uk retail industry – international action plan

8/13/2019 UK Retail Industry International Action Plan

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Strategy for retail successThe retail sector is one of the most important partsof the UK economy contributing five per cent to GDP,and in August 2012 the Prime Minister announced thatUK Trade & Investment (UKTI) will provide strategic

support for the sector. The support is focused on helpingthe UK retail sector win more business internationallyand securing more valuable investment in the UK.

UK Trade & Investment (UKTI)has consulted with many differentparts of the sector to develop anon-going strategy for retail successin international markets. UKTI istaking the lead in this work as partof its Olympic economic legacystrategy and is working in closecollaboration with other partsof Government including theDepartment for Business, Innovationand Skills (BIS), which has beenactively helping with EU policyissues, and the Department forEnvironment, Food and Rural Affairs

(Defra), which has helped developa separate Food and Drink ExportAction Plan.

This document details the ActionPlan that will deliver internationallyfor UK economic growth. The planidentifies both the best opportunitiesfor Government to support globalgrowth by the retail sector, andthe key international barriers thatGovernment can help retailersto overcome. It also analysesopportunities to attract high value

investment from overseas intothe UK.

The Action Plan focuses on:

1 Helping omni-channel retailersaccess international markets

2 Helping the UKs luxury brandsaccess international markets

3 Leveraging the UKs experienceeconomy

4 Helping companies with marketaccess issues

5 Helping companies with marketdevelopment and supply chain

development

6 Helping to attract retailinvestment to the UK

7 Government added-value

The aim of the Action Plan is to:

Deliver 500m value to the UKeconomy through assisting upto 1,000 businesses with theirinternational growth in the twoyears to March 2015.

Provide support for up to 600 retailsector SMEs to help with theirinternational growth.

Attract high quality foreign directinvestment to the UK to enhance theUK retail sector. Attracting foreignbrands and retail expertise to augment

the UK retail sectors already stronginternational offer.

Work with Business Ambassadorsand the Catalyst programme(a network of business leaders andinfluencers) to promote the UK retailsector internationally for trade andfor foreign direct investment.

Tailor UKTI support programmesand increase the uptake of theseservices to UK retailers seeking tointernationalise their businesses.

Increase the professionalism of UKTIglobal network of support for the retailsector, including work with privatesector providers to deliver informationand advice.


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UK Retail Industry International Action Plan 1

M&S Spring/Summer 2013

1. UKTI website and British Retail Consortium

2. British Retail Consortium



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2 UK Retail Industry International Action Plan

Introduction

The Government is committed to supporting internationalgrowth and has set an ambition to get another 100,000companies exporting by 2020, while doubling UK exportsto 1 trillion. It also aims to maintain the UKs ranking as

the number one destination for new inward foreign directinvestment (FDI) in Europe and become the number onedestination in Europe for emerging-market FDI.

UKTI is the Government organisationthat supports UK companies to growtheir business through internationaltrade. UKTI connects UK businessto the worlds top commercial

opportunities; attracts high qualityinward investment to the UK; andestablishes government relationshipswith major wealth creators to increaseexports and investment.

Path to growth winds through

the high street

In the 2012 Autumn Statement,the Chancellor of the Exchequerannounced a significant boost forUKTIs budget, which will increase by70m a year over the next two years.The funding is intended to deliver

innovative new programmes to getmore SMEs exporting, help UK firmsaccess the most valuable high-valueopportunities overseas and reinforcethe UK as the location of choicefor investors.

The retail sector is a crucial partof these plans for growth. Aroundnine per cent of all VAT-registeredbusinesses in the UK are retailers around 188,000 businesses4 and UKretail sector sales were estimated atmore than 300bn in 2011, a 3.4 per

cent increase from 2010 and a riseof more than six per cent from 2008.5

Kubrick Navy chair by Made.com


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UK Retai l Industry International Action Plan 3

A full package of support

As part of the package of supportoffered by UKTI the retail sector willbenefit from a doubling of the numberof companies receiving financial

assistance towards the cost ofexhibiting overseas. There will alsobe an increase in the number ofinternational trade advisors assistingSMEs such as retail businesses to growtheir international footprint. The fundingwill also provide enhanced Governmentsupport for optimising the UK share ofthe highest value opportunities globally,including the development of newleisure and retail destinations.

As more and more internationalbrands open their European operations

through a UK base, UKTI will alsoenhance inward investment supportto position the UK as the destinationof choice for investors from high-growth markets.

