Enterprise Ireland’s top tips for entering the Malaysian market

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As Brexit plans progress, Irish businesses are exploring export options in sectors across the Eurozone markets, the USA and Canada and the APAC region.

Enterprise Ireland is playing a key role in supporting ambitious companies seeking opportunities in Malaysia’s IoT, telecoms and fintech sectors.

If you are considering doing business in Malaysia, please be sure to explore our tips to enter the market below and also be sure to reach out to our dedicated team.

  • When scheduling meetings in Malaysia it is best to do so at least four weeks in advance. Malaysian counterparts will want to know who they will be meeting, and you should provide such details as the titles, positions and responsibilities of all attendees in advance.
  • Due to its predominantly Muslim population, Friday is reserved for prayer and it is advised not to schedule meetings on this day.
  • Schedules are usually loose and flexible and meetings may start late. However, Malaysians generally expect foreign visitors to be punctual.
  • Developing trusting, personal relationships is fundamental to winning long-term business in Malaysia. For this reason, Irish companies must consider setting up a local presence at an early stage or engaging a local partner to manage relationships.
  • Malay-owned companies have historically been given preference in Malaysia by the Government for state contracts. Irish companies may need to consider joint venture structures in some sectors for this reason.
  • If you are planning to do business in Malaysia, it is essential to consult a lawyer. Government restrictions can hamper foreign involvement in several areas, including Government procurement contracts, financial, business and professional services and telecommunications. In most cases, it is imperative to have a local partner, usually a Bumiputera, (a local person) who has the ability to provide locally-based technical support.
  • Kuala Lumpur has the most developed financial sector in the Southeast Asia region, after Singapore. It is known as one of the world’s capitals for Islamic finance. The main opportunity for Irish companies is to deliver efficiencies and add capability to institutions in the form of payments, anti-money laundering, regulatory tech, distributed ledgers and analytics. There is also an opportunity to deliver direct financial services, such as foreign exchange and micro-lending.
  • Malaysia continues to evolve as one of the hubs for medical device manufacturing in the region with over 200 manufacturing companies based in the country. Design and construction projects for high-tech manufacturing facilities for medical instruments and devices is one of the key opportunities for Enterprise Ireland client companies in Malaysia.
  • Malaysia’s telecommunications sector is competitive with the three largest mobile networks operators – Digi, Celcom Axiata and Maxis –holding over 75% of the market. Operators are looking for vendor solutions to strengthen their digital Value Added Services (VAS) suite of services and mobile apps in order to accelerate their transformation as fully-fledged ‘Digital Service’ companies.
  • Over 130 Irish firms are already active in this market thanks to EI assistance, contact the local MA here

For more be sure to check out our Going Global Guide 

If you would like to know what to prepare ahead of your first MA call, click the graphic below

Enterprise Ireland’s top tips for entering the Australian market

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Australia has one of the strongest and most open economies in the world

If you are considering doing business in Australia, please explore our top tips to enter the market below and also be sure to reach out to our team in Australia.

  • Australia has one of the strongest, most competitive and open economies in the world. Historically seen as suffering from its remoteness from Europe, today Australia benefits from its strategic location on the doorstep of Asia.
  • As Australia’s economy has developed, it has put a greater emphasis on professional services and technology. Telecoms, financial services, education and scientific and technical services all constitute an increasing share of the Australian economy.
  • The Australian Government is developing a national Technology Investment Roadmap that will drive investment in low emissions technologies to strengthen the economy and support jobs and businesses. This is a key priority on the road to recovery from COVID-19 and provides opportunities for innovative offerings in the energy sector.
  • Australia is the third most popular destination in the world for foreign students enrolled in higher education and has the third-highest number of universities in the world’s top 100.
  • Significant infrastructural investments in telecommunications and transport infrastructure are underway by state and local government.
  • One of the biggest challenges for Irish companies is how to service customers 15,000 km away. In most cases, a local presence should be established, or partner secured, as directly servicing the market from Ireland is difficult in most industries. Companies should be prepared to invest time to come to the market to meet with possible partners before selecting a company which is the best fit.
  • Irish businesses should have little difficulty traversing cultural barriers in Australia.
  • The Australian egalitarian approach to life is reflected in its business culture and can be seen in both corporate structures and communication style. Australians can be quite direct and matter of fact in their tone and prefer if this approach is reciprocated
  • Hiring someone with industry knowledge can be an excellent way to build a presence. Companies should take a hands-on approach to onboarding and supporting their hire as the time difference can leave them isolated from the wider organisation.
  • Avoid visits to market from mid-December to the end of January as these are prime holiday times. Be aware the Australian financial year runs from 1st July to 30th June and therefore many key decisions are made between mid-May and mid-July.
  • Australia’s highly-skilled workforce and business-friendly policies have led to a growing tech ecosystem and is ranked 1st globally for technological readiness.
  • The Asia-Pacific region is the fastest-growing region in the world for financial technology with Sydney and Melbourne acting as financial hubs for the wider Asian-Pacific region. This makes Australia and attractive market for fintech businesses.

