ISSN 1649-7589 VOL 11 | ISSUE 04 | WINTER 2015/16

ALSO INSIDE MID-LIFE DILEMMA: TIME TO SELL OUT OR STOCK UP? Should more founders consider an IPO versus a trade sale? IRAN: FROM ZERO TO TRADE HERO What the end of sanctions will mean for global trade CHINA’S BILLION-STRONG E-COMMERCE MARKET Reaching Chinese consumers online CHANNEL VISION Channel Mechanics CEO Kenneth Fox on establishing in Silicon Valley GO JETTERS New exporters talk about the journey to selling overseas

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040 043 Contents 001

THE MARKET COVER STORY Enterprise Ireland The Plaza 012 Doing great in Britain East Point Business Park What it takes to succeed Dublin 3 T: +353 1 727 2954/2000 REGIONS AND SECTORS PUBLICATIONS MANAGER 024 Iran: from zero to trade hero Duncan Black E: [email protected] Opportunities with the end of sanctions EDITOR 037 China’s billion strong e-commerce market Mary Sweetman E: [email protected] Reaching Chinese consumers online

PROOF READER 042 Columbia calls Mary McCauley A new opportunity for Irish companies targeting the telecoms service market DESIGN & PRODUCTION Boyle Design Group 045 Irish companies staying in the game in Russia

PRINTED BY Despite negative sentiment, there is still business to be won in Russia Turner Print Group PEOPLE AND COMPANIES The Market is sold by subscription (+353 1 727 2970) 010 Channel Vision Channel Mechanics CEO Kenneth Fox on establishing in Silicon Valley Readers may email comments and suggestions to the.market@enterprise- ireland.com 034 Hostelworld beds down as a plc Hostelworld CEO Feargal Murray on the realities of bringing the company to IPO The views and opinions expressed in The Market are not necessarily those of Enterprise Ireland. Published by 040 Following the fibre Enterprise Ireland Corporate Marketing The uninterruptible power supply market is taking Hanley Energy into fast-growth data Team. centre locations. www.enterprise-ireland.com/en/ publications BUSINESS 018 Go jetters Interviews with 3 early-stage exporters 028 Mid-life dilemma: Time to sell out or stock up? Should more founders consider an IPO versus a trade sale?

REGULARS 002 Noticeboard News for and from the export community 048 Gadgetry Phablets, tablets, cameras and combos 050 Good Reading Books worth reading 052 Market Intelligence Recently published market research 054 Trade Regulations Trade regulation and negotiation update 055 Travel News Flights and travel update

MAGAZINES IRELAND MAGAZINES IRELAND 056 City Guide IRISH MAGAZINE AWARDS 2011 IRISH MAGAZINE AWARDS 2009 BUSINESS EDITOR MAGAZINE DESIGNER San Diego OF THE YEAR OF THE YEAR

Enterprise Ireland is funded by the Irish Government and part-financed by the European Union under the National Development Plan 2007-2013.

WINTER 2015/16 | THE MARKET 002 Noticeboard

FitzGerald Nursery sows the seed for sweet potato farming in Europe

cross Europe, farmers are growing sweet potatoes Athanks to research and propogation work carried out by the FitzGerald Nursery in Thomastown, Co Kilkenny.

Plantsman Pat FitzGerald has scored considerable ISA NACEWA’S RASTA BIKE: RUGBY LEGEND ISA (SECOND FROM LEFT) PICTURED success exporting varieties of sedge and primroses across WITH THE FUNKED UP FIXIES TEAM. the world, but he turned his attention to sweet potatoes after being asked if it was possible to grow them in this Funk my ride, Irish style country. laiming to offer ‘the most customisable bikes on the planet’, Having sourced plant stock from Louisiana State Funked Up Fixies are producing about 1,000 custom bikes a University, which has granted him exclusive rights to the C year and exporting more than 90 per cent of their output. parent material in Europe and North Africa and to sub- The company was set up by childhood friends Olaf O’Moore licensing sweet potato production, he used an Innovation and Andrew Casey, who at the age of 23 and 24 set up Ecocabs, Voucher from Enterprise Ireland to fund trials, and found the tandem bicycle shuttle service in Dublin’s city centre that is strains of seed potato that could be grown in Northern free to passengers thanks to the revenue earned from advertising. Europe with excellent results. “We are very much part of the cycling community and the He now is commercially producing five varieties, which cycling subculture in Dublin and we saw the growing appeal of were initially sold to hobby growers, but which are now customisable bikes and of single speed bikes, both fixies and being sold to farmers in Austria, France, Germany, Greece, freewheel, in urban environments,” said O’Moore. Portugal, Spain and Switzerland. This represents import Customised bikes are ordered online on www.funkedupfixies. substitution on an EU-wide scale as previously most sweet com, a website designed by Olaf’s cousin Zania Dahl, which potatoes sold in Europe were grown in the United States, offers a fully-personalised bike delivered to the customer’s door Israel and Egypt. anywhere in Europe within seven working days. “We have sweet potato commercial production in Customers pick their frame size, then choose from six different locations where it has not been heard of before,” said types of handlebar, four different types of rear wheel and three FitzGerald. “Yield production in France, Germany and different types of front wheel. They then specify their chosen Switzerland are comparable to, and in some cases better colour for 12 different sets of components. than, yields in traditional sweet potato countries. “At the latest count there are 24 billion different combinations “We are now looking at developing production of sweet available,” says O’Moore. “Dublin is our biggest market, after that potatoes as a source of natural food colouring additives. We it’s France – Paris and Bordeaux; Germany – Berlin, Frankfurt and are also working on other novel crops such as ulluco, yacon Munich; Copenhagen and Stockholm. and oca. Watch out for them during spring 2016.” “We do a lot of search engine marketing so that potential customers can find us, and we use social media like Twitter a lot. PAT FITZGERALD But word of mouth is also an important factor. “The aim now is to develop Funked Up as a lifestyle brand, to start offering t-shirts, hats and caps. We would like to see it as equivalent to, say, Adidas, Patagonia or Quiksilver.” Prices for a Funked Up bike start at €550, including VAT, which means that they come in below the €500 threshold for BIK on corporate gifts.

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swiftQueue scores in the waiting game

wiftQueue is an Irish company that has developed an online Splatform for booking appointments at hospitals, clinics and GP surgeries. This year, swiftQueue will have been used to handle nearly a million patient appointments at more than 50 hospitals/clinics in the UK and Ireland CEO Brendan Casey saw the need for the solution when he was involved in several youth football teams and wouldn’t know where to take an injured player because there was no way of knowing at which hospital that player would be treated soonest. Because the cloud-based SaaS platform is accessible from any smartphone or internet-enabled tablet, everyone, both patients and health professionals, have access to real-time up-to-date information about appointment availability and waiting times. Furthermore, hospitals can use the platform to manage patient-flows and to gain insights into patient demands. Already, using swiftQueue, the Phlebotomy Department at Beaumont Hospital has cut waiting times for blood tests appointments from three months to two weeks. “We were founded in 2011 and from the start we have been getting positive feedback,” said Casey. “As we get more reference sites, our growth is accelerating. At the moment we are concentrating on Ireland and the UK, but we see big opportunities in Australia, Canada and the Middle East. In the UK and Ireland alone, we have a pipeline of €2m in projects.” swiftQueue is also industry partner on the Irish Government’s new €5m ARCH (Applied Research for Connected Health) programme. Olé at MedInIreland as Aerogen signs Spanish partner Galway company enables

aking part in MedInIreland, Enterprise Ireland’s biennial first underwater repair of Tmedtech expo in October, has opened up new opportunities in the Spanish market for Aerogen, the Galway-based pioneer of high-voltage cables aerosol drug delivery systems. Aerogen’s market development manager Simon Donoghue had Galway mechanical produce a workable prototype. been searching for a new Spanish distribution partner for months Aengineering firm, Marine ESB International MD Ollie without success. “I had attended loads of critical care conferences in Technology, has built a first- Brogan describes the habitat as Spain without meeting anyone suitable and I had exhausted all my of-its-kind underwater housing looking like one of the intensive LinkedIn contacts without success. that allows divers to repair high- care units used for premature “Enterprise Ireland paid for Francisco Paco Ribes, the owner of voltage cables on the sea floor. babies. Certainly, its use is only in Dextro Médica, to fly over to Ireland for the day to meet with us. He The system was devised when its infancy. MTL director Eoghan was very well prepared and knew about our company. We sat down faults developed in the Moyle Lavelle says: “We hope this together to talk for a couple of hours and agreed to work together. Interconnector, an underwater project will open up more work It is a very good fit because he understands the critical care market high-voltage cable that runs for us in the area of cable repair very well and is already a distributor for Philips and Fisher & Paykel between Northern Ireland and technology globally, expanding ventilator equipment, which are complementary products for our Scotland. Engineers at ESB In- our brand and increasing our technology. ternational feared that lifting the employment numbers.” “He also has a large team of staff, which means that he would cable to the surface to be repaired Currently, this family firm, be sub-contracting distribution and will ensure that his team are might actually damage it further. which has been trading for well-trained in understanding our technology.” In fact, EI have since Plus hiring a specialist ship to more than 35 years, employs made their offices in Spain available for the training. lift the cable was an extremely 10 people. As well as marine Recent recruitment at Aerogen means that the company now expensive option. They came up engineering, it has expertise employs more than a hundred, and this year it will have a turnover with the concept of a repair hous- in the fields of aerospace, of €35m. ing or ‘habitat’ and asked Marine medical devices and combustion Technology (MTL) to design and technology.

WINTER 2015/16 | THE MARKET 004 Noticeboard Business News

Slane company’s innovation wins in the UK light rail sector

new hand support pole practical and more attractive Asystem, MightyBar, with than steel or aluminium. It’s applications in coach building for non-slip, warm to the touch and the bus and rail sector has been never needs painting, so it’s a highly commended at the UK deserving winner. It can be used MD SEAMUS MCGARDLE Light Rail Exhibition. on doors, station platforms and Produced by Global Green stairways as well – in fact pretty World Bank turns to SRI Composites in Meath in much anywhere in the passenger conjunction with Dublin- environment.” Executive for HR services based Burgmann Packings, Using MightyBar on a the MightyBar is up to 70 per bus can typically reduce the cent lighter than conventional overall weight of a vehicle by a he World Bank has named attributes the company’s success metal pole systems. The product magnitude that can equate to TIrish company SRI Executive to a mixture of luck, hard work, is fabricated from resins and a 30 per cent reduction in fuel as one of four firms that will help passion, professionalism and composites to produce rails consumption, so the industry is it with the bank’s senior search persistence. “We started as a and poles in a wide range of very interested in this,” says CEO recruitment and HR activity search practice specialising in the finishes, gloss or textured, and Gerry Killen. “If we got just two across the globe. life sciences in Ireland when we in any RAL colour. The finished UK bus manufacturers to replace Although the company is were asked if we could help find product is made using closed metal bars with our composite not as well known in Ireland, personnel for the International vacuum moulding, so the bars bar, we are talking about millions SRI Executive is a respected Rice Research Institute in the can be shaped in any way that the of euro worth of business.” brand name globally in its Philippines. From that we were customer desires. This would build on Global specialist areas of activity, asked if we could help the Asian After exhibiting at the UK Light Green Composites’s existing which include multilateral Development Bank and from that Rail Exhibition, the company business, as manufacturer banking, climate change and we moved on to the World Bank was asked to enter the MightyBar of wind turbine blades and environment, international and the UN.” into the Light Rail Awards, and specialist components such as development, life sciences and 2015 has been a milestone year it was highly commended in the airport snowploughs. agricultural development. SRI for SRI Executive, says McGardle, Technical Innovation of the Year “At present our employee personnel , in their 18 locations with the company announcing category. Not only does the lighter numbers are in the mid-50s and globally, regularly engage with sole partnerships with UNICEF, weight reduce fuel consumption we have a turnover of €3m,” said government presidents, ministers the UNDP, UN Women, the in buses and trains, as one of the Killen. “Our development plan and senior civil servants from the UNFPA, the International Union judges, James Hammett of UK is to have 110 employees and a Nordics to South America and of Conservation and Nature Tram, pointed out: “It is more turnover of €8m in 2018.” from the United States to the Far and the Global Green Growth East. Institute. As well as providing senior “What has helped us is that search services, SRI will provide we are incredibly enthusiastic the World Bank with HR services and passionate about our such as leadership training, job work and we have a very good benchmarking and executive knowledge and understanding coaching. of multilateral organisations While SRI is Ireland’s biggest because of the way we engage executive search consultancy, it with them. Being Irish, we are is a minnow in comparison with seen as halfway between the the other three firms appointed cultures of the US and the East. on to the World Bank’s panel: “But the main lesson is that Korn Ferry International and persistence pays: we have been Boyden are the world’s two in New York for seven years. largest executive search firms and Now we are at a stage where we Russell Reynolds is also in the can easily meet face-to-face with top 10. Korn Ferry alone employs the likes of an Under Secretary 3,400 people; in comparison, SRI General in the UN or with senior has 50 employees worldwide, 20 government personnel. It takes of whom are based in Ireland. time to get established in any MD Seamus McGardle new market.”

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Donegal start-up behind the Making flat-pack first doll in space assembly as easy as OVVO onegal-based high-potential six-year old Abigail in Comox, Dstart-up Arklu’s Stargazer British Colombia, Canada, whose Lottie Doll has become the first mum, Zoe, emailed Arklu with doll in space, joining British the idea of an astronomy-themed Dundalk company is building a market for itself by taking ESA astronaut Tim Peake on the doll to help other kids learn Athe headache out of flat-pack furniture assembly. OVVO, International Space Station (ISS) about space. established by cousins Seán and Brendan Philips, has developed as part of the Principia mission. Her idea caught the a three-piece connection system that can be used to join pieces During her time on board the ISS, imagination of the Donegal- of timber, and a wide range of other materials, together either Stargazer Lottie will fulfil her based company, which created permanently or temporarily without the use of tools, glues or mission to get kids interested in the Stargazer Lottie doll in screws. space. collaboration with the European For any connection, two pieces from the system sit embedded The Lottie doll line was Space Agency and with help in the material to be connected, so there are no protruding parts launched in 2012 by Arklu from Dr Karen Masters, a female that might otherwise damage the likes of flat-packed furniture cofounders Lucie Follett and Ian astronomer at Portsmouth in transit. When material needs to be connected, a third OVVO Harkin in response to parents’ University. component holds the two embedded components securely concerns that their daughter When previewed at the New together. were growing up too fast and York Toy Fair 2015, the doll won At the moment the company has distribution partners in the were too worried about body the ‘Young Scientists’ award, UK, the Benelux countries, Italy and Spain, and is looking for image. Lottie has won several from space.com who said “This more European partners before launching on to the US market at industry awards based on her doll was one of our favourite a trade show in Atlanta in August next year. After exhibiting at body being sculpted on the things at Toy Fair, hands the Interzum Furniture Fair in Cologne in May 2015, the company average measurements of a nine down. The creator’s mission had enquiries from potential partners in 40 different countries. year old child. Lottie is now on to get young girls interested in Currently, the company employs six people and is set to have a sale in 30 countries. astronomy is laudable, and the turnover of €400,000 this year. The inspiration for the doll itself is perfect for a young “We are growing exponentially,” said CEO Brendan Philips. “At Stargazer Lottie doll came from child first exploring the cosmos.” the moment we are producing connection systems for 18mm board, but we will soon be launching a version that can connect 12mm board. “Also, we are targeting medium-sized furniture makers, who would have the CNC machinery necessary to embed the components into timber or another material. In February, at a show in Spain we will be launching a hand-held tool that will give smaller companies and the DIY/hobbyist market, who would not have CNC machinery, access to the system.”

WINTER 2015/16 | THE MARKET 006 Noticeboard Business News

Government publishes MIDAS Ireland calls for innovation and enterprise improved tax treatment

strategies t its annual conference in December, MIDAS Ireland called for Asolutions to the challenges faced by the start-up community, as he Government has launched Enterprise 2025 as a 10-year well as scaling companies, particularly in the area of tax. Tjobs and enterprise strategy aimed at delivering sustainable, MIDAS, the microelectronics industry design association, whose enterprise-based jobs growth. members contribute some €12 billion annually to Irish exports, says The ambition is to realise a step change in the performance of that start-up companies in the sector are facing challenges ranging enterprise across the economy – with more Irish-owned companies from securing capital investment, to sales generation, to recruiting of scale; a greater number of start-ups with better survival rates; the technical talent needed to bring their ideas to market. While more entities investing more in research, development and acknowledging that state agencies such as Enterprise Ireland provide innovation; and more enterprises exporting across a range of valuable support to the start-up community, the groups says that markets. companies still face barriers when it comes to raising funding, creating Key targets include Ireland achieving and retaining a top 3 networks, accessing supports and growing commercially. competitiveness ranking; a 60 per cent increase in Enterprise In addition, there is a growing international threat with other Ireland clients spending more than €1m on R&D; a 2-2.5 per cent countries improving their innovation ecosystems quickly and prompting productivity growth per annum in Irish companies and a 50 per entrepreneurs to hub outside Ireland. cent increase in exports by Irish companies by 2020. John Blake, Chairman of MIDAS Ireland and Director at ON The plan also seeks greater, impactful collaborations that would Semiconductor, said: “One key area MIDAS feels strongly about is see Enterprise Ireland supporting and brokering over 40 per cent ensuring we have a competitive tax environment for our start-up more collaborations between companies and research. companies. As part of the proposals, existing businesses are to be offered “While the R&D tax credits provided to this sector are competitive, better opportunities to improve their capability in terms of the process is long. In Great Britain R&D tax credits are refunded in management skills, lean processes, innovation and new markets. six weeks or less; in Ireland, it’s three years. Another area of focus The plan also challenges enterprise to build the connections which could be improved is capital gains tax. While this year’s budget necessary for genuine sustainable market-focused clusters of scale has seen it reduced from 30 to 20 per cent, this is restricted to the first and international visibility. €1m, a once-in-a-lifetime benefit. These are two areas that we believe Talent in the form of developing, retaining and attracting warrant further measures to enhance our competitiveness.” skilled people is seen as a key part in achieving targets, to be met by ensuring alignment between the skills needs of the workplace and the education system; increasing investment in workplace Record job creation by learning; and developing apprenticeships. Other objectives include delivering on the Regional Action Enterprise Ireland client Plans for Jobs; implementing the first OECD compliant knowledge development box in the world; investing in critical infrastructure companies and stimulating greater equity and quasi-equity investment as well as alternative sources of funding. ith its end-of-year results, Enterprise Ireland reported that Enterprise 2025 was followed in December with the publication Wthe companies it supports created 21,118 new jobs in 2015, of Innovation 2020, Ireland’s 5-year strategy for research and translating to a net increase of 10,169 jobs when losses are taken development, science and technology. into account. This brings total employment across the client base A key ambition of this sister strategy is to increase total to 192,223 – a record high for the agency. Significantly, almost two- investment in R&D in Ireland, led by the private sector, to 2.5 per thirds of the new jobs created during in 2015 were outside Dublin, cent of GNP. This would represent an almost doubling current levels Commenting on the results, CEO Julie Sinnamon said that one of investment up from €2.9bn in 2014. of Enterprise Ireland’s strategic priorities was to help scale more The plan targets an increase in the number of research personnel indigenous businesses into multinationals. In 2015, 240 clients in enterprise by 60 per cent to 40,000 and a 40 per cent increase in made investments of over €500,000, reflecting increasing confidence the share of PhD researchers transferring from SFI research teams in scaling opportunities. to industry. Participation in international research organisations is However, she noted that there were many challenges in terms to also be expanded, with Ireland applying for full membership of of competitiveness, including shortages in the availability of skills, ELIXIR, and exploring membership options for CERN and ESO. underscoring the need to attract more people into the indigenous Looking to the future, a new Programme of Funding for Frontier sector. Potential risks, she added, included a movement in exchange Research is to be introduced, and a formal horizon-scanning rates, the slowing of the Chinese economy, uncertainty around exercise is to be undertaken to identify areas of strategic commercial ‘Brexit’ and potentially higher costs of capital. This meant that opportunity, which will feed into the next research prioritisation helping clients anticipate and respond quickly to changing market exercise in 2018. dynamics and embrace agile, competitive business models would remain priorities for Enterprise Ireland.