Following the amazing success of theLondon 2012 Olympic and ParalympicGames, UKTI will also be deliveringthe GREAT campaign a programmeacross the globe to underline the UKsposition as a thought leader in keygrowth sectors and promoting UKstrengths. This work will expand

international recognition of Britishbusinesses and British brands andprovide direct business opportunitiesfor companies participating in theprogramme of activity.

A small strategic team in UKTI (in atask force approach across Whitehall)is working in close partnership withBIS to develop the public and privatenetwork and strategic programmethat will help businesses of all sizesin this sector win more contractsinternationally. The team are alsolooking at ways in which UKTI and itsnetwork can help multi-brand retailersand large-scale operations to opennew markets and subsequently pullsales through their supply chain todrive international growth.

The UK retail industry is a

significant contributor to the

UK economy employing more

than three million people and

generating 300bn for theeconomy. Events like last months

London Fashion Week showed the

scope and success of the industry.

British brands have a deservedly

world class reputation for quality

and innovation. As we rebalance

the economy with more export-led

growth retail has an important

role to play. This Action Plan will

help small and large retailers

across the UK to grow and expand

into new export markets.

Rt. Hon Dr Vince Cable,

Secretary of State for Business,

Innovation and Skills and President

of the Board of Trade




7. Bringing Home the Benefits, UKTI 2011

8. UKTI corporate strategy document
http://www.ukti.gov.uk/


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Seizing opportunities andbreaking down barriers

A strategy from the sector,for the sectorUKTI, and the Government as a whole,is committed to working side by sidewith the retail sector, and this Action

Plan is a result of extensive consultationwith the sector itself. UKTI has soughtinput from a wide range of retailbusinesses including small and largeretailers across many sub-sectorsand those involved in both online andoffline retail. The consultation set out topinpoint where the Government couldbest add value to the sectors efforts.

Internet, indulgence and involvementThe retail sector is enormouslydiverse and the range of potentialopportunities and barriers for

international growth are numerous.However it became clear from theconsultation that the Action Planshould focus its campaigns onthree core areas of opportunity:omni-channel retailers, luxury retailersand companies working in theexperience economy.

As outlined in the Action Plan thesethree retail areas have huge potentialfor international growth and offerthe best opportunities to leverageGovernment support to the sector.

Aligned with this, it was evident thatto break down the barriers for globalgrowth the Action Plan should focusGovernment support on helpingUK-based companies in two key areas:gaining market access and engineeringsmarter supply chains.

Taken together, seizing these threeopportunities and overcoming thesetwo barriers provide a clear frameworkto deliver success in a rapidlychanging global economy.

Growth begins at homeGrowth needs to stem from a solidfoundation, so the Action Plan alsoseeks to reinforce inward investmentinto the UK retail sector. This reinforcesthe UKs image as a good place todo business and supports research,innovation and skills.

Britains future prosperity will

be built on growth sectors that

achieve business success in

international markets; so we are

putting the full machinery ofGovernment behind their trade

and investment ambitions.

Lord Green, Minister of State

for Trade and Investment


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The Action Plan


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1 Campaign to helpomni-channel retailers Showcase our talent, promote our

brands and deliver new businessopportunities.

Omni and multi-channel retailing is about delivering goodsto the consumer through all available shopping channelsincluding mobile devices, computers, bricks and mortar andtelevision. Retailers adopting this approach are growing theirbusinesses at home and overseas. With products increasingly

conceived, created and consumed online in the digital age,the UK finds itself ahead of the global competition in this areaand has a significant short term opportunity to capitalise.

The e-commerce opportunity

The UK is at the vanguard of multi-channel shopping. Britains 228,000online retailers export more than therest of Europes e-retailers put togetherand UK consumers spend more onlineper head than any other country. Thefastest growing subsector of onlineretailing is mobile internet with mobilesales in the UK up from 0.4 per centin 2010, to 5.3 per cent in 2012.

Globally the opportunity for UKcompanies is vast. A rise of up to threebillion new consumers is expectedonline in the next two years and one ofthe most notable trends in recent yearshas been the emergence of relativelynew retail businesses in the UK thatuse a multi-channel approach tointernationalise at a very early stage.

Made.com website

The rise of omni-channel

shopping and e-commerce

is a game-changer that creates

opportunities for new businesses

to grow from scratch into

international brands within

a few years. As Made.com is

experiencing. And its not justabout retailers; wholesalers,

designers and ultimately the

customers all stand to benefit.

Brent Hoberman, Chairman Made.com


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By contrast, it is clear that thoseretailers that do not compete onlinetend to witness contraction of newopportunities at home and overseas.The UK domestic market expects

a contraction of physical shoppingspace by 25 per cent in the nextfive years.

