Bernard McCarthy, managing director, DHL Express Ireland
Bernard McCarthy, managing director of DHL Express in Ireland, believes businesses can maximise their growth potential by pursuing international markets and implementing a strong e-commerce strategy
Companies trading in the current environment exist in a unique business climate that presents both challenges and opportunities. Global trends such as the growth in e-commerce and financial and political issues closer to home such as Brexit mean that modern businesses have a wealth of opportunities to expand and diversify.
It has long been established that while there are plenty of domestic opportunities within Ireland, our island is a relatively small market for indigenous Irish companies which are looking to grow and expand their business. Now could not be a better time to start looking internationally.
The shock to the system that Brexit has caused may actually act as the required impetus for Irish businesses to spread their wings and look to markets beyond the UK.
With the first anniversary of the triggering of Article 50 approaching, businesses are looking to the longer term. The general consensus is that diversification into new markets is the best way to mitigate the risks around an over-reliance on the UK market. However, it needs to be acknowledged that this is easier said than done and trading across borders can be time-consuming, complex and risky if not planned for correctly.
DHL believes that the effort is worth it. The export-led recovery in Ireland is bringing new and growing SMEs to the international stage. It’s certainly the silver lining to the ‘Brexit cloud’ and in the longer run we believe Ireland will have a stronger SME exporting sector as a result.
We recently analysed over 2,000 SME customers who ship to the UK and the data shows that small Irish companies are already diversifying to other markets. In fact the growth in Irish exports to non-UK markets increased by an impressive 17% to the EU, 32% to the US and 16% to Asia Pacific, according to the study.
E-commerce opportunities
The most efficient and risk-reducing route to market for Irish companies looking to maximise their sales is through online activities. Every company requires a strong e-commerce strategy to maximise their growth potential and this is as true for an SME as it is for a multinational organisation.
The growth of e-commerce has been exponential over the past five years. Technology has been the main driver of changing consumer behaviour and customers now expect more choice, more flexibility, more certainty and more speed.
Technology has enabled customers to shop without boundaries. One in seven online purchases are now made in a different country. With this number increasing it is clear that borders and distance are no longer elements that restrict a buyer’s choice of vendor.
This growth in the cross-border e-commerce market represents unrivalled opportunity for Irish businesses to expand into new markets.
The shift to e-commerce within the logistics sector is a fundamental one. When I first joined DHL, over 90% of what we did was business-to-business. Today, more than 50% of our deliveries go to consumers at a residential address. Therefore a primary consideration when taking your company international is the choice of a logistics partner.
At DHL, we offer support to SMEs which are looking to expand into international markets. We have dedicated e-commerce advisors that will work with your business to identify potential international interest in your product and advise on simple website changes that could take your company international. We will act as an extension of your brand to ensure that the delivery process is seamless.
We have also developed a website for new or prospective exporters that is designed to assist them on their export journey. The website provides practical advice on everything from customs documentation, International Commercial Terms (‘incoterms’), country profiles and much more. See www.dhlguide.ie.
In this business climate of opportunity, retailers and logistics companies need to work together to develop the most comprehensive and customer-centric processes to continue to exceed customer expectations and win and retain loyal customers.
Going global can be challenging and companies like Adams & Butler, Easydry, Good4U, Kerona Scientific, Kora Healthcare, PolyPico Technologies and Prodigy Learning that are willing to take this step should be recognised and applauded.
That’s why at DHL we are delighted to be a part of the SFA National Small Business Awards by sponsoring the 2017 Exporter of the Year award. What is especially promising to see is the wide variety of industries that this year’s nominees represent. This highlights that opportunity exists no matter what sector you’re trading in.
Congratulations and best of luck to this year’s Exporter of the Year finalists. We hope that your stories encourage other SMEs to enter the export marketplace and continue to contribute to Ireland’s economic success.
“The general consensus is that diversification into new markets is the best way to mitigate the risks around an over reliance on the UK market”