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CENTRAL SOUTH MID MARKET JOINT VENTURES STRATEGY
The Central South mid market – going global?
On January 22, trade minister Lord Livingston announced that every medium-sized business in the country will be offered tailored UKTI trade advice and an intensive programme of support to help them start exporting or break into new markets
That’s very good news, says BDO which in a recent joint report with the CBI: ’Go your own way’, urged the Government and private sector to get behind the international ambitions of medium-sized businesses (MSBs) – being held back by a lack of access to finance as they journey from non-exporter to global business. CBI research has shown that MSBs could be worth an additional £20 billion to the economy if only the UK can unlock this growth.
This would have significant impact on the Central South where privately-owned companies with turnovers between £10 million and £300m, represent 9% of companies, employ 45% of the workforce and generate 48% of the region’s revenue.
Arbinder Chatwal (pictured), director at BDO in Southampton and head of the firm’s India Advisory Services, said: “Local MSBs need help to understand their potential for international success. They need hands-on support to help map out the international journey and, importantly, must have access to the right advice and funding to implement their plans.
“Doing business in international markets is no longer just the realm of the region’s biggest businesses but their experience and knowledge is key. We want to see greater numbers of large firms reviewing their supply chains and assisting medium-sized suppliers where they can to enter new overseas markets.
“The non-exporter of today can be the global businesses of tomorrow, but only if the Government, big business and finance providers play ball.“
As part of their focus on the Central South mid market, BDO has undertaken research to identify the leading companies in the region growing most rapidly internationally. We asked two of these companies to explain the challenges and opportunities they face in sustaining their successful international trading and whether the Central South mid market is ready to go global.
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McGrellis set about reinvigorating the company’s trading abroad. With a long international career in the bathroom industry, McGrellis knew the best operators. He brought in a skill bank of people to form a new globally- focused management team that shared his passion for quality products, responsible manufacturing and top-level service standards.
Croydex revitalised its former operations in Dubai, Shanghai, Australia and the Far East, focusing them on sales. Language and local regulation problems were overcome by sourcing bilingual distributors and hiring representative agents locally.
USA, Canada, and Europe have been tackled by developing partnerships with major retailers. Back at home Croydex sought and took help from UKTI and “any other expertise we could find.“
Trade exhibitions and product innovation have been key to Croydex progress in building and sustaining its global business.
CROYDEX: ’… building relationships around the world’
Based in Andover, Hampshire, with a turnover of £18.8m and 90 staff, Croydex operates from a five-acre site, comprising warehousing, manufacturing and assembly facilities for bathroom furnishings. It designs and develops Croydex globally-branded products, which sell mainly through major retail customers in the DIY and homeware sectors, combined with merchants, distributors and international agents.
When Nick McGrellis, managing director, joined Croydex it had allowed its international trading links, set up 30 years ago, to “wither on the vine“.
“International clients had been contacted by the occasional letter, usually informing them of price increases,“ explained McGrellis. Croydex had little presence abroad, but with known contacts it had an opportunity.
Croydex senior staff have personally done the air miles, visiting the influential industry exhibitions in USA, Canada, China, and Germany. “It’s not just exporting, it’s absolutely about international trading – about building relationships around the world, buying and selling things that can benefit your business.
“Now and again you come up with a little gem.“ Recently, at a Las Vegas exhibition, McGrellis negotiated supply from a Canadian company, and then Croydex developed the product partnership for sales profitably throughout Australia.
With online marketing and an international distributor network, Croydex supplies worldwide. Apart from Andover, Croydex now has volume manufacturing bases in Taiwan, Malaysia, Thailand, Italy and Eastern Europe.
While British branding still carries a sales cachet, Croydex is focused on product R&D, quality and compliance – from raw resources to ethical and safe manufacturing.
Many Croydex products, developed through its in-house design team, are very practical, but innovative. Twist ’N’ Lock, Flexi-Fix, and Hang ’N’ Lock make wall mountings simple, and Sit-Tight is Croydex’s solution to wobbly toilet seats. Protecting IP with international patents is vital said, McGrellis. “Then, if the product is good, it can work everywhere.“
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MARCH 2014
GROWTH CULTURE
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