As other international markets realigntheir businesses and distributionnetworks around e-commerce thereis a golden opportunity for UKcompanies to export their skills andthought leadership in this space.

Competition is tough. A failure toassist UK retailers who embrace theonline route to international markets

will see UK brands effectively frozenout of new market opportunities thatare actively being pursued by othergovernments, including the US.Other nations are already beginningto market their expertise throughdelegations visiting the Gulf and Asia.The UK needs to move fast to positionitself in this market space.

Reaping the rewards of leadershipIn order to build on the UKs world-leading position, UKTI will focuson assisting retail brands with theirinternational expansion. The

Government is ideally placed toassist through the global networkof commercial teams in the BritishEmbassy network worldwide. Workingwith the industry eight priority marketshave been identified where all partiescan work together to raise the profile ofUK retailers and create opportunities.

These regions have been picked fortheir enormous potential. For examplein the Gulf States (GCC) region UKretailers currently have a low marketshare but it is estimated by the Trade

Association for Online Retail that everysingle percent growth in UK businessexported to this region would provideon average 900 million of additionalrevenue each year.9

The eight priority regions are:

China

GCC(Gulf States)

India

ASEAN(including Indonesia, Malaysia)

North America(specifically for luxury)

Mexico and Latin America(including Brazil, Colombia)

European Union

Russia and emerging Europe(including Cyprus, Poland, Turkey)

Government will offer assistance to

retailers, especially the new bornglobal companies thriving in themulti-channel retail age, with thedevelopment of physical links withinnew markets and access to partnersand knowledge networks.

In Europe the e-commerce entrybarriers are not clear and theGovernment is seeking to map barrierscountry by country to ensure wecapitalise on the potential forcommercial growth into the EU.

The multi-channel campaign will targetlarge firms seeking to adapt theirapproach and get their e-commerceplatforms adopted by consumers inkey markets. It will also assist SMEsnew to export who need to developtheir online presence with advice andmarket development.

Nicholas Kirkwood

The Shoe Galleries, Selfridges

E-commerce is dramatically

changing the relationship

between consumer and retailer.That in turn is changing all the

rules of the game from retail

economics to retail processes to

the core skills and capabilities

that retailers need. Retailers

must adapt to compete.

Tony Stockil, CEO, Javelin Group

9. Interactive Media in Retail Group (IMRG) May 2012


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Traditional routes to market

The rise of the internet haspermanently changed the world ofretail, but there is still a vital role forbricks and mortar. UK retailers bring

significant benefit to themselves andlocal economies via their investmentin traditional delivery mechanisms.A new focus for bricks and mortarretail providing the 21st century retailexperience is a key strength in the UK making it the destination of choicefor global brands. London is the keycentre for excellence and is viewedas the shopping capital of the world.

There are different routes to marketand the route chosen will depend onwhat is most appropriate for specific

retailers, products or services. Formany retailers, franchising is theirmajor market entry strategy, whetherthis is a single, multi-unit or masterfranchise.

UKTI will continue through its globaland UK offices to play a significantsignposting role for businessesinvesting in traditional routes tomarket. In particular UKTI will identifyqualified, appropriate, reliable partnersfor businesses in this area and delivermarket intelligence on emerging

opportunities. The White Company website

A multi-channel approach to expansion allows

British retailers to extend the reach of their

brand quickly to new customers around the

world and so gain entry to some of the fastest

growing international markets. At M&S, this

approach ensures we provide the right channelmix for each market helping us build a

position of authority in the territories in which

we operate.

Marc Bolland, CEO, Marks & Spencer


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Within this booming market British luxurybrands are in high demand. Smartmarketing and an influential onlinepresence mean that currently around50 per cent of UK luxury brands enjoyan ever-increasing number of online-only clients, no matter the size of thecompany. In 2012, it was anticipated that72 per cent of British luxury brandswould have a presence outside the UK,and brands were looking to expand intofast-growing markets such as East Asiaand Africa. In terms of British luxuryabroad, 37 per cent are already present

in China and a further 27 per cent havemade plans to enter the market.11

UK luxury brands are not only highlysought after internationally, they area valuable asset to the UK. Luxurybrands and their designers carrysignificant PR weight on the globalstage whether the goods are cars,jewellery or clothing and these addsignificantly to Britains soft power.UK brand awareness has never beenhigher following the London 2012Olympic and Paralympic Games and

UKTI will capitalise on this for allretail brands, providing platforms forpromotion in the key retail cities globally.

