Businesses in the UK’s pets accessories and supplies sector are ambitious for international growth and see exporting as key to their success, according to new research released from Alibaba Group UK, in partnership with Institute of Export and International Trade.
The study of more than 3,000 businesses across the UK found that 89% of businesses in the pet sector are currently exporting. Over two thirds (67%) of these business owners surveyed anticipate their export sales to increase in the next 12 months.
86% of businesses in the sector said exporting had boosted their revenue. Beyond the economic benefits of exporting, the research from Alibaba indicates the far-reaching positive impact on the UK’s pet businesses:
- Exporting businesses are more resilient, with 84% saying exporting had made their business stronger
- 79% of respondents said exporting had fuelled innovation within their companies
- 77% of businesses said they had increased their headcount as a result
- 65% said exporting had relieved the pressure of doing business in the UK
When it comes to export markets, many businesses in the pet sector are looking close to home. Nearly two fifths (38%) regard the UK’s nearest neighbours in the European Union (EU) as the market with the biggest export opportunity. Looking to future growth, China (36%) and North America (32%) present the biggest opportunities.
Despite the positive outlook, many businesses perceive challenges that could stand in the way of their export ambitions. The top five biggest export barriers cited by pet businesses are listed below:
- Political uncertainty (33%)
- Supply chain and logistical issues (26%)
- Trademark registration and IP protection (23%)
- Concerns about security (23%)
- Struggle to find a trusted export partner (23%)
For businesses focused on international growth, as many as 83% of those surveyed are currently using online marketplaces to boost their export sales.
Two fifths of businesses based in the sector (40%) started working with a marketplace during the pandemic, with the pandemic providing a strong impetus for businesses to adopt digital tools. On top of this, 77%2 of businesses in the pet sector said that exporting has driven digital transformation for their business.
Mim Figueiredo, Business Development for Pet brands at Tmall Global, Alibaba Group in Europe, comments: “Our research suggests that companies in the pet sector are seizing the enormous global export opportunities which exist across the world.
“By trading overseas, even small businesses can expand, creating more job opportunities and economic growth. Once a business starts to export, they realise the benefits outweigh the perceived barriers and they grow in confidence. We’re focused on helping businesses of all sizes on their export journey.”
Marco Forgione, Director General of Institute of Export and International Trade, added: “This research confirms what we have long known – that exporting firms are more sustainable, profitable and resilient – but also sheds light on some of the many challenges that prevent businesses from exporting at all or exporting as much as they could.
“The whole trade community needs to work together to combat and reduce these challenges. IOE&IT is committed to promoting trade as a force for good and doing all we can to help every business start or expand its export activity, regardless of size, sector or home market.”