For more be sure to check out our Going Global Guide 

David Eccles Regional Director Australia and New Zealand

Market Watch – Australia and New Zealand

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Overview

•  Australia and New Zealand have amongst the lowest cases of Covid-19 in the world
•  There have been some second wave cases and local lockdowns
•  Most businesses still working remotely where possible
•  Australia is experiencing its first recession in three decades and the New Zealand economy has also been affected, but plans have been put in      place to mitigate this.
•  Government stimuli put into effect in March will begin to be phased out over the coming months.
•  There are business opportunities for Irish companies in the MedTech and Lifesciences sectors.

Nowhere has been left unscathed by the global pandemic but Australia and New Zealand have been fortunate to have some of the lowest case numbers in the world. However, regional Enterprise Ireland manager, David Eccles, says while the two countries have managed to escape the worst of the infections, there is still a note of caution about the future.

“Australia is 75th on W.H.O data table of cases and New Zealand is 153rd, but we are not out of the woods yet with some second wave cases across both countries,” he says. “Both countries have closed their borders to all except for citizens, residents and immediate family members and 14-day quarantine measures are strictly enforced.

“Australians had been slowly emerging from Covid-19 lockdowns since May but a recent second wave has seen the State of Victoria in stage 4 restrictions while the other seven States and Territories have lighter restrictions and there are some border closures between States, with each being in a very different position.

“And in New Zealand, which was COVID free for over 100 days, a recent wave had seen Auckland go into lockdown and Level 3 restrictions, but this week they have returned to Level 2 restrictions with the rest of the country. So, most companies are continuing to work remotely and enforce social distancing where possible.”

But while the cases of Covid-19 were noticeably less in the region, Eccles says economies in both countries have been affected.

“Australia is now experiencing its first recession in nearly 30 years, thanks to the economic fallout from coronavirus, bushfires and drought,” he says. “And the New Zealand economy is poised to contract severely for the first time in over a decade this year – again due to the coronavirus.

“In addition, they both also boast large tourism, hospitality, and education industries, and these have been severely impacted by the near elimination of international travel. But in other areas, business activity remains robust with construction and financial services leading the way.”

The area manager says Australian and New Zealand Governments invested in numerous cash-stimulus measures for business since March, but these will be withdrawn across three phases from September 2020 to March 2021.

And the Australian government has increased the instant asset write off from $30k to $150k for businesses making capital expenditures and this has given a boost to some Irish companies.

However he says, while there have certainly been an array of challenges and opportunities for exporters to the region, Irish companies have shown remarkable resilience and adaptability in the face of these challenges. And the Antipodean market is no exception.

“We have found multiple opportunities for Enterprise Ireland clients, as all sectors increase their digital transformation,” said Eccles. “In fact, some clients have brought forward their entry into our markets due to demand, particularly across digital health, EduTech and FinTech. And in MedTech and Lifesciences, Irish companies have scaled rapidly to meet new demand for product and have accelerated their market entry here.

“The most impactful of the COVID factors to our clients is the border closures and the cessation of international travel. The borders to international travellers will definitely not reopen this year but exemptions are possible, while very difficult to achieve.

“Interestingly, a key challenge for our clients in the past has been making the decision about when to invest in a local presence and the time and cost involved in flying to the region for important meetings – but with everyone now meeting virtually, this removes that pressure.”

Since March when the lockdown began, 20 Enterprise Ireland clients have established a presence in Australia and New Zealand, including WayFlyer, Vizor, Swoop and MagGrow and over 50 new contracts were won by Irish enterprises across Australia and New Zealand.

“This is as clear a sign as you can hope for, to show that Australia and New Zealand are still open for business, still the gateway into the wider AsiaPac region,” says Eccles. “And Irish companies are showing the strength, determination, adaptability and resilience to win business 17,000 kilometres from home.

