When SMEs Bet on International Markets

In general, SMEs export too little, but some are entirely focused on international markets and achieve impressive performances. « For an SME to succeed in export, it must offer something unique and innovative. No one expected us in the export market, but our products and solutions significantly reduce aircraft downtime due to fuel leaks. Grounding a commercial aircraft for 24 hours costs €120,000, » says Thierry Regond, vice president of Sunaero, located near Lyon. Today, this SME with 55 employees (including 35 in the United States, where it has a subsidiary) generates 70% of its revenue internationally, which is expected to double this year to €10 million. To meet the demands of its aeronautics clients worldwide (many in Asia), Sunaero needs « multiple skills, specialists in gases and fluids. » It plans to hire seven new employees, including two engineers. High-level salespeople are also sought, with the opening of an office in Kuala Lumpur to cover the Asia-Middle East region.

Specialized in the production of adhesive tapes and coatings for industry, Adesia ventured into international markets in 2006. « We focused our commercial efforts on export development because the French market had matured, and many of our industrial clients, particularly in the automotive sector, were moving abroad, » explains Guillaume Sarrazin, its CEO. Spain, Portugal, Italy, and Turkey are now its playing fields. « We made 30% of our revenue internationally in 2005, and this year we should surpass 50% (on a total revenue of €14 million). Since 2006, 90% of our growth has been generated by the development of our export sales, » he adds.

To support its strategy, Adesia leveraged a network of companies in its Rhône-Alpes region. The Erai association handles recruitment, administrative management, and physical hosting of structures and their employees abroad. Financially, the company used Coface’s protection insurance system, particularly for its sales development project in Poland. « We created a forecast of expenses over two years and revenue over five years. When the project is accepted, Coface guarantees up to 65% of our actual expenses over two years, and at the end of the first year, they advance the guaranteed amounts, which we repay annually at 7% of the revenue generated over five years, » he explains. The next step is Brazil, a country where Guillaume Sarrazin wants to develop direct sales by recruiting locally rather than through agents.

The Advantage of International Markets

At SFRI, a Bordeaux-based SME specializing in the sale of hematology and biochemistry automata, the 21 employees and their CEO, Gilles Mougin, are grateful every day for export markets. Thanks to them, the company rebounded from 2004. Today, it generates 95% of its revenue (4 million euros in 2011) internationally, with annual growth rates of 15 to 20%.

« Our clients are small to medium-sized laboratories. We place our machines once and sell them our reagents for years. We secure our business and reduce our working capital needs by requiring advance payment for our products, » explains the head of SFRI. Currently present in 60 countries, the company is changing its strategy to focus on a smaller number of markets. « We will segment our markets into three categories and define a specific commercial strategy for each, » says Gilles Mougin. A new commercial employee has been recruited for this purpose (a recent graduate of Inseec who had interned at the company). A commercial director will be hired at the end of the year.