This year the UK. Next the World
With an aggressive international expansion strategy in place, promotional gifts business IGO Post intends to open up operations at the rate of one new country every year - and the latest market chosen by the Netherlands-based company is the UK.
The driving force behind the expansion is Commercial Director for the IGO-POST Group, Ron Boer, who was recruited in September 2006. His decision to make the UK the next stop on the company's international journey was based on his experience of the market in his previous position working for an American office supplies mail order company with British subsidiaries. This had shown Ron that the UK population is used to doing business by mail order and via the internet, and that the market is the ideal size to suit IGO Post's plans. There was also, Ron believed, no similar operational model to IGO Post's in place in the UK - and he wanted the company to be first into the market with their proposition.
In addition, sooner or later the company will need a second warehouse to service the UK, Ireland and Scandinavia, and Ron felt that the UK was a good potential location.
"I thoroughly researched the market myself, exploring customer requirements and competitor offers, using the internet, business contacts, attending industry fairs - and acquiring more general demographic type information from the British Chamber of Commerce. I also called on AWM for information, having more or less decided on the West Midlands as the location for our operation right back in February 2007, when I visited the region for a trade show at the NEC."
Ron didn't plump for the West Midlands without first giving other locations due consideration. However, he quickly dismissed London as too expensive, the South East as lacking in skilled call centre staff, and Scotland (the company founder's suggestion) as potentially risking prejudice from English customers. On the other hand, almost everyone he met in the course of business – at exhibitions in the Far East, for example - and even on holiday, spoke well of the West Midlands Region as the thriving economic heart of the UK.
"These opinions were well supported by the facts: the international airport with direct flights to The Netherlands; highly skilled potential employees coming out of the Region's Universities; and the availability of staff with call centre skills."
Having decided on the West Midlands, the final decision on the precise location was again influenced by Ron's own research. His analysis of the local demographic data revealed the low unemployment in the Burntwood area - which to Ron implied a high skills base.
"AWM was also very helpful - sending someone from their Benelux office to visit me in The Netherlands, and then setting up a contact with the Birmingham office. This office then provided me with information on demographics, skills, labour contracts and call centres in the Region, and staff there spent a great deal of time helping me find the right location and building for our new offices: including driving me around to visit different sites and making use of their office for the first interviews with candidates for the position of General Manager for the UK, which delivered a professional first impression to them about our company.
"Our business is now up and running, with eight staff hired. We expect to increase that substantially within five years, and are still considering the possibility of a UK warehouse. AWM helped us to take the first steps, but now we must walk on our own."
Interview given by Ron Boer, Commercial Director