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Developing economies to expand by 4.8 per cent predicts World Bank

eveloping economies are forecast to expand by 4.8 per cent TOM HAYES, ENTERPRISE IRELAND; CONOR HEALY, CORK CHAMBER OF COMMERCE; GINA QUIN, DUBLIN CHAMBER OF Din 2016, according to the World Bank’s January 2016 Global COMMERCE; ENTERPRISE MINISTER, RICHARD BRUTON TD; Economic Prospects. This is less than expected earlier, but up from a AND OISIN GEOGHEGAN, LOCAL ENTERPRISE OFFICES. post-crisis low of 4.3 per cent in the year just ended. Growth is projected to slow further in China, while Russia and Enterprise Europe Network extends Brazil are expected to remain in recession in 2016. However, the services to Local Enterprise Offices South Asia region, led by India, is projected to be a bright spot, the report predicts, with the recently negotiated Trans-Pacific Partnership providing a welcome boost to trade. nterprise Europe Network (EEN) has announced a new partnership “There is greater divergence in performance among emerging with 31 Local Enterprise Offices in Ireland that will mean free E economies. Compared to six months ago, risks have increased, access for Irish companies to what is the world’s largest support particularly those associated with the possibility of a disorderly network for SMEs. EEN has Europe’s largest database with up to 10,000 slowdown in a major emerging economy,” said World Bank Group new business and technology opportunities in the EU and many other Vice President and Chief Economist Kaushik Basu. Risks to the major global markets; close to 600 business support organisations in up outlook also include financial stress around the US Federal Reserve to 60 countries and over 4,000 experts on call. tightening cycle and heightened geopolitical tensions. The network is designed to facilitate fast-track international The WTO is also predicting that as advanced economies gain growth by providing practical advice, targeted market intelligence and speed, overall economic activity should still pick up modestly to a personalised support to companies across the EU. In brief, it can help 2.9 per cent pace, from 2.4 per cent growth in 2015. companies develop business in new markets; source or license new technologies; find the right partners for research and development; understand how to protect intellectual assets; learn about EU regulation; have their say in Europe and access EU funding and finance. Atlantic Flight Training The Enterprise Europe Network in Ireland is a joint partnership between Enterprise Ireland, Local Enterprise Offices, Dublin Chamber Academy wins business of Commerce and Cork Chamber of Commerce. See www.een-ireland.ie. with Turkish Airlines

Womb-to-tomb policies needed to he Atlantic Flight Training Academy (AFTA) has tackle rapidly aging East Asia Tannounced a contract with Turkish Airlines to train its cadet pilots from AFTA’s base in Cork Airport. ast Asia is aging faster than “East Asia Pacific has AFTA will recruit 10 new instructor pilots and additional Eany other region in history, undergone the most dramatic ground support staff as a direct result of the deal. AFTA has and some middle-income and demographic transition we have been initially contracted to train 20 cadet pilots annually, wealthier economies could lose ever seen, and all developing and the first group of Turkish trainee pilots have recently as much as 15 per cent of their countries in the region risk getting commenced training at AFTA’s base at Cork Airport. working-age population by 2040, old before getting rich,” said Axel according to a new World Bank van Trotsenburg, Regional Vice report. President of the World Bank’s East The report, Live Long and Asia and Pacific Region. Prosper: Aging in East Asia and Most East Asian health Pacific, finds that 36 per cent of systems aren’t prepared for the world’s population ages 65 and age-related spending, as cancer, over, or 211 million people, live in heart disease, diabetes and other East Asia, the largest share among chronic illnesses could account for all regions. 85 per cent of all disease burdens By 2040, the greying of the by 2030. In addition, today’s population could shrink the older population is less likely number of working-age adults by than previous generations to have more than 15 per cent in Korea adequate family support. and more than 10 percent in China, The report examines how aging Thailand and Japan. In China may affect the drivers of economic alone, that would translate into a growth in the region, as well as net loss of 90 million workers. patterns of public spending.

WINTER 2015/16 | THE MARKET 008 Noticeboard Irish Business

Glanbia to acquire US company thinkThin

lanbia plc is acquiring the US premium lifestyle nutrition Gcompany thinkThin for a cash consideration of US$217m. thinkThin has a leading range of protein enriched bars targeted PICTURED AT THE CORK LAUNCH OF MAKERDOJO at lifestyle consumers looking for wholesome, convenient and tasty snacks. The company primarily distributes its products in food, natural and mass retail channels in the US. Net sales for the twelve The maker movement meets months to the end of September 2015 were US $84 million. CoderDojo with MakerDojo The acquisition is designed to increase Glanbia performance nutrition’s presence in the bar category and provide exposure to the yndall National Institute in Cork has launched MakerDojo, rapidly expanding nutrition bar segment, which is currently valued at inspired by the growing maker movement, a worldwide $2.8 billion in US retail as well as to enter the “better for you” snack T community of hobbyists, students and enthusiasts who take a products category. creative, DIY approach to technology, science and engineering. The project, funded by Science Foundation Ireland, will be CHRISTOPHER DEAN, CEO OF SWRVE based around twice-monthly workshops where secondary school students and the general public get to explore science and technology in hands-on “hacker” style workshops. “This is about tinkering and making things,” says Simon Elliott, principal investigator on the Tyndall MakerDojo team. “Participants will use technologies such as Arduino microcontrollers and littleBits electronics kits for projects as varied as building homemade burglar alarms, transmitting songs through fibre-optic cables, and experimenting with a miniature water-powered car.” Swrve completes The project partners, Biomaker Forma and DesignerDojo, will be running MakerDojo workshops on biology and 3D modelling $30M financing round and printing. The project organisers also hope to inspire other and acquisition of MakerDojo clubs and events beyond Cork. Adaptiv.io

ublin-based company Swrve, a leader in mobile marketing Cubic Telecom to deliver Dengagement, has closed a US$30m funding round and acquired adaptiv.io, a data automation platform for mobile. connected vehicles to Audi Swrve, whose platform enables brands to deliver contextually drivers across Europe rich and relevant in-app mobile interactions, will use this funding to continue the company’s global expansion and product innovation. rish company Cubic Telecom has announced a partnership with Audi The investment will also lead to the creation of 45 new posts at the Ito deliver high-speed connectivity for the Audi connect infotainment company’s Dublin base. The announcement comes on the heels of a services to drivers across Europe. period of significant growth for the company, including reaching one Through the initiative, Audi customers will not only be able to access billion installs of the product. Audi infotainment services, but can also purchase competitive regional or Europe-wide data plans using an in-car store or the myAudi web portal, to provide easy internet access for their portable devices. Fleetmatics expands into Italy Cubic Telecom enabled Audi vehicles are set to enter the market in selected models in 2017 carlines across Europe. The deal follows the leetmatics, a Dublin-headquartered provider of mobile workforce Dublin-based company securing an €18m co-investment from Audi Fsolutions for service-based businesses, is acquiring Visirun, a Electronics Venture GmbH and Qualcomm Incorporated (QCOM) in 2015. SaaS-based provider of fleet management solutions headquartered in Ferrara, Italy. “Italy was a natural next step in our European expansion plans and builds off of our recent entries into the Netherlands and France,” said Jim Travers, Chairman and CEO of Fleetmatics. “The acquisition of Visirun enables us to scale our European subscriber base while also bringing us important Italian market expertise.” Visirun will add approximately 28,000 vehicles under subscription to Fleetmatics’ existing installed base and add an additional 3,000 customers.

THE MARKET | WINTER 2015/16 OPINION 009

with our Trade Confidence than structural in nature. As Commenting on HSBC’s latest Trade Survey Score for Q3 2015 at many of these economies Confidence Survey, CEO of HSBC 110, down from 116 (Although benefit from strong economic Ireland, Alan Duffy, says that Irish still well above the neutral fundamentals, they are likely to businesses remain optimistic about score of 100). This is reflective be an important driver of global of reduced optimism in the economic growth and trade over trade prospects but have more performance of the global the medium term. confidence in the local than the global economy. Perhaps aligned to such outlook. Illustrative of this, the caution over the global proportion of Irish companies economy, currency and surveyed that expected the commodity price volatility have global economy to worsen emerged as the top financial slightly over the next six risks anticipated by Irish months has jumped 24 companies. With this in mind, percentage points from 7 per many are looking at strategies cent to 31 per cent. The share of to overcome these risks such as respondents who expect Asia negotiating better terms with to be the best opportunity for trade partners and internal cost business growth over the next cutting. six months also fell by eight Across Europe, stronger IRELAND’S percentage points to 11 per cent, competition is the single perhaps reflecting heightening most dominant challenge concerns over a hard landing for for businesses trading INTERNATIONAL China’s economy. In contrast, internationally. In line the share expecting Europe to with rising cost pressures TRADERS REMAIN have the best opportunities and anecdotal reports that grew by seven percentage companies are reaching the points to 60 per cent, no doubt limit on the amount of cost OPTIMISTIC FOR 2016 on the back of the continuing increases they are able to Eurozone recovery. swallow before passing them onto consumers, the emergence t is a measure of how far we for Ireland’s export sector. In CURRENCY AND of competitors who compete have come as an economy particular, Irish exporters are solely on price is outlined as that HSBC’s recent Trade well positioned to benefit from COMMODITY the biggest challenge, with IConfidence Survey of 24 solid performances by the UK PRICE VOLATILITY the majority of Irish firms also global markets saw Ireland and US. highlighting it as their main at the top end of the rankings In the longer term, Irish ARE THE TOP worry. for positivity around its local exports will benefit from With such competition economic outlook for the next growing levels of disposable FINANCIAL RISKS becoming a concern, six months. income in emerging markets, ANTICIPATED BY differentiation becomes Companies are right to and China will likely increasingly important. That be optimistic; we have all seen become one of our top export IRISH COMPANIES. is why many Irish corporates that the combination of wage destinations in decades to come. are focusing on improving restraint during the crisis However, in the near term, the customer satisfaction and years and the exchange rate advanced economies of Western This slip in confidence employee skillsets as their effects of the ECB’s programme Europe and the United States levels reflects the recent main objectives for the next six of Quantitative Easing have continue to be our biggest deterioration in the global trade months. both provided a lift to Irish sources of export demand. environment. World trade competiveness. As such, Ireland is relatively growth has slowed sharply this The Trade Confidence Survey is Whilst the outlook will well placed to withstand any year, with import volumes in a global survey commissioned inevitably moderate as the headwinds coming from a leading emerging markets, such by HSBC which gauges value of the euro eventually slowdown in emerging markets. as China, Russia and Brazil, sentiment and expectations normalises, an economic Despite these positives, weakening significantly. for the next six months among recovery in advanced economies overall exporter optimism has However, the recent businesses in 24 markets across the world will likely help actually eased somewhat in downturn appears more cyclical globally. sustain a robust performance Ireland in the last six months,

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Channel Mechanics CEO and Founder Kenneth Fox talks through the company’s evolution from start-up to raising funding in London and establishing a presence in Silicon Valley. CHANNEL VISION

hannel Mechanics is an example of a well-conceived ACCEPTANCE OF RISK solution to an identified problem. The problem was the Fox is under no illusions about the risk he took in getting Channel difficulty experienced by IT hardware and software Mechanics to where it is today. “At that time, I was a director of vendors in managing their product and promotional a multinational, and it had taken me 15 year’s hard work to get offerings in an industry with a complex web of routes to there. On the plus side, I knew my way around the business and Cmarket. had a large pool of contacts. But setting up any venture is high As CEO and founder Kenneth Fox explains, one manufacturer risk – only one or two out of every 10 succeed. So from the start might sell millions of data routers worldwide through a network you are fighting the numbers.” of hundreds of distributors and as many as 100,000 partners. Fox had the knowledge and experience, however, to do a But offering a discount on an existing model in certain geographic few things likely to tip the balance in his favour. He approached markets or to specific sectors, in order to clear the way for the Karl Flannery, the co-founder and managing director of Galway introduction of a new model, for example, is typically a difficult, firm Storm Technology, who bought into the idea and brought time-consuming procedure. both finance and technical skills to the venture. Today, Channel The platform Channel Mechanics has developed is geared Mechanics’ advisory board comprises Flannery, Butt and other towards addressing well-recognised pinch points within the highly experienced individuals with global experience, such as channel, such as conflict between vendors and distributors over Dan Solito, a senior vice president and Chief Operating Officer back-end credits and discounts. for CaféX Communications. “I have a strong board,” Fox says. The genesis came about four years ago when Fox, then “Everyone has at least 20 years’ experience in this sector.” working with a large multinational vendor, was talking with Jeremy But Fox also spent about a year developing the idea and Butt, an Executive VP at distribution group Wescon. They envisaged validating the proposition before quitting his day job. When that a new platform that could provide manufacturers with “the tools, day came, Chanel Mechanics was ready to hit the ground running, data and insights needed to turn great sales ideas into easily positioning itself with a good reference customer early on. Fox executable market promotions and sales programmes, enabling had also recruited a team of people already recognised as subject easy and open communication between all tiers in the channel.” matter experts in the channel space and able to undertake Now comprised of 15 distinct modules, the highly granular consultancy assignments. solution allows for maximum customisation based on offer types From the start, consultancy has generated revenue, and where the customer lies in the channel. It allows companies stretching the capital needed to fund R&D. “Two of our early that sell through the channel to deploy individual product or contracts were worth over $1 million each. Consultancy keeps us bundled promotional offers to a wide range of customers. Crucially, busy, keeps our name out there and helps to sell the product. It this does not just dramatically shorten the whole process, it also helps pay the bills for our developers and testers.” also allows companies to track in real-time the success of those Despite this, Fox says, “for the first three years, we were promotions and to use that awareness to tweak them at will. living pretty much hand to mouth, with no real certainty. At the

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“WHAT’S NEEDED IS NOT JUST SALES OR PR OR MARKETING, IT’S A COHERENT STRATEGY THAT COMBINES ALL THREE TO CREATE AWARENESS AND LEAD GENERATION.”

start of last year, we realised it was even tougher than we’d investors in the US, Channel Mechanics found an angel investor in expected.” London. With a background in distribution, he understood exactly But when the business landed its fifth largest product what they were doing and was willing to put up $2 million. And customer last year, Fox was satisfied that it had reached a critical with a number of the existing shareholders also reinvesting, the mass of recurring revenue. “That lets me focus more on the round was over-subscribed at $2.3m. product and less on paying the bills,” he says. At this stage the Differentiating itself from the noise of a busy marketplace, company has five large vendor customers and seven smaller making sure its message is heard by the people who matter, is a vendors in Europe, including such widely recognised names as real challenge, Fox says. “With the support of EI, we’ve been able Zebra Technologies and Cisco. to hone in on our value proposition, to identify our ‘sweet spot’ customers. They are high-tech, European and North American ACCESSING SILICON VALLEY companies. They must have channel programmes and an Another milestone, Fox says, was winning a place on EI’s two- allocated budget.” week Access Silicon Valley programme. “Only 10 companies were Along the way, Channel Mechanics has learned another picked, and we were lucky to be one of them. It was a bit like vitally important lesson: even with these targets, it is vital to talk being on The X Factor. But it helped us learn about how to pitch to the right people. “Early on, we went too low in the organisation, our proposition, and it also opened our eyes to the opportunities for example talking to the operations teams who might use and there.” benefit from our product. That led to a lot of conversations but Many of his target customers are headquartered in the not a lot of deals,” Fox says. “Then we realised we should really Valley and San Francisco Bay areas, and many of the global be talking to directors and senior level strategic thinkers, the channel decision-makers are there too. “To get a deal in Dublin, people who could see the value in what we were offering but had it can actually be quicker for us to go to San Francisco,” Fox says. no territory to defend.” Decisions are also made more quickly in the US, typically within The company is now recruiting its own sales people in four weeks rather the three or four months they take in Europe. California and has recently engaged a specialist PR company “Even if the answer is a ‘no’, that’s a huge saving in time and based in Silicon Valley, Vantage PR, to help it stand out from effort. At least you can focus on the next prospect.” the crowd. Channel Mechanics also plans to recruit a marketing To establish a presence in the Valley, however, more money specialist, who will probably be located in Galway. would be needed. “We wanted to accelerate our development and In this, Fox is quite clear on how he plans to reach his annual to establish our position in the channel space. We needed funding revenue target of $30 million a year by 2020. “What’s needed is dedicated to building our sales and marketing capabilities.” not just sales or PR or marketing, it’s a coherent strategy that Last January, the board accepted his proposal that existing combines all three to create awareness and lead generation. shareholders accept dilution through an investment funding round Having ‘feet on the street’ in the form of sales people is no use at to raise $2 million. After three months spent meeting potential all without the other two.”

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Irish business people share three lessons on doing better in Britain. Interviews by Mary Sweetman.

DOING GREAT IN BRITAIN ritain has always been seen as something of a soft landing for Irish companies taking their first step overseas. Of course, the euro is not expected to remain at its present low indefinitely, and companies would be unwise to attempt to compete on price Balone. However, the current strength of sterling is providing first-time entrants with a head start in Britain, says Christine Esson, Enterprise Ireland’s UK manager for new market entrants. Add to that the fact that, as our nearest neighbour, Britain is quick and cheap to reach: flight times between Dublin and Manchester are just 40 minutes. Then there is a common language and a broadly similar culture. But it is that apparent sameness that can actually trip companies up, says Gavin McWhirter, UK manager for key sectors and enterprise solutions, with Enterprise Ireland, “because they don’t take the same approach, as in other markets, of analysing their strategy in meticulous detail and testing every aspect of it to see what works and then what works better.”

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Denis Coleman, CEO of WorkCompass was up against me a favour? Could you tell me LESSON 1: WorkCompass, certainly UK competitors, Coleman felt who in your organisation looks found this to be the case. the persistence had been worth after performance?’ was key to IT’S THE The company’s online staff it. And he had learned a few getting introductions. performance management and lessons about UK buyers along “In Ireland, we’d open a SAME, BUT performance review solution the way. conversation with something was recently rated by US “Compared with the US, light,” Coleman continues. “In IT industry analysts in CIO where you could be direct with Britain, that would be seen as DIFFERENT magazine as “one of the 20 most a blunt opener like: ‘Your HR unprofessional. promising HR tech solutions managers don’t know how “Start the conversation of 2015”, putting it in the ranks to have conversations about extremely politely,” he advises. of industry behemoths like performance’, the UK requires “Let them lead. Over time, they Workday. a more nuanced approach will warm to you. They enjoy “The UK is our largest such as ‘Research has shown humour. But that comes with market, but we had to invest 2.5 that conventional performance time. people for 8 to 10 months, 100 management doesn’t work’.” “They are very precious per cent of the time, to really Another useful opener he about their time, and before get traction,” Coleman told The found was to politely ask for agreeing to a conversation, Market. Before targeting the UK, help. For example, ‘Could you do they will need to feel there is WorkCompass had over 40 Irish a clear benefit,” he continues. customers. “We understood “Your delivery needs to be crisp well what sales looked like, and very polished, and your how to start conversations and “EVERY STEP value proposition needs to get convert. But when we started WAS ABOUT AS to the point straight away. For out in Britain, it was almost like the product demo, it’s ‘Show starting from scratch all over DIFFERENT AS IF me the benefits, and validate again.” that for me. Show me the ROI.’ WorkCompass is sold WE WERE SELLING The decision-making process is predominantly online, and the pretty stringent.” first shock was the response to TO MARS.” Looking back on almost a the company’s lead generator year of touching gloves, over email. It had delivered good the phone and then in face- response rates in Ireland but to-face meetings with decent seemed to be falling on deaf ears prospects, Coleman doesn’t in Britain. Coleman estimates see any possible short cuts. that the team must have crafted The approach of hiring a UK about 20 email openers before sales manager from the get- they finally hit the right chord. go would have been fraught “It was trial and error. We’d try with problems, he believes. For a new approach, measure, bring example, ‘Can they sell? Can you it through the process and then manage them remotely? Can adapt. We got the email opener you afford them?’ right, and then we were getting In any company, only fall-off with the discovery call, the CEO and a couple of other so we had countless call scripts. people will have sufficient And it was the same at each overview to open a new market, subsequent step in the sales he argues. Then, once initial process, from how to open the traction has been established, conversation in a face-to-face what the company needs is not meeting to the product demo, a UK sales person per se, but a the contract – every step was salesperson who knows how to about as different as if we were sell to UK customers. “And you selling to Mars.” can find them in spades working But after winning three with multinationals in Dublin,” €50k deals, in each case where Coleman says.

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Winning a big brand in Ireland Office of Utility Regulation in perceived.” Buyers may view LESSON 2: doesn’t guarantee you can the Channel Islands, and before Ireland as a small market; win the same brand in Britain, that she was deputy director your competitors will have DON’T UNDER- points out Gavin McWhirter. general of what is now ComReg the advantage of quantity, she This is a point echoed by Irish in Ireland. So she understands explains. Your Irish client might ESTIMATE THE woman Regina Finn, a director regulated markets. not be recognised, so you’ll have at Lucerna Partners in London. “When you go into Britain, to consider this when telling Formerly, Finn was the first you can’t assume that what your story. Even worse, they IMPORTANCE chief executive of Ofwat, the might be a great reference might be poorly regarded. water regulator for England project in Ireland will translate,” Finn can immediately point OF REFERENCE and Wales. She also headed she says. “The story will be to two examples: the launch up the Commission for Energy less well known, and you will of Irish Water hasn’t been SALES Regulation in Ireland and the have to research how it will be perceived as a success story in Britain. Likewise, in Britain, telecoms provider 3 is seen as poor in customer service “BUYERS MAY delivery. “A company like this YOU DON’T HAVE TO GO IT ALONE might be your biggest client • Enterprise Ireland’s London office can help client companies VIEW IRELAND in Ireland,” she says, “and with information on selling or establishing in the UK; what you have done for them introductions to potential buyers, partners and service AS A SMALL might have been excellent. providers; and a programme of events, including workshops, But unless you tell your story trade missions, buyer visits to Ireland and networking MARKET; YOUR very carefully, those negative events for customers. The office also has hot-desk facilities COMPETITORS perceptions have the potential that can be booked, free-of-charge, for half-day sessions. to contaminate your brand.” In • Suitable companies that have completed the first two WILL HAVE THE this instance, she says, you will steps of Enterprise Ireland’s Export Ready programme have to focus on your own role, are taken under the wings of the London office for ADVANTAGE OF track record and delivery within their first flight into the British market. the bigger story. • As well as teaming companies with mentors, consultants QUANTITY.” Where companies find and business accelerators, the London office has forged a host they don’t have an appropriate of other relationships to help exporters. For example, in a reference to bring to the programme run with the University of Westminster, MBA UK, Finn adds that buyers students work with Irish companies, as part of their consultancy in fast-moving sectors like module, to research the market and advise on market entry. technology might well be sold • The past number of years have also seen the emergence of some on innovation. But in more prominent Irish business networks, drawing on the goodwill and conservative regulated sectors, contacts of the estimated 50,000 plus Irish-born company directors they are likely to either stick in Britain. “In the past, they tended to keep their heads down. with what they know or ask you But the economic crisis brought out a passion to help Ireland, to bear the risks if it all goes and an attitude: ‘I’m proud to be Irish,’” says Gavin McWhirter. wrong. • The London Irish Business Society, for example, was “Although it requires a bit started by former graduates in Enterprise Ireland, who of leg work, a better approach now work in the City. Focusing on the fintech sector, the is to really get under the network runs a ‘City Insights’ programme, providing bonnet to understand what support for managers in their early- to mid-thirties. the regulator is incentivising,” • Other high-profile associations include the London Irish she says. For example, in the Construction Network, the London Irish Lawyers Association, water or energy sector, it could the Women’s Irish Network, the Irish International Business be reduced environmental Network and the British Irish Chamber of Commerce. impact. If the Irish company • UK Trade & Invest, the government agency that promotes can focus on a niche where Britain as a business destination, is another source of their capabilities and market support. It provides free advice on establishing in the advantages uniquely deliver on market and is closely connected to many agencies around such pain points, then the buyer Britain that offer reduced cost, short-term office leases. may well do a deal.

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THIS IS NOT A COMBILIFT: TWO SPEED ECONOMY IN BRITAIN FOR Irish people sometimes assume that Britain has a THE LONG-HAUL two-speed economy: London and everywhere else. Combilift has been doing business in the UK market But Christine Esson points out that the reality is for the guts of two decades. Like many Irish companies, closer to three, four or even five speeds. London the Monaghan-based business looked to Britain is, of course, one of the world’s leading cities and almost immediately when it started out in 1998, a financial powerhouse – a large, cosmopolitan because of the limited market size in Ireland. melting pot that mixes business and economic The company is best known for its range of power with entertainment, art and sport. The city innovative forklifts and material handling solutions, itself has more than 8 million inhabitants, rising designed for tricky or demanding warehouse and to over 12 million when the London Metropolitan transport operations in the building and manufacturing Area is taken into account. It has an obvious sectors. Combilift sells in over 70 countries. But 30 attraction for many Irish companies, she says, but per cent of its turnover comes from the UK, according competition, salaries and rent are high. So if your to international sales manager, Anthony Rooney. target customers are outside the Greater London Although the company sells through a dealer network, area, then you can afford to think outside the city. where Combilift is an add-on to the core product range, For example, the North West region spans an Rooney attributes its success in Britain to close relationships area of approximately 14,000 km², and, with just with clients. “Customers typically come to us with their under 7 million inhabitants, it is more populous materials handling challenges, and we will work with than four EU countries (Denmark, Finland, Ireland them to optimise their warehouse layout and build a and Luxembourg). It is Britain’s largest functional customised forklift solution. Although the solutions are economic area after Greater London and the South bespoke, they are made from standardised components, East and home to 350,000 companies. so it makes it easy for dealers to provide maintenance.” It’s also a much more affordable place to do The company supports its British dealers business, both in terms of wages and office space. through a network of regional reps who provide Examples of major companies with a significant technical support, and it promotes the Combilift base there include Betfred, Unilever PLC, Shop line through targeted trade events and magazines, Direct Holdings Limited, Home Delivery Network as well as customer visits to the manufacturing Limited, AMEC, United Utilities, MBNA, Iceland facility in Monaghan “about 48 weeks a year”. Foods, GB Oils, The Co-operative Group and many In 2015, Combilift embarked on a €40m expansion others. to it manufacturing facilities and announced plans Scotland has autonomous buying powers to hire 200 new employees as part of a strategy to in areas like health and education, with public double its current €150m turnover over the next five procurement amounting to over £10bn per year, years. “Anticipated growth in the UK market was and the North West is increasingly moving in a major factor in this decision,” Rooney says. this direction too, Esson adds. Then there is Birmingham, Britain’s second biggest city, with a population of one million. The Midlands is England’s main location for manufacturing; Liverpool, Birmingham and Glasgow all have life sciences activity; London is strong in digital media, but so too are Manchester, Bristol and Brighton. There are 24 designated Enterprise Zones throughout England, offering incentives to support new and expanding businesses, including business rate relief, superfast broadband, simplified planning and industry-specific clustering. Scotland’s Enterprise Areas focus on life sciences; low carbon and renewables; and general manufacturing. Wales has seven Enterprise Zones.

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Even in the fast-moving tech break into the market by flying the UK,” O’Connor says. “THE REALITY IS sector, it can take time to in and out. “I’d book a meeting “In the online sector, they start winning deals, says Rory in advance, book the flights, make decisions quickly. It’s THERE ARE HUGE O’Connor, founder and CEO of then something would crop up, competitive and fast-moving.” OPPORTUNITIES Scurri. With headquarters in and I’d be left walking around That competitive, fast- Wexford, Scurri offers a single London with nothing to do.” paced environment proved AND HUGE platform for online merchants Feeling he was getting fortunate, as new contacts who to prepare, despatch and nowhere fast, he rented an had gone for an alternative COMPETITION.” track all of their shipments apartment in London and got platform subsequently came for customers, regardless set up with a desk in a tech back to O’Connor to try Scurri. of the carriers they use. hub within a matter of hours. “They are looking for “There was no question Initially the plan was to stay innovation, and newness is but Scurri had to be in the for three months, but he ended seen as an advantage,” he says. UK,” says O’Connor. In overall up being there on an intensive “If you can prove your value terms, it’s the third biggest basis for six to nine months. proposition, if you can deliver e-commerce market in the Only now, after “three days the service, if your price is world, behind China and the a week, every week” for the right and they can trust you, US. Moreover, at 13 per cent, past couple of years, O’Connor you will get deals. But, it’s the UK has the highest level feels he is in a position the same as in any market: of online sales compared where he can pull back. you need to be known.” to total retail sales, and, To break into networks, About 90 per cent of with players like Amazon, he says that initially he went Scurri’s customers are now it’s seen as an innovator. to “every dog fight: breakfast UK-based, and the company Growth had been slow meetings, e-commerce trade has its own UK sales director. until Scurri signed up industry shows; I joined networks, However, like Denis Coleman innovator Zara, and over the went for beers. I was over of WorkCompass, O’Connor last year, it has seen 10× there on my own, so there doesn’t feel that hiring in Britain growth. Customers include was nothing else to do.” from the outset would have Oxendales, VisionDirect, Gradually, O’Connor became worked. “How would you know Achica, Asos and Argos, known. Because he was on what to look for? You would be as well as most of the the ground, he could agree totally naïve when interviewing. major delivery integrators to meet over a quick coffee You need to be there and know – Royal Mail, DHL, DPD and or at short notice, whenever the market yourself to get Fastway – and platform a prospect had a free slot. a sense of how well people integrators like eBay. “The reality is there are known in the trade,” he But it wasn’t always like are huge opportunities says. “If anything, I wish I this. O’Connor initially tried to and huge competition in had moved there sooner.”

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BREXIT: WILL THEY STAY OR WILL THEY GO?

‘Will Britain exit the European Union?’ followed with a knock-on effect on GDP and, in turn, closely by, ‘and how would that impact trade?’ British buying power. Moreover, any weakening are becoming the billion euro questions. Back in in the value of sterling would erode the current early 2015, when Prime Minister David Cameron advantages of a weak euro, making Irish goods returned to office on the promise of a referendum more expensive for British buyers. by the end of 2017, the prospects of Britain McGrane adds that if Brussels decides to impose departing the European Union seemed remote. tariffs, levies or increased customs obligations on But throw a migration crisis and the Paris terrorist sectors such as financial services or automotives, attacks into the mix, and the outlook has become then Britain would be forced to retaliate with more uncertain, to the extent that at the time of counter-measures. This, again, could make Irish going to press, some polls were even finding a goods more expensive in the UK. majority of voters wanting to leave. The free movement of capital and people However, there are still a number of unknowns. between Ireland and the UK is another thing we The first is what kind of deal Cameron will be able take for granted, and any row back could cause to negotiate with Brussels, and whether this will serious headaches. Then there is the potential be sufficient to swing the pendulum decisively impact of added complexities in buying raw back in the ‘stay’ direction. materials or services, such as insurance, from UK If not, and Britain opts to leave, the second suppliers. unknown becomes the shape of its future trading McGrane argues that Brexit is a risk that cannot relationship with the remaining EU member be discounted, but he points out that public states, including Ireland. Optimists have suggested opinion could shift if voters believe that Cameron that Britain may be able to negotiate a special deal has got a good deal from Europe. At the time of that retains free trade but avoids the perceived going to press, European Council president Donald disadvantages of EU membership. But why the Tusk said that agreeing a deal at the Council’s EU would agree to such a favourable package is next summit in February would be “possible, unclear. but not easy”. Once a deal is inked in Brussels, Four possible alternative models have Cameron needs six weeks to pass legislation for been mooted: first, Britain joins the European the referendum and 10 weeks for the campaign, so Economic Area along with Norway, Iceland and June 2016 would be the earliest that a vote could Liechtenstein. Second, it opts for a similar model be held. to Switzerland, which has over 20 major and 100 In the meantime, should Irish companies be minor bilateral agreements with the EU. Third, it developing a back-up plan in the event of a Brexit forms a customs union like Turkey; or fourth, it and subsequent trade barriers making it harder to simply relies on normal World Trade Organisation compete? McGrane says one option would be to rules for access to the EU. establish a manufacturing plant or service delivery “Whatever trade deal Britain negotiates as an operation within the UK, while UK companies outsider, it’s not going to be any better than what serving the Irish market could do likewise here. it’s got now – the free movement of goods, services, Like the British Irish Chamber, Combilift’s capital and people throughout the EU,” says John Anthony Rooney (see panel) is hoping it won’t McGrane, director of the British Irish Chamber of come to a Brexit. “It’s not where we as a business Commerce. would like Britain to be … It could add all sorts of The risks to Irish exporters then become multi- tariffs and customs complications.” But Britain in fold. Overall, 16 per cent of Ireland’s export go or out of the EU, he doesn’t see Combilift’s client to the UK, but among Enterprise Ireland client base going anywhere. “Our UK customers are still companies, this figures is far higher, at 36 per cent going to want our product. Although it’s not quite in 2014. as easy, we are already selling successfully in many Less than free EU market access for the UK markets outside the EU, and, if it comes to it, we would reduce FDI into Britain, predicts the ESRI, can do the same in Britain.”

For further information about target markets, upcoming events and news from Enterprise Ireland in the UK, visit http://enterprise-ireland.co.uk.

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BHARAT SHARMA AND STEPHEN KENEALY CO-FOUNDERS, MONSOON CONSULTING, DUBLIN GO JETTERS: MOVING INTO EXPORT MARKETS The progression from mainly operating in the Irish market to exporting is one of the most transformative and challenging transitions many companies make. Here, three participants from Enterprise Ireland’s Get Export Ready programme explain how they have embarked on the journey towards overseas sales accounting for a significant portion of revenue. Interviews by Charlie Taylor.

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BHARAT SHARMA AND ARE YOU TARGETING WHAT CHANGES DID HOW WOULD YOU LIKE TO STEPHEN KENEALY ANY OTHER MARKETS YOUR BUSINESS HAVE SEE THE OPPORTUNITY CO-FOUNDERS, MONSOON CURRENTLY? TO MAKE TO BECOME YOU HAVE EVOLVE? CONSULTING, DUBLIN At the moment it’s just a case EXPORT READY? We aim to be one of the of trying the UK and seeing We have invested in some largest and most successful WHAT DOES THE where it goes from there. areas such as expanding our e-commerce and content COMPANY DO? Obviously, the European team from five people three agencies in Europe. We are one of the leading market would be a target for years ago to 16 now, and digital agencies in Ireland us on a more long-term basis we’ll be about 20 to 22 by offering content and but we need to get traction year-end. To support this, we e-commerce solutions that in the UK market first to have also signed a big lease are built on the open source demonstrate a capability there for an office near Clonskeagh Drupal and Magento content and then to go out further. where people can more easily management platforms. In terms of the two collaborate and together. technologies we focus on, With the help of HOW LONG HAVE YOU most of the market for these Enterprise Ireland, we’ve BEEN EXPORTING? is driven and controlled from also looked at how we can We’ve been exporting for the UK and so we need to fundamentally improve the nearly two years having expand our footprint there and way we do business and have taken an office in the can then hopefully scale from embraced lean principles UK in February 2014. there elsewhere in Europe. in our processes, which has led to a performance WHAT WAS THE PIVOTAL WHAT ROUTES TO and productivity boost We also realised POINT THAT MADE YOU MARKET DO YOU USE? of up to 50 per cent. LOOK AT EXPORTING? We have channel partnerships early on that We were looking at that we’ve established with WHAT ADVICE WOULD opportunities enterprise-level projects, and both Acquia and Magento, YOU GIVE OTHER WOULD- the Irish market was limited and they have been good lead BE EXPORTERS? wouldn’t just in size, so we decided early generation providers. We’ve Don’t take your eye off cash fall from trees on we should attempt to also become close allies with flow or off your existing break into the UK market. service providers who are clients in Ireland. simply because not our direct competition, we’d opened up WHAT CHANGES DID but who complement our ANY MISTAKES THE BUSINESS HAVE solutions so there’s a good YOU’VE MADE YOU’D an office in the UK TO MAKE TO BECOME reference network with them. CARE TO SHARE? so we engaged ‘EXPORT-READY’? We also realised early on I think we charged into the We needed to become that opportunities wouldn’t UK expecting things to take with Enterprise certified solutions partners in just fall from trees simply off immediately on the basis Ireland on a the two technology stacks we because we’d opened up that we’d been successful work on so that when we were an office in the UK so we in Ireland. If you can get sales mentoring going into pitches against engaged with Enterprise some key references from programme and UK firms, we’d be operating Ireland on a sales mentoring operational stuff you’re doing on a level playing field. programme and that’s been a here before breaking into that’s been a really We achieved certification really great help to us. We are the UK and can establish a great help to us. with Magento and are now also looking to partner with go-to-market strategy ahead one of just 17 partners at a company over in England of time, it will serve you our level across the UK and for more lead generation well. We didn’t do enough of Ireland, and the only one opportunities and we’ve spent this early on and it made it here with it. We also became a lot of time ourselves flying in difficult to get in the door. an Acquia enterprise level and out of London, which has partner [Acquia makes a helped us get traction there. popular version of Drupal] and are currently in the process of getting all our developers certified.

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EDEL MCCARRON, WHAT MARKETS ARE YOU closely at how our biggest MARKETING DIRECTOR ACTIVELY TARGETING competitors operated. Doing WITH MULLAN LIGHTING, AND ANY OTHERS that gave us a great insight CO MONAGHAN YOU’RE LOOKING AT? into how they ran their We’re actively in the UK business and showed us how WHAT DOES THE and France. Scandinavia is we were doing some things COMPANY DO? also taking off for us, and, in better than they were. We Mullan Lighting is a decorative 2016, we’ll have someone were able to establish that lighting manufacturer. We based out there. We’ve seen a our manufacturing processes design and make our own significant increase in interest were quicker and that we products. Our main customers from the US, we have only could turn around lines faster, are architects, designers recently gained UL approval; but at a more reasonable and multi-outlet retailers. which is necessary for selling price than our rivals. there, so hopefully we will be HOW LONG HAVE YOU targeting that market shortly. ANY MISTAKES YOU’VE BEEN EXPORTING? MADE YOU’D CARE TO Since 2010 at a meaningful WHAT ROUTES TO SHARE WITH OTHERS? level. We had our first trade MARKET DO YOU USE? We do quite a bit of bespoke show abroad in Paris. That We are using a number of work for customers, and we kickstarted the enthusiasm different methods, the main found that if such pieces were for our products overseas, one being trade shows. We ordered via an intermediary and we’ve returned to that are also currently developing – such as a shop owner – We saw that the event and a sister one every a multilingual website, having information sometimes got year since. Currently about seen a significant increase in lost along the way. We now trade show in 70 per cent of our business visitor levels. In some cases, deal directly with clients on France was the is exports, with the majority we have agents working for bespoke work and this means going to the UK followed us on the ground, such as they can be guaranteed a largest one of its by France and Sweden. We a distributor in the UK and high level of response and kind in Europe and have relatively high levels of a couple of guys in Spain. be sure they and we get all exports going to the likes of the necessary information. decided to take Germany and Spain as well. WHAT CHANGES DID a leap of faith THE COMPANY HAVE WHAT HAVE BEEN WHAT WAS THE PIVOTAL TO MAKE TO BECOME THE MOST VALUABLE by attending. It POINT THAT MADE YOU ‘EXPORT-READY’? SUPPORTS YOU’VE worked out well CHANGE DIRECTION AND We engaged in a complete RECEIVED IN GETTING LOOK AT EXPORTING? overhaul of the business. EXPORT-READY? for us. We originally started in 2008 We recognised that we Taking part in Enterprise as a manufacturer catering for were lacking somewhat in Ireland’s export-ready the Irish pub market, but that expertise in terms of sales programme really helped sector declined so we shifted and marketing so we had us in terms of developing over to doing more vintage to find qualified people. On our value proposition. We and industrial-style lighting. the manufacturing side, then also participated in EI’s While that didn’t really take off we had to start all over advocates programme, and so well here, there was a lot again and shift from having that gave us the opportunity of interest elsewhere. We saw only a small workshop, to to get all the management that the trade show in France introducing new processes team and directors together to was the largest one of its kind to enable us to manufacture think about how we wanted to in Europe and decided to take at a higher capacity. proceed. That was invaluable, a leap of faith by attending. and, even now, it is great as It worked out well for us. WHAT’S THE BEST a reference point for seeing PIECE OF ADVICE how we’re progressing. YOU’VE BEEN GIVEN? The best advice we received, and something that helped and reassured us, was to look

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EDEL MCCARRON, MARKETING DIRECTOR WITH MULLAN LIGHTING, CO MONAGHAN

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KAREENA MCLEOD, CO-FOUNDER AND MANAGING DIRECTOR OF ALADDIN SCHOOLS IN DUBLIN

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KAREENA MCLEOD, them struggling to manage WHAT CHANGES DO YOU your product because if you CO-FOUNDER AND the information they had. We ENVISAGE YOUR BUSINESS aren’t excited by it all, then MANAGING DIRECTOR looked at the market in both HAVING TO MAKE TO nobody else will be. We were OF ALADDIN SCHOOLS Ireland and internationally, BECOME ‘EXPORT-READY’? also advised to keep in mind IN DUBLIN and, disappointed by what We will have to change our why we’ve decided to do this was available, we felt that value proposition to appeal to because there will be plenty WHAT DOES THE we could provide a solution some buyers as we expand, of people you meet along the COMPANY DO? that could do well both here but we know that at our core, way who will tell you that We have developed a cloud- and further afield. We also we have a very strong product things can’t be done. You need based software service that felt that with a cloud-based and one that works really well to stay positive and remind is effectively a one-stop shop system, there would be plenty day-to-day in schools. Although yourself of why you started covering administration tasks of opportunities to mine the we believe we will have to build so that you can get through in schools. Our solution is a data so that schools could a new offering for the likes of the thick and the thin. repository that keeps track gain additional insights. school boards, we feel that of essential information such we’ve nailed the essentials. ANY ADVICE YOU’D as a student’s report cards, WHAT MARKETS ARE YOU We’ve also built on the LIKE TO SHARE? test results, contact details, TARGETING CURRENTLY? capability of the company by One thing I realised early learning plans and so on. We’re still at the very early going on a bit of a hiring spree is that the customer is king stages in terms of getting and taking on quite a number so we’ve spent a lot of time WHAT WAS THE PIVOTAL ourselves export-ready, but of senior staff to help us with talking directly with them MOMENT WHEN YOU we have availed of Enterprise our strategy and to grow about their needs, sometimes DECIDED TO LOOK Ireland supports such as the existing skills, so that we can to the detriment of doing PR AT EXPORTING? market research centre to become a market leader not exercises or signing up to take We could see how using cloud learn about other markets just in Ireland but worldwide. part in awards, etc. Focusing technology in the education and received advice on the on marketing would help us sector could have a major possibility of entering a few WHAT HAS BEEN THE raise our profile more and build impact, because we had been markets. At the moment, BEST ADVICE YOU’VE brand awareness, but we’ve working with our own school we’re looking at the US, but BEEN GIVEN? focused instead of building up on a voluntary basis, looking that’s such a big country, we’re The best advice we’ve received our reputation in our sector, and after their IT, and we could see trying to narrow things down. is to believe in yourself and that’s what matters most to me.

GET EXPORT READY The first step requires attendance at a half-day awareness event, which takes place at regional venues around the country. Here nterprise Ireland offers dedicated assistance for companies that participants listen to an export success case study. Enterprise Ireland Eare considering exporting for the first time or are at the early stage highlights available exporter supports, and the local enterprise office of exporting but looking to put more strategy and structure around talks about how it works with exporters locally. their export plans. Companies that decide to progress beyond this stage then The Get Export Ready supports include mentoring and advocacy; participate in a workshop where they are equipped with the tools to access to market information and a range of Enterprise Ireland funds; help them develop an export plan or strategy. For example, they are a dedicated helpdesk; advice from successful exporting companies provided with access to Enterprise Ireland’s market research centre, and access to the Get Export Ready website, which provides ‘how to’ and they are teamed with an advocate who will spend a half a day guides, links to relevant information and self-assessment tools. working with the company to gain an indepth view of its resources, “A lot of firms obviously do consider other markets, but often products and operations. The advocate will advise them on their don’t know where to begin when it comes to exporting. They may strategy and point them in the direction of appropriate Enterprise have great products or services that would do well in other markets, Ireland’s tools such as the online company health-check, designed but haven’t had the time to explore the possibility of selling overseas,” to assess export readiness, and other tools on the potential exporters’ explains Gabriel McCarrick, a senior business advisor with Enterprise website, which will help them refine their export plan and get export Ireland. ready. “The Get Export Ready initiative is great as it provides an Participants may also be teamed with a mentor to help them opportunity for owner-managers to be away from their business, but work on specific areas of concern or weakness. be thinking about it. Often such individuals find themselves working Companies sufficiently prepared in terms of resources, in the business rather than for it because they simply don’t get operations and an export plan can then meet with Enterprise enough time to do strategic planning. We’re trying to give them space Ireland’s UK team in Dublin, which will take them on board as they to consider whether exporting might be feasible or not.” commence their journey into the UK market.

WINTER 2015/16 | THE MARKET COUNTRY REPORT: IRAN 024 IRAN: FROM ZERO TO TRADING HERO?

A SURVEY With the lifting of economic sanctions, Iran could well be THE global market growth story OF IRANIAN of the coming year. Donal Nugent looks at the CONSUMERS opportunity for Irish businesses. FOUND THAT 73 PER CENT t isn’t often that a large and mature economy opens for business with half the world in one fell swoop. But that’s exactly what is on the cards ARE LOOKING following the landmark nuclear agreement between the Islamic Republic of Iran and the EU plus the P5+1 group of world powers - the US, UK, FORWARD TO THE France, China and Russia plus Germany. The lifting of sanctions, is likely Ito be transformative on a number of fronts, not least within the country itself. OPPORTUNITY TO A survey of Iranian consumers by the UK market research company On BUY IMPORTED Device found that 73 per cent are looking forward to the opportunity to buy imported goods and services in 2016, while 83 per cent expect the lifting of GOODS AND sanctions will have a positive impact on their consumer habits and career prospects. SERVICES IN 2016. Much of the early commentary has centred on the expectation that Iran’s huge oil reserves will force the price of oil down significantly in 2016. However, the opportunities are likely to extend far beyond the energy sector. Only the Saudi Arabian economy is currently bigger in the Middle East and North Africa (MENA) region, and Iran, with a population of some 80 million, almost two-thirds of whom are under 30, is poised to challenge for the number one spot in the coming years. Such ambitions are no better expressed than its stated goal of creating an astonishing eight million jobs over the next two years alone.

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CATCH UP Given the closed nature of the economy Tehran Honorary Consul for Ireland in in recent times, primary research, in the form Iran Alireza Feizollahi argues that these of market visits and relationship building, is ambitions are achievable, “so long as major highly recommended. Davis stresses that international companies invest and banks preparation and planning are very important are ready to finance…The goal for Irish on every front, from securing the necessary companies should be to ensure that they are business visa to identifying the best way to here at the right point to capitalise on that,” utilise your time there. “Though English is he told The Market. commonly spoken, it doesn’t predominate. In fact, he maintains that Ireland You won’t be able to use your ATM or credit could probably have done more to preserve cards, and Tehran is a very large and very business ties in the past. Many EU countries busy city, and by no means cheap. Packing a built up strong trading links with the country short itinerary with meetings that criss-cross before, but also during, the sanction period. the city isn’t going to be a runner.” “Total exports from Italy to Iran, for Enterprise Ireland will be supporting a example, were about €2bn per annum before number of exploratory visits in 2016, with PATRICK MULLIGAN the sanctions and reduced to €1bn over the areas such as healthcare, aviation, agri- last few years. That still adds up to a lot of tech, education, ICT, financial services and business opportunities.” fintech all in the mix. Fintech is likely to be Now a path is being beaten to Iran’s among the more immediate opportunities door – or to that of the Islamic Republic of given that the country’s financial services Iran, as the country has been renamed since sector requires considerable investment and the 1979 revolution, which overthrew the upgrading as it reconnects with its peers RIGHT NOW, IF YOU monarchy. across the globe. “Right now, if you want to book a hotel For Enterprise Ireland clients, Davis WANT TO BOOK A in Tehran, it’s almost impossible. Trade recommends the first step is to contact the HOTEL IN TEHRAN, delegations are coming here every week agency itself. “We are building a contact base from all over the world,” Feizollahi says. But of people Irish companies can reach out to, IT’S ALMOST he cautions that companies must carefully who will help suggest meetings and allow study the market to see how they can be them to hit the ground running.” IMPOSSIBLE. successful. “This is a highly regulated country. If you approach things the right way, SEARCH FOR QUALITY TRADE you will be successful. If you don’t, it is easy An Irish businessman living the Middle DELEGATIONS to end up lost and disappointed.” East since the mid-1980s, Patrick Mulligan operates a consultancy company, MDMS, ARE COMING HERE FIRST STEPS specialising in the trading and distribution of Sean Davis, Enterprise Ireland’s Manager for IT hardware across the region. EVERY WEEK FROM the MENA region, has been closely following “The effect that sanctions have had on developments in Iran’s $400bn economy. He the market over the years is substantial, and ALL OVER THE points to a very real hunger in the Iranian the result has been a huge pent-up demand WORLD. business community for new technology and for quality, innovative products that Irish innovation to fuel economic development. companies now have an opportunity to meet,” “This is a country that has been on the he told The Market. sidelines of global growth for some time, and For those looking for parallels, Mulligan there is a huge appetite to redress that. All points to Saudi Arabia as a good working around, you get the sense of people driven to model. The soft skills that are linked to the capitalise on the new opportunities.” Irish way of doing business should be a Opportunities are open to companies of major advantage in an environment where all sizes, particularly as Iran is putting heavy “people like to do business on a personal emphasis on the development of its own basis and where the attitude is ‘I trust you SME sector. Free zones and technology parks unless you prove otherwise,’” he says. “This have been established around the country as approach has proved successful in the wider incubators of future trade and growth. Middle East for Irish companies, and it can be successful in Iran, perhaps to an even greater degree.”

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That said, it is important to recognise Irish companies are frequently warned Iran’s unique culture in the region and its of long sales cycles when they enter a new resolutely non-Arabic identity. Persia, as market, but Kordvani’s view is that Iran could Iran was known before 1935, was one of the represent something of an exception. “It greatest empires of the ancient world, and really depends on how strong you are in the the country has long maintained a distinct area you are operating. However, generally, cultural identity by retaining its own language Iranians are very commercially minded, value and adhering to the Shia interpretation of strong relationships and are very frank and Islam. open, so it doesn’t take that long to build trust from that perspective.” ACTION TIME What’s less clear is just how comfortable Dr Amir Kordvani, a senior associate with western banks will be in dealing with the international law firm Clyde & Co, advises on country either directly or through their sectoral investments across the Middle East customers. “It will take some time for those and recently undertook a detailed look at the institutions to get comfortable with the new potential Iran offers to companies across the environment,” he says. business spectrum. A final, but important, piece of advice is DR AMIR KORDVANI He sees the fervent desire in Iran to to recognise that, whatever field you operate catch up with the rest of the world as a key in, the value of quality customer service as a dynamic that will drive new trade relations. differentiator cannot be overstated. “In the “What Iranian businesses are looking for, and past, customer service has been very poor it will be a requirement to any procurement in Iran,” Kordvani says. “If you want to lead proposal, is to show that you are bringing the and exploit your opportunity, then you should very latest know-how and technology to the prioritise your customer service and your IRAN IS country. They are not interested in something after-sales support as much as the quality of from 10 years ago.” your product. Companies that can do that will PUTTING HEAVY be very well rewarded in this market.” EMPHASIS ON THE DEVELOPMENT OF ITS OWN SME SECTOR. FREE ZONES AND TECHNOLOGY Iran in brief: PARKS HAVE BEEN Possible Irish opportunity areas ESTABLISHED AS

Aviation: Agri-tech: Research collaboration: INCUBATORS OF The average age of the Iranian Iran has a large agricultural Iran’s 44 universities have FUTURE TRADE air fleet is 27 years. sector. essentially been self- accrediting for 20 years. Only AND GROWTH. Financial services and Water-related technology: two are in the top 500, both technology: In common with the rest of below 300. Significant technology the Gulf, water resources are upgrades will be required poor. Healthcare: to enable full international Expect modern facilities. This integration. Telecoms: sector was excluded from A large investment will be sanctions. required to monetise in urban areas and to build coverage in rural areas.

WINTER 2015/16 | THE MARKET BUSINESS STRATEGY 028 MID-LIFE DILEMMA: TIME TO SELL OUT OR STOCK UP An upswing in ositive signs from the Irish Stock A secondary aim of the IPOready initiative market momentum Exchange during 2015 helped to push was to nudge Irish businesses away from the IPOs (initial public offerings) back traditional exit of a trade sale – a trend that has in 2015 pushed to prominence as a viable option for seen promising companies snapped up early– like IPOs into the businesses. A stock market flotation the UCD spinout LogEntries, which was acquired Poffers the triple benefits of access to finance for by US outfit Rapid7 for $68 million this year. spotlight for growing the business, the publicity it brings, strong-growth which can promote the brand, and incentives to MISSED OPPORTUNITY companies. But attract and retain management and staff. “If you’re on your first company and you get the are they right for Prominent and well-received listings chance to sell out for a personally significant sum, during 2015 also helped to boost the case for but the company did have the potential to scale every business? IPO, including Applegreen, Malin Corporation, and potentially IPO, it is a missed opportunity,” Gordon Smith Permanent TSB, Cairn Homes and most recently, says Cronan McNamara, CEO of Crème Global asks founders and November’s flotation by Enterprise Ireland client and chair of the Irish Software Association (ISA). financiers what company Hostelworld (see interview on page “Some founders don’t go into business to build 32). This comes at a time of strong European IPO and sell, but when that offer comes along, they they think. activity this year. According to PwC’s IPO Watch can’t refuse because they have no other way to survey to Q3 2015, there were 258 IPOs raising de-risk their financial structure. They might be €35.7 billion. This amount was just 11 per cent heavily taxed on their income, so there’s not a lot lower than blockbuster levels for 2014. of incentive to keep plugging away. And perhaps So are we about to see a flurry of flotations it’s a more straightforward transaction compared among Irish companies? The likes of outsourcing to the reporting burden of going public.” provider Voxpro and 3D printing specialist The ISA supports the IPOready programme Mcor are strongly tipped in the near future, and its aim to educate more managers in but for others, the idea of going public remains the benefits of an IPO, especially as Ireland’s shrouded in mystique. software scene has very few active participants In a bid to address this, the Irish Stock who have been through the experience of life in Exchange launched its ‘#IPOready’ initiative a public company. earlier this year. CEOs and CFOs from 10 However, an IPO may not be the only valid companies in sectors including food, leisure and option for a growth-minded company. On a technology were chosen to get a grounding in personal level, McNamara says the greater raising capital, investor relations and business availability of private investment is an attractive management required for a stock market flotation. alternative, especially as the IPO process can

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“IF YOU’RE ON YOUR FIRST COMPANY AND YOU GET THE CHANCE TO SELL OUT FOR A PERSONALLY SIGNIFICANT SUM, BUT THE COMPANY DID HAVE THE POTENTIAL TO SCALE AND POTENTIALLY IPO, IT IS A MISSED OPPORTUNITY.”

CRONAN MCNAMARA CEO OF CRÈME GLOBAL

be challenging, and he believes the markets Let’s say you’re a pre-revenue startup: an IPO will are often unduly harsh on tech stocks. “You be a hard sell to raise money, so you tend to see see Michael Dell taking Dell private because that people will get funding from other sources he felt they were undervalued on the market. until they build critical mass. We have tended to That was a very interesting development in see more established businesses going down the my opinion. As a business, you need a lot of IPO route, and they would have grown through structures in place to IPO, and there are a lot of other means and explored different angles.” very successful companies, like Mars, Bosch and Business owners have to see the value in Deloitte that are all private.” bringing external equity into play, adds Michael Garrett Mooney, a senior policy adviser with Neary, a corporate finance partner with Grant Enterprise Ireland, which also supported the Thornton. Even to embrace the concept, they’ve IPOready programme, agrees that it’s not going got to accept that sharing the pie and owning to be the right direction for every company, a smaller share in a bigger business is more but that it could be right for some. “We have a worthwhile than owning a larger share in a variety of funding options so that companies smaller business. can grow and scale, such as the Seed and Venture Capital schemes, the Development Capital Fund COMMON CHARACTERISTICS and the Innovation Fund Ireland programme, Irrespective of sector, there are certain common and an IPO is one strategy [within that mix] that characteristics of companies that are best companies could look at. The concept is back placed for going public: a robust and deliverable more in vogue than it was, and we believe a business plan to underpin the investment certain cohort of Enterprise Ireland-supported case, sound corporate governance and good companies should look at it,” he told The Market. underlying management information systems. “However, usually the most important thing THE DECISION TO FLOAT investors are buying into is the people, the In weighing up that decision, John Casey, partner management team,” says Casey. Less mature in PwC’s deals practice, says companies don’t businesses may not be ready for investor necessarily need to be at a particular size or scale roadshows, which can be an unforgiving arena. to consider an IPO. “The requirements for the “Poorly prepared companies tend to fall at the Enterprise Securities Market in terms of the pre-IPO hurdle, in my experience.” startup track record are pretty generous. It’s a The decision to go public may be affected by question of whether investors would be willing factors beyond the business itself. Casey points to back the management team and back the story. to events of the late summer when increased

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DEIRDRE SOMERS CEO, IRISH STOCK EXCHANGE (CENTRE) PICTURED WITH #IPOREADY PARTICIPANTS MIKE HOPKINS CEO, IMPEDANS, AND DAVID WALSH CEO, NETWATCH LAUNCHING THE NEW ENTERPRISE SECURITIES MARKET GUIDE.

volatility, uncertainty in China and falling start, and the ISE has been performing well: equity indices hit the equity markets. A good up 30 per cent in 2015. ISE investors tend to be adviser can help the business make a decision domestically focused, however, and this can about whether or not to press ahead with a make a dual listing attractive. It’s described as public listing if external conditions are less having two shopfronts because it considerably than favourable. “You can be just at the wrong widens the net for catching potential investors. stage, and there have been public examples of Hostelworld floated in Dublin and London, while IPOs that have been pulled. Digicel were quite another Enterprise Ireland-supported company, public about not getting the valuations they had Mainstay Medical, had a successful joint listing hoped for, so they decided to hold it over. There’s on the Paris Euronext and Dublin’s ESM in April no loss of face in pulling out of an IPO at the 2014, raising €18 million. right stage, if you as a founder say ‘I think my Irrespective of a company’s decision business is worth more than that’,” he says. whether or where to float, the rigour of Some businesses keep their options open by preparing the business will stand it in good undergoing a vendor due diligence process that stead no matter what funding route it ultimately prepares them either for flotation or for a trade sale. chooses, says Mooney. “In looking at the IPO Casey says an IPO process requires more detailed journey, you are also preparing yourself for other preparation in terms of due diligence. An IPO exit investment options that may arise. Governance shouldn’t be equated with a trade sale for founders, isn’t unique to IPO. We wanted to make sure he adds. “With an IPO, investors are backing the that even if entrepreneurs come out from the management team, which will likely include IPOready programme and decide they don’t want the founders. This may or may not be the case in to IPO, they will still have learned from it.” a trade sale, depending on the buyer. An IPO is a Orla O’Gorman, head of equity at the method of introducing liquidity to the shareholder Irish Stock Exchange, says one of the goals of base and taking some money off the table. But the IPOready programme is to drive ambition don’t forget, the majority of funds raised in an IPO in Irish companies. “There have been some tends to be for the benefit of the company, to fund high-profile trade sales where the owners got expansion, debt-reduction or both.” an offer and went for it, but I’d love to see more people accessing capital markets to raise that ISE AND ELSEWHERE funding. An IPO gives a business permanent If a company decides to float, the next decision to strategic capital. It’s not like a loan that will need make is where to do it. For Irish-headquartered to be repaid, and it enables you to grow your companies, Dublin is an obvious place to business,” she says.

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“IT’S BETTER TO TO FLOAT THINK ABOUT HOW OR NOT TO TO CREATE A LONG- TERM, PROFITABLE, FLOAT: SUSTAINABLE, SCALABLE GLOBAL BUSINESS. IT THE CEO DOESN’T ACTUALLY HELP PERSPECTIVE TO SAY ‘WE’RE BUILDING TO BECOME PUBLIC, OR TO BE ACQUIRED.”

PETER CROSBY CEO OF MAINSTAY MEDICAL

he main reason for Philadelphia and is currently of a business. “I’m not one of recognised brand and a happy an IPO is to get raising funds from private those entrepreneurs who has place to work for the staff.” “Taccess to an investor sources. CEO Aiden Corcoran to be in the 100 per cent club,” Crosby, a veteran of four base that is not normally estimates an IPO is “five he says. He understands an public companies from four accessible to a private to eight years away”. The entrepreneur’s apprehension, different countries, listed on company. Some funds can’t intervening time will be needed but says it is part of going on four different stock exchanges, invest because of the rules to sustain the company’s 8x to the next stage. “It’s like believes IPO shouldn’t be they are governed by. Going growth of the past four years being the parent of a child. thought of as an end, but as a public opens up a new investor and commoditise some of At some point, they become means. “I think every situation base,” says Peter Crosby, its services to expand into old enough to stand on their is slightly different. The one CEO of Mainstay Medical, new markets, he says. own feet and make their own general piece of advice I which has developed an Corcoran is actively involved demands. As a good ‘parent’ would give is, in my experience implantable device for treating in various entrepreneur and entrepreneur, you need it’s better to think about chronic lower back pain. networks and from talking to allow your business to ‘how do we create a long- “Particularly for a company to others as well as his own perhaps follow its own dream.” term, profitable, sustainable, that starts as a venture experience, he has developed Corcoran certainly isn’t scalable global business’, and capital-backed operation, a balanced view of the counting the days until a part of that is the product their financial structure with implications of an IPO – both stock market launch. “An IPO strategy and part of that is the preferred stock can end for the company and him is, ultimately, a fundraising financing strategy. It doesn’t up being complicated. As personally. “The upside of mechanism. It is mass actually help to say ‘we’re a public company, now all going public is that you grow recognition of perhaps a building to become public, or shareholders hold ordinary the company to a new place successful brand but I think to be acquired’. We say we’re shares. There’s a much and bring it to different shores you can get that from other building to create value for better alignment of public and give it the chance to ways as well. We’re about shareholders. The target is shareholders, in my view, in a grow. The downside is there’s to set up in the USA, and not the process itself. The public company,” says Crosby. more paperwork, and you’re we’ve got recognition from target is to create a long-term Team Horizon is a life- more accountable to more East-Coast US companies successful company and IPO science services provider people, but that’s business and that in itself is great is one way of doing that.” focusing on pharma and at the end of the day.” recognition. I have no dreams biopharma manufacturing He’s not unduly fazed by of yachts in Marbella or a processes. Headquartered taking external investment and penthouse in New York. My in Westport, the company doesn’t subscribe to the theory driver is to achieve stability recently launched an office in that it leads to losing control for the company, to have a

WINTER 2015/16 | THE MARKET BUSINESS STRATEGY 032

“THERE IS AN WHAT TO ADDITIONAL WORKLOAD, EXPECT SO YOU NEED TO RESOURCE UP. IT’S WHEN YOU’RE PROBABLY 20 PER CENT OF YOUR TIME GIVEN EXPECTING OVER TO PLC WORK.” TO LIST ORLA O’GORMAN HEAD OF EQUITY AT THE IRISH STOCK EXCHANGE

ompanies should have Many business owners Going public also calls for a independent thinker: someone sufficient resources worry about the reporting board structure which contains looking in from outside can Cto handle the extra obligations involved in an enough independent directors see things that you can’t see expectations of life as a public IPO, but this doesn’t need to maintain the requirements yourself.” company, says Orla O’Gorman, to be a hurdle. Sectors like of being a public company, and Underlying all that is the head of equity at the Irish medical devices already fall it needs to be in place a year or culture inside the company, Stock Exchange. “Once you’re under a regulatory framework more before floating. “If you’re particularly of the CEO and listed there’s a new dimension that’s more rigorous than the a family company and all board senior management, he adds. to your job. You have to meet financial framework for public members are family, that won’t “The job of the board is to your investors and update the companies, says Mainstay CEO work,” says Crosby. make a successful company, market in a timely manner. Peter Crosby. “The corporate He adds that there are and you have to have the right There is an additional workload, governance in place for a public three attributes to look for in relationship between the board so you need to resource up to company is the same concept a board member. “The first and the company to make that do this. It’s probably 20 per as putting in a quality system is, it’s helpful if some of the happen.” cent of your time given over to for a medical device company. board members have domain plc work.” If you start with the mindset experience – in the general She recommends setting that quality is crucial – which industry in which you’re up a virtual ‘data room’ to we do – then the burden operating. In our case, medical store all documents relating for a corporate governance devices is full of ethical issues to the business. This includes framework is not that high.” and it’s science-based. The knowing what the company’s Nevertheless, time has to second attribute relates to final contracts are, and whether be dedicated to the process. the stage of your company. If they are signed; having a list Mainstay Medical CFO Hugh you’re a small company with of shareholders; documented Kavanagh says: “You need to 30 employees and you’re pre- ownership of intellectual accept that you’re probably revenue, getting somebody property and evidence that going into a period of seven-day who’s been a board member of it’s protected. This can speed weeks with long hours on all Pfizer probably isn’t going to up the legal and financial due of those days. And inevitably, help you much. The challenges diligence stage, which can be while you do allocate resources and tasks are much more critical if the clock is running. to the project, the people on dependent on stage than they the project are going to also are on domain. And finally, the have to work on keeping the fundamental attribute you’re company going.” looking for is the ability to be an

THE MARKET | WINTER 2015/16 BUSINESS STRATEGY 033

BUSINESS OWNERS STEPS TO HAVE TO ACCEPT THAT THE STOCK SHARING THE PIE AND OWNING A SMALLER EXCHANGE SHARE IN A BIGGER BUSINESS IS MORE WORTHWHILE THAN OWNING A LARGER SHARE IN A SMALLER BUSINESS.

MICHAEL NEARY CORPORATE FINANCE PARTNER, GRANT THORNTON

or the uninitiated, questions abound: How long does it take to get ready to IPO? What does it cost? Who gets involved? Preparation is the key to a successful pre-IPO process, as well as Fensuring that a business has systems and structures in place to satisfy the ongoing compliance requirements such as regular reporting to the market. “It is an important process and one that requires a lot of energy and investment by a company. The timeline can depend on a company’s readiness and can be anywhere from six months to two years. If you do an IPO, there’s a lot of value to it. There is a cost to be borne by the company in any transaction of this nature, and your growth plans need to justify spending the money,” says Michael Neary, a corporate finance partner with Grant Thornton. Business owners have to see the value in bringing external equity into play. Even to embrace the concept, they’ve got to accept that by sharing the pie and owning a smaller share in a bigger business is more worthwhile than owning a larger share in a smaller business. The IPO will require financial and legal due diligence of the company and group, the preparation of what’s called an admission document, and the investment document for prospective investors which will outline all the details in relation to the company.

Neary outlines the steps to IPO as follows: – Select Nomad (nominated advisor). This is usually a firm of investment bankers with experience of the process involved in bringing companies to market – Choose legal advisors and then your reporting and financial accountants. You will also need the share register and a listing advisor – Pick a PR company to handle the media queries around the offering – A broker, independent of the company and the fundraisers, will be chosen by the investment houses to analyse the business that’s floating, to brief investors and the market about what’s happening – A formal application is made to the appropriate stock exchange – Shares open for trading.

WINTER 2015/16 | THE MARKET INTERVIEW: HOSTELWORLD CEO FEARGAL MURRAY 034

HOSTELWORLD BEDS DOWN TO LIFE AS A PUBLIC COMPANY

Fresh from the travel website’s successful dual listing on the Dublin and London stock exchanges in November, Hostelworld CEO Feargal Murray talks through the realities of bringing the company to IPO. Interview by Gordon Smith.

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n the product development to press, Hostelworld’s share comes from the company’s world, releasing an price has been trading steadily history: Hostelworld is early-stage version of since. But that success wasn’t as part of Web Reservations what you plan to sell is much of a foregone conclusion International, and it has a track an increasingly popular as it first appeared after those record of previous buying and Iway to gauge market interest promising investor meetings selling transactions, including and get customer feedback. in July. the acquisitions of Hostels. Hostelworld took a similar Later that summer, com and HostelBookers.com approach to gauge interest aftershocks in global markets and founder Ray Nolan’s sale ahead of its Initial Public meant that by the time of the business to Hellman and Offering (IPO). And the Hostelworld rang the bell in Friedman in 2009 for €202.5 oversubscribed launch on 2 early November, the climate million. These deals allowed November, 2015, suggests the had shifted considerably. the company to build up an move paid off. “Three months previously, online data room containing all Although standard IPO when we pushed the button, of the documents and contracts practice is to start with the markets were flying. By the relating to the business. extensive financial auditing time we got to the endgame, Murray says this was critical and legal due diligence process, they weren’t so hot, so it was in shortening the timeframe Hostelworld turned that on probably a more challenging to prepare for IPO – and its head by first developing environment. A lot of IPOs consequently the cost, as many an investor presentation that have been pulled or priced of the professional advisors set out the business case. down, so for us to have not that need to get involved in the The travel website’s senior only got the IPO out the door process charge for their time. “Private equity managers then embarked on but done it quite successfully Most companies can plan for a a short four-day roadshow, with quite a strong shareholder pre-IPO stage up to six months investors don’t meeting up to seven investors register, and high-quality at least. Hostelworld completed necessarily think per day. investors, is something we’re it in three. When in front of those very pleased with,” Murray Murray says taking the about the business investors, the Hostelworld reflects. company public cost a “seven- and the growth team pressed them to be more figure” amount but he relates specific about their likelihood CLEAR FOCUS this back to the importance of the business: of getting involved, beyond The key to buffering the of assessing interest in they think about vague expressions of interest. company against harsh market advance. “Typically your Though not legally binding, winds was to concentrate on bankers will be on a no foal, their investment those commitments convinced the business, which offers no fee arrangement, but the and the growth of the company to press ahead online booking for more law firms and accountancy with the flotation, sure in the than 12,600 hostels in 170 practices charge by the hour. their investment. knowledge that many investors countries. “You’ve got to focus You probably want to have a Whereas a public wanted in. “We wanted clear on making sure you’ve got reasonable sense that flotation feedback, not ‘is this something a strong story to tell, a clear is a runner before you start market listing you might be interested in?’ strategy worked out and you’re racking up those fees.” gives you a little Effectively, we said ‘we’re able to communicate that looking for more than this: well. And it’s very important COMMUNICATION more autonomy valuation and cheque size. That you have the structures in CHALLENGE as a management gave us a very good sense of the place internally. Some of that Another lesson well learned appetite in the market and at is having the organisational during the process was the team to set out a what valuation ranges,” says discipline that will make need to communicate the clear longer-term Hostelworld chief executive a due diligence process or strategy clearly with the Feargal Murray. a prospectus preparation investor base. “You can strategy.” The company went on quicker, and some is having the sometimes be tempted in any to raise €180 million from its team in place to shoulder the funding process to overplay the flotation on the London and extra responsibility to get you ambitions and set unrealistic Dublin stock markets, valuing through it.” expectations because you’re the company at around €245 The organisational trying to attract investment million. As The Market went discipline Murray refers to and drive valuation. That’s

WINTER 2015/16 | THE MARKET INTERVIEW: HOSTELWORLD CEO FEARGAL MURRAY 036

POLISHING THE PITCH

With a punishing schedule of meetings in prospect, an investor If you take away five minutes each at the start and the end for roadshow isn’t for the fainthearted. Hostelworld planned its hellos and goodbyes, you’re really down to 50 minutes – and primary listing on the London Stock Exchange, and that meant you’re probably talking about 35 minutes to make your pitch in back-to-back meetings with investors not just in the English order to leave time for questions at the end,” says Murray. capital, but in Oxford and Edinburgh too. “It is a long day. Real-world experience also resulted in subtle changes to the Typically we were starting at 7am and going until 6 or 7pm. pitch over time, he adds. “We found that once we were out there Sometimes people talk about the roadshow in glamorous terms, on the road, we got a lot better at it as we went along. After but for us, it was Ryanair and black taxis from one meeting to three or four meetings, you begin to anticipate the questions. another. Each meeting is an hour long, and you might have 15 or Even with all the training and advice, one of the bankers who 30 minutes to get to your next meeting.” had sat in on the roadshow suggested that we should maybe The company worked with professional trainers to help hone change the order of the slides. I always look at it and say, with the key messages in the presentation and reduce the running anything in life, you’re never 100 per cent. There’s always more time, which originally clocked in at an hour and 10 minutes. you can improve.” 4“You’ve got to be very crisp in your delivery of the presentation.

“Typically your something you’ve got to frequently than quarterly.” in terms of what you as a CEO be careful to avoid,” says “The way I look at it is, it’s or management team think bankers will be Murray. Suggestions from about good communication. is the right approach for the on a no foal, no investors about exploring It’s about managing and setting medium- to long-term growth other opportunities can also be clear expectations. So it’s about of the business. Whereas fee arrangement, alluring, but he advises politely making sure you’re focused with a public market listing, I but the law firms parking those ideas and staying on the business without think it gives you a little more on message. “I think it’s a case getting overly distracted by autonomy as a management and accountancy of being very clear about doing shareholders or anything else. team to set out a clear longer- practices charge what you do very well. You Investors haven’t just put their term strategy.” don’t want to be feeding into money behind a good story. Murray describes the IPO by the hour. every investor’s idea. They It’s because they believe in the as a “natural progression” for You probably don’t know your business as business, and if we focus on Hostelworld, which has been in well as you do.” driving the business, then the business since 1999. “I’ve been want to have a Many founders and other pieces fall into place.” through the journey from start- reasonable sense entrepreneurs worry about a Murray argues that an up with 10 working out of a lack of control, or supposedly IPO can actually lead to a bedroom, and we went through that flotation is a onerous obligations around company having more control various rounds of friends, runner before you financial reporting that over its own destiny, even family and angel investors, and come with taking a company though it brings in a much we’ve since had two rounds start racking up public. While private equity wider shareholder base. of private investors. In some those fees.” investment can seem more “Private equity is typically ways, this is a natural next tempting than an IPO, this an investment within a fixed step,” he says. route also involves high levels timeframe. Quite often, of reporting and governance, private equity investors don’t Murray points out. “The bar is necessarily think about the not low when you’re in private business and the growth of equity ownership either. In the business: they think about other shareholder structures, their investment and the you have regular reporting growth of their investment. At as well, and sometimes more times, you can have differences

THE MARKET | WINTER 2015/16 TARGETING CHINESE CONSUMERS 037

Mark Godfrey reports from THE BILLION Beijing on China’s e-commerce market and opportunities for STRONG Ireland. E-COMMERCE MARKET

