Exporters exceed expectations
Growth healthier for exporting firms than domestically-focused counterparts
Malta, 16 June 2014- More exporting businesses report growth in revenues or profits than companies focusing on solely domestic trade, finds latest survey by Regus, the flexible workspace provider. For the third year running, exporting firms confirm they have an advantage with 48% reporting profit growth over the last twelve months compared to only 36% of those trading only domestically.
Similarly, over half (55%) of internationally trading firms report revenue growth in the last year compared to 46% of domestically focused firms.
While reaching out to a larger pool of prospects certainly plays a part in exporter’s success this survey also confirms that that having a presence in the same country as clients or customers carries a number of benefits. Specifically, 81% of businesses say that retention rates can be increased by physical proximity. Being close to customers also means businesses can better solve problems (78%) and improve satisfaction, other key measures that drive up retention.
But foreign expansion is a big step for businesses to take and a difficult one if support is lacking. In particular, firms globally report that aside from making customer introductions, their government trade delegations can most usefully help them expand abroad by providing advice on legal and regulatory matters (62%).
Other findings from the survey show that:
- Being close to customers means businesses understand customers and their markets better (77%);
- 75% of firms globally say a location close to their customers can boost sales and half (48%) think they could develop better products;
- Government introductions to local business organisation and associations (44%) and advice on taxation (43%) would also help businesses planning foreign expansion;
- A third of businesses would like help with local custom and 30% would benefit from a directory of places to network.
Mauro Mordini at Regus comments: “People always talk about ‘getting close to the customer’, but in expert markets that can be literally true. Our survey respondents told us that having a physical presence close to their customers brings about a number of benefits. In particular, businesses report that better customer retention, faster problem resolution and greater satisfaction can be achieved by setting up a location in proximity to their customers or clients.
“On the other hand, setting up a presence abroad is a challenging task if you don’t have the right support from your home government. Businesses globally report that the best help they could expect from their government trade delegation when expanding (aside from client introductions) is getting legal and regulatory advice, taxation and local custom information and tips on where to network and meet local businesses. Where this information is not made available or is incomplete, businesses would do best to partner with firms that understand the world of business and that can provide local know-how and connections.”
Regus is the global workplace provider.
Its network of more than 2,000 business centres in 102 countries provides convenient, high-quality, fully serviced spaces for people to work, whether for a few minutes or a few years. Companies like Google, Toshiba and GlaxoSmithKline choose Regus so that they can work flexibly and make their businesses more successful.
The key to flexible working is convenience and so Regus is opening wherever its 1.5million members want support - city centres, suburban districts, shopping centres and retail outlets, railway stations,
motorway service stations and even community centres.
Founded in Brussels, Belgium, in 1989, Regus is based in Luxembourg and listed on the London Stock Exchange. For more information, please visit: