Market entry strategy for exports to the United Kingdom

If the United Kingdom is a relatively unknown market for you, you need a clear market entry strategy. This may be different from the strategies you have used so far, as the market structure and the competition is different.

Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.

Oppportunities for international business in the United Kingdom

The United Kingdom is one of the larger economies of Europe, although not being part of the EU any more.

As of 2024, the United Kingdom’s population is estimated to be approximately 67.96 million. The population has shown a modest growth rate of around 0.35% from the previous year. It has a diverse set of overseas born populations, with the largest contributing countries being Poland, India, and Pakistan.

The UK has a mixed economy, which is the sixth-largest national economy in the world by nominal GDP. It is characterized by a highly developed and market-oriented sector. The largest city and capital is London, which is a major global city and financial center.

Being an island nation, the British have always been very open to trade and while Brexit brings some uncertainties, it also offers opportunities for the United Kingdom to reconnect with markets outside of Europe.

DISTRIBUTE THROUGH LONDON AS A THE MAIN MARKET: BUT THERE IS MORE

Obviously London is the place to have your flagship store or to find many buyers for luxury products. But for B2B services or general products it may be wise to start in a different city. This way you can test the market and build a good position first with less competition. Let our team advise you.

In the UK, we work from Manchester with experienced business development specialists. Manchester has a long and illustrious history and was at the forefront of the industrial revolution. Today it is a thriving, modern city and the UK’s second city for foreign investment.

SELLING YOUR PRODUCTS ONLINE IN THE UK

In general, there are two ways if you want to sell your products online in this market:

Through an open platform like Amazon, Ebay or Rakuten where you can set up your own shop
Through a (specialised) online distributor, who will buy your products and sell them on its website.

Selling on a platform like Amazon involves listing your products on that marketplace, which allows you to reach a large number of potential customers who are already shopping on the platform. As a seller on Amazon or other platforms, you are responsible for managing your inventory, shipping products to customers, and providing customer service. The platform charges fees for its services, including a referral fee and a fulfilment fee if you choose to use the platform’s fulfilment services.

On the other hand, selling through an online distributor involves partnering with a company that specialises in distributing products to retailers or other sellers. The distributor will take care of the logistics of getting your products to retailers or other customers, such as warehousing, shipping, and handling returns. In exchange for their services, distributors typically charge a fee or take a percentage of the sales.

Five ways into a market

Your entry model decides your cost, your speed and how much control you keep: sell directly from home, work with an agent, appoint a distributor or importer, sell online, or open a local office.

Control and investment move together. Direct and online selling are cheap to start and easy to stop. A local office gives full control, but needs staff, registration and often a local company.

Most companies start light, prove that there is demand, and only then invest.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Get your HS code VAlidation Report for only € 39

Entering the market in the United Kingdom in three steps

Step 1

Validate the demand

Check market size, competitors and price levels, then speak with five to ten potential buyers. Their reaction tells you more than a general market report.

Step 2

Choose channel and price

Pick the entry model that fits your margin and your capacity, and calculate your landed cost: transport, duties, VAT and the margin the channel will take.

Step 3

Pilot, then scale

Start in one region or with one partner, agree what success looks like after six to twelve months, and expand the country plan only on those results.