“We, Enterprise Ireland Australia / New Zealand, have started new ideas and initiatives to try and help clients during the current situation. We have started a mentoring programme ‘Scale Up, Down Under’ with six companies taking part in a 6-month programme to accelerate their entry into market.

We have also run a series of sector specific Advisory Panels across Sydney, Melbourne and New Zealand, giving a range of Irish companies the opportunity to present their product to sector experts and often senior Irish diaspora in the market to seek guidance and advice.
“So there is light on the horizon for both companies doing business here currently and those planning their market entry.”

Anyone interested in learning more about Irish innovation and its application in the Australian market can visit www.irishadvantage.com.au

Get key insights on the supports available from Enterprise Ireland.

Aerospace & Aviation

Market Watch Industry Bulletin – Aerospace & Aviation

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Aerospace and Aviation

 

Enterprise Ireland’s industry bulletin for the Aerospace & Aviation industry provides insights from Market Advisors across the world, on market developments in each region, exploring market conditions during the Covid-19 pandemic , developments, opportunities and supports.

Read the full report here.

Enterprise Ireland’s top tips for entering the Italian market

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Italy is the third-largest economy in the Eurozone and the fifth largest market in Europe for Irish exports

If you are considering doing business in Italy, please be sure to explore our tips to enter the market below and also be sure to reach out to our team in Milan.

  • Expect a longer timeline for market penetration in this region than in other European markets. Building a relationship with a potential customer can take time, and it’s a lot about trust. Once you’ve gained it, the Italian customer is very loyal.
  • Being introduced by an Italian company or by an institution can facilitate initial contact.
  • Costs for shipping goods to Italy are quite high, which can affect the final price of goods and therefore their competitiveness.
  • Market research and competitor analysis are vital if you want to approach the Italian market. You may find out that the local competition is extremely strong.
  • The perception of Ireland and Irish people is generally very positive, so build on it.
  • Be aware that the level of bureaucracy you find in Italy can be difficult to understand and frustrating at times.
  • If you intend to hire local staff, be aware of the fact that labour law is extremely rigid in Italy, definitely more rigid than in most European countries.
  • Meeting in person is very important in Italy, contact by email or phone is not enough. If you have a distributor, make sure you visit him/her on a regular basis. Meetings can happen over lunch or dinner – the eating element is very important in Italian culture and involves more than a simple sandwich.
  • Dress code during meetings is important. The first impression is made also on the basis of what you wear.
  • Don’t assume that everybody speaks English in Italy. It is quite often not the case. Making the effort of saying a few words in Italian is always appreciated
  • Be aware that the business culture in Italy is much more formal than in Ireland: don’t call people by their first name at the first meetings. Titles and hierarchy are important but the formal approach can vary according to the sector.

If you are considering doing business in Italy be sure to reach out to our team and read our Going Global Guide for more information.

 

If you would like to know what to prepare ahead of your first MA call, click the graphic below

National Women’s Enterprise Day 2020 a virtual, and real, success

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Covid couldn’t stop Ireland’s most successful female entrepreneurs from stepping up to inspire more

National Women’s Enterprise Day 2020, organised by the Local Enterprise Offices, was like no other in that, because of Covid, for the first time in its 14-year history, it took place entirely online.

In all other ways, it was exactly the same – providing women with the inspiration, support and confidence to start and grow a business.

Sheelagh Daly, Entrepreneurship Manager at Enterprise Ireland, has been involved in this flagship event for women in business right from the start.

National Women’s Enterprise Day was an initiative set up by the Local Enterprise Offices in 2007, supported by Enterprise Ireland.

“Back then the landscape was quite different in that there was a dearth of female entrepreneurial role models. If you went back and looked at the newspapers, for example, there weren’t many women being profiled in a business or entrepreneurial setting,” says Daly.

Providing role models 

“Research shows that role models are an important way to inspire women and give them the confidence to start a business.  So we knew we needed to profile women who had done it successfully already. It was that whole concept of ‘to be it you have to see it’,” she says.

But a lack of role models wasn’t the only challenge.

“At the time there was also a real lack of access to business networks for women. While the Chambers of Commerce were, of course, important, they tended to be for more established businesses. More informal networks, such as rugby clubs and golf clubs, didn’t provide the same level of access to women.”

There was a need for “a mechanism to provide women with access to networks in order to inspire, demonstrate and build confidence in female entrepreneurship,” she says.

National Women’s Enterprise Day was just the mechanism.

Showcasing success – and support

“It was also a means to disseminate the huge range of supports available from lots of different government agencies, not just from Local Enterprise Offices and Enterprise Ireland, but from Intreo, Failte Ireland and the Credit Review Office,” she explains.

