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Video transcript

Superstar exporters

Russ Grazier, Head of Barclays ECA and London Trade & Working Capital:

Superstar exporters are organizations that export ten or more products to ten or more overseas markets. These firms are the engine rooms of national exports for many countries, with world trade being dominated by a few superstar firms. Superstar exporters are typically larger in nature, more productive and more likely to be foreign owned. These exporters are usually more diversified.

 

Wesley Etan, Trade Director:

To become a diversified exporter, it's really important to analyze exporting behaviours, trends and patterns within an industry. So for example, the old 80-20 rule applies so for firms exporting a range of products, over 70% of revenues tend to come from a single or core set of products. Linked to this, the product mix exported by a superstar changes fairly frequently with new products brought into place, slower movement or peripheral products.

There are without doubt barriers to diversification for businesses seeking to export internationally. The research shows that things such as export taxes can adversely impact the range of exports sold in a given market. Looking at markets where competition is particularly fierce from bigger players, exporters tend to skew their export sales to their best performing products rather than fully exploring and promoting their full product range.

On balance it's a far from gloomy picture. What we've seen is that trade policy allow an increase access to export markets and in some cases help lead to firms exporting a wider range of products.

 

Russ Grazier, Head of Barclays ECA and London Trade & Working Capital:

To encourage the growth of new export superstars it's important for exporters to take several initial steps. Firstly, understand your business. Businesses need to evaluate and understand their position within their current market, their core competencies and also their financial capabilities.

Secondly, they need to stay agile. Digital and sharing economies are dramatically changing production and consumption patterns across the globe. Businesses need to remain alert and agile around these.

Thirdly, broaden your horizons. The US and the EU will remain important export markets for the UK but of course that will change. Expanding consumer markets and industries and new and emerging economies will hold major growth potential for British businesses so keep informed and make sure that those opportunities are something that you're alerting and then fourthly take advantage of the support that's available.

The UK government has initiated a range of Export Promotion and support policies in recent years designed to help firms overcome barriers to exporting. Barclays is committed to providing support and guidance to exporters and to signpost them where and when needed so that they get the right support from the right people at the right time.

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