your Strengths, Weaknesses, Opportunities and Threats when considering your export potential.

Examples: Strengths You have language skills you can use. Your business is already thriving in the UK You have had significant interest from an overseas market

Examples: Weaknesses You don’t understands export documentation You don’t have time to do the research

Customs duties and shipping costs could out price your work for overseas buyers.

Examples: Opportunities You have been offered representation in an other country Trade association missions could help fund a trade event

You have a unique product not currently available in your chosen export market.

Examples: Threats Your prices seem high compared to competitors in your chosen export market The unknown impact of currency fluctuations

You may have to redesign some products to ensure compliance with differing H&S legislation. Follow-up and aftersales care is harder to manage

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2. How do I choose the right overseas market?

Where to focus your efforts for export is a fundamental starting point. You must be pragmatic and realistic. Be aware of your strengths and weaknesses and use these to help you shortlist the right export market.

•  Don’t chase an unknown market based on just one or two customer enquiries

or an offer of a subsidised event. Try to think more strategically about what will work for you longer term, how easy it will be for you to service those overseas customers and maintain a presence in the marketplace.

•  Do your research – if at all possible visit first! Don’t book a stand at a trade event purely on the basis of second hand information. You need to check for yourself to see what the buyers are like, how busy it is, what the competitors products are, how well marketed the event is, how well you think your products will be received.

•  If you are not sure about an overseas retailer or gallery – ask them if they have stocked work by other UK makers. Find out what their understanding is of the export process and documentation. They may even be able to help you with the paperwork if they regularly accept work from UK makers.

•  Think about what feedback you have had from any overseas customers. Which products seem to be preferred by which sort of buyer. Look at where your web traffic comes from.

  •  Ask around. Check with other makers for advice on appropriate trade events,

international galleries or relevant boutique stores.

  •  Consider doing a residency – living a working in a country will give you a

unique insight into the culture of a country and will open doors and contacts that won’t be available if you choose the more usual routes to market.

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3. How might cultural and seasonal

differences matter? •  Look at who typically buys your work in your home market. Consider how

similar your chosen market is to your home market and try to identify and address any differences between the markets

  •  What is the business culture? How do they prefer to do business and what will

you need to change or adapt to operate in this market?

•  Do you need to modify your product for the market? For instance, if you are selling lighting you will need to check the local legal requirements.

  •  Are there seasonal events you need to be aware of? Gift giving festivals and

events are all about timing - check these out in advance if they are relevant to your work.

•  Be prepared for cultural differences. Some products just don’t translate well into different environments. Stylistic preferences from one country to another can be subtle yet vital. Global standardisation has affected many products yet design preferences and local nuances are still prevalent. The number 4 is unlucky in Japan and so tableware is usually sold in sets of 5 instead. Even colours should be given thought. In Western cultures for example, white is associated with weddings but is more likely to be worn at a funeral in China.

•  Consider where you might need text translating on marketing and product information. Even if English is widely spoken, it is a courtesy to translate key messages about your product.

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‘Overseas opportunities have helped me create more interesting work and continue to foster a fresh multicultural perspective.’

Juli Bolanos-Durman, glass

4. How could my potential customers

find me in this market?

•  Wholesale or retail? Work out what your natural route to market is. If you are familiar with doing trade events in the UK then seek out similar profile events internationally with a guaranteed audience.

•  If you mainly work directly with private clients or on site-specific work your route to market will differ and you will need to identify individuals who can support you.

•  Do you prefer someone else to represent you in overseas markets? Working with someone who is already an expert in the country and who has an established contact / client list could be invaluable. One of the hardest things to do is to maintain a presence in the market when you are not physically there. You may find that finding an agent, partner or gallery to represent you is the most viable route.

  •  E-Commerce – would this be the best route for your product? It’s a great way to

test out new products with less initial outlay. It is also a useful tool to support being physically present in an overseas market.

  •  For all the above routes to market, effective marketing is going to be essential.

Find out about international publications and trend websites and social media sites where you could be featured. Ensure your marketing materials are suitable for use in your chosen destination. Consider how you might need to modify your message.

