EI Post-Brexit grant
For many Irish companies that have been selling into the UK market for years, Brexit has posed a significant challenge. With the UK’s departure from the EU, tariffs, customs checks, and regulatory changes have made it more difficult to do business in the UK. As a result, many companies are now exploring new markets to diversify their customer base and minimise the risk associated with relying too heavily on a single market.
However, entering a new market is not an easy task. It requires a significant amount of research, planning, and execution to succeed. In this blog, we will explore some of the key challenges that companies face when entering a new market, and provide some tips on how to develop a successful market entry strategy.
In the aftermath of Brexit, many Irish companies are reconsidering their export strategy and exploring new markets beyond the UK. The uncertainty surrounding Brexit has made it increasingly difficult for Irish companies to rely on the UK as their primary export market. In this blog, we’ll explore the necessity of moving away from the UK and the benefits of exploring new markets across the world.
Brexit’s Impact on Exporting to the UK
The UK has traditionally been a significant market for Irish exports, and many Irish companies have relied on the UK as their primary export destination. However, the Brexit vote in 2016 has led to significant uncertainty and disruption for Irish companies exporting to the UK. The ongoing negotiations and trade deal uncertainties have made it challenging for Irish companies to plan and execute their export strategy to the UK.
The UK’s departure from the EU means that Irish companies will now face new barriers to trade, such as customs duties, tariffs, and increased bureaucracy. These new barriers will undoubtedly impact the cost of doing business and make it harder for Irish companies to compete in the UK market.
Why Explore New Markets?
Given the uncertainty and challenges associated with exporting to the UK, it’s essential for Irish companies to consider exploring new markets. By doing so, they can mitigate the risk of relying too heavily on a single market and diversify their customer base. Exploring new markets also offers Irish companies the opportunity to tap into new sources of growth and revenue.
Benefits of Exploring New Markets
- Diversify Your Customer Base
By exploring new markets, Irish companies can expand their customer base and reduce their reliance on the UK market. Diversifying your customer base can help to reduce the impact of any disruption or changes in one particular market.
- Tap into New Sources of Growth
Exploring new markets can also provide Irish companies with access to new sources of growth and revenue. By identifying and entering new markets, companies can tap into new customer segments, introduce new products or services, and create new revenue streams.
- Spread Risk
Exporting to multiple markets can help to spread the risk associated with relying on a single market. If one market experiences a downturn or disruption, it will not have as significant an impact on your business if you have other markets to rely on.
- Enhance Competitiveness
Entering new markets can also help to enhance your competitiveness. By gaining exposure to new markets, you can gain new insights into different customer needs and preferences, which can help you to develop new products or services that are better tailored to the needs of those markets.
How to Explore New Markets
Exploring new markets requires careful planning and research. It’s essential to understand the cultural, economic, and regulatory environments of the markets you’re considering. Some key steps to take include:
- Conduct Market Research
Market research is crucial when exploring new markets. You need to understand the size of the market, the competition, the regulatory environment, and the cultural and economic factors that may impact your success.
- Develop a Market Entry Strategy
Once you’ve conducted market research, you need to develop a market entry strategy. This should include a plan for how you will enter the market, how you will market your products or services, and how you will distribute them.
- Build Relationships
Building relationships with local partners, distributors, and customers is critical when entering new markets. You need to establish trust and credibility with local stakeholders to succeed in new markets.
- Seek Support
There are many resources available to Irish companies looking to explore new markets. Enterprise Ireland, for example, offers a range of services and support, including market research, market entry strategy development, and funding.
Brexit has created significant uncertainty for Irish companies exporting to the UK. To mitigate the risk associated with relying too heavily on a single market, Irish companies must explore new markets across the world. By diversifying their customer base, tapping into new sources of growth, spreading risk, and enhancing competitiveness, Irish companies can build resilience and future-proof their business.
Exploring new markets requires careful planning and research, including market research, developing a market entry strategy, building relationships, and seeking support. With the right approach, Irish companies can successfully enter new markets and build a sustainable future beyond the UK.
If you’re an Irish company looking to explore new markets, there are many resources available to support you. The Post-Brexit: Market Growth & Diversification Grant, offered by Enterprise Ireland, provides Irish companies with funding and support to develop the strategic capability to grow in existing markets and diversify into new ones outside of the UK.