“The idea was to bring all these things under one roof, on one day, with one big bang that would put female entrepreneurship on the map.”

It did just that.  “The first event was held in Mullingar and was fantastic, and overbooked, so we carried on.”

Indeed, the event grew so much that in recent years the Local Enterprise Offices have run regional versions too, to enable even more women to attend.

All followed the same proven format of enabling participants to listen to successful women at different stages of their business journey, to gain an understanding of the supports available to them, and to have an opportunity for networking.

“Then, in 2020, we had Covid,” she says.

Covid can’t stop it

Having supported so many businesses to ‘pivot’ to online to cope with the pandemic, the network of Local Enterprise Offices were quick to do the same with National Women’s Enterprise Day. It took place on Wednesday 14th October, entirely remotely, and was a huge success.

“We saw an enormous attendance of 1641 people which was amazing and well reflected this year’s theme of ‘Stronger Together’,” says Daly.

Speakers included Olympian turned businesswoman Derval O’Rourke, who talked about the strength, discipline and resilience required to deliver peak performance in one sector before pivoting to another.

Sonia Deasy, founder of international beauty brand Mortar & Pestle, spoke about her journey taking a brand from “local to global”.

A series of ‘leading lights’ included successful female entrepreneurs across a range of sectors, from Clare Hughes of CF Pharma in Kilkenny to Mary Walsh of Ire-Wel Pallets in Wexford and Odilon Hunt of AVA Audio Visual in Sligo.

Exploring overseas markets

Sheelagh Daly hosted a panel discussion entitled “Exploring Overseas Markets”, featuring expert commentary from Anne Lanigan, Enterprise Ireland’s Regional Director Eurozone, and Marina Donohoe, Enterprise Ireland’s Director for UK and Northern Europe.

As well as exhorting female entrepreneurs to explore Eurozone markets, they pointed out that the UK will always be hugely important to Irish businesses too.

Marcella Rudden, Head of Enterprise with Local Enterprise Office Cavan explained the questions to address when starting your export journey.

“She spoke about how to choose a market to target and how the Local Enterprise Office should be your first port of call because it has the supports to help you, both financial and otherwise,” says Daly.

One of the main threads running through the day was not to be afraid of exporting, she says. “The message was that it isn’t something that should be seen as intimidating and that there is help available.”

That help is not just from Local Enterprise Offices but from all sorts of sources, including networks for women in business in countries such as France and Spain, delegates heard.

“Before you commit to a market do the research, make sure that it’s the right market for you and that you can compete in it, and don’t be afraid to ask for help,” says Daly.

Information is crucial. Both men and women have similar business ambitions but research indicates that women take a more cautious approach, including in areas such as borrowing for business. They typically “prefer more information before they take a risk”, says Daly.

“The ambition is very much there but the approach is different.”

Women’s success is Ireland’s success

National Women’s Enterprise Day 2020 took place in a year which also saw the launch of Enterprise Ireland 2020 Action Plan for Women in Business. This important six-year strategy to support female entrepreneurship was launched in February, just before Covid.

“The reason such emphasis is being put on women is because we are still looking at a much higher proportion of men in leadership and entrepreneurship,” explains Daly.

This needs addressing because, both as an economy and a society, we “need the skills and talents of all our population to be realised,” she says.

We also need those businesses that are started to be the best they can. “All the research demonstrates that the greater the diversity the stronger, more profitable and faster-growing the business,” says Daly.

“That leads to wider economic benefits, so it’s a real economic imperative that everybody, regardless of gender or other diversities, does not face barriers when it comes to starting or growing a business.”

 

Watch the ‘National Women’s Enterprise Day Virtual Event’ sessions on-demand here

 

manufacturing

Seismic change on global auto production could offer opportunities for Irish suppliers  

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Continental AG addresses fresh challenges as a result of the Covid-19 pandemic

The company was forced to shut down all of its global tyre manufacturing operations within a short space of time as a result of the Covid-19 pandemic and has recently begun a return to production. “During that period, we had to wind down operations efficiently as well as implement cost mitigation measures such as short-term work initiatives from national governments, having workers take holidays, as well as unpaid leave along with salary reductions at management level,” says David O’Donnell, Global Head of Passenger and Light Truck Tyres at Continental AG.

The company is now seeing a welcome but slow return to activity among key automaker customers globally. 

