smallbusiness.co.uk: Helping your business think big

A competitive edge is the advantage all SMEs search tirelessly for to help make their businesses successful. A brand new product, cheaper suppliers, speedier service can all make the difference when it comes to winning customers and generating profit. During tough economic times, that competitive edge is even more important as businesses are fighting over a smaller pool of customers with less money to spend, so it is vital that every business owner considers all the options available to them in order to keep their products fresh and their costs and prices down.

The internet has truly opened up global trade making it available to everyone from multi nationals to the one man band, and smart entrepreneurs realise the impressive gains to be made from searching worldwide to source new products and new suppliers. E-commerce sites like Alibaba.com make global trade easy for everyone, opening up a marketplace where suppliers and buyers from across the globe can meet and do business and it has helped thousands of businesses to find that competitive edge.

Sourcing Suppliers

Cutting costs so prices can be reduced and profit margins increased is one of the easiest ways of securing an edge over competitors. Embarking upon a worldwide search for the most competitive manufacturers and suppliers is more likely to result in finding the best prices. However, most business owners would not know where to begin when it comes to finding a supplier overseas and for many travelling to Asia to visit factories and negotiate with factory owners will always be cost prohibitive. But Alibaba.com allows business owners to access thousands of manufacturers and suppliers who could provide raw materials or supplies more cheaply. It has 21.5 million registered users across 240 countries and 9.2 million storefronts displaying products across 5,900 categories.

Using the simple search engine, business owners can research the range of factories and manufacturers which supply their products, chat with them on line or on the telephone and negotiate deals without ever leaving the office.

Creating New Products

Responding to changes in customer trends or spotting a gap in the market and creating a brand new product to meet those needs, is another route to securing a competitive advantage and giving your business a greater chance of success.

But whilst having an idea for a new product is relatively simple, turning that idea into an actual product which is ready to sell at a profit is very different.

Again, looking for expertise around the world is more likely to help make an idea a reality because of the breadth of experience and knowledge on offer from specialists across the globe.

Kate Castle, a mother of two from Winchester, had just such an idea which she turned into reality and which she subsequently took onto BBC’s Dragons Den persuading Theo Paphitis to invest. Whilst camping with her young children she wished there was a better solution than having to take them over to the toilet block at night. After giving it some thought she came up with the idea of BoginaBag, a stool with a disposable liner which folds up light and small and is easy to carry. She created the design for BoginaBag but found it difficult to get it manufactured in the UK so she decided to look further afield. Through an on line search she found Alibaba and started to look at manufacturers who could help her. She planned on using one manufacturer to produce both the stools and the disposable liners and found a factory which was already making products similar to the bags so began negotiating.

Kate explains: “Alibaba.com was really easy to use. The site gave me the ability to see the products that factories were already producing and in some cases gave a good idea as to pricing and minimum order quantities, so I wasn’t starting from scratch. The response from suppliers was always very quick, so nothing took too long. Considering the barriers in terms of language and distance, it has all been a relatively smooth process. The manufacturer was obviously keen to build a long-term relationship and get the product right – as were we.”

BoginaBag received its first delivery in Spring 2010 and began selling on line via www.boginabag.com. Kate also secured sales through other online retailers and specialist camping stores.

Kate continues: “Alibaba.com allowed me to find a suitable and high quality supplier quickly and easily without having to make a trip to China, which would otherwise have been essential. It’s an invaluable tool for people in my position, who are looking to launch a new product onto the market.”

This year she was invited to present BoginaBag to the Dragons in BBC’s Dragons Den and after a successful pitch accepted an offer of investment from Theo Paphities. Kate concludes: “Dragons’ Den was a very nerve-wracking experience but definitely worth it as things have been crazy here!”

This feature was produced in partnership with Alibaba.com

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