Belgian export is booming, and of course the logistics sector has something to do with it. That’s why Danny Van Himste, CEO of DHL Express Belux, answers a number of questions about Belgian export.
The recipe for successful export
Is there such a thing as a recipe for a successful export strategy?
“A traditional way of exporting products is to manufacture in Belgium and then build stocks in your export countries. However, in the beginning you often do not yet know whether your products will sell and how many of them you will sell. The alternative is to organise the distribution from Belgium. Nowadays, this can be done right across the world. For instance, you can embrace a company such as ours, which guarantees that your clients will receive their goods in up to three days. Your transport costs will be slightly higher, but you avoid stock headaches and you get more scope to focus on production and marketing.
A second tip is to give sufficient attention to your go-to-market strategy. Some SMEs place too much emphasis on the product itself and convince themselves that it will gain traction in the new target market. This is something you have to figure out first. What can your product signify there? How does it fit with the culture? How do you take care of the distribution and financing? That is why you should always first develop a tactical plan before you export.
One final tip is to check the capacity of your export partners. Are they capable of properly dealing with customs? Do they guarantee quality, capacity and flexibility? Are they sufficiently established locally? A partner may be able to operate perfectly well in Belgium but this does not make much of a difference if you want to get your feet on the ground in Vietnam.”
The ideal sector for export
Which sectors or export markets do we still explore too little in Belgium, and where is there still potential?
“Life sciences. This is an area in which Belgium is exceptionally strong and the sector always continues to offer great potential. In general, companies in Belgium predominately need to focus more on creating added value. We also see that companies investing in research and development and in the growth of their products have the strongest growth through exports. Many large manufacturers are no longer here, and we have to pay attention above all to not merely becoming a transfer country for goods. Our economy gains little from this. Belgium is owes it to itself to be top of the class as an innovative knowledge region.”
Belgian export should be sustainable
What are the most important logistics concerns for international export?
“Everyone in industry now has to be fully engaged with sustainability and digitalisation. How will we continue to guarantee our services in the future in an ecologically responsible manner? How will we provide a rapid and efficient online service? Perhaps this is slightly less tangible, but it is equally as important, how do we also optimally digitalise our internal processes, for instance those related to customs activities? Many companies continue to underestimate the complexity of the latter. For instance, people knew about Brexit a long time in advance and yet you see companies struggling to properly keep up with the administrative aspects. As a consequence, goods are at a standstill all over Europe.”
Not every Belgian company is brave enough to export. What is an important argument to convince the doubters?
“Anyone who exports can see their growth double or quadruple. The international mentality needs to be slightly sharper in Belgium. Companies in Belgiumare still reluctant to export – Belgium come first, then the Netherlands, and only then will they look further afield. However, thanks to the internet and digitalisation, the entire world is open and borders have virtually disappeared. Finding the right partners around the world is certainly not an impossible task. If you are a Belgian company and you want to grow, it shows unnecessary prudence if you do not focus on the international market.”
Export can double your growth
What new trends in exports do you see appearing at the moment?
“I already mentioned digitalisation and sustainability, but e-commerce will also continue to boom. It’s striking that this increase will not only be apparent in B2C, but also in B2B. The seller who visits companies in person with his catalogue to sing the praises of his products is an exception.”
Imagine that you became the Prime Minister of Belgium for a day. What measure would you introduce to stimulate export from Belgium or to bring foreign companies to Belgium?
“That’s a tricky question. (laughs) In general, I would approve measures that support companies focusing on growth, and therefore on exports and internationalisation. I’m convinced that Belgium can become even stronger in that area. Actually, it will be the key to our future success. And the better that our region does, the more well-being we can develop.”
Imagine that you decide to take a totally different direction in your professional life in x years’ time. What would you study or do?
“In that case, I could see myself doing voluntary work in particular. I would work for organisations and initiatives where nothing happens because of shareholder value, but where people can just put themselves at the service of others without any interests and for free.
I also continue to get immense satisfaction from my current job and I’m pleased that I can create positive results for our shareholders, customers and employees. However, it is undoubtedly rewarding in a different way to be able to do that in an environment mainly based around social and not economic considerations.”
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