A GREAT opportunity

For luxury retailers the most importantmarkets are not those that displayrapid growth in consumption but thosewith the largest numbers of high-earning households. So unlike manyother retail sub-sectors only two of theBRIC markets China and Brazil areof priority interest as they are the onlytwo that feature in the top ten marketsby number of high-earning households.UKTI is helping luxury retailers byfocusing on those markets with thelargest proportions of households with

an annual disposable income overUS$300,000 (see Table A).

For luxury retailers, connectionswith cities are often more importantthan countries, and building relationswith the fashion capitals of the worldis vital. These include markets suchas Milan, Paris and London as wellas Shanghai, New York, Mumbaiand Dubai.

UKTI will lead on a programme ofBritish Weeks (including the GREATWeeks of Luxury) in cities such asthese. It will deliver a programme inkey markets that will yield high valuecontracts for the UK and ensure thatthe programme is compatible with theindustrys own plans for growth. Keythemes will revolve around quality,heritage, craftsmanship and innovation.The programme is outlined on page 25.

Table B on page 13 explains thepriorities and associated actions

in each of the eight priority regionsidentified for global growth.

As one of the UKs most valuable

exports, the luxury goods industry

outstrips GDP growth and is

predicted to rise by 57% in 2015.

It is therefore no surprise that

brands such as Burberry, Mulberry

and Alexander McQueen are now

household names across the globe.

And with the legacy of 2012 stilldrawing the eyes of the world to

Britain, this is the time when the

industry can really consolidate

its position as leaders in the

fields of fashion, design, service

and style all served with our

trademark wit, nod to tradition

and inherent quality.

Julia Carrick, Chief Executive of Walpole

British Luxury Founder and PublisherFinancial Times How to Spend It

10. Walpole & Ledbury Research 2012

UK Luxury Benchmark Study

11. Walpole & Ledbury Research 2012

UK Luxury Benchmark Study

12. Euromonitor International

Table A: Households with an annual disposable income over US$300,00012

Markets Rank 2012 Rank 2015 Rank 2020 Households(000) 2020

US 1 1 1 7,239

China 3 2 2 2,241

Japan 2 3 3 1,370

Germany 4 4 4 776

Australia 8 6 5 681France 5 5 6 650

Brazil 9 8 7 597

India 11 10 8 552

UK 6 7 9 541

Italy 7 9 10 460

Canada 10 11 11 395

Russia 13 12 12 394

Spain 11 13 13 310

Mexico 14 14 14 251

South Korea 15 15 15 224

Turkey 17 16 16 199

United Arab Emirates 19 18 17 178

Switzerland 16 17 18 170

Indonesia 21 20 19 162

Hong Kong, China 23 21 20 151


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Table B: International growth plan priorities for the UK luxury retail sector

AREA PRIORITY ACTION

China First and second tier cities are priority Maximise SME interest and impactmarkets that have an appetite for by providing high profile Governmentluxury and demand high market supported platforms for brandsspends to make an impact. market entry en masse.

GCC Priority market with an appetite forluxury and demand for high marketspends to make an impact.

Government support by Embassystaff, VIPs and market leadersendorsements to ensure a premium

India Mumbai is a priority market whichUK image among the local population.

has an appetite for luxury butdemands high market spendsto make an impact.

Japan Japan (Tokyo) is a priority marketwhich has an appetite for luxury butdemands high market spends to makean impact.

Russia and emerging Europe Istanbul, Warsaw, Moscow andSt Petersburg are priority marketswhich have an appetite for luxurybut demand high market spendsto make an impact.

Mexico, Central and Latin America Mexico City, Guadalajara, Sao Paoloand Bogota are priority marketswhich have an appetite for luxurybut demand high market spendsto make an impact.

North America The USA has the highest number We will work with the sector toof households with an Annual create joint marketing campaigns,Disposable Income over US$300,000 specifically in New York andmaking it the No1 target market for Los Angeles.luxury goods.

We will work hard to maintainLondons position as the worlds

leading creative hub and the UKsposition as home to luxury andcraftsmanship.

European Union Germany is a key market for We will work hard to maintainaccessing high net worth individuals Londons position as the worldsand the fashion capitals of Milan and leading creative hub and the UKsParis are a priority. position as home to luxury and

craftsmanship.

Markets of tomorrow Identify market opportunities. Scope opportunities in theforthcoming years.


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3 Campaign to leveragethe experience economy Showcase our excellence and

deliver our knowledge andexperience to new markets.

The experience economy is the concept that embraces allaspects of activity where a customer has an experience ofsome kind of service or event. Most typically, it is associatedwith visitor attractions or cultural spaces ranging fromtheme parks to museums. It also applies to the new

retail experience.