“We are observing more build-to-order in response to a concrete need for the vehicles in contrast to before, where they were built for an assumed level of demand.” said David O’Donnell

O’Donnell believes it will be several years before production levels recover. “We will be looking at 2022 or 2023 best case before we get to anything like 2019 volumes. Everybody will have to react to the seismic shift in volumes. We are looking at 70 million vehicles this year versus more than 80 million last year. If you can get used to the current level somehow, then you likely have two years of growth. The question is do you hold your capacity to be able to access more opportunities, or do you reduce your cost exposure in order to go into a new growth mode in a different way? That will put pressure on cost management and will also make them look at systems efficiencies and internal company structures.”

 

Focus on Agility

One impact of the global pandemic has been an enforced increased level of agility on the part of manufacturers. “How quickly can you ramp something down? Can you run with a portion of the plant and do that cost-effectively? How do you align it better system-wise to orders?” O’Donnell asks.

“They might have full orders for a certain vehicle and then change it completely from week to week or month to month. It will take time for people to get over their nervousness to rely on orders and feel comfortable with the new processes,” he adds. “Those who can adapt to that uncertainty will be winners in this situation.”

He believes this may present opportunities for Irish firms, which have a reputation for agility and flexibility. According to O’Donnell, anything a company can offer in terms of productivity, improving potential efficiency or agility such as adjusting payment terms for a period, holding more stock, or quickening pace of production would be beneficial.

 

Supply Chain

Opportunities may also exist in the dual procurement structure and more localised supply chain which could result from the crisis. “When China went into lockdown there were war room discussions in our organisation concerning who’s going to stop the slide first. It was a pivotal moment because you had electronic equipment coming from the huge manufacturing hub of China and that affected the batches in Serbia, for example. The aftershock will see OEMs discussing a change in tactics with their purchasing groups, as well as sourcing from multiple and more local suppliers going forward.”

Noting that the Trump administration’s policies have already led to a discussion about what operations can companies relocate to the US, O’Donnell says more nationalisation in Europe may bring more opportunities than in the past.

“A friend and colleague of mine is doing relatively small batch production of printed circuit boards and prototypes. He’s based in Germany and he has had a lot of requests because he is both local and agile as well as an alternative supplier to China. He might be more expensive but he’s offering the flexibility these companies need.”

But customers won’t be willing to pay higher prices forever. “Once the OEMs are back at full capacity with high volumes again, they will come very aggressively with price discussions as they try to regain profitability.”

He advises suppliers to be proactive in going after these opportunities. “It’s a question of arguing yourself into that space as a potential partner and bringing the advantages forward. Become ready for agility and be customer-centric by assessing challenges they have, look at the macro picture and present yourself as a local and flexible supplier. If you can do something there, you may have an advantage in winning long-term business.”

 

Industry Bulletin – Automotive – Impact of Covid-19 on automotive technologies

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Jens Altmann, Market Advisor, Automotive Industry, Enterprise Ireland Germany interviewed Robert Metzger CEO and publisher at eMove360°, a trade fair and community platform for Mobility 4.0 – electric – connected – autonomous in Munich.

eMove360° Europe is already now world’s biggest B2B trade fair for electric mobility and connected & autonomous driving.

The video interview discusses the effects of the current Covid-19 situation on new technologies, forecasts on the industry and alternative ways of connecting with stakeholder in the market.

  • Effects of Covid-19 on technological development in the automotive industry
  • Influence on regulations and Electromobility  and its related supply chain
  • How to counteract current contact restrictions e.g. alternatives for physical trade shows

 

UK BPO & IT

Market Watch Industry Bulletin – BPO & IT

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UK BPO & IT_Market Watch

See the webinar here.

Customer engagement is critical during the Covid-19 pandemic, as organisations across every industry look to connect, engage, reassure, and supply their customer base.

In this time of uncertainty and disruption, Irish BPO and IT companies have demonstrated impressive flexibility in providing their outsourced services to ensure international companies can overcome these engagement challenges from a remote setting and provide a positive customer experience.

Following Enterprise Ireland’s recent Industry Bulletin which looked at developments across the world affecting Irish BPO and IT Services companies, this edition of our Market Watch series focuses on the UK region and a key end-market for many Irish companies; the UK energy sector.

This webinar reflects on the

  • Immediate impact of Covid-19 on the UK Energy sector
  • Challenges for energy retailers and their customers
  • Future opportunities in the sector for outsourced service providers to develop new and stronger partnerships with energy retailers in the UK.

 

See the webinar here.

