How to Research a New Export Market: A Practical Guide for UK SMEs

Most UK businesses choose their next export market based on a 'gut feeling' or a single unsolicited enquiry. While opportunistic sales are welcome, building a sustainable international business requires a more disciplined approach to market selection.

You do not need an expensive consultancy report to start. You need a structured way to compare countries against your own commercial strengths.

Evans Sales Consultancy provides hands-on support for UK manufacturers entering new markets, with engagements starting from £3,950 + VAT. This guide sets out the desk research you can do today to narrow your focus.

The five pillars of export research

1. Demand and market size

Look for proxy data. If you sell components for wind turbines, look for planned offshore wind capacity, not just general 'industrial growth'. Use resources like Great.gov.uk and the Department for Business and Trade to find sector-specific reports.

2. The competitive landscape

Who are the local incumbents? Are they protected by 'buy local' sentiments or long-standing relationships? If the market is a duopoly of two massive players, there may be an opening for a nimble UK specialist. If it is fragmented and price-sensitive, your margins may be at risk.

3. Regulation and compliance

Check for technical barriers to trade. Does your product need local certification (like UL in the US or CCC in China)? These costs can often dwarf the initial sales marketing budget. Rules change frequently; always check current GOV.UK guidance on exporting specific goods.

4. Route to market accessibility

Does the country have an established network of independent distributors, or is the market vertically integrated? Some markets are easy to 'read' but hard to enter because the gatekeepers are few and well-defended.

5. Pricing and margin

Work backwards from the local market price. Once you subtract shipping, duties, insurance, and the distributor's margin, is there enough left for you? Remember that 'price' in a new market often includes the cost of proving your reliability to a skeptical buyer.

A scoring framework for market selection

Use this simple table to compare three potential markets. Score each from 1 (poor) to 5 (excellent).

Desk research vs field research

Desk research tells you if a market is worth a flight. Field research — actually talking to potential customers and partners — tells you if it is worth a business plan. Never skip the second step.