The experience economy is a fast-

growing market across the world andthe UK has become a global leader inthe industry. It is widely known for itscreation and operation of a wide varietyof world-class visitor attractionsincluding museums, galleries, heritagesites and theme parks.13

Experience needed

UKTI is committed to helping UKcompanies exploit the global spend onnew leisure destinations and culturalcities that include entertainment andretail components with projects valued

in the billions. With the UK experienceof retail in the vanguard of this work,there are growing internationalopportunities for UK brands to becentre stage in the worlds premiumdevelopment projects. UK companiescan sell skills, experience andproducts in this space all aroundthe world.

UKTIs interest lies in identifying

Highest Value Opportunities for newdestinations and then helping UKcompanies win business in thoseprojects. UKTI works through a mixof positioning and influencing at onelevel, and energising the supply chainat another. The UK offer to marketsthat are constructing these destinationsis world class and UKTI will articulatethis to win business for the UK.

UKTI has engaged a leadingconsultant in the sector to study afirst group of nascent projects with a

combined value of around 60bn, andis working with the sector to identifythe best prospects. These will be a mixof projects ranging from the culturalsubsector (eg a museum quarter) tothe heavily commercial (eg a mixeduse theme park or mall). Almost allwill have a retail component.

It will be essential to build the retailsector into this process, alongside theplanning, design, interpretation andimagineering at which the UK excels.

What the UK does thats so

unique is use contemporary

design both to make new

experiences, like the MillenniumBridge or the Coca-Cola Beatbox

pavilion at London 2012 and

also stitch it into its grand,

historical buildings. Kings Cross

Station, the V&A and a whole

clutch of eminent buildings, are

currently being refreshed with

flair and ingenuity. In the UK

designers are not scared of that

juxtaposition of old and new; on

the contrary it excites them itsa fascinating conversation thats

highly creative and rewarding.

Malcolm Reading, architect and

design competition organiser 13. www.experienceuk.org
http://www.experienceuk.org/http://www.experienceuk.org/


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4 Campaign to helpwith market access Influencing governments and showcasing the

benefits of UK retailers to international markets.

International success relies on open markets. However market accessissues remain perhaps the most common barrier facing UK exporters.

This is especially the case in high-growth markets.


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A global study in conjunction with the

Economist Intelligence Unit (EIU) foundthat over half (51 per cent) of UK firmsreport unclear, bureaucratic regulationsas the greatest government-relatedobstacle to their operations in high-growth markets.14

Market access issues affect SMEsand large companies alike and includeregulatory issues, labelling, producttesting, intellectual property andprohibitive administrative processes.

Getting to marketEach market is unique and UKTI iscommitted to using its network to helpthe UK Governments aim to reducemarket access barriers for retailerswherever possible.

High-growth emerging economiesare the priority in this area (see below).UKTI will align its trade developmentwork with the wider Governmentstrade policy activity by coordinatingactivity in key priority markets in orderto amplify the Government message

and open new markets for retailers.This will be done through a task forceapproach with the Department forBusiness, Innovation and Skills andthe Foreign & Commonwealth Office.

Priority markets include:

India

Brazil

Mexico and Colombia

Libya

Nigeria

ASEAN bloc

European Union

Priority issues in priority markets

Gulf StatesThe priority is tacklingstructural and technicalbarriers for e-commercethat prevent UK retailersgaining online marketshare.

ChinaThere are several tradepolicy barriers andentry restrictions forUK businesses that area priority.

IndiaUK investors continue toface a considerable lackof clarity over conditionsfor investment. Investorsalso face a complete banon e-commerce.

ASEANThere are several tradebarriers preventing marketaccess across the region,and a specific priority istackling the discriminatoryregulatory regime (theHypermarket Guidelines)in Malaysia by lobbyingfor recourse via the WTOGATS process.

European UnionA priority isto influence the EUFree Trade Agreementnegotiations with ourpriority markets (includingIndia and Malaysia) andalso to map and clarifye-commerce barrierswithin each country ofthe EU.

We can design and produce great

products that emerging markets

want, but in some countries we

need help to overcome complex

tax systems or inefficient

customs. We look to agencies like

UKTI to help us overcome market

access issues.Ray Symons, British Retail Consortium

14. UKTI and Economist Intelligence Unit, Survive and Prosper:

Emerging Markets in the Global Recession (2009)


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5 Campaign to supportmarket developmentand supply chainsAll retailers know the importance of good supply chains totheir businesses. Consumers demand consistent, high qualitygoods and retailers need to develop long term, sustainablerelationships with their suppliers.

For retailers who export to many countries the costs andlogistics of their supply chains become more complex andneed appropriate trade agreements in place to ensure there

are no unnecessary costs and difficulties.