Panellists:

David Corcoran, Senior Market Advisor, Enterprise Ireland UK

Peter Haigh, former Managing Director of Bristol Energy, CEO of ELEXON, and Director of Business Retail at E.ON.

 

Enterprise Ireland’s top tips for entering the Luxembourgish and Belgian markets

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The Benelux markets comprise the countries of Belgium, the Netherlands and Luxembourg. Although small in area, the region’s combined population of almost 30 million people presents three prosperous markets in their own right, and a huge opportunity to develop exports further into mainland Europe.

The Enterprise Ireland Belgium and Luxembourg team are here to help you prepare, launch and succeed in your export activities. We are eager to share the expertise and network gained from studying, working and living in the market. Don’t hesitate to get in touch with our team of dedicated Market Advisors to help you with your export strategy.

 Belgium market tips 

Belgium truly is the heart of Europe and has proven itself to be a hub of international business and networking, a large market in its own right, and also a great test market for companies with the ambition to grow and scale in the wider European region.

  • Navigating the languages. As a result of its history, Belgium is broken into 3 different regions: Flanders, Wallonia the Brussels-Capital. In turn, it has three official languages: Dutch, French and German, but most speak English. It is important to understand these differences, as the business culture is different per region.
  • In terms of business culture, it’s best to play it safe, so arrive on time and dressed your best. Business culture in Flanders mirrors that of the German or Dutch working culture as Belgian-French business culture is similar to that of France. In general, the culture is kept formal and meetings are structured to maximise productivity.
  • Belgium is a European leader in logistics and distributions; driven by its strategic location and strong cluster of ports, with the port of Antwerp being very noteworthy. With 95 % of Europe’s consumer market reachable within 24 hours.
  • Decide on a route to market: Networks are important, and it is advantageous to sell to a distributor that will resell directly into Belgium, as you can explore new potential leads and clients.
  • Get involved locally: Belgian companies are open to meeting with international sellers, and although not obligatory, a local representative is advised to facilitate a smoother entry strategy. We can recommend trusted pathfinders or sales consultants to help you along your way.
  • Trust the Process: Belgium is a great test market for businesses looking to dive into the Eurozone. Most often than not, a successful launch in Belgium leads to success in other EU markets. Make sure to leverage the multi-cultural and skilled workforce, these new perspectives are sure to benefit your product or service.
  • Understand that the tax system in Belgium is quite attractive SMEs, and they have seen a decrease in their corporate tax rate to 20% during 2018 for the first 100,000 of taxable income Better yet, these reforms helped reduce labour costs too.
  • Be prepared and know your competition: This is a highly competitive and diverse landscape, with many international and national players. Make sure to fine-tune your USP so your product or service can really stand out from the rest.
  • Be Innovative: Belgium is ranked 8th in the world on the 2018 European Innovation Scoreboard, making it more open to change and willing to embrace new technologies something Ireland happens to be very good at producing.
  • Finally, do your research. Explore the different resources available from Enterprise Ireland to delve deep into the market and really understand the opportunities and challenges that will occur. Our world-class Market Research Centre provides countless market reports, and MA’s are happy to help with market-related requests.

For more be sure to read our Belgium Going Global Guide 

Luxembourg market tips 

Luxembourg may be one of the smallest EU countries, but has become world leader in finance and administration, hosting 3,900 investment funds and fostering new opportunities for SME’s.

  • There are three national languages, which are Luxembourgish, French and German. However, English is widely used in business contexts and a translator will not always be necessary.
  • Luxembourg is number 2 in the world in terms of global logistical capabilities and is strategically located in the heart of the greater region. Take advantage of this, and make sure not to rule it out as part of a European export strategy.
  • Decide on a route to market: A sales consultant can be attractive in Luxembourg, as they assist with generating leads and gaining certifications. We can put you in touch with trusted agents who can help accelerate your business.
  • Get involved locally: As a country heavily reliant on exports itself, Luxembourg is home to businesses which are open to being approached by international companies so take a pragmatic approach.
  • Trust the Process: Luxembourg is a global destination, not just for the financial sector, but has also developed high-value industries such as logistics, biotechnology, information technology and green technology. These factors make it a good test market.
  • Understand the tax incentives Luxembourg has put in place, aimed towards stimulating innovation and support SME’s.
  • Be prepared and know your competition: Luxembourg is home to many multi-national and EU headquarters, as well as fostering a growing number of SME’s. The financial sector particularly is quite competitive, but there are plenty of opportunities in other sectors.
  • Be innovative: With a Government that makes innovation in all industries a priority, make sure to showcase your dynamic new ideas, they will be welcomed and supported.

