On June 23rd 2016 the UK decided to leave the EU. So what does this mean for UK businesses and marketers? The consensus is to expect a period of uncertainty as everyone digests the facts, and devises strategies to manage the risks of Brexit and plan a way forward.
Rather than think doom, gloom and despondency, think positive, and as global citizens, embrace the world
The trade barriers erected around the EU protect EU businesses from global competitive pressures. As a result they cause ‘flabby’ rather than ‘fit’ competitors. The UK has a proud history as a free trading nation and being ‘open for business’. Thus UK business should be materially ‘fit’ to compete in unfettered markets. Also to attract inward investment.
The world is a big market
In 2015 the world economy was worth $73.2 billion with the EU accounting for $16.2bn (22%) (Figure 1). Thus the rest of the world accounts for the larger proportion (78%), with the USA, China and Japan, being the largest markets.
Many global opportunities
Moreover, emerging markets are forecast to grow faster than the developed markets, and China and India will both reach the top 3 by 2030 (Figure 2). There are many opportunities to grasp.
As marketers we know that the most successful businesses are those that understand and meet the needs of their customers. As global citizens, speaking the world’s languages, investing in research and marketing to continue to understand and meet current and future customers’ needs, and build relationships and commercial value makes sense.
1. To address short-term economic turbulence from Brexit, businesses should take every opportunity to strengthen relationships with overseas suppliers and customers. Make clear that you are open for business as usual, and value your relationships. There is reassurance and value in relationships.
2. Keep searching for win-win opportunities to sell, invest and buy. Also acquire knowledge to gain competitive advantage. Use research to uncover new insights and opportunities.
3. Have no fear. The fittest or most able will be the most successful. So stay true to good business and marketing principles; understand customer needs, and demonstrate and deliver value in meeting needs.
4. For any sector of the economy or business that considers themselves unfit, start working out how to get fit now. So use time wisely to maximise the value of your offer.