Working for smarter supply chains

Government is committed to workingwith the retail industry to ensure thatBritish producers and suppliers arepart of the international growth ActionPlan. The UK retail industry is a keysupporter of this approach.

Government will work closely withindustry to re-engineer supply chainsto allow direct shipments from sourceto markets and to find the bestmethods to take advantage of tradeagreements such as ASEAN.

We will scope market opportunitiesat supply chain events and takeadvantage of opportunities asthey emerge in our priority markets.For example in the Gulf StatesUKTIs priority is to capitalise onspecific opportunities for technicalimprovements to the supply chainthat can enable UK-based onlineretailers to operate in the Gulf.

The shifting economic centre

of gravity from West to East isradically changing global trade.

That has a big potential impact

on our supply chains and means

we have to be flexible and

smart about how we work with

producers all over the world.

Ian Hutchins, Tesco


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6 Helping attract high valueinvestment to the UKMaintaining the UKs high levels of inward investment is

an important part of the Action Plan for the UK retail sector.

It provides a vital source of income, helps attract talentand fosters innovation among UK-based retailers.


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London has become the worlds

shopping capital, with one internationalsurvey estimating its retail sales offood and non-food per year to bethe biggest in the world at more than91bn. It also found London had thelargest online sales at 9.9bn andput Manchester among the worlds top25 shopping cities ahead of the likesof Berlin, Rome and Rio de Janeiro(see Table C)16.

One of the most significant driversof inward investment for the UK retail

sector has been e-commerce. Thetotal market for home shopping in theUK is estimated to have increased bymore than 30 per cent between 2006and 2010 reaching a total value ofmore than 58bn17. Between 2009and 2010 home shopping grew by18.8 per cent. E-commerce has clearlyoutperformed other channels suchas general mail order, direct marketingand direct selling. Over the forthcomingyears this trend is expected to continueand our skills and technical expertisewill help attract increased investment.

The UK is one of the worlds most

influential primary shoppingdestinations with more global brandslisted in London alone than in anyother world city. UKTI is working withglobal retailers to ensure that the UKremains the destination of choice forthe worlds leading retail brands to sitetheir European headquarters in, as wellas other high value operations such asmanufacturing, logistics and high endretail outlets (bricks and mortar) thatcreate jobs and prosperity for theUK economy.

The UK is responding to the changein the global retail market andinternational retailers choosing tolocate in the UK will find a strongsupply of retail space tailored to21st century consumer requirements.International brands will also beable to access the UK experts onthe experience economy that haveensured the UK remains the globalshopping destination of choice forinternational brands.

Helping bring in retail investment

In line with UKTIs general ambitionswe will be aiming to ensure the UKremains the number one location forinvestment in Europe. In terms of retailwe will be seeking to become one ofthe leading destinations for investmentin Europe from the emerging markets.To support this the UK will identify,develop and deploy value propositionstargeting markets and potential clientsthrough our global network. We willalso look to maximise the opportunitiesthat the GREAT campaign offers.

In the aftermath of the London 2012Olympic and Paralympic Games wewant to capitalise on the popularityand interest in the UK and plan toexpand our reach to internationalinvestors. UKTI is currently workingwith key international investors onover 70 separate investments, whichinclude more than 400 new storesopening in the UK in the next twoyears. This will expand furtherunder the guidance of UKTIsdedicated team.

Table C: The world shopping capitals according to the Centre for Retail Research (2011)

16. Centre for Retail Research, Nottingham World Shopping Capitals 2011 Survey

17. Key Note Home Shopping 2011

100bn

90bn

80bn

70bn

60bn

50bn

40bn

30bn

20bn

10bn

0

L

ondon

Tokyo

Paris

NewYork

LosAngeles

Hong

KongDubai

S

ydney

Sing

apore

Barcelon

aMilan

Manchester

M

adrid

Berlin

Rome

Amsterdam

Moscow

Copenhagen

Oslo

Stockholm

RiodeJ

aneiro

Johann

esburg

Retail

sales(food

and

non-food)


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7 Government added-valueBritains future prosperity will be built on sectors like retailsucceeding in international market, and UKTI is determinedto offer practical support to exporters and inward investors.

From its offices across the UK regions to its Ambassadors inBritish Embassies and Consulates-General across the world,our staff provide expert trade advice and hands-on supportincluding facilitating participation at selected trade fairs,

outward missions and providing bespoke market intelligence

on overseas regulations, local markets and business practices.

Prime Minister David Cameron

at UKTIs British Business Embassy,

July 2012


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Here are some of the ways that we are puttingthe full machinery of Government behind tradeand investment ambitions for the retail sector.