Finally, do your research! Explore the different resources available from Enterprise Ireland to delve deep into the market and really understand the opportunities and challenges that will arise. Our world-class Market Research Centre provides countless market reports, and MA’s are happy to help with market-related requests.

For more be sure to check out our Going Global Guide Luxembourg 

If you would like to know what to prepare ahead of your first MA call, click the graphic below

Data on mobile phone

How Exertis is using blockchain to transform global tech supply chains

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The global supply chains for technology products like smartphones and laptop computers are now almost as complex as the products themselves.

A typical smartphone, for example, is made up of components and materials sourced from up to a dozen suppliers on multiple continents, which are shipped to a manufacturer for final assembly before being sent onwards to distributors, retailers and ultimately sold to consumers.

This presents two major problems for manufacturers and others involved in the chain – visibility and provenance. A new project led by Dublin-based Exertis Supply Chain Services, with funding from Ireland’s Disruptive Technologies Innovation Fund (DTIF), is aimed at solving both of them.

A subsidiary of DCC, Exertis Supply Chain Services is a leader in materials supply chain design and operation. “Our focus is on technology and we provide global supply chain capability for the Exertis group and clients across the globe,” says Brian Cassidy, Head of IT and Director responsible for data protection with the company. “We are also a centre of excellence within the group for the use of blockchain technology.”

The Disruptive Technologies Innovation Fund is a €500 million fund run by Ireland’s Department of Business, Enterprise and Innovation, as part of the National Development Plan under Project Ireland 2040. It is administered by Enterprise Ireland, the trade and innovation agency. An example of the country’s strong focus on developing some of the world’s most innovative companies, the initiative funds collaborations between research facilities and ambitious companies to develop innovative technologies that change the world in which we live.

 

Exertis solves visibility problems in the supply chain

The objective of Exertis’s DTIF-supported project, which also involves Dublin-based technology company Sonalake and the CeADAR Technology Centre located at University College Dublin, is to develop a blockchain-based platform, which will transform the technology product supply chain.

“The two problems we are focusing on is the need for end-to-end visibility of products and components along the supply chain and the need to prove the authenticity of products once they reach the market,” says Cassidy.

“We are using the blockchain to provide a peer-to-peer platform for authenticating provenance and we are providing visibility across the supply chain where multiple partners and a high volume of products are involved.”

The current lack of visibility and difficulty with provenance result in a number of issues. “In terms of visibility, for any participant in the supply chain it is very difficult to know what is selling and what is not,” says Cassidy.

This lack of visibility leads to problems with availability. “Typically, the retailer might know what the distributor has in stock but won’t know what the manufacturer has. Visibility is very much limited to one point up or down in the chain. A manufacturer may not know how much product distributors or retailers have because they usually don’t share that information.”

 

Proving Authenticity

Provenance is another issue. “When the item does arrive at the retailer, proving its authenticity can be a really interesting challenge. If a fake product comes into a customer’s hands, a manufacturer wants to be able to see how it got there.”

 

Sharing information dynamically

The Exertis project is highly innovative in that it will provide an open platform for multiple users in multiple supply chains, with each participant being able to decide which other members of the chain they wish to share information with. Furthermore, it will allow them to share selected pieces of information with selected participants.

Once the data gets put on the blockchain it is immutable and cannot be deleted. “It is encrypted and decrypted at a granular level,” Cassidy adds. “A retailer might want to put a transaction on the platform but may not want competitors to know anything about it, whereas they do want the distributor and manufacturer to know. However, they may not be able to share with the manufacturer certain details such as the price they paid for it or what they sold it for. They can decrypt different parts of that dataset for different partners and their ERP system will be able to dynamically decide what information to share and who to share it with.”

Manufacturers will be able to see what is selling and how much product is in the channel in real time. This is important for planning manufacturing output, as well as for managing warranty liabilities. “Manufacturers will usually know how many units were sold, but don’t know exactly when. They need to know that for when the warranty starts. This platform will address that issue. It provides a place where all participants in the chain can contribute, but everyone controls their own data.”

Initial work on the project, began in 2018, with the DTIF-supported three-year project beginning in earnest in August 2019. “The DTIF funding has accelerated this project significantly and facilitated our collaboration with CeADAR and Sonalake. At Exertis, we have looked across our business and identified several exciting use cases, which we expect to roll out in several areas in the coming years”.