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search of China’s leading e-commerce sites throws Likewise, the store operated by Dayuchang, a major Chinese up an interesting though limited mix of familiar seafood distributor, sells gift boxes of 15 crabs from Ireland for Irish brands. Bottles of Tullamore Dew and Jameson RMB880, delivery included. Labelled ‘Cooked frozen golden whiskey are sold by LangJiaYuan Liquor Store on crab from Ireland’ the crabs are marketed at upscale Chinese JD.com, a site with almost 100 million visitors per diners, explains Dayuchang executive Li Yanli. “We expect Aday. Kerrygold butter and cheese are sold by several resellers a lot of demand in the run up to Chinese New Year…giving on Tmall.com, the market leader, while one litre packs of UHT someone a box of imported crabs would be a prestigious gift.” milk from Avonmore and Premier Dairies sell on a JD.com store operated by Shanghai-based Niunai Shang Cheng. E-COMMERCE PLATFORMS Anyone who’s ever been caught in Beijing traffic behind So it appears to be random selection of Irish products sold by the army of couriers who ply the streets on their familiar Chinese distributors rather than a structured Irish presence on the three-wheel motorbikes will appreciate how much online world’s most dynamic e-commerce market. That’s the verdict of commerce has changed China. Chinese internet sales Edith Huang, director of fast moving consumer goods at Alibaba, were worth over RMB2 trillion in 2014 and are growing at the firm that owns Tmall.com, the site that controls nearly 60 almost 40 per cent per year according to Euromonitor. per cent of China’s business to consumer (B2C) online sales. Chinese e-commerce sales are expected to double in value by Given the opportunity in Chinese online sales, what’s 2017 to a total RMB4.45 trillion, at which point they’ll account holding Irish exporters back? “Most of the Irish companies for 12.5 per cent of overall retail sales. Crucially, online sales are that are selling online are doing so through a partner,” set to become an increasingly important means of marketing explains John Hamill, a market executive at Enterprise products as China begins to allow cross-border transactions by Ireland’s office in Beijing. Cost is the biggest worry preventing online retailers like Tmall.com and JD.com, the two sites that Irish firms selling online, says Hamill, while “difficulty” together control nearly 80 per cent of Chinese e-commerce sales. is another issue: “The e-commerce platforms have tried to All of this suggests a huge marketing opportunity for Irish make it easier to access; however, it would still take a large exporters seeking to reach Chinese consumers. A Mandarin commitment from the company to really make it work.” word search for ‘Irish products’ on JD.com throws up products The cost of opening a virtual store on Tmall.com ranges from Meath-based The Handmade Soap Co – niche products from RMB100,000 to RMB150,000 for registration of a store targeted at the booming male grooming segment of China’s and another RMB60,000 in technical fees. Then Tmall thriving cosmetics sector. Its 160g bars sell for RMB59 – a collects 0.5 to 5 per cent in commission. “You should offer healthy premium on prices for local brands – and are marketed Chinese language support to customers and also be able to in Chinese as a high-quality, natural product. The company’s handle returns in China,” explains Huang. Firms must also products ended up on the site by chance, explains founder and open an Alipay account to receive payment, but that’s a director Donagh Quigley: “We were contacted by a Chinese straightforward procedure akin to opening a PayPal account. executive, who put in a large order, but we weren’t really The cost of setting up a store means many SME-sized aware of the significance of Chinese online commerce.” exporters choose a Tmall Partner – in effect selling their goods through a company already operating online. Enterprise Ireland is now exploring the possibility of Irish companies selling collectively online, says Hamill. Enterprise Ireland Chinese e-commerce sales are offices in China have been running webinars on selling on online to China, with representatives from Chinese expected to double in value by 2017 e-commerce platforms. “We have also had a strong focus to total RMB4.45 trillion, at which on cross border e-commerce, which would reduce the cost point they’ll account for 12.5 per cent and hassle for many Irish companies,” explains Hamill. of overall retail sales. CROSS-BORDER E-COMMERCE Cross-border e-commerce represents a crucial point of evolution for China’s online retailers, opening up a whole new world of possibilities to exporters. The Chinese government has designated pilot free trade zones (the largest of which is in Shanghai) for online retailers that import to bonded warehouses within the zones. Launched in 2014, Tmall Global (www.tmall.hk) is a cross-border, online platform that allows international brands and retailers without physical operations in China to sell products directly to Chinese consumers. Likewise, Chinese consumers can now buy products directly from Amazon’s

THE MARKET | WINTER 2015/16 TARGETING CHINESE CONSUMERS 039 international websites thanks to deals between Amazon and the Shanghai Free Trade Zone. Hitherto confined to products on Amazon’s Chinese site, Chinese consumers can now get products from around the world within a week. “Tmall Global is a fast way to establish brand presence in China,” says Huang. She explains how Chinese consumers use Tmall Global to buy foreign products sourced from overseas, make payments via Alipay and receive orders through Tmall’s bonded warehouse in Shanghai with delivery made by one of the Chinese express courier companies like Shunfeng or EMS.

SECTOR-SPECIFIC WEBSITES Another potentially crucial development in online commerce is the emergence of sector-specific websites. In a major move this year, Chinese regulators gave licenses to distribute medicines and medical devices online to three sites: Yihaodian.com, Babaifang. com and 95095.com. The sites can now compete with state-run pharmacies and hospitals, which have traditionally monopolised the area. While vendors are naturally drawn to the massive footfall of the market leaders – Tmall and JD.com account for 57 per cent and 21 per cent of the B2C market – there is a growing wave of specialist sites like Moguijie and Meiluoshuo, both of which concentrate on beauty and fashion products. While online commerce opens up a route to Chinese consumers, others see the need for a big shift in how Irish products are marketed in order to push online sales. Driving sales also requires a big marketing effort, explains Fan Xu- Bing, director of Beijing Seabridge, which advises importers on digital marketing strategies. “To be successful you need to have a nice online [virtual] store front but you also need to successfully integrate your online store with Chinese social media because Chinese consumers use these to research products and post comments when they buy.” Marketing support for Irish exports to China has thus far been exclusively based on getting export numbers up, explains Stephen O’Sullivan, a marketing executive at Shanghai-based Ocean Fresh, which advises food importers on Chinese marketing strategies. “It’s a B2B trading strategy, not brand building B2C,” says O’Sullivan. “This impacts on awareness among Chinese consumers who buy online. While there’s an awareness of the quality of Irish products… in China you would be hard pushed to find anyone that can give you an Irish company name never mind a brand.” In 2014, Bord Bia coordinated a week-long marketing campaign on Tmall, but O’Sullivan points to work by New Zealand, with energetic promotion of a country image on Chinese e-commerce and social media sites. As it continues to evolve, China’s e-commerce market is the most dynamic in the world and has tremendous long-term potential. Right now the priority is to make Irish exporters aware of the opportunity, says Hamill. “At this point, it is more about building awareness in Ireland: currently we are not doing any social media campaigns to support online sales as there simply aren’t enough companies selling online.” Given the opportunity, that will hopefully change soon.

WINTER 2015/16 | THE MARKET INTERVIEW 040

Hanley Energy’s focus on uninterruptible power supply (UPS) is taking the company into some of the fastest growing locations for data centres. John Stanley asks its founders about the journey into Europe and the US market. FOLLOWING THE FIBRE

HANLEY ENERGY CO-FOUNDERS DENNIS NORDON, MD, AND CLIVE GILMORE, CEO, PICTURED WITH MINISTER FOR BUSINESS AND EMPLOYMENT, GED NASH, TD, AT HANLEY ENERGY’S OPENING OF IRELAND’S FIRST DATA CENTRE RESEARCH AND DEVELOPMENT HUB IN 2015.

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ennis Nordon, MD of millisecond resolution. The cheaper than New Jersey and paperwork and regulation that North Dublin-based resulting detailed chronology very welcoming to inward has to be undertaken to get up Hanley Energy, is of the events triggering investment.” and running. “But once you’ve under no illusions. any disruption provides a As well as targeting dotted all the i’s and crossed “Our company’s granularity that saves huge the data centre market, the all the t’s, it really is a very Dsuccess is based on our ability amounts of time for engineers company will use Virginia easy place to do business,” he to re-invent ourselves through under pressure to identify and as a base to manufacture an says. Currently worth about €1 R&D,” he says. fix faults quickly. energy-use monitoring product million annually, the business The company’s roots go developed at its R&D centre is growing there too. back to 2008 when Nordon set FOLLOWING THE FIBRE in North Dublin. This new The decision to move into up the enterprise with joint “It’s no secret, we’re following product has been designed the Nordic market came soon owner and CEO Clive Gilmore. the fibre,” says Nordon. This to integrate with existing after the German move, and Nordon and Gilmore both had includes being active in two equipment regardless of the the two markets are now being deep experience in medium of Europe’s fastest growing manufacturer, and Nordon says run “pretty much in parallel,” and low voltage switchgear locations for data centres, that it provides a “granularity” Gilmore explains. “It was a big and control gear. They worked Dublin and Frankfurt, as well generally not found in exploration for us. There has together as part of the team as in Sweden and the United competing systems. been a lot of talk in the industry building the Channel Tunnel States. that this is likely to be the in the early 1990s and later on With support from MARKET EXPANSION next location of choice for the projects in Spain and Italy. Enterprise Ireland’s Business He describes the US business, largest data centres.” Operators When they established Accelerator Programme, currently worth around $2 are attracted by temperate Hanley Energy, Ireland was Hanley Energy’s first steps million a year and growing, climates, which make it easier firmly in the grip of the overseas were in the US market. as “not huge yet, but already and cheaper to maintain a recession. “We could see that “In March 2012, Clive and I meaningful to us”. cool operating environment, apart from the food industry, went to America to look at He sees the market as well as the abundance of data centres were the only opportunities,” Nordon says. potential there as “staggeringly low-cost hydro-electricity. And area in growth mode at that “We found ourselves in Silicon huge” and currently in a rapid with changes in Sweden’s tax time – and the food sector was Valley, and it was breathtaking growth phase for the type of structures, there is a strong starved of cash,” Nordon recalls. in its technological scale. We expertise that Hanley Energy sense that this will be an “But we absolutely believed immediately decided that this can offer. “We’re looking at a additional draw. wholeheartedly in what we was where we had to be.” window of three to five years In the meantime, Hanley were doing and could see what Initially, they looked at at least before it begins to Energy has found itself a was happening in the growing opening in an incubation unit plateau.” valuable niche there providing area of energy management.” in the Bay Area city of Palo The next venture into a containerised and modularised In this segment, Hanley Alto, before deciding on a unit new market was Germany in UPS equipment for smaller Energy specialises in equipment in California’s self-proclaimed 2013. “One of our customers centres. “We’ve already had and services that enable power Surf City, Huntington Beach. had an aspiration to open some success, and we’re on consumption to be measured Paradoxically, the first a data centre there,” says the cusp of a large deal there precisely in real time. This major US contract came from Gilmore, “and we were asked that would give us three to five allows one large food-sector New Jersey on the East Coast. to work on that.” The Irish years’ worth of business on a client, for example, to know “We quickly saw that this company soon decided to global scale,” Nordon says. “It is exactly how much power it was a good ecosystem for us seek other opportunities. a great country in which to do consumes in the processing of a to be in,” Nordon says. He and “Establishing a local presence business,” Gilmore adds, “but single pig, while another knows Gilmore had also discovered on the ground was something it’s very costly, too.” how much is required to make a just how taxing it was to travel we were strongly advised to Having previously case of crisps. regularly between Ireland and do in that marketplace. We shied away from the UK But Hanley Energy’s California, on both the body have, again, been supported by market, Hanley Energy is big play is in the data centre and the wallet. As a result, they Enterprise Ireland, and we’re now considering this as the business, and its geographic are in the process of moving now actively pursuing business company’s next possible expansion reflects this. their US business to Dulles in opportunities there.” destination, probably in 2016. As well as keeping Virginia, close to Dulles airport. Gilmore describes Now, with its own products and the power always on, the “Virginia is very much open for Germany as being “in some the competitive advantages that company’s Event & Power business,” Nordon says. “And ways a nightmare, in some ways come with scale, the founders Management System, although it’s widely seen as an a dream”. The nightmare is the believe their business is up to developed in-house, has expensive location, it’s actually enormous amount of detailed the challenge.

WINTER 2015/16 | THE MARKET MARKET FOCUS: COLOMBIAN TELECOMS 042

COLOMBIA CALLS

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It may not be the most obvious choice, but one Latin America Movil American country’s telecoms sector could be a promising and Telefonica new opportunity for Irish service providers. Donal Nugent dominate the reports. region, creating an opportunity for suppliers already working with these telcos.

olombia has potentially much to woo safety, she points to significant advances in the exporters. It’s the fourth largest country’s peace process, which is expected to economy in Latin America and offers a conclude in 2016, making Colombia a far safer far more business-friendly environment and more stable place to do business than than some of its neighbours. However, even five years ago. The country’s success at Cit suffers from a significant perception deficit, creating a more secure environment is perhaps linked to a civil conflict that has run for more best evidenced in increasing levels of FDI. than 40 years and a sense that risks to personal The EU Free Trade Agreement with Colombia security are high. and Peru, ratified by the Dáil in early 2015, has It’s a view that Irish exporters, particularly further strengthened the sense that doors and those in the IT sector, may want to either opportunities are opening. consider or perhaps challenge as analysis by Enterprise Ireland has ranked Columbia, Telco opportunity alongside Mexico and Brazil, priorities for Irish In late 2015, Enterprise Ireland commissioned companies targeting the region. Fernanda Arcardini of consultancy firm Melissa Feddis is a market adviser for high- Access Latin America to take a deep dive into growth Latin American markets with Enterprise the particular opportunity it has identified in Ireland. She explains how the recent review Colombia’s telecoms sector. Last November, has brought a fresh perspective to where the Arcardini visited Dublin to share those findings opportunities lie in Latin America for Irish with Irish software companies. companies. “In Colombia, we identified areas The overall opportunity that Latin America such as fintech, telecoms, travel and niche represents is certainly exceptional, with a engineering opportunities in areas such as oil population approaching 600 million and a and gas and agriculture, all of which are of middle class that has grown by 50 per cent interest to Irish companies.” over past decade alone. With an average mobile To those who have cut their Latin American penetration rate of 52 per cent, compared to the teeth in Brazil, Feddis explains that Colombia EU’s 78 per cent, there is huge capacity to grow represents quite a different proposition. “In further. terms of doing business, it ranks much higher One of the interesting aspects of the market than Brazil. It’s less bureaucratic, and its is its relative homogeneity. Two major carriers, business and legislative environment are America Movil and Telefonica, dominate the modernising fast.” region, creating a particular opportunity for On the thorny issue of risk and personal suppliers who have already established working

WINTER 2015/16 | THE MARKET MARKET FOCUS: COLOMBIAN TELECOMS 044

relationships with these telco giants. “Telefonica, Smartphones caught up in meetings that will never get you to for example, is in 13 countries in Latin America the decision-maker.” and has 200 million connections, so once you represent just No matter how well things appear to be get into business with the company in one a quarter of going, or even if they are not, it is also important market you potentially have access to all these to be realistic about how long the deal making markets,” Arcardini says. “Of course, you still the market process is likely to be: “You can’t go in today need to navigate internal procedures, but if to date, while expecting results tomorrow. It’s going to you, as an Irish company, have business with a be a minimum of 18 months to two years.” carrier in one country, it’s much easier to move 4G licences The heavy depreciation of Latin American to another.” have only currencies against the euro and dollar is a As to why now is an opportune time to focus further challenge, and Arcardini recommends on Colombia, Arcardini points to the country’s recently been companies be highly cost conscious as a result. more than 56 million telecom connections, awarded, and achieved with just 48 per cent penetration. Cultural nuances Smartphones represent just a quarter of the the appetite for In terms of cultural differences, it is important market to date, while 4G licences have only value-added to recognise that friendliness and hospitality, recently been awarded, and the appetite for although certainly signs of interest, should value-added services is growing among a young services is not be mistaken for deal making. “To say ‘no’ and increasingly affluent user base. The sense growing. is bad manners in Colombia, even if you are of urgency among carriers to capitalise on new not interested in what’s on offer, so, for an opportunities is intensified by a diminishing Irish company, it really helps to have someone bottom line: “prices are going down because with you who understands the culture and its of deregulation and competition, and carriers nuances.” This further reinforces the importance recognise they need to differentiate on a basis of focusing discussions on the decision-maker. other than price.” “You won’t get a straight answer in the first meeting, but after the second or third, you Traction should get a sense from a person at this level if For Irish companies who sense an opportunity, From World Bank things are progressing or not.” the good news is that “you don’t need to be 2015 Ease of Doing Interpersonal contacts remain important there from moment zero in order to secure a Business Ranking throughout the business cycle, and Arcardini deal”, Arcardini adds. “Companies can get initial says Irish companies already active in the traction in the marketplace through frequent Key Central and South market will vouch for how important it is “not visits. However, once a deal is agreed, clients will American Economies to lose contact with a client once an agreement expect their vendors to have a local presence, is in place. Because it’s such a stratified whether that is done through a local partner, a Mexico 38 environment, the head of the company will want representative or having a foot on the ground.” Chile 48 to talk to the head of your company. They will Securing those local partnerships is get that level of access from your competitors, not particularly difficult, but it is important Peru 50 so you’d better give it too.” to thoroughly prequalify any prospective Colombia 54 Those who have already explored the Latin relationship. “You have to be sure they have the American marketplace will know that all that Brazil 116 right contacts and the technical capability to glitters isn’t gold: it can be a tough region deliver.” Argentina 121 and it certainly doesn’t suit everyone. What English is also acceptable at the initial stages Colombia offers, Enterprise Ireland believes, is of business, as all C-level contacts will be a variety of clients open to doing business and a fluent. However, once agreement moves toward secure marketplace at a point of evolution that Source: The World Bank’s implementation, Spanish is essential. The issue 2015 Ease of Doing Business particularly suits the Irish offer. of making first contact at C-level is, it should From ranking of 189 “It’s a very competitive sector, and you will be noted, an extremely important one and countries, where Singapore be up against global competition. However, merits careful consideration. “Latin American scored 1, Ireland 17 and Irish companies can bring innovation, cost Eritrea 189. See www. companies are very stratified, much more so effectiveness and flexibility to the table, and doingbusiness.org/rankings than in Europe,” Arcardini explains. “If you enter that is often something the big companies can’t discussions at mid level you are likely to get match,” Arcardini says.

