Develop quality local products and build strong relationships abroad to kickstart your export business: That was among the key advice heads of major local exporters had to share at our panel at the Enterprise Exports and FDI Forum on Monday, featuring Mark Wyllie, CEO of Beyti, Karim Aboughali, chairman and CEO of Pasta Regina, and Hossam El Sallab, CEO and vice-chairman of Royal Ceramica.

All three companies have hefty export portfolios:

  • Royal Ceramica has expanded its export reach over the past 13 years to Europe, the US, East and West Africa, and Japan. The company has also scaled its product portfolio beyond ceramics to include porcelain, bathroom furniture, home furnishings, wood products and kitchens.
  • Beyti — 100% owned by Saudi dairy firm Almarai — has doubled its export volume to 10% of its businessin the past year. It exports products including juices, natural milk, flavored milk and yogurt to some 40 countries.
  • Pasta Regina has been exporting for over 20 years with an international presence in over 30 countries in Africa, Asia, and the Middle East.

SO, HOW DOES A LOCAL BUSINESS BUILD AN EXPORT STRATEGY?

Get comfortable in the local market first: “Egypt remains the backbone of our company,” said El Sallab, adding that “the local market is expanding tremendously, especially with all the new cities that are being built.” Before starting to export, companies should first aim to beat their competition here, he said. “This gives confidence from day one.” Aboughali also noted the importance of building a strong brand in the local market, pointing out that Pasta Regina’s focus at home is on its highest quality, flagship pasta brand.

Import less — where you can — and innovate more: Royal Ceramica focused on investing in manufacturing tech from the get-go, substituting as many imported inputs as possible and developing its products with the help of international partners, El Sallab said. Aboughali agreed: “As Egyptians, we should try as much as possible to have local components. Anything that we can produce locally [using] raw materials will have a huge benefit of the forex in our favor,” he said. Beyti’s Wyllie pointed to massive unfulfilled demand among local manufacturers including Beyti for high-quality, locally sourced inputs like packaging.

Build strong partnerships: Fostering close relationships with clients in export markets is key to creating long-term value, El Sallab said. “It becomes like a family — you have to be going there all the time,” he said. Good customer service and after-sales is key to maintaining those relationships, Aboughali noted. “Being committed to export customers means being available at all times, regardless of time zone differences,” he said. Businesses can seek out partners by going to trade shows and attending industry events, Wyllie added.

Buyers are not the only important partners: Would-be exporters also need to foster strong relationships with banks, logistics companies, and legal advisors to help mitigate risk factors, Aboughali said, adding that “the government is also a partner and its export subsidies program is crucial.”

Make exports the priority: “If you tell your teams there’s an imperative to export and you’ve got the backup behind it, you’ll get there,” Wyllie said. He explained how Beyti managed to more than double its exports to 10% of the business in the past year by shifting its production processes to make sure “every single export order goes first.”

No order too small? “Every single customer can turn into your biggest customer,” Wyllie said, urging businesses to be prepared to take on losses at first in order to gain new business. “If you put yourself into a box and say ‘I don’t do less than 20 containers’ or ‘I’m not going to turn my production line on unless it’s for a big [order]’ … you’ll die. You’ve gotta be prepared to take a few risks and some of them will pay off.”

Tailor your approach for each market: Aboughali stressed the importance of adaptability, since each market will have different needs in terms of quality, design, and price point. El Sallab agreed: “Every market has its needs and traditions, cultures, and design elements.” Wyllie noted that companies should consider offering a diverse portfolio for export — and accept potential losses on some products in that portfolio in return for getting a foot in the door and generating volume.

Economic uncertainty doesn’t have to be a drawback: Volatility in global markets can present an opportunity for those who are willing to take risks and adapt to changing circumstances, the panelists said. Being able to pivot between several markets is important in times of uncertainty, El Sallab said — noting that Royal Ceramica has made sure that at least 30-40% of its production company is directed to exports regardless of ups and downs in specific markets.

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