 

For more information and call dates for the Disruptive Technologies Innovation Fund visit the Department of Business, Enterprise and Innovation website.

Cubic Telecom car image

Cubic Telecom’s swift response to Covid-19 strengthens its customer relationships

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When the novel coronavirus first emerged, Cubic Telecom acted fast to protect its staff and cement its customer relationships. Those moves are paying dividends now.

The company provides global mobility solutions for IoT, automotive and mobile device companies around the world, from Germany’s Volkswagen Group to US satellite communications company Kymeta.

The software innovator, which has received funding from Enterprise Ireland, today employs 150 people. It experienced particularly fast growth last year and was recruiting new team members right up until January, when the first inklings of the Covid-19 crisis emerged. When it did, the company acted swiftly.

“The senior team was very focused on getting as much information in as possible early in the Covid-19 life stage. There was a focus on human impact and economic impact. We did some very detailed analysis on the impact to the company and took the right amount of time to assess the steps that needed to be taken to ensure the sustainability of the company. Once this was done the teams could be reassured and day to day work could continue as before,” says Richard Springer, the company’s Director of Commercial Strategy.

“People have come first and this has been led from CEO level down. There have been cost reductions and tighter control of the financials but at the same time, we are still driving the business forward to make sure we come out of this period in a strong position.”

As a technology company, it helped that remote working and the use of tools such as MS Teams and Zoom were already well established in the company.

Once the scale of the crisis was assessed, all staff members were asked to work from home, with some international staff flying home to their native countries to work from there. The use of video and teleconferencing has ensured productivity has been maintained ever since.

“As restrictions started coming into place, very open communication with employees was maintained and, in the background, extensive modelling work done by looking at previous events, including Spanish Flu to SARS and MERS, in order to create very good future forecasting and cash management,” explains Springer.

Decision making was quick and efficient at the top, with the senior team participating in daily catch-ups every morning. What were previously weekly catch-ups were turned into reviews of what was happening in key markets worldwide, as well as planning for the recoveries in each.

The key to successfully managing the crisis for the company so far has been to focus on ensuring there was “over communication” with both staff and customers as both cohorts adjusted to remote working.

“That meant giving people more information, communicating at a more personal level about how their family is, for example, and ensuring there was more collaboration,” says Springer, who says that acknowledging the ‘human’ side of current events is vital. “It’s about making sure the team is okay and that everyone knows what is happening.”

Being empathetic and working to safeguard employees’ physical and mental health was paramount too, with new programmes in areas such as yoga and mindfulness introduced for staff.

 

Adapting to customers’ needs

Cubic Telecom has customers all over the world, which means travel has always been a staple part of its customer relationship management.  Business development strategies traditionally include a presence at major international trade shows, such as CES in Las Vegas and the Mobile World Congress in Barcelona, with vital support provided by Enterprise Ireland.

With such events no longer taking place, the company quickly predicted that customer relationships would need to be maintained and developed remotely too.

“We spent the first few weeks of the lockdown focusing on customer relationships, talking to existing customers,” he says.

While nothing replaces face to face meetings, he says, by again focusing on the human side of the situation, and encouraging collaboration, these relationships are successfully being strengthened remotely.

Although a pandemic is never welcome, the fact that Cubic Telecom is by now so well recognised in its sectors internationally helps. “We are at a point where a lot of our relationships are very well established. As a business we are also still small enough to move fast, but big enough to be recognised in the industry as a player,” he explains.

 

International recognition

Enterprise Ireland’s backing from its earliest days led to Cubic Telecom unlocking a series of investments as it grew, including from major industry players such as Audi and Qualcomm, among others. More recent investment has come from long term backer ACT Venture Capital and the European Investment Bank.

The connected intelligence company is now acknowledged as a pioneer in eSIM technologies and advanced data analytics, offering mobility solutions for IoT, automotive and mobile device companies across the globe.

It has mobile operator partnerships in more than 190 countries, for example. One of the most recent, with Etisalat, a UAE telecoms company, was announced at an Enterprise Ireland trade mission to the Middle East.

While it is not business as usual for the company right now – too much outside its walls have changed – it is business as ‘best as possible’.

“Our employees are well informed about what is going on, our business is running as it was previously and supply chains are open and running,” he says.

As a supplier, it is critical to understand that “everyone is experiencing different impacts to their business,” he advises.

“It does not matter what size that business is, during this time everyone could be under pressure. That is the key when dealing with any business during this time. There needs to be a collaborative approach in how to get through the next months together and as much sharing of impacts, plans and information as possible to help each other.”