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‘Photograph your goods before shipping as proof of good packaging. I always ship spares – just in case.’

Aline Johnson, glass

5. What will my pricing strategy be in this market?

•  Is there a local tax (similar to VAT?) How many days do they take to pay? What method of payment do they use and how much does that cost in fees? Which currency do they use and how can you plan to mitigate any risks involved in selling with in another currency?

•  Transport and tariffs – these are the two biggest factors in the cost difference for exporting your work. Be confident in your pricing. Work out in advance how much it would cost to send an item and how long it will take to get there.

  

•  Try to keep your product prices consistent for every country you sell into – then add any duty or shipping costs so that it is really clear to your customer what they are paying.

•  If you can give a quote in the local currency it goes without saying that

overseas customers are more likely to buy.

•  Your international sales will take longer – this will impact on how long it takes

to get paid.

  •  You need to factor in the currency exchange rate – and make sure you lock in a

payment date as rates are constantly in flux and you could lose out if payment is delayed and the exchange rate changes.

  •  Will the client pay you in sterling? If they do a bank transfer who is paying for

the bank fees?     

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‘Make sure your business is ready and has enough domestic credibility. Ensure your pricing is at a level that suggests quality.’

Jacob van der Beugel, ceramics

6. How will I get my work there?

•  Depending on what you make you will have some choices here. Investigate the

costs and timing of each option in advance and then you can factor in accurate shipping prices to your customers. You may decide that only a part of your work is suitable for export due to the size / weight and nature of the work.

•  Sea Freight Not a last minute option, you will need plenty of time for shipping. A freight ship can take up to 27 days to travel from the UK to Japan.

Usually the cheapest method of sending large work or display equipment. Remember to factor in customs clearance time too

•  By Air Delivery by air is quick but it is also very expensive. It is not a cost effective option if your shipment is large or heavy. Great for small, precious items.

  •  Couriers

If you have small packages that are light these can be transported more easily by a courier. This will still need the paperwork to be completed but often the courier shipping note will cover off all the detail needed for customs.

 

•  See our International Access Directory for more detailed information on shipping guidelines, document templates and a full guide to customs documentation.

   

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‘Outsource your packing and shipping so you can focus on making the work, instead of the box!’

Umut Yamac, product design  

7. What export documents will I need

to complete?

•  Export documentation can be tedious but it’s worth doing properly and well in advance of any shipping deadline. Decide if this is something you are happy to handle yourself or if you prefer a shipping agent or courier company to do this for you. It is of course cheaper if you do this yourself and worth learning about if you are going to be sending work overseas regularly.

  •  Even if you choose to use a freight forwarder to handle your documentation, so

will still need to be consistent and accurate with the information you give them.

•  Doing export documentation can be time consuming – do you have the admin time to do this? At the very least you will need an accurate commercial invoice and a packing list for everything you send.

 

•  Make sure you have an accurate commercial invoice and you have completed your packing list properly and honestly

 

•  Make sure your country of origin is correct – some countries require a certified copy of the country of origin.

 

   

 

Check our International Access Directory for full information on what document you need, commercial invoice and packing list templates and a guide to shipping terms.

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‘If you haven't shipped somewhere before try and find someone who has and get information on what to expect. I work with 'pack and send' for orders over a certain size or value. They collect and pack the items and prepare all documents so I don't have to worry.’

Lee Borthwick, wood

8. Who are my competitors?

Learning about and from your competitors is a key piece of research that will inform your decisions on where and how to market your work.

•  How do your competitors approach this market? What can you learn from them?

•  Try to identify the key competitors in your target market. Is there a high demand for the type of work you do, will you be able to be competitive with your pricing?

 

•  How can you mark a difference with your work and stand out? Does your product have a particular UK provenance or history that will be sought after in your chosen market. For example using a uniquely British Material (Welsh wool or Whitby Jet)?

•  Is there space for you in this market or scope to differentiate?

      ‘I was really fortunate to receive a grant to

visit SOFA Chicago in 2006.  The grant enabled me to carry out research at the show and generally get a feel for the market in the US, and also to gain representation for future shows with a US gallery.’