Ministerial engagementUK Ministers will carry the UK retailmessage to global markets as part oftheir core business, prioritising the keyopportunity markets for UK retailers.Ministers will champion British brandsand retailers as part of the GREATcampaign and as part of the business

of Government. Ministers will also workclosely with the UKs multi-brandretailers to assist them with their ownspecific international growth needs.

We will also create more opportunitiesfor UK retailers of all sizes toaccompany high-level businessdelegations which visit key markets.These trade missions will proactivelypromote the issues important to Britishretail and foster awareness of UKexpertise in areas such as e-commerce,luxury and the experience economy.

Networking opportunities

Through its global network ofEmbassies, Consulates and HighCommissions UKTI is in a uniqueposition to provide high qualitynetworking and introductory servicesin overseas markets (as well as inthe UK).

UKTI intends to increase therecognition and support for the retailsector from British ambassadors andtheir representatives, leading to moreopportunities for collaboration fromSan Francisco to Sydney. As part ofthis initiative UKTI will investigate thedevelopment of retail specific eventsthat can be run overseas in partnershipwith British Chambers of Commerceand other UK business groups.

Relationship management

UKTI, via its Retail and StrategicRelationship teams, will developa more proactive relationshipmanagement approach to workingspecifically with those UK retailerswith multi-market businessdevelopment strategies.

Access to export information

UKTI will develop access to exportinformation by creating a signpostingportal for retail on its website

www.ukti.gov.uk.In addition anetwork of experts will be developedonwww.opentoexport.com.These portals will ensure that anyopportunities identified by partnersoverseas are listed and accessible.

Funded support for SMEs

A large programme of fundedevents and opportunities for marketdevelopment is about to be launchedfor 2013-14 covering the marketslisted in this report. To access theseopportunities visitwww.ukti.gov.uk orwww.opentoexport.com.

Training

The Government has committed toup skilling the UKTI network to betterserve retail businesses through atraining programme and by obtainingaccess to industry leading informationsources.

The Duchess of Cambridge at UKTIs

British Business Embassy Creative

Industries Reception at the Royal

Academy of Arts, July 2012

Smaller British luxury companies individually

have ambition to go overseas but often dont have

the resources. Together, and with Government

support, they can realise this ambition.

John Ayton, Chairman Bremont Watch Company

and Annoushka Jewellery/Chairman of Walpole

British Luxury Brands of Tomorrow programme
http://www.ukti.gov.uk/http://opentoexport.com/http://www.ukti.gov.uk/http://www.opentoexport.com/http://www.opentoexport.com/http://www.ukti.gov.uk/http://opentoexport.com/http://www.ukti.gov.uk/


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Next stepsThis Action Plan is owned jointly by Government and

industry. The intention is that it be a living document

that will be reviewed every six months.

Time scale Key actions Owner

Short-term actionsover the next year

Encourage more companies to developinternational growth strategies throughoutreach to the retail sector

UK Trade & Investment

Develop retail sector specific countryoverviews for key overseas markets key facts for companies in this industry

UK Trade & Investment,FCO

Work closely with key UK Ministers toactively promote the retail sector whentravelling overseas


Use the UK Governments BusinessAmbassadors/Trade Envoys to reinforcetop level messages on UK Retail Excellence


Showcase the luxury segment in

key overseas markets as part ofthe GREAT campaign

UK Trade & Investment,

Industry

Research high value business opportunitiesand deliver campaigns to optimise UKsuccess in these projects


Help UK businesses attend sector specificevents internationally


Develop access to export information bycreating a signposting portal for retail onwww.ukti.gov.uk


Ensure UKTI services are fit for purposefor retailers


Ensure key Government delivery partners inthe UK regions and devolved administrationsare briefed and able to deal with industryenquiries


Ensure key Government delivery partnersin key international markets are briefedand able to deal with industry enquiries


Create a retail UK Sector Advisory Group toensure industry involvement in the evolutionof the Action Plan and its campaigns


Medium-term actions

over the next twoyears

A cross-government effort, in collaboration

with industry to remove barriers to trade forBritish retailers into priority overseas markets

UK Trade & Investment,

BIS, FCO

Long-term Identify opportunities in growth marketsof the future and develop programmesto support them

UK Trade & Investment,FCO


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Major events calendar

Date Event

March 2013 Retail Week Live London

March 2013 World Retail Congress Singapore

From April 2013 UKTI will announce a comprehensiveprogramme for exporters. View this atwww.ukti.gov.uk

April 2013 March 2015

GREAT Britain CampaignBritish Weeks and programmes ofsupportive activity in a rangeof markets including China and HongKong, Brazil, India, Russia, Mexico,GCC States, USA, Japan, South EastAsia, South Korea, South Africa,Turkey, Austria (Vienna)

April 2013 March 2015

More events to follow

Sept 2013 MAPIC

Sept 2013 World Retail Congress Paris

Oct 2013 British Retail Consortium Annual EventLondon
http://www.ukti.gov.uk/http://www.ukti.gov.uk/


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UK Trade & Investment services

UK Trade & Investment has helped thousands of UK exporters and inwardinvestors from overseas achieve commercial success by providing tailoredservices with specialist support covering a wide range of industries.

