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Hints to Success in the UK

That is why it is very important for you to understand the aims and objectives of the British importer during negotiations, so as to be able to show that, as well as looking after your own interests, you are also taking into account the interests of the British importer. This will enable you to build long-term business relationships and it will promote trust between both parties.

In order better to understand the UK market, you need to consider several questions:

Why does a country import?

1. Because the goods in question are not produced locally. For example, the UK has to import raw materials and commodities such as coffee, cocoa, rubber etc because it is not a producer of these commodities. Some countries import raw materials to use in manufacturing and then re-export the final product, so benefiting from the value they have added.

2. The goods are not available locally to the specification and quality required.

3. Local production is insufficient to meet demand.

4. Because the total cost of the imported goods is still lower than that of the same goods locally-produced, for one or more of the following reasons:
   • The low cost of labour and raw materials in the exporting country;
     
   • Higher productivity in the exporting country;
     
   • Currency exchange rates which favour the importer.
     

5. To diversify the source of supplies and so reduce dependence on local production.

6. Sometimes, for the purpose of countertrade.

7. In order to maintain your competitive edge, you should always be aware of the main reasons that your goods are imported into any particular country, and must bear in mind that there are always competitors who want to take that market for themselves.

What are the particular interests of the importer?

1. To secure regular supplies of goods, raw materials or services for his customers.

2. To secure additional sources of supply as an alternative or back-up or in order to meet expansion.

3. To achieve a balance between value-for-money and quality.

4. To secure continuous supplies at the lowest possible price for his customers.

5. To keep up with the trends in his goods on the international market.

It is very important for you to understand the aims and objectives of the UK importer during negotiations, so as to be able to show that, as well as looking after your own interests, you are also taking into account the interests of the British importer.  This will enable you to build long-term business relationships and it will promote trust between both parties.

1. If you are successful in conducting this kind of negotiation, it could result in a British importer including you in his long-term business strategies, particularly with regard to business expansion and if this is very successful, it could result in a joint venture.