Trends and products yet to fully catch on in the UK…
1. Themed restaurants
Compared to Japan, the UK is significantly lacking when it comes to restaurants that offer themed experiences for diners, where staff are often in character! Examples from Japan include a prison-style restaurant with cells, gaming restaurants, and ninja-themed restaurants, as well as the world-famous Robot Restaurant:
2. Sinks with waste disposals
When it comes to the UK, there are various theories as to why waste disposal units aren’t commonplace compared to the US These range from attitudes towards rationing during WWII and a reluctance to waste food, to a sewage system not equipped to deal with it. Many people think they’re illegal in the UK – but in fact you can have one fitted at home. (In some non-rural areas of Scotland and Northern Ireland they are banned for businesses).
Waste disposals are considered controversial in many parts of the world for their negative impact on the environment. Putting food down drains via macerators or waste disposal units, along with fat, oil, and grease, contributes to 200,000 sewer blockages and floods across the UK each year. Other disadvantages are rodent infestations, odours and environmental pollution. Macerators are expensive to repair, and use more electricity and water than recycling. Putting food into drains also means an increased organic load at the sewage treatment plant, shifting the responsibility for food waste management from the waste industry to the water industry.
However, many argue that by not sending your food waste to landfills, you’re reducing the amount of harmful greenhouse gases that are created. The UK was responsible for 9.5 tonnes of food waste in 2021, with 70% coming from households. There is an obvious requirement for a solution in this area, but we’re not too sure installing expensive disposal systems at home has got consumer buy-in from the UK.
3. Spray cheese
A distinctly American phenomenon, processed, convenience cheese isn’t something us Brits have taken a shine to, preferring the real thing when given the choice.
4. Window screens
A lot of Americans are surprised to learn that the UK doesn’t have window screens to prevent flies / midges from entering homes during the hotter months. For many, the cost of them, as well as installing them, isn’t justified based on how many hot days the UK experiences. However, it seems likely that as the climate continues to warm, Brits may start considering them more seriously, just as more people have started to install air conditioning at home in recent years.
5. Food Challenges
Competitive eating is another import from across the Atlantic that isn’t proving as popular away from home. If you’ve ever seen the TV series, Man v. Food, you’ll get what we mean! Whether it’s the prospect of thousands of calories or the potential waste of food (most people don’t finish the meal), this international trend feels at odds with the times we’re living in.
Chindogu Inventions
We couldn’t let a list like this go without referencing Chindogu – the Japanese art of inventing silly and useless gadgets to solve everyday problems. Translated literally, ‘Chindogu‘ means a valuable or priceless tool. They aren’t useful… But they aren’t completely useless either. Their creator, Kenji Kawakami, describes them as “un-useless.” Here are some examples that are yet to convince the British public…
Some of our favourites!
1. Umbrella tie
Never get caught in the rain again with this two-in-one tie and brolly.
2. Chopstick fan
For the busy noodle-lover, attach this fan to your chopsticks to cool your food while you eat.
3. Silent karaoke
For those who want to sing to Celine or Mariah at the top of their lungs (but don’t want anyone to hear them).
4. Square watermelons
Grown in a case to get them into the perfect shape for packing and shipping.
5. Butter stick
Like a pritt stick, only butter. While many can picture using one (imagine the neat coverage), it doesn’t quite replace the functionality of a knife, or the time to butter toast.
Some of the international trends that influenced the UK business scene…
We’ve talked about some of the trends and products that have yet to catch on, but what about the ones that have made their mark?
Potential new opportunities for adoption in the UK
There will always be new trends and innovations arriving onto the global market that the UK will benefit from adopting. From technological advancements such as artificial intelligence, blockchain, 5G, virtual reality, and augmented reality (to name a few!), to energy and environmental solutions for a more sustainable, greener future.
When it comes to more specific offerings that don’t necessarily solve major global issues like some of the above examples, there’s always the chance it will succeed on UK soil with the right planning such as your business plan, target audience analysis, direct-to-consumer strategy and marketing strategy.
What are the risks when introducing a product to a new market?
Even if a product’s been successful elsewhere in the world, there are always risks introducing it to a new market. The UK is a very crowded and competitive market. It’s very advanced and among the best in the world, making it very difficult to crack unless you are an exceptionally good business with a unique offer.
Let’s take fashion as an example. In a piece by Drapersonline.com, independent retail analyst Richard Hyman comments that ‘the UK fashion market is the toughest in the world, so if you’re coming over here, you need to offer something different. A lot of retailers don’t understand that. Retailing isn’t a business that easily crosses borders. It’s all about brand relationships and retailers have to work very hard to build that relationship with their customer in their home market. When they go to a different country, they are back to square one and many aren’t willing to invest the time and resource needed to build the brand in new territories.” Let’s look at some examples…
-
Gap’s Banana Republic
… Had to close eight of its UK stores at the end of 2016, after only 8 years in the UK market. Analysts claimed it was the retailer’s poor pricing and promotion strategy which led to its failure in the UK, with the brand failing to justify its premium price points, leaving consumers with little encouragement to shift their spend from rivals.
-
Topshop Australia
Let’s reverse an example as it works the other way, too: a British brand launching in Australia. In 2011, Topshop launched its Australian operations; however, the dynamics of the Australian retail market weren’t understood by Topshop, which led to its demise down under. In mid-2017, Topshop’s Australian operations went into voluntary administration. With H&M, Zara and Uniqlo to compete with, the fashion brand’s combination of demographics and affordability proved to be a big problem. With urban rents in Australia being some of the highest in the world, Topshop opened shop at these most expensive locations. This happened at a time when Topshop made massive investment in its e-commerce business, which meant it was running on high rentals with high operation costs. Poor stock levels also didn’t help, with a lot of potential customers struggling to find items such as jeans in common sizes.
Let’s take a look at a global fashion success story: Victoria’s Secret
This US retailer created demand for its product through heavy marketing and a select but strategic store rollout programme, making it a successful example of how to make the journey to global direct-to-consumer commerce. Before it began trading online, Victoria’s Secret (VS) was pioneering a direct selling model via its catalogue offering. Now, its digital transformation has resulted in it selling into more than 60 countries. VS’s Chief Operating Office, Ishan Patel, has shared that optimising a successful Direct To Consumer (DTC) strategy is very complex, almost like a game that you have to keep playing but to which there is no end point. It first requires an understanding of where the market is going to be and constantly striving for that. It also means knowing what the consumer mind-set is going to be, what’s happening with the competition and what adjustments need to be made.
VS’s catalogue heritage helped enable brand resonance overseas, with the brand shipping via mail order to more than 200 countries before selling online. 2014 saw VS double down on its DTC strategy and moved into five international markets – the UK, Canada, Australia, France and Germany, and then latterly Spain, offering localised language, currency and merchandise. Today, operations have expanded to more than 60 countries including India and Israel.
The global success of Victoria’s Secret proves the importance of having a DTC strategy, although never assume that a brand will automatically travel internationally. There’s work to be done in areas such as ascertaining customer base size and demand per location in order to distinguish the most lucrative markets. Localisation and customer experience remains pivotal to international success, making each new market a case-by-case approach.
Creating loyal customers in a new market isn’t easy, and their first interaction with you needs to be right from the very start in order to create trust. This trust has to be earned through smart strategy and customer care.
Share this content
Brought to you by:
AAT Business Finance Basics
AAT Business Finance Basics are a series of online e-learning courses covering the core financial skills every business needs. They draw from AAT’s world-leading qualifications and will quickly build your knowledge on key topics including bookkeeping, budgeting and cash flow.
Visit partner's website