High-Growth Markets Help Defy Downturn

17 November 2009
Trade & Industry » Business & Investment     BTI_13539

IN TODAY'S challenging economic conditions a variety of UK companies, some relatively new and some well established, have continued successfully expanding business globally, especially in important new markets such as Asia and the Middle East.

Their approach to international business has meant they have benefited from globalisation and strengthened their business back in the UK.

There have been many strategies to meet the challenges they have encountered and overcome, but important qualities of expertise, innovation and design were key components, as well as help from UK Trade & Investment (UKTI) along the way.

UKTI is the government organisation that helps UK-based companies succeed in the global economy and helps overseas companies bring high quality investment to the UK.

One example is Berkeley Square (www.bsquare.co.uk/) a small London-based cosmetics firm. A quintessentially British brand, created and manufactured within the UK, the Berkeley Square Cosmetics Company was started by former fashion photographer Richard Cann and his partner in 2004. Although not a cosmetics giant, it has positioned itself as a small passionate company committed to supporting UK perfumery and the UK beauty scene.

Now in 2009, even in such a testing economic climate, Berkeley Square has successfully entered new markets, armed with beautiful fragrances and personal care products that combine art and fashion with a romantic Art Deco flavour of the era of the 1920s. In May 2009, the company launched products, including a perfume that won a silver award for best new fragrance of the year, at Korea's leading department stores, with the help of UKTI.

Ms Lee Kyung-ah, a UKTI investment officer, is the one who knocked on the company's door to persuade them to enter the Korean market. Talking to Kyung-ah, Berkeley Square found the market very interesting. Korea's cosmetics market is unaffected by the sluggish domestic economy.

Korean ladies have ever-rising standards of beauty and Korea's purchases of make-up and skincare products are similar to that of Japan and France - countries known for their high consumption of cosmetics.

Berkeley Square had taken a proactive approach to exporting by exhibiting at leading cosmetics shows and taking its range to several countries.

"Our entry into Harvey Nichols in Hong Kong was covered by Elle and Harper's Magazine which gave us a nice calling card in the region," said Richard Cann. "We won a silver award for Best Fragrance of the Year at Cosmoprof, have had some large orders from Greece, Poland, Portugal and Spain, and are in discussions with Russia, following a trade show."

As a UK Trade & Investment Passport to Export company, Berkeley Square has also taken part in a supported trade mission to India and is looking to target the United States.

Elsewhere, another entrepreneur, Tony Cutmore, had been working in the oil industry for 35 years when he decided to set up a new company, Centek Limited (www.centekltd.co.uk). He had been approached by an engineer who had developed a new design for a centraliser. The engineer had not been able to progress the design to the stage of manufacture and marketing; Cutmore stepped in with investors to help move things along.

Oil companies use a centraliser to position pipe casing in the middle of the drilled hole to allow cement to be pumped through the casing to hold it in position. If the centraliser fails, the casing will not be positioned correctly and which can result in underground gas seepages. Every new hole being drilled requires a centraliser, thus creating huge potential for repeat business.

"Around 10 to 15 years ago, the oil industry changed," said Cutmore. "Instead of drilling vertical holes, most holes are now drilled horizontally, so a stronger centraliser was needed. We spotted an opening and came to the market with a new design, superior to other products available, in that it is 100-per-cent heat treated. It is made of one solid piece of steel so it has no moving parts and as such is much stronger and more reliable."

Making a name, Centek sold its first products in 2002, patenting the design in the UK. Since then the company has taken out patents in 15 countries. It continues to carry out all research and development at its premises in Devon, south-west England. The company's key overseas markets now are in the US, Norway, Denmark, Germany, Australia and the Middle East.

"We will continue to research business opportunities in regions with big oil industries, such as West Africa, Russia, India and China," added Cutmore. "Globalisation is a fact of business life these days. If you don't gear up and respond to it, you won't survive."

Meanwhile, global expansion has given another UK business recognition as an international company, inspiring client confidence and helping to generate referrals from around the world. Chilworth Technology Group (www.chilworth.com/) was established as a spin-out firm from the electrical engineering department of Southampton University in 1986.

Its founder Dr Sampuran Singh worked for 10 years at Southampton University, teaching, carrying out research and consulting within the electrical engineering department. His expertise was primarily in applied physics, working in electrostatic technology applications and hazards. This technology has wide applications ranging from photocopiers, paint spraying to crop spraying.

Having headed the university's consultancy unit for two years, he decided to strike out on his own. At that time, the university was setting up a science park and he based his new venture there.

"Although the UK market understood some of the advantages of electrostatic applications, it became obvious after working with clients that there was a real gap in the market for expertise in electrostatic hazards," said Dr Singh.

The company established good business in the UK and Europe but its first major target was the US. Dr Singh's links to the university were useful, and he appointed one of his former students, having completed his training with Chilworth, as head of the US operation.

But Chilworth did not confine its efforts to regions that already had a level of appreciation for its services. As a knowledge-based business, the company has always been prepared to educate potential clients locally, to create a market for itself.

In 2002, Chilworth took this approach to India where process safety was at a relatively low level. Because Dr Singh is from India, he already understood the language and culture and felt confident tackling the market without partnering with a company there. The firm was helped by the traditional perception in India that the UK is a leader in technology and a provider of high quality goods and services.

Another company, Evolve Creative, (www.evolvecreative.uk.com/) has gone from a small start-up to one of India's favourite design consultancies. As a strategic branding specialist, Babu Datta spent more than 25 years designing corporate branding for firms such as L'Oreal, Diageo and SC Johnson Wax.

In 2002 Datta set up his own brand design company in London. With a client base of major firms in the UK, a family trip to India opened Datta's eyes to a new market and he realised that he could do for Indian companies what he was doing for companies at home.

"On that visit I saw how outdated and unexciting the branding of many Indian companies was," said Datta. "I knew that there would be a market for Evolve Creative. British design excellence and design education is recognised as being the best in the world. Our designers have been carefully chosen from the best design schools in the UK."

But Datta still found it took time to develop business contacts in India. After spending months trying to find a way into the market, he made contact with UK Trade & Investment at the British High Commission in Mumbai. He commissioned an Overseas Market Introduction Service report to come up with a list of potential clients. The report identified several companies that were interested and Datta flew out to India to meet them. He now counts many of these firms as clients.

Evolve Creative now has clients from New Delhi to Calcutta, and plans to sign contracts with companies in Chennai and Mumbai. Evolve is further growing its overseas business to include clients in the Middle East.

With its close ties to India, Dubai was a natural location to develop new business. It already has two clients in the United Arab Emirates and plans to branch out into Russia and South America, emerging markets where the company feels its strategic branding can help businesses there gain a competitive edge.

Add to Your Saved Stories Add to Your Saved Stories

Contact Information:

Website: www.ukinvest.gov.uk/
Telephone: +44 (0)20 7215 4644
Fax: +44 (0)20 7828 1281
Email: ukti.pressoffice@uktradeinvest.gov.uk
Address: Press Office, UK Trade & Investment, Kingsgate House, 66-74 Victoria Street, London, United Kingdom, SW1E 6SW
Latest News in UK Trade & IndustryLatest News in UK Trade & Industry RSS
Latest News in UK Science & TechnologyLatest News in UK Science & Technology RSS
Latest News in UK Creative & DesignLatest News in UK Creative & Design RSS
Latest News in UK EnvironmentLatest News in UK Environment RSS
Search London Press Service images