Rebecca Gouldson, metal

9. How can I find out if there is a demand

for my products?

•  There is no easy way to know in advance if your work will go down a storm or be a storm in a teacup. Without some market testing.

•  The best advice is to approach a new market with a product that you are already successful with. If you have had a very positive reaction and strong sales in the UK, then you are in a good position to approach a wider market.

•  If you are an unknown in a new market, buyers may be cautious but will be

reassured that you achieve strong sales in the UK. You may be asked which products are your current best sellers – be prepared with a confident answer.

•  Social media is a great way to get a quick market feedback to your products – if you already have a large and responsive following.

 

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Marcin Rusak at Design Days Dubai

10. How do I protect my IP in an

international marketplace?

This is a tricky balance between getting global recognition for your products and protecting your copyright. We talked to Briffa Legal about how you can take steps to protect your intellectual property in an international market place. •  Check your chosen market’s attitude to copyright, design rights and

trademarks. •  Find ways to mitigate the risk. Registering your design in the UK is always a

good idea but there is no centralised, worldwide or comprehensive system for easily protecting intellectual property – each country may need a separate application..

•  Keep secure and detailed records of your designs including drawings, photographs and prototypes.

You will find more advice about how to register you design rights, more information about protecting your intellectual property and links to useful organisations in our International Access Directory.

 

   

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Andrea Walsh at Design Days Dubai

Top Ten Template Use this checklist for your own answers

1. Is my Business Ready?

2. How do I choose the right overseas market? 3. How might cultural and seasonal differences matter? 4. How could my potential customers find me in the market? 5. What will my pricing strategy be in this market? 6. How will I get my work there? 7. What export documents will I need to complete 8. Who are my competitors? 9. How can I find out if there is a demand for my products? 10. How do I protect my IP in an international marketplace?

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Goal and Targets

setting your own timeline

Once you have considered the ten points above, you should find it useful to set out some realistic goals and timescales to focus your international ambition.

Working internationally is very rewarding but is a long-term investment for your business. You shouldn’t expect a return on your investment after your first overseas trade event or exhibition. Successfully accessing and understanding a new market takes time and inevitably costs money. Unless you have unlimited resources and a large team, it is much better to focus your time and energy in understanding one or two potential markets really well over a longer time span, than to scatter your efforts across the globe.

Setting out a timeline and end goal will help you focus on any areas you need further information and support with.

   

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Crafts Council, ‘Nature Lab’ installation at Design Miami Basel 2016

Target timeline An example goal template is set out below

Goal Ac(on Date

TolaunchnewrangeintoUSmarket

VisitICFFNewYorktoscopeoutpotenFal,compeFFonandpricepoints

May2019

Contacteventtobookstand.InvesFgatefunding/pressandtradecontacts

July2019

CheckproductcompaFbilityandmodifyifnecessary.

Sept2019

Sourcepackaginganddisplayitems/findandconfirmshipper

Nov2019

Pre-eventmarkeFnginplace Dec2019

Completeexportpaperwork.Shipworkanddisplayitems

Feb/March2020

Sendeventinvites/pressreleases

April2020

LaunchrangeatICFF May2020

Followupandconfirmorders/readjustproductrangebasedonfeedback

June2020

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Need more information?

Further documents in our Export Toolkit include our new International Access Directory for practical information, help with shipping documents and understanding export jargon, and links to other organisations that can offer further support or funding. Check out our Export Case Studies Three design businesses researched export markets in the USA, Middle East and Northern Europe. Find the right event for you – our International Event Year Planner gives information on international events and trade fairs where you could exhibit overseas or meet international makers and galleries.

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‘There is value in having your work stocked internationally even if you are not making sales, so its important to weigh up the benefits of the exposure against the financial aspects.‘

Umut Yamac, product design

How to Write an Export Strategy is part of the Crafts Council’s International Export Toolkit

Published April 2019

  Funded by Department for International Trade

  Project Producer: Barbara Gunter-Jones

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