LEAD FEATURE

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at the British Embassy in the Indonesian capital, Jakarta, has seen the potential afforded by these markets at fi rst hand. “The opportunities in high-growth markets are remarkable,” she says. “Indonesia has a population of 240m and over half are under the age of 30. So there is a very large emerging middle- class, which is aspirational and wants to get hold of the type of world-class products made by UK businesses. “The British brand is a great asset.

UK products have a good reputation for quality and, as a nation, we are generally seen as trustworthy. Some of the big UK retailers and banks have a presence here in Indonesia, but Indonesians say they’d like to see more British products on the market. So we should do more to service that demand.”

The British DIY chain B&Q is one large company tackling the biggest of BRIC markets with its 41 stores in China. The country’s middle class is set to grow from 172m to 314m during the next fi ve years, making it larger than the entire US population. But Mark Ladham, managing director of the group’s retail operations there, says even large companies need to listen. “Relationships in China are very, very important. That is the same whether it’s a government relationship or a vendor relationship. We need to be able to be seen to take advice and take criticism. It would be wrong to come in and say we’re big, we’re international – stand back.” Susan Haird is keen to emphasise that

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small fi rms can move into these markets as well as big companies. “Exports have always been the cornerstone of Britain’s trading success,” she says. “Today, as the global economy rebalances to refl ect the emerging consumer power of high-growth markets there are lucrative opportunities for British businesses, and especially SMEs, that venture overseas.

BUILDING NETWORKS The ‘pain and pleasure’ of selling abroad for smaller companies was addressed in September at the Daily Telegraph’s Festival of Business day in Manchester. Chancellor George Osborne was joined by business leaders from companies including Google and Proctor & Gamble as well as entrepreneurs such as Luke Johnson, co- founder of Pizza Express, and LastMinute. com founder Brent Hoberman. But smaller business bosses shared their experiences at the conference too, including Graham Cartledge, chairman of London-based architectural fi rm Benoy; and Elizabeth Fothergill, CEO of Pennine Healthcare.

Derby-based Pennine has had its fair share of setbacks in its traditional export markets, but, thanks to a forward-looking approach to investing in automation and a policy of keeping an eye out for new markets, it has been kept busy. “We have seen our share reduce in our four big export markets of Ireland, Greece, Portugal and Spain,” says Fothergill. “However, growth has been maintained thanks to trade in

% OF UK EXPORTERS

have developed a new product or service as a result of their overseas business

expanding markets in the Middle East, Australia and New Zealand. We are also trying to get into South America.” Benoy entered the Chinese market in 2001 and now derives more than 40 per cent of its global revenue there. The fi rm specialises in the design of mixed-use facilities. Since there have been stricter regulation on residential real estate investment in the country, amid fears of a housing bubble, investors are increasingly looking for these types of development and Benoy is meeting their needs. Damian Reece, the Daily Telegraph’s head of business, says: “The event was the launch pad for the Telegraph Business Network, a new online offering of business-related content. The network will prove a unique online community and the 1,000 delegates and panelists at this year’s inaugural festival were the founder members.”

Certainly slowing developed economies are making UK companies look to countries with high growth. The proportion of fi rms doing business abroad has risen from 26 to 31 per cent over the last two years. London-based WOW Toys is one business already seeing the rewards of exporting. After UK Trade & Investment helped it attend trade fairs it met a Brazilian partner at the Nuremberg Toy Fair in 2009 and now has a signifi cant market in South America. Chief executive Nadim Ednan-Laperouse says proudly: “These days our international sales far outweigh sales within the UK.” ■