Business
The prospects for global trade for Thames Valley firms
25th October 2011
By Phil Stupples, senior corporate banking Manager, HSBC
Today’s business world is one marked by change, uncertainty, but also by opportunity. The economic picture for many countries around the world remains extremely challenging and, as a result, businesses continue to face a difficult journey.Amid this challenging climate in tough domestic markets, it is more important than ever for businesses to consider international possibilities. While maintaining a solid domestic business will always be a focus for companies in the Thames Valley, by focusing on international expansion into wider markets, businesses can not only reduce the risk of relying solely on domestic trade but can position themselves perfectly to capitalise on future economic growth.
Historically, the focus for successful businesses has been trading with prominent and well established markets such as North America and the euro zone. However, with uncertainty afflicting these markets, many businesses are now choosing to look further afield.
The considerable growth seen in countries such as China, India and the Middle East, highlights that the international trading climate is moving much more towards the East. With this in mind, Thames Valley businesses could and should be capitalising on a diverse range of opportunities. China, for example, is the economic success story of the last 25 years and, despite some slowing of its economy, has continued to expand and develop at an immense pace. This makes it an ideal target for many businesses looking to take advantage of global trade opportunities.
For many companies, understanding how to enter a new market is crucial. Some companies are already seeing increased revenue streams from a strong export position, but could further their expansion through joint venture franchising.
In the Thames Valley there is also a considerable focus on businesses contemplating acquisitions abroad, extending outreach through companies that are already active in foreign markets. Fundamentally, this could enable businesses to take a larger share of a new market by taking advantage of a partner’s existing local expertise.
Many businesses in the Thames Valley area have already heeded the call to action to grow their business in international markets. Companies such as Berkshire-based Direct Wines, which sells wine directly to consumers and trades as Laithwaites Wine, Virgin Wines and Averys, have focused on international opportunities to drive growth. Through the HSBC Thames Valley corporate banking team, the business is in the process of rolling out a global cash management solution which assists their ongoing expansion plans through reducing financing costs and helping them to manage risk.
Tim Curtis, the group head of treasury for Direct Wines, said: “The global cash management solution underpins our continued rapid international growth plans. We have developed excellent global and local relationships with HSBC over recent years and are delighted that the bank has shown strong support for Direct Wines.”
HSBC is ideally placed to support businesses on a global scale, aided by its extensive global footprint and on-the-ground international expertise, which make it a natural partner for businesses taking international trading plans forward.
While domestic markets remain uncertain, an international approach can help businesses diversify their target market and continue to thrive.
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