The event was aimed at small and medium sized British businesses whose outlook has wholly shifted since the pandemic. COVID accelerated the adoption of digital commerce for both consumers and companies, resulting in a massive 97% of internet-enabled SMEs now exporting their goods and services abroad, in contrast to just 2-28% of traditional businesses. According to the World Economic Forum, cross-border e-commerce is the fastest-growing segment of international trade.

This digitisation increases the scale, scope, and speed of trade, translating to a predicted revenue growth rate of 10.4% for global e-commerce this year, bringing anticipated sales worldwide to $6.3 trillion.

As such, the role of the Department of International Trade has evolved. Having once focussed on large multi-national businesses, the government department has diversified to offer Britain's small and medium sized businesses guidance and support for their global expansions.

This shift is best illustrated by the recent government restructuring, merging the DIT with the Department for Business, intrinsically linking the future of UK businesses with trading abroad. The new Department of Business and Trade is led by Conservative rising star Kemi Badenoch who pledges to cut red tape, knocking down 100 unnecessary blockers standing in the way of helping UK businesses sell more and grow more. The new department is positioned to continue the DIT's legacy as the government's flagship economic growth department. Kemi's 'Race to a Trillion' target aims to grow UK exports each year until we're selling over a trillion pounds of goods and services worldwide by 2030.

And why not? As of January 2023, there were 5.16 billion internet users worldwide, accounting for 64.4% of the population. That's an enormous market available to these businesses at the touch of a button, 24 hours a day.

The question is how to do this effectively. And that's where the DIT comes in. The Digital Trade Conference brought together experts from marketing, logistics, data and analytics, and finance to share their expertise and insight and help SMEs embrace exporting successfully.

Our focus of the event was how to streamline and protect the exporting process through digitisation. Because although this enormous market is ripe for the picking, shoppers are more discerning than ever. The current cost of living crisis has also reduced disposable income and discretionary spending, resulting in more mindful and calculated purchases. Set this against the backdrop of a burgeoning global market, where customers have more choices, and you can see why they're more determined than ever to make the right one. In fact, 53% of shoppers report that they always research before buying to ensure they make the best possible choice.

So how does a business entering a new, foreign market achieve the competitive advantage it needs to be successful?

Here are my five key takeaways for SMEs from the event:

Do your research

There is a lot more to consider than just demand. You also need to evaluate the competition and whether there is a need for your business in the market. Once you've ascertained that there is, then real work begins.

Your current products, messaging, and marketing materials might need to be revised for the each country you want to trade in. It’s also important to understand the linguistic and cultural barriers you will come up against and the opportunities available too.

For example, research shows Americans love UK products, with the UK holding more than 28% of the market for Americans shopping abroad. This presents a fantastic opportunity to lean into your business's 'Britishness.' On the other hand, Australia's relatively sophisticated, wealthy, and tech-savvy market has a growing demand for sustainable, eco-friendly goods. Potential customers might be put off by the carbon footprint of long-distance freight from the UK.

Have a clear strategy for exporting

It takes courage, perseverance, and a clear plan to realise your international dreams. When you start trading internationally, there is a lot to consider but start by outlining your goals. Once you've pinpointed your direction, you can start to map out costs, what, how, and where you'll sell, and the dreaded taxes you'll have to work out.

The correlation between a thought-out strategy and success is proven, and you don't want to set yourself up for failure before you've even started - just because you don't have a plan.

Understand the digital customer

As far back as 2013, as many as 81% of customers were researching products and services before purchasing, which has only increased over the last decade.

To do that research, 85% of customers expect product information and pictures, 59% want to shop on their phones, 87% shop for a good deal, and 56% use their smartphones while in-store. Today's digital customers are well-informed, want access to relevant information quickly, and share information with other customers. When businesses are operating internationally, everything a potential customer expects from their experience need to be delivered online. 

Social media provides an excellent opportunity to understand and engage with your online customers, and these platforms also allow you provide you with the means to reach a vast digital audience.

Go global, but in a local way

It starts with language. As many as 65% of consumers prefer content in their own language, with 40% not buying goods or services in other languages. But it goes beyond that.

According to the all-in-one social media tool, Hootsuite, it is about 'localisation', when your content matches a customer's cultural expectations. The platform describes localisation as taking the element of context and applying it beyond just translating words. Its research says localisation helps customers connect with a brand on a deeper level and improves their likelihood of buying.

Not only that, localised content broadens your reach, boosts search traffic, improves the customer experience, and increases brand loyalty as customers will feel more "connected."

The same holds for currency. In 2019, RIS news reported that one in four shoppers would leave a website if their preferred local currency was not offered. Businesses need to be able to allow customers to pay in their own currency without being affected by fluctuating exchange rate which might erode their profit margins.

At Moneycorp, we have solutions that give companies the power to receive funds and raise invoices in multiple currencies – immediately breaking down some of those barriers to entry while also protecting the bottom line. We can also support clients in building a plan to help them manage risk and protect profit margins from exchange fluctuations.

You don't have to go it alone

The DIT has excellent resources available to businesses to support them on their journey towards trading internationally, as well as a network of partners which can offer more specific guidance in areas like marketing, social media, logistics, data and analytics, and foreign exchange solutions.

It also offers a Digital Exporting Programme and marketplace support to help businesses discover new sales channels overseas, educational training through its Export Academy, and one-to-one digital consultations.

We’re here to help too. We start any new client relationship with a complimentary FX health check. We use that information to form a plan to help our clients manage market volatility using our bespoke currency management strategies, as well as on a more practical level, which will help them meet the needs of international customers.

None of the information contained in this article constitutes, nor should be construed as financial advice.

Statistics have been sourced from materials present by the Department of International Trade's Digital Trade Conference in Birmingham