THE MARKET | WINTER 2015/16 COUNTRY REPORT: RUSSIA 045

Gerard MacCarthy, head of Enterprise Ireland’s team in Russia and CIS, writes that despite the stark reality for food exporters who have lost ground in the market, Irish companies in other sectors are still winning deals in Russia. And for companies with the right niche innovative offering, the market offers good opportunities. STAYING IN THE GAME

RESURFACING OF THE HOME GROUNDS OF SPARTAK MOSCOW BY SIS PITCHES

WINTER 2015/16 | THE MARKET COUNTRY REPORT: RUSSIA 046

he Russian economy has always which, in response to EU and US sanctions, A PORTION OF THIS veered towards the turbulent. This has sought to stimulate local production, DECREASE CAN BE is especially true of the recent past, force localisation and – where local product following the collapse of the centrally cannot be found – seek suppliers from further ATTRIBUTED TO planned Soviet system and the political afield (South America, Asia, the Middle East), Tframework it was designed to support. Since consciously bypassing suppliers from the EU FOOD SANCTIONS 1991, Russia has experienced several periods and US. of extreme economic decline, followed almost Despite these difficulties, Enterprise IMPOSED ON THE immediately by a period of rapid economic Ireland’s Russia/CIS office has, if anything, seen EU, BUT THE VERY growth. an increase in the demand to assist companies The 1990s witnessed hyperinflation that in the ICT, ag-tech, construction consultancy WEAK ROUBLE IS peaked at over 2,000 per cent, and exchange and start-up sectors. Despite the negative rates of over 6,000 roubles to the dollar. focus in the media, and the realities of an A FURTHER AND However, the 2000-2008 period saw year-on-year increasingly tense international situation in GDP growth of nearly 10 per cent, a significant which Russia finds itself more and more the – IN OUR OPINION – current account surplus and a rouble trading centre of attention, we believe that for the right MORE SIGNIFICANT at less than 25 to the dollar – only for the companies with the capacity and appetite to economy to crash again in 2008. take on a market of this scale, now is a good FACTOR. Today, following a period of steady time to explore. recovery from 2009 to 2014 (with an average 5 Given the relative clear-out of foreign per cent GDP annual growth) the pendulum companies due to the negative economic and has swung back again. Russia now finds itself political back drop, the market is less cluttered, facing a new series of negative macro- and and there is a more positive local response micro-economic indicators, which – added to to companies making the gesture of visiting an increasingly complicated political backdrop Russia to build partnerships. – have had a direct impact on Irish exports and the activity of Enterprise Ireland-supported IRISH COMPANIES STILL WINNING DEALS companies in the region over the past 18 Following a series of successful Russian months. projects, including a state-of-the-art resurfacing In 2014, Enterprise Ireland client sales of the home grounds of one of Moscow’s most in Russia already warned of the effects of the successful football clubs, Spartak Moscow, collapsing rouble, dropping 14 per cent on 2013 Irish company SIS Pitches recently won a returns. The most recent gauge of how clients highly competitive international tender to might do in the current situation can be found install the pitch and under-surface engineering in the 2015 CSO figures, which have shown a infrastructure in Luzhniki Stadium, Moscow, consistent trend between January and October for the 2018 FIFA World Cup Final in Russia. for goods exports to Russia dropping 50 to 55 George Mullan, the Sligo-born CEO per cent year-on-year. This is significant as, of SIS, says that while the market is not traditionally, Enterprise Ireland clients have – straightforward, there is ongoing opportunity: after adjustments – accounted for 40 per cent of “We completed a stadium in Krasnodar earlier the CSO numbers. this summer and are very hopeful of adding A portion of this decrease can be attributed more projects next year. We have just opened to food sanctions imposed on the EU by the our first office in Moscow which will focus Russian government, limiting a range of Irish on generating sales for various World Cup food producers’ activity in the market, and projects.” likely to hit the food sector by over 80 per cent SIS Pitches experience is not unique. in 2015. A further and – in our opinion – more Michael Slein, Founder Director of the lighting significant factor is a very weak rouble, which solutions business LED Group/ROBUS, has has lost over 50 per cent of its value against the looked at the Russian market on a number euro since the start of 2014, making imported of occasions in the past ten years. He visited goods and services prohibitively expensive for Moscow in November to attend the Interlight local buyers and extending the decline to non- trade fair to identify a strategic partner in this food sectors. specialised and competitive segment. “Whilst This is aggravated by the Russian Moscow could be viewed as a challenging government’s ‘import substitution’ policy, market to do business in, if one can get the

THE MARKET | WINTER 2015/16 COUNTRY REPORT: RUSSIA 047 right partner, even in the current economic “Opportunities in the IT market exist in climate I believe it could be very lucrative,” abundance,” he said. “However, it has been my “THE RUSSIAN he said. “We at LED Group are currently in experience that Irish companies do not consider MARKET LOOKS discussions with two potential exclusive the Russian market a priority. Going through an distributors and believe that if we can get one entire sales cycle takes time and requires a certain VERY PROMISING of these on board, it could represent substantial level of investment on the part of the company. business for us.” Irish companies seem to want instant business. FOR OUR INDUSTRY, Despite the huge hit taken by Irish food This is not realistic for the Russian market.” exporters, the message from Igor Kurochkin of Robert Ten Cate, Business Development AND AS IN EVERY Dairymaster – one of Ireland’s most successful and Sales Advisor for GM Steel, which has just MARKET, YOU companies in Russia and the CIS – is also signed its first contract in Russia, echoes this encouraging. “We view the Russian market need for patience and a long-term approach in HAVE TO SHOW as one with enormous potential. The Russian this market. “With the help of local partners, milk market is constantly growing (more than we have been building our network in Russia CONSISTENCY.” 2.2 per cent this year), and there is currently for a few years now,” he said. “We have only a big demand for better milk quality and an just signed our first Russian contract. Despite increased awareness of the importance of the economic turndown, and because of the animal welfare. Many existing and potential potential for us in the Russian market, we will Russian dairy farmers are looking for easy-to- attend the key trade shows there next year for use, reliable, sustainable milking equipment, sure to consolidate our position. The Russian recognising that our equipment, with lots of market looks very promising for our industry, automatisation features, allows them to have and as in every market, you have to show more free time, and – an increasingly important consistency.” factor – a better quality of life.” Based on this and similar feedback from Following his recent inward buyer visit many other clients, we believe there are, and to the Dublin Web Summit with Enterprise will continue to be, opportunities in this vast, Ireland, Evgeny Maksimenko of Asteros (one mostly untapped market. We have yet to see an of Russia’s most dynamic systems integrators) Irish company outside the food sector impacted is certain that Irish companies with the right, by the sanctions. And regardless of currency innovative solutions, should be in strong movements, there will always be demand for demand in Russia. But he adds that they need to sufficiently differentiated and innovative niche be patient. products.

The Russian entrepreneurs are coming! s well as supporting our clients one-third came from Russian speaking Ain market, we are also promoting countries. Two Russian companies Ireland’s innovation and start-up successfully received funding. ecosystem to mobile Russian high- Moreover, in a landmark decision potential start-up companies and venture by Enterprise Ireland’s Investment entrepreneurs. Committee in December 2015 newly- The launch of Enterprise Ireland’s registered CountBox Ltd became the Overseas Competitive Start Fund (CSF) in first ever Russian start-up, and the August 2015, paired with the new Start- first one from a high-growth market, to Up Entrepreneur Visa Programme, has receive significant funding from the High been key to offering a clear path for high- Potential Start-Up Fund, estimated at potential, early-stage companies from all €250,000. over the former Soviet region to consider With a very healthy pipeline of Ireland as a base for R&D, production, companies already identified by the and international sales. Russia/CIS office, progressing this will The first round of the Overseas continue to be an exciting new departure CSF received 87 applications, of which for the foreseeable future.

WINTER 2015/16 | THE MARKET 048 Gadgetry

Ian Campbell tests out some of the best products of 2015, a rich mix of gadgets and gizmos for every budget. PHABLETS, TABLETS, CAMERAS AND COMBOS

at €156), neatly bridges the gap between fun and Surface Pro 3/Windows 10 work. €879 The 12-inch screen with 2160 x 1440 resolution is sharp and vivid, making easy work of the bi- ne of the most unlikely tech moments of the modal interface. You can go about your business Oyear came when Apple announced the launch using the touch screen and the excellent Microsoft of the iPad Pro with an attachable keyboard and tiles, or via a more conventional Windows desktop found itself accused of taking ideas from Microsoft view. A third way is with the stylus, writing or and the Surface. Any notion that the Seattle drawing onscreen with any of the growing number software giant would steal a lead over Apple with of apps that support the Surface Pen. It works a tablet-based device was something that would really well. have been unimaginable a few years ago. Offering both touch and keyboard options This was the year when Microsoft took its has proved tricky for Microsoft in the past, with place at the top table of mobile devices, with the Windows 8 doing neither particularly well. With launch of the Surface Pro 3 and Windows 10. The Windows 10 and Surface Pro 3, they get it right. combination of a touch-friendly operating system Striking the balance between web-friendly and – free to any Windows user – and an ergonomically serious productivity tool, it’s the best tablet/laptop improved tablet with optional keyboard (a bit steep combination I’ve played with to date.

a TV via a dongle that plugs into the set’s USB Chromecast socket (and the mains) and connects over WiFi. €39 Apps let you effortlessly navigate the likes of Netflix and YouTube. The circular design ive yourself an alternative to tired TV of the latest version is more aesthetic that its Gprogramming and watch some internet predecessor and available in a number of DayGlo entertainment this new year on the biggest screen colours. The internet connectivity offered by smart in the house. Google Chromecast lets you send TVs is rarely as user-friendly as this cheap and content from a smartphone, tablet or laptop to cheerful device.

THE MARKET | WINTER 2015/16 049

Canon EOS Galaxy S6 Edge 750D plus €900 €868 SIM free (with hose who wants a top- Tnotch smartphone and are EF-S unmoved by Apple’s premium 18-55mm priced iPhones will almost always find themselves weighing lens) up the latest Samsung Android y making the vari- photography devices. This has been a good Bangle LCD of the 750D won’t be year for the Korean company, a touchscreen, Canon has disappointed with the first with the Edge and now Edge made an entry-level DSLR even 750D. With a 24.2MP sensor and a massive ISO plus, demonstrating that there’s more user friendly. The camera specialist range, it’s well equipped to handle any conditions, more than one player when has always gone out of its way to include automatic inside or out, and capture stunning images. The it comes to smart and stylish controls for point-and-shoot simplicity that dynamic range is impressive and the muted phones. overrides a complex array of dials and settings, but Canon colours delectable. If you prefer a bit more As the name suggests, the touchscreen makes it even easier for the novice intensity there’s the option of cranking it up in- “plus” is a bigger version of the looking to get to grips with a proper camera. camera or with editing software on your desktop. Edge – a 5.7-inch screen instead You can move the autofocus zone to anywhere There are shooting tools for all tastes – flicker of 5.1-inch, a Super AMOLED on the screen with your fingers when shooting, detection technology ensures consistently that looks gorgeous. It also flick through pictures in review mode or press the exposed images under artificial light while a boasts one of the best on-board playback arrow if you’re watching video footage. continuous shooting mode of five frames per cameras on the market and After years of losing ground to smartphones with second is great for action shots. An obligatory some excellent bundled apps like increasingly sophisticated onboard cameras, feature on Canon DSLRs is the excellent HD Flipboard, the aggregated news it’s interesting to see the DSLR manufacturers video mode. So good you’ll never need to buy a service. appropriating their touchscreen tricks for their own camcorder. If you are in the market for a ends along with WiFi and NFC for sharing pictures. A solid buy for anyone bitten by the “phablet” – the offspring of tablet People who are persuaded by such user- photography bug, who doesn’t feel ready to jump and phone technology – then the friendly touches to take up more serious into the high-end. Edge plus should be on your Moto G shopping list. €200 SIM free With its here was a time back in the nineties when Motorola was up there with aluminium TNokia as chief exponents of the mobile phone. Best known for its Star alloy Trek flip, Motorola is a very different beast today, carving out a niche in the finish and entry-level smartphone space with economy models that are resolutely sloping practical. edge, The 4G version of the Moto G is a case in point. Weighing in at 143 g, it’s a it also good deal heavier than upmarket competitors that have bigger screens, but scores that’s not the point of the Moto. It’s tough and water resistant, with a ridged high on surface on the back for added grip. It doesn’t forsake style entirely – a range the style of shells are available in a variety of colours if you want to personalise the stakes. chassis. The 720p screen is low-res but functional and perfectly adequate for working your way around the Android operating system. The 13-megapixel camera produces pretty detailed shots and the processor packs enough punch to handle streaming video. No frills but a stalwart performer and very good value.

WINTER 2015/16 | THE MARKET 050 Good Reading By Lucille Redmond

Lucille Redmond shares some nuggets from three INVENT, of this season’s new business titles. NEGOTIATE, COPY

escended from reins, buying the rights to the Thomas Langlois timber fluid from Lefroy’s Lefroy, whose killer widow and, with Elsie May Dcharm made him Lanstein, formally setting up the generally accepted model Rentokil (Sales) Ltd in summer for Jane Austen’s Mr Darcy, 1928 – just as women finally got the founder of Rentokil was the vote in Britain. Maxwell Lefroy, 1900s England’s They made big changes, premier entomologist. And so starting to sell directly to commences a lesson on how to the public and using vivid build a global corporation in advertising. Their firm scraped The Pest Detectives: The Definitive through the Depression, History of Rentokil. was bombed out in the Blitz, As entertainingly told by but kept growing. The staff journalist Rob Gray, Lefroy even scoured rag-and-bone made his entomological yards for bottles of all sizes name in India – and his career and shapes to send out their by ridding Westminster the Greek entomon, meaning Kilit and Mothproofer, as Hall of deathwatch ‘insect’. But in 1925, he gassed their new entomologist Dr beetles with refinements himself while working on a Norman Hickin wrote in his of his patent mixture of new poison. His friend Francis autobiography, My Life With tetrachloroethane, cedarwood MacLean Scott told the inquest Woodworm. oil, solvent soap, paraffin he had seen Lefroy staggering By the 1950s, their major wax and trichloroethylene. around complaining of having customers were building A knighthood was reputedly inhaled the vapour. “The little contractors specialising proffered and politely refused. beggars have got the best of me,” in home and church During World War I, Lefroy he remarked. Next day, he was reconstruction: the enemy was fought the voracious insects found stretched dead on the woodworm and dry rot, with a dining on troops’ food and on floor of his lab. sideline in insect infestations. the soldiers themselves – he got Bessie Eades, a formidable Journalists wrote approvingly 1,100 desperate letters looking young Londoner, was in charge about “the maternal nature” for a louse remedy. Lefroy of the commercial side of the of Bessie Eades’ management founded Rentokil – named from business. Now she took the style. They took on work in the

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Colonial Williamsburg village A fascinating, racy book, The Gates writes a coolly effective Shenzen where many of the in Virginia, in St Helena, in the Pest Detectives is enjoyable study primer on how to learn your shanzai factories were originally Falklands. A Ugandan customer material for every entrepreneur skills and use both these skills based. wrote to say that their product’s hoping to build a company into and your observation of the He reckons that it is more long-term efficiency couldn’t a business. opposite side’s needs and signals profitable to be a good copier be attested, because the gate to make the right bargain for than a true innovator, citing treated had been destroyed by a teve Gates is founder your company. McDonald’s, which copied hippopotamus. Sand CEO of The Gap In design terms, The the earlier fast-food chain Meanwhile, back in the Partnership, which advises Negotiation Book is difficult to White Castle; Playboy, which 1900s, a bubonic plague corporations on negotiations. read in parts, due to the darkish- copied earlier titles; and Apple, pandemic was killing His The Negotiation Book is a grey-backed explanatory panels, whose phones, mp3 players thousands: 500 died in Australia textbook of methods, based printed in a light sans typeface. and computers were often alone. Danish pharmacist on a library of self-tests and It’s a technical, dry instructional improvements on an earlier George Neumann cultivated theories of communication. piece of work that may make iteration. ‘Bad copying’, he a broth from a bacterium His thinking can be rather a skilled negotiator from an writes, is an exact imitation; found in a cystitis patient’s subtle: “Values such as fairness, instinctive dickerer, because in ‘good copying’ – like Apple’s urine and discovered that it integrity, honesty and trust Gates’ view, your main tool in first graphical user interface caused gastroenteritis in rats. naturally encourage us to be negotiation is your knowledge computer – is an improvement The Ratin company was born. open. Personal values have their of the parameters of negotiation on the original. This is not Ratin scoured country after place within any relationship, and your control of them. An so much a classic guidebook country. In Reykjavik, 84 per but business relationships can interesting book for those for business as a thought- cent of a sample 5,000 buildings and often do exist based on involved in making deals. provoking work of popular were found to be rat-infested; the company wiped out the opying genius ideas is, as we infestation that had overrun Cknow, the road to success. Iceland. Mark Earls’ juicily illustrated In 1957, Ratin bought Copy, Copy, Copy aims to show Rentokil, and Bessie Eades what to do with great ideas bowed out. The new men went once you’ve pinched their basic on a buying spree, acquiring premise – and conversely, how Fumigation Services, Insecta to use the human liking for the Laboratories and Scientex, familiar and samey to position bringing in food sector your products. fumigation, maritime pest In the sense that we copy control and bird repellents. from our earliest years to Rentokil went on to learn about how things are publicity coups – clearing the done, and to do them better, German town of Hamelin of rats copying is, he posits, our in an achievement not matched primary source of information since the Pied Piper visited there different value sets.” about the world. Earls cites philosophy, with a cute design, in 1284 (but without the loss of Is tendering the best way to the way babies imitate facial and lots of team-building games, children), debugging the British get a good deal if you’re looking expressions, and experiments exercises and experiments. Houses of Parliament and to have work done? Not always, show people looking at others’ Buckingham Palace. By the time advises Gates in one of the improvements of a basic idea the company floated in 1969, it counter-intuitive nuggets in to use in their own further was trading in 85 countries. The Negotiation Book. “Where improvements. Copying, all in The Pest Detectives: The Nowadays, Rentokil is the nature of the contract all, is how information spreads Definitive History of Rentokil involved in every possible is based on a performance- through a population. by Rob Gray, Harriman infection-control and related service, for example the He introduces the word The Negotiation Book: infestation scenario. After the building of a road,” he writes, ‘shanzai’, used in China for Your Definitive Guide to 7/7 bombings in London in “price alone, even against a the almost-exact copies of Successful Negotiating by Steve Gates, Capstone 2005, its Specialist Hygiene well-specified brief, can prove a everything from buildings to Copy, Copy, Copy: How to Do Team dealt with the biohazard restrictive means of agreeing all phones to entire Apple stores; Smarter Marketing by Using aftermath of bombs that left 52 terms and can lead to poor ‘total it comes, he says, from ‘bandit Other People’s Ideas dead and over 700 injured. value’ agreements.” fortress’ and the name of by Mark Earls, John Wiley & Sons

WINTER 2015/16 | THE MARKET MARKET INSIGHTS BRIEFING 052

From Enterprise Ireland’s Market 2015 To 2016 Tech Market The Global Enterprise Outlook for European Mobility Market Research Centre team. Countries: Better Growth BCC Research Outside the Eurozone Than September 2015 MARKET Within This report provides a detailed Forrester analysis of the global enterprise INTELLIGENCE October 9, 2015 mobility market, including Will Europe’s modest economic the enterprise mobility value expansion strengthen or go into chain, drivers, challenges and Enterprise Ireland’s Market Research Centre hosts Ireland’s most comprehensive collection of business intelligence reverse? And what of the impact opportunities. It predicts that resources and is staffed by specialists who can assist EI clients of China’s economic slowdown the market will reach $99.5 find company, market and project information. and the ongoing conflict with billion by 2015 and $201.6 billion Russia? These questions loom by 2020, registering a compound The centre subscribes to a wide variety of databases, including large for European CIOs as they annual growth rate of 15.2 per – Frost & Sullivan adjust their 2015 tech spending cent from 2015 to 2020. – Forrester plans and hope to spend more – Euromonitor Passports on business technology (BT) in – AMA Research – BvD Orbis 2016. According to Forrester, Global Contact Centre CIOs in the UK, Sweden and Systems Market: Emerging The reports summarised on these pages are just a sample of the Ireland can be more aggressive Regions Key for Growth in a type of information available. Follow us on Twitter @EI_MRC in their tech spending, thanks Mature Market to see further examples of recent reports available or check out to better economies and tech Frost & Sullivan the MRC site at www.enterprise-ireland.com/MRC markets growing by 6 per cent or 2015 more as a result. But CIOs in the EI clients can access the MRC by emailing market.research@ This market analysis provides continental Eurozone (and near- enterprise-ireland.com or by phoning 01-727 2324. Access to all global market size estimates resources is governed by contracts with our providers. neighbours like Switzerland) and forecasts for premises-based need to be more cautious due to contact centre systems for North weaker economies and lagging America, EMEA, Asia Pacific ICT/SOFTWARE The Top 10 Technology adoption of the BT agenda. and Latin America. The product Trends to Watch, 2016 segments covered are inbound Predictions 2016: Mobile To 2018: The Age of the contact routing, IVR and Apps and Development Customer Will Drive Firms to The Internet of Things (IoT) voice portal, outbound dialler, Gartner Increase Their Investments BCC Research quality monitoring, workforce October 2015 in End-To-End Technology September 2015 management and contact centre In this analysis, Gartner argues Solutions This report explores the market analytics. that while options for creating, Forrester opportunity for IoT components, deploying and using mobile apps September 2015 including the ubiquitous sensors continue to expand, adoption Five years into the age of in all connectivity applications continues at a conservative the customer, investments and other connectivity-enabled pace despite the potential for in mobile, cloud, big data, devices such as smartphones, as competitive advantage. It advises predictive analytics and social well as chipset subcomponents. mobile strategists to step up their technologies are booming. But According to BCC Research, development and innovation unlike previous technology the total market for IoT devices strategies to put mobile at the cycles, tech investments will and chipsets is expected to core of every project. continue to grow rather than grow from almost $4.2 billion diminish throughout the in 2014 to nearly $49.2 billion refinement period. As this year’s in 2020, at a compound annual top 10 tech trends demonstrate, growth rate of 49.3 per cent. The a shift is underway from cyclical, device segment is expected to invention-led spending on account for a major portion of point solutions to investments this growth, growing from $4.0 targeting customer-driven, end- billion in 2014 to approximately to-end value. $48.4 billion in 2020.

