Trustworthy trading tips
Egyptian exporters seeking to do business in the UK market will soon be receiving expert advice, writes Sherine Nasr
Inexperienced Egyptian exporters are generally faced with insufficient information on key procedures necessary for the exporting process, unlike their well-established counterparts. As they consider venturing into new markets, they find themselves grappling with basic questions such as which products are demanded abroad and how to find a business partner.
To help these new players, the Egyptian Exporters Association, better known as Expolink, has recently hired a marketing correspondent for the first time since its establishment in 1997. With 28 years of experience in the United Kingdom's fresh and processed food market, Mark Swanwick will, among other tasks, provide the most up-to-date information on the UK market needs and work as a mediator between companies in the food sector in the UK and Egypt.
"We have noticed that the food sector in Egypt is growing very rapidly," said Nagi El-Fayoumi, Expolink's executive director. "It is also clear that the UK is one of our biggest food markets." He added that the project will be applied in other markets, particularly in Europe, and will include other industrial sectors.
During his meeting with food industry specialists in Egypt, Swanwick, who is also president of the UK Fresh Food Consortium and a consultant to the largest two food companies in the UK, presented a clear image of the retail food market in the UK, which he believes to be a "fast growing, and rapidly changing market".
According to Swanwick, the UK's retail market is captured by 10 major supermarkets, with Tesco's 729 stores, $21 billion sales and $1.2 billion profits in the forefront, followed by Sainsbury's, with 458 stores, $18 billion sales and $571 million in profits.
"The sales volume has gone up by 28 per cent in the period between 1995 and 2001," Swanwick said.
However, sales have risen for certain products only. For example, soft drinks sales have increased by 25.9 per cent during this period, while fruit sales increased by just 9.7 per cent. Meat sales only rose by two per cent, due to mad cow disease.
During 2001, Swanwick said, the value of frozen food sold in the UK was estimated at $4 billion, total fruit sales reached $3.7 billion and total vegetable sales hit $14 billion.
As Britain receives 500,000 legal immigrants annually, a constant and rapid change in food demand is a fact of life. "This applies particularly to London, which is quite a cosmopolitan city," he said.
It is important for Egyptian exporters to decide who to sell to. "You either introduce yourself directly to one of the supermarkets or you can deal with a food service company, a broker or a wholesaler," Swanwick said. "Unless an Egyptian exporter comes and see what the competition is like, there is really no way to export to the UK."
Meanwhile, great emphasis is placed on quality in the UK market. "Quality has a huge impact on the food industry. Food exports now have to meet new specifications related to food safety, traceability and accreditation," Swanwick said. He added that in the UK, quality comes first, service second and price last.
Swanwick said it was necessary to invite UK wholesalers to Egypt so they could see for themselves the huge number of high-tech facilities available in the sector.
"The plan for Egypt is to have well- organised inward and outward missions, trade shows and Web sites. This is what we will be working on in the forthcoming period," he said.