Follow our handy guide to discover how we can help your organisation.

Inward investorsUK Trade & Investments comprehensive range of servicesassists overseas companies, whatever their size andexperience, to bring high-quality investment to the UK.They include:

Next steps

Want to know more? Contactthe UKTI Investment ServicesTeam on 0845 539 0419

or +44 (0)20 7333 5442

Alternatively, scanthis code with yoursmartphone.


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UK exportersWhether a firm is starting out or is experienced in exporting,UK Trade & Investments services can help to make doingbusiness internationally as easy as possible. They include:

Next steps

For more information onUK Trade & Investment services,call 020 7215 5000 or visitwww.ukti.gov.uk

To find your local InternationalTrade Adviser, click Export, UK

regions and enter your postcode.

Alternatively, scanthis code with yoursmartphone.


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ContributorsUK Trade & Investment would like to thankthe following for their input:

Alliance Boots

Aspinal of London

Best Of Britannia

Boux Avenue

British Retail Consortium

CB Richard Ellis

Damartex UK

Debenhams

Euromonitor

Global Retail Forum

Hackett London

Hotel Chocolat

IMRG

Javelin Group

Jones Lang LaSalle

Kingfisher Plc

KPMG

Made.com

Malcolm Reading

Marks & Spencer

Next

Retail Week readers

Simons Muirhead & Burton

T.M. Lewin

Tesco

Waitrose

Walpole Group

The White Company

Image credits

Front cover Aspinal of London, p.1 Marks & Spencer, p.2 Made.comp.4 Getty Images, p.5 VisitBritain, p.6 Getty Images, p.7 Made.com,p.9 The White Company, p.10 Getty Images, p.12 VisitBritain, p.15 VisitBritain,p.19 Getty Images, p.20 VisitBritain, Inside back cover VisitBritain.


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To find out more, scan this

code with your smartphone.

www.ukti.gov.uk

+44(0)20 7215 5000

UK Trade & Investment is theGovernment Department that helpsUK-based companies succeed inthe global economy. We also helpoverseas companies bring theirhigh-quality investment to the UKsdynamic economy acknowledgedas Europes best place from whichto succeed in global business.

UK Trade & Investment offersexpertise and contacts through itsextensive network of specialists inthe UK, and in British embassiesand other diplomatic offices aroundthe world. We provide companieswith the tools they require to becompetitive on the world stage.

UK Trade & Investment is responsible forthe delivery of the Solutions for Businessproduct Helping Your Business GrowInternationally. These solutions areavailable to qualifying businesses, andcover everything from investment andgrants through to specialist advice,collaborations and partnerships.

Copyright

Crown Copyright 2013.

You may re-use this information(excluding logos) free of charge in anyformat or medium, under the termsof the Open Government Licence.

To view this licence, visit:http://www.nationalarchives.gov.uk/doc/open-government-licence/Or you can email:[email protected]

Where we have identified any third partycopyright information you will need toobtain permission from the copyrightholders concerned.

Any enquiries regarding this documentshould be emailed to us at:[email protected] you can call:+44 (0)20 7215 5000

This document is also available at:www.ukti.gov.uk

Whereas every effort has been madeto ensure that the information givenin this document is accurate, neitherUK Trade & Investment nor its parentDepartments (the Department forBusiness, Innovation and Skills, andthe Foreign & Commonwealth Office)accept liability for any errors, omissionsor misleading statements, and no

warranty is given or responsibilityaccepted as to the standing of anyindividual, firm, company or otherorganisation mentioned.
http://www.ukti.gov.uk/http://www.nationalarchives.gov.uk/doc/open-government-licence/http://www.nationalarchives.gov.uk/doc/open-government-licence/mailto:[email protected]:[email protected]://www.ukti.gov.uk/http://www.ukti.gov.uk/mailto:[email protected]:[email protected]://www.nationalarchives.gov.uk/doc/open-government-licence/http://www.ukti.gov.uk/

uk retail industry – international action plan

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