THE MARKET | WINTER 2015/16 MARKET INSIGHTS BRIEFING 053

FOOD, RETAIL AND Personal Accessories in CLEANTECH, LIFE SCIENCE, Construction and Housing CONSUMER PRODUCTS the United Kingdom: Rising CONSTRUCTION AND Forecast Bulletin - GB 2015- Economic Confidence INDUSTRIAL 2019 - ISSUE 31 2015 European Retail Bolsters Sales in 2015 AMA Research Segmentation: Mobile Industry Overview Upstream Oil and Gas November 2015 Shoppers Double in Just Two October 2015 Opportunities in Key This forecast bulletin covers Years – Mobile Optimisation is 2015 is expected to see stronger Countries – September 2015: both the residential and non- a Must for European Retailers annual performance for overall Unconventional Resources residential construction sectors Forrester personal accessories. This will and Opening of New Markets in Great Britain, providing an November 2015 largely be due to a stronger Will Boost Investments in analysis in current prices for Using Forrester’s latest data, this economic performance at the end Upstream Oil and Gas new work and renovation, report considers the significant of the review period, encouraging Frost & Sullivan maintenance and improvement. growth of European mobile consumers to spend more and November 2015 shoppers and super shoppers trade up. Bags and luggage This study explores the Advances in the Companion over the past couple of years and are notably benefiting from opportunities present in the Diagnostics Market 2015 highlights the need for e-business this trend, with jewellery also global upstream onshore and BMI/Espicom professionals to focus on seeing above-inflation unit price offshore oil and gas markets, November 2015 delivering a consistent, seamless, growth. considering the impact of This study explores how multi-touchpoint experience for falling oil prices and the global the pharmaceutical market their customers. economic slowdown. Given the landscape is changing, as greater market’s volatility, it presents understanding of disease biology, The Food and Drink Colour scenarios for each segment. the introduction of new clinical Report In addition, it provides a trial protocols, next-generation Datamonitor competitive analysis of the top sequencing, reimbursement November 2015 competitors. constraints, the development This report focuses on the impact of immunotherapy and of wider consumer interest in Health Insurance Information changing regulatory guidelines ‘natural’ on approaches to food Technology: US Overview and all contribute to progress in and drink colour, exploring Outlook, 2014-2020 companion diagnostics. how producers are investing in Frost & Sullivan shelf-stable iterations of non- November 2015 artificial, colour-rich ingredients Healthcare payers are grappling to boost the visual and implied with a number of significant nutritional appeal of their challenges that are upending products. their traditional business models and operational The Rise of Plant Protein processes. In response, health Datamonitor insurance organisations are October 2015 actively looking at information Plant protein sources are growing technology as a lever of in popularity to meet ongoing operational efficiency and demand for protein at a time transformational change, with when consumers are increasingly spending priorities focusing on opting for meat-free or reduced- new tools for analytics, consumer meat diets. Using insight from engagement and population global consumer surveys, this health/care management. This report identifies consumer study provides an overall outlook perceptions of different types for future business and IT trends of plant protein, including pea, for health insurance companies, oat, soy, nuts, seeds and pulses. forecasting revenue growth for Globally, the proportion of new the total payer IT market and key food and drink product launches market segments for the six-year claiming to be ‘high protein’ period from 2015 to 2020. increased six percentage points between 2013 and 2015, from 2 to 8 per cent.

WINTER 2015/16 | THE MARKET 054

An update on customs compliance, were first imposed in 2004. the electronic systems for the On October 29, 2015 the EU exchange of information between trade regulations and negotiations announced the suspension of customs authorities and the most, but not all, of its sanctions Commission are finalised. These TRADE REGULATIONS, against Belarus. The EU sanctions will apply from 1 May 2016 until suspensions came into effect on the respective IT system has been INFORMATION AND 31 October, 2015, the date each updated or deployed and are year when the EU sanctions designed to ensure uninterrupted NEGOTIATIONS targeting Belarusian companies trade flows as well as appropriate and individuals either expire or controls until full roll out of the are renewed. overall electronic landscape. In a less widely expected move, on 29 October, the US also Latest version of SEPA Cards suspended many of its sanctions Standardisation Volume targeting certain Belarusian published companies on the US list of he European Payments Specially Designated Nationals TCouncil (EPC), representing and Blocked Persons, effective 30 payment service providers, and October. the Cards Stakeholders Group The EU sanctions suspensions (CSG), a multi-stakeholder body have effect only for four months, gathering retailers, vendors, through 29 February, 2016, while processors, card schemes and the the US suspensions will remain EPC, have published version 7.1 WTO members conclude these negotiations, approximately in place for six months, unless of the Single Euro Payments Area landmark $1.3 trillion IT trade 65 per cent of tariff lines will be modified by OFAC, until 30 April, (SEPA) Cards Standardisation deal fully eliminated by 1 July, 2016. 2016. Whether the sanctions Volume. TO members representing Most of the remaining tariff will remain suspended will be This key document for Wmajor exporters of lines will be completely phased evaluated early in 2016 by the EU the card industry is aimed at information technology products out in four stages over three and US governments. achieving cards standardisation, have agreed a timetable for years. This means that by 2019 interoperability and security in implementing a landmark almost all imports of the relevant EU adopts transitional rules Europe. For the first time, this deal to eliminate tariffs on products will be duty free. pending full implementation latest version includes functional over 200 products. The deal, The agreement also contains of electronic customs and security requirements initiated by the EU, extends the a commitment to work to n 17 December 2015, the applicable to card-not-present 1996 Information Technology tackle non-tariff barriers in the OEuropean Commission transactions, as well as a cards Agreement (ITA) to cover €1.3 IT sector, and to keep the list of adopted a delegated act to processing framework. trillion in global trade. This makes products covered under review establish transitional rules for Though conformance with the it the biggest tariff-cutting deal in to determine whether further operators and customs authorities latest volume is not mandatory, the World Trade Organization in expansion may be needed to pending the introduction of all stakeholders active in the SEPA almost two decades. reflect future technological new IT systems to create a fully cards domain are encouraged to The list of 201 products was developments. electronic customs environment. roll out services and products in originally agreed by the ITA The Transitional Delegated Act line with the requirements by participants in July 2015. Among Liberia and Afghanistan join is the last element of the Union December 2018. the products covered in this the WTO Customs Code package aimed to agreement are new-generation he recent accession of Liberia provide a modern and integrated semi-conductors, GPS navigation Tand Afghanistan to the World EU customs system that will systems, medical products which Trade Organisation makes them streamline customs legislation include magnetic resonance the 163rd and 164th members of and procedures; complete the imaging machines, machine the WTO, respectively. shift by customs authorities to tools for manufacturing printed a paperless and fully electronic circuits, telecommunications EU and US temporarily environment; and reinforce satellites and touch screens. suspend certain sanctions on swifter customs procedures For every product on the list, Belarus for compliant and trustworthy ITA participants have negotiated he United States and economic operators. the level of reductions and over TEuropean Union have The Transitional Delegated how many years it will fully temporarily relaxed targeted Act lays down provisions for a eliminate the tariffs. As a result of sanctions against Belarus that transitional period during which

THE MARKET | WINTER 2015/16 Travel News 055

EasyJet adds live Aer Lingus aircraft tracking to announces US app routes expansion asyJet has become the first er Lingus has announced airline to offer real-time E a major expansion of its aircraft tracking to its mobile A transatlantic route offering for app. The Flightradar24 tracking 2016, with three new routes feature allows passengers to New UK routes and increased from Dublin to North America. view the exact location of the services from Cork Aer Lingus will commence aircraft they are due to travel a year-round direct service on up to three hours prior to er Lingus Regional operated by Stobart Air is set to launch two between Dublin and Los departure. In addition, family and new routes to the UK next summer from Cork to Southampton A Angeles from May 2016, with friends can track the status of the and Cork to Leeds Bradford. In addition to the new routes, Stobart five services per week. Direct flight when it’s in the air. The app Air has announced it will be increasing capacity on three existing daily year-round flights will shows the aircraft’s route, speed, routes Glasgow, Manchester and Newcastle as well as basing a third start in early September, from altitude, distance travelled, aircraft at the airport. The Cork Southampton route will operate five Dublin to Newark in New total distance to destination and days a week on Monday, Thursday, Friday, Saturday and Sunday. Jersey. A third new route will aircraft type. The Cork Leeds Bradford route will operate three times a week on commence in late September Tuesday, Thursday and Sunday. with a daily service from Dublin Aer Lingus Regional will also recommence its Shannon-Edinburgh to Hartford, Connecticut. service from 28 March 2016, flying six times weekly.

Asian and European cities most expensive for expats

ust as foreign exchange (4), and Geneva (5) – top the Jcosts create headwinds for list of most expensive cities for organisations doing business expatriates. The costliest city overseas, currency fluctuations – for the third consecutive year is driven by economic and political Luanda (1), the capital of Angola. unrest – are contributing to the Despite being recognised as a cost of expatriate packages for relatively inexpensive city, the internationally focused companies. cost of imported goods and safe Mercer’s 21st Cost of Living living conditions in this country are Survey finds that factors, including available at a steep price. instability of housing markets and Other cities appearing in the inflation for goods and services, top 10 of Mercer’s costliest cities impacts significantly the overall for expatriates are Shanghai (6), Air France adds cost of doing business in a global Beijing (7) and Seoul (8) in Asia; Air Canada Rouge to Tehran services environment. Bern (9); and N’Djamena (10). fly Vancouver-Dublin According to Mercer’s 2015 The world’s least expensive cities Cost of Living Survey, Asian and for expatriates, according to ir France is to add a new ir Canada Rouge is to launch European cities – particularly Hong Mercer’s survey, are Bishkek (207), route from Paris Charles De a nonstop seasonal service A Kong (2), Zurich (3), Singapore Windhoek (206), and Karachi (205). A Gaulle to Tehran this year. The between Vancouver and Dublin carrier last flew to the Iranian this summer. The three-times capital in 2008. Air France weekly route will operate on will fly three-times weekly to Wednesdays, Saturdays and Tehran, commencing in June, Sundays between 10 June and 2016, operating on Wednesdays, 8 October. Outbound service Fridays and Sundays. Flight AC1940 will depart Vancouver AF738 will depart Paris CDG at 15:05 and arrive in Dublin at at 10:30 and arrive in Tehran at 08:35 the next day, while the 18:40. The return leg AF755 will return leg AC1941 will leave leave Tehran at 07:15 and land at Dublin at 11:35 and land in Paris CDG at 10:55. Vancouver at 13:35.

WINTER 2015/16 | THE MARKET 056 City Guide By Tony Clayton-Lea

SAN DIEGO Adjacent to the Mexican border and less than 200km south of Los most star-studded restaurant opens Angeles, San Diego is the eighth-largest city in the US and the second only for dinner, so reservations are largest in California – with an estimated population of 1.4 million. With highly recommended in order to sample a deep-rooted sense of historical pride, the city is the economic centre creatively executed French cuisine with a of the region. Its primary commercial concerns are defence-related (it down-to-earth approach. hosts the world’s largest naval fleet), international trade and tourism. www.addisondelmar.com It also hosts the second-largest biotech cluster in the US, with more than 400 companies in situ, and Forbes magazine has rated it as the THREE THINGS TO DO IF YOU HAVE A FEW HOURS TO SPARE: best city in the States in which to launch a small business or start-up. Shopping: The U.S.S. Midway, one of FROM THE AIRPORT TO THE CITY: impressive history, but it is bang up-to- America’s longest-serving aircraft carriers, San Diego International Airport is serviced date with a pristine nature-inspired design is now restored as a historical treasure. by over 20 major and commuter airlines palette. Complimentary WiFi and a superb The ship is open to visitors who wish to and is located less than 15 minutes by on-site restaurant (Nine-Ten) add to the find out what it must have been like to live car, taxi or shuttle bus from downtown. style. www.thegrandecolonial.com aboard a floating town. Disembarkation, luggage collection and walking out of the airport should take less EAT: Museums: Balboa Park is referred to as the than ten minutes. The airport is served by Lunch: Italian-inspired restaurants ‘Smithsonian of the West’ and is renowned the usual major car rental agencies. don’t come any more authentic than as being the biggest urban park with Cucina Urbana, 505 Laurel Street, located museums (fifteen) in the US. If you have SLEEP: in Bankers Hill. Prepare to experience only several hours to spare, check into the 1st Choice: Hotel Solamar, 435 6th innovative sharing plates, a wide range of Park’s Visitor Centre and request the ‘Stay- Avenue, is a smart hotel that has been pizza options and a quality design/decor for-the-Day’ museum pass. cleverly marketing itself as the home- aesthetic that blends country farmhouse from-home for clued-in business travellers. ambience with contemporary art gallery. History: San Diego is known as the Located in the city’s historic Gaslamp Reservations recommended. origin city of California, so a visit to Old Quarter, the hotel is a very convenient www.urbankitchengroup.com Town San Diego is a must, as it provides three blocks from the Convention Centre. important historical glimpses into the www.hotelsolamar.com Dinner: If you’re out to impress, then city’s colourful colonial period from booking a table at Addison, Fairmont 1821 to 1872. Close by is Heritage Park, 2nd Choice: The Grande Colonial Hotel, Grand Del Mar, 5200 Grand Del Mar Way, where seven Victorian houses have been 910 Prospect Street, La Jolla, may boast an is the way to go. Southern California’s relocated.

THE MARKET | WINTER 2015/16 Enterprise Ireland International Network

Head Office

REGION/OFFICE TELEPHONE FACSIMILE ADDRESS

Dublin +(353 1) 727 2000 – The Plaza, East Point Business Park, Dublin 3, Ireland

Northern Europe

Amsterdam +(31 20) 676 3141 +(31 20) 671 6895 World Trade Center, Strawinskylaan 1351, 1077 XX Amsterdam, Netherlands Brussels +(32 2) 673 9866 +(32 2) 672 1066 Park View, Chaussee d’Etterbeek, 180 Etterbeeksesteenweg, Bruxelles 1040, Brussels, Belgium London +(44 20) 7438 8700 +(44 20) 7438 8749 2nd Floor, Shaftesbury House, 151 Shaftesbury Avenue, London WC2H 8AL, England Paris +(33 1) 5343 1200 +(33 1) 4742 8476 33 rue de Miromesnil, 75008 Paris, France Stockholm +(46 8) 459 21 60 +(46 8) 661 75 95 Hovslagargatan 5, 4th floor, SE-111 48 Stockholm, Sweden

Germany, Central and Eastern Europe and the Balkans

Budapest +(36 1) 301 4950 +(36 1) 301 4955 Bank Centre, Szabadság tér 7, Budapest 1054, Hungary Düsseldorf +(49 211) 470 590 +(49 211) 470 5932 Derendorfer Allee 6, 40476 Düsseldorf, Germany Moscow +(7495) 937 5943 +(7495) 680 5362 c/o Commercial Section, Embassy of Ireland, Grokholski Pereulok 5, Moscow, Russia Prague +(420) 257 199 621 +(420) 257 532 224 Trziste 13, 118 00 Prague 1, Czech Republic Warsaw +(48 22) 583 1200 +(48 22) 646 5015 Ulica Mysia 5, 00-496 Warsaw, Poland

Southern Europe, Middle East and Africa

Abu Dhabi +971 2 495 8245 – Embassy of Ireland, Abu Dhabi, Road 19 off 32 Street, Al Bateen, PO Box 61581, Abu Dhabi, UAE Doha +974 4410 1735 +974 4410 1500 Office 825, 8th Floor, Al Fardan Office Tower, West Bay, PO Box 31316, Doha, Qatar Dubai +(971 4) 329 8384 +(971 4) 329 8372 4th Floor, Number One Sheikh Zayed Road, PO Box 115425 Dubai, United Arab Emirates Istanbul +(90212) 809 1149 – Mecidiyekoy Yolu Cd., Trump Towers Kulel, 3104, Floor 31, 34387, Sisli, Istanbul, Turkey Johannesburg +(27) 115505440 – 24 Fricker Road, Illovo, Johannesburg South Africa Madrid +(34 91) 436 4086 +(34 91) 435 6603 Casa de Irlanda, Paseo de la Castellana 46 – 3, 28046 Madrid, Spain Milan +(39 02) 8800991 +(39 02) 8690243 Via de Amicis, 53-20123 Milano, Italy Riyadh +(966 1) 488 1383 +(966 1) 488 1094 c/o Embassy of Ireland, PO Box 94349, Riyadh 11693, Saudi Arabia

The Americas

Austin +1 512 792 5499 – 515 Congress Avenue, Suite 1750, Austin, TX 78701 Boston +(1 617) 292 3001 +(1 617) 292 3002 535 Boylston St, 5th Floor, Boston, 02116 MA, USA New York +(1 212) 371 3600 +(1 212) 371 6398 Ireland House, 345 Park Avenue, 17th Floor, New York, NY 10154-0037, USA São Paulo +(55 11) 3355 4800 – Rua Haddock Lobo, 1421 – Conj 51, Cerqueira César, São Paulo, 01414-003, SP, Brazil Silicon Valley +(650) 294 4081 – 800W, El Camino Real, Suite 420, Mountain View, CA 94040, USA Toronto +(1 416) 934 5033 +(1 416) 928 6681 2 Bloor Street W, Suite 1501, Toronto, Ontario, M4W 3E2, Canada

Asia-Pacific

Beijing +(86 10) 8448 8080 +(86 10) 8448 4282 Commercial Section, Embassy of Ireland, C612A Office Building, Beijing Lufthansa Ctr., No. 50 Liangmaqiao Road, Chaoyang District, Beijing 100125, China Hong Kong +(852) 2845 1118 +(852) 2845 9240 Room 504 (5/F), Tower 2 Lippo Centre, 89 Queensway, Admiralty, Hong Kong New Delhi +(91 11) 424 03 178 +(91 11) 424 03 177 Commercial Section, Embassy of Ireland, 230 Jor Bagh, New Delhi 110 003, India Perth +61 8 9221 1263 – 1/100 Terrace Rd, East Perth, WA 6004, Australia Seoul +(82 2) 721 7250 +(82 2) 757 3969 Ireland House, 13th Floor Leema B/D, 146-1 Susong-Dong, Jongro-Ku, Seoul 110-755, Korea Shanghai +(86 21) 6010 1380 +(86 21) 6279 7066 Commercial Section, Consulate General of Ireland, Suite 700A, Shanghai Centre, 1376 Najing Road West, Shanghai 200040, China Singapore +(65) 6733 2180 +(65) 6733 0291 Ireland House, 541 Orchard Road #08-00, Liat Towers, Singapore 238881 Sydney +(61 2) 927 38514 +(61 2) 926 49589 Level 26, 1 Market Street, Sydney 2000, NSW, Australia Tokyo +(81 3) 3263 0611 +(81 3) 3263 0614 Ireland House, 2-10-7 Kojimachi, Chiyoda-ku, Tokyo, 102-0083, Japan

For any other markets not mentioned, contact Market Development Dublin. For further contact information, visit www.enterprise-ireland.com/contact www.the-market.ie