Is Exporting Your Products to the UK the Right Option for Your Business?
Exporting your products to the UK could be a lucrative opportunity, but is it right for you ?
If you’re on the fence, here are a few considerations before taking those first exporting steps.
Where to Begin – Is There a Market Need for Your Product
Market demand and your analysis of it should be a significant factor in any financial decisions you make. Is there a place in the market for your product? Will that place allow you to break even on your investment and move you forward into growth?
The UK Food and Drink market is incredibly diverse. Do your research, research trends and track similar products to understand where your product fits into the market and whether that place will allow your product to perform in the way you need it to.
Consider the product itself. Is it the best it can be? Will people know how to use it or do you need additional information that your own local market would not need? Is it going to need any adjustment to ensure it’s compliant with UK food legislation and will appeal to local tastes?
The cost involved in tweaking your product to make it viable for sale in the UK can sometimes be overlooked. Be aware that you may need to change packaging and ingredients and account for any increase in costs in your budget.
A key part of our business at Jane Milton Ltd is our Market Report service. Together with our support and guidance the Market Report will help you understand and resolve these issues.
Homegrown Product Competition
There is always competition in the food and drink industry, and when you are exporting to the UK that is no different. Ensure you know the homegrown products and can clearly identify your points of difference. Whilst homegrown products may have the advantage of being already established, your product needs to shine with its own unique selling points. By understanding your local consumer and the costs of logistics you can also overcome the brand loyalty hurdle and land your product in prime position.
For instance, do you know UK consumers have really embraced the ‘Air Fryer’? According to Leatherhead Food Research [May 2024], more than half of UK households (51%) now have an air fryer and most owners (62%) use their device weekly. If your product can be cooked in an air fryer, having the right instructions on the pack will entice more consumers and give you the edge over competitors who may not yet have updated cooking instructions. Take an honest look at your product against any already in the market and see how you can give yourself the edge.
To make your exporting investment worthwhile, you’ll need to ensure your product has an established, unique value proposition that will promote your product in a potentially overcrowded market place.
What Makes Your Product Stand Out from the Crowd?
Look closely at your own product and highlight the points of difference in comparison with other similar products. What are you offering the market that adds value or is something new or different?
Bear in mind too, that if you are an unknown brand you can end up being pushed to have a cheaper price, and this will not be where you want to position yourself. Having a clear product differentiation will help strengthen your case.
Don’t forget the legal checks of your packaging too – is your nutrition panel UK compliant, your legal product description in place etc? We can implement a legal label check for you very cost-effectively. Do you have a UK business address on your product – this is now a legal requirement for all products in the UK. We can help you understand a few options for this address, but be aware – if it is missing, your product may be rejected at customs, and this could lead to costly delays and expense.
You’ll need to factor in other actions such as what you can do to get noticed, whether this is entering awards or having a strong listing. Consider also mocking up your UK packaging to show to potential buyers and don’t go to print or make any products until you have definite orders.
Logistics Costs
You need to fully factor in the cost of logistics. Getting your product from A to B can be significant, it’s important you account for all the costs associated with this and understand what the customer expects. Do they expect you to cover all costs until final delivery to them? What are their MOQ’s and can you make that work or do you need to hold stock in the UK and send it to customers from there? What will that cost implications be?
Is it Worth It?
Now that you’ve weighed up market demand, product and packaging adjustments, the logistics costs and the competition, is exporting your product to the UK financially viable? With all the information you’ve obtained when considering the steps above, pull together a solid financial analysis. Compare the potential cost with the potential revenue to be made in the UK market.
If things are looking positive, you’re good to go and your next step will be developing your strategy. pitch deck, marketing support and launch plans.
As experts in the food product industry, we have decades of hard-won experience at your disposal, to prevent costly mistakes and to help you save precious time. We’re ready when you are!
For more information on how a Jane Milton Ltd can support your exporting journey, simply click this link and make a quick appointment at a time to suit you, to chat about what you are planning. You can also connect with us via email businessgrowth[at]janemilton.com.
