This positive momentum is reflected in Alibaba’s Export Outlook Report, in which almost half of UK businesses surveyed stated they considered exporting a viable opportunity. However, nearly a quarter (23%) of those surveyed did not export goods overseas and amongst SMEs, this figure rises to one third. These findings suggest that although there is a strong desire amongst UK businesses to sell goods overseas, it is possible they are unsure where to start…

What is holding UK businesses back?

Our research found that 19% of UK businesses believe a lack of demand for products in overseas markets would stop them from exporting. 25% highlighted concerns about payment security, while the biggest barrier cited was increased paperwork and customs rules, cited by 28% of businesses.

Historically, UK export has focused on the United States and Europe, something that is reflected in our survey findings however the UK Government recently highlighted in its export opportunity ‘Made in the UK’ policy that in order to reach its export target of £1 trillion by the mid-2030s, UK businesses should look to other markets such as China, Brazil, Indonesia, Mexico, and Turkey, as well as Vietnam and Philippines. Yet a fifth (20%) of businesses surveyed highlighted a lack of cultural awareness and familiarity with overseas markets as a barrier to export. Furthermore, nearly a quarter of UK businesses highlighted they felt overwhelmed by the prospect of exporting to China.

It’s therefore more important than ever to equip businesses with the tools and know-how to help unlock new markets around the world and reach new audiences.

Overcoming the barriers to exporting

The message from businesses responding to our survey is that increased support would enable them to fulfil their export ambitions. The type of support required ranges from expert export advice to more government assistance and overseas marketing information.

The Department for International Trade’s export hub and export support service is a valuable source of information and advice for businesses embarking on their exporting journey. Understanding the unique characteristics of a target export market is essential to delivering a successful exporting strategy. Looking at China, for example, the China-Britain Business Council can support UK brands at every stage and provide deep insights into this unique consumer market.

Online marketplaces play a vital role in today’s export landscape and are often the most efficient and low risk channel for launching internationally. According to our research, 92% of businesses are working with online marketplaces to boost their export sales, with 68% saying it’s a key part of their export strategy. When asked why, 54% explained it was more cost-effective for their business, 49% said they reach more potential buyers and 43% said it was more efficient.

Alibaba enables UK businesses to access new markets both through its B2B platform, Alibaba.com, and its B2C China marketplace, Tmall and Tmall Global. As the largest B2C cross-border ecommerce platform in China, Tmall Global enables international brands to forego the need for local processing and infrastructure. More than 80% of brands on Tmall Global have made their China debut on the platform.

Taking your business global

In our experience, once a business starts to export, they often find the benefits outweigh the perceived barriers and they grow in confidence. We’re focused on helping UK businesses of all sizes seize the trading opportunities worldwide, thereby supporting their growth and resilience amidst increasing economic uncertainty.