NomadiX on the move in new overseas markets

Mark Evans, founder and managing director of NomadiX Media outlines the company's journey into exports. 

NomadiX Media offers two state-of-the art media-based digital technologies: i-Walkers and i-Projectors. These unique and patented systems are used to create high impact and brand stand-out in areas where other fixed media simply can’t.

From our Glasgow HQ, NomadiX Media offers its services throughout the UK. On the international front, we've successfully launched two new franchises in both Colombia and South Africa, generating over £170,000.

We’ve been building a diverse team bringing together foreign language skills, management and international relations development. Using Mandarin speaking Scots, we worked with the Scottish Government and Scottish Development International (SDI) on its successful ‘Better City, Better Life’ visit to the Shanghai World Expo in 2010.

Our product is very innovative and unique in the market. It’s the only portable system in the world that combines digital signage, audience measurement and a campaign-specific trained brand ambassador.

Choosing the right markets

Our market research was focused on fast growing markets such as Latin America, Africa and India. We conducted PESTLE analysis on each country for market conditions before looking for events that would offer us the exposure to qualified influencers and leaders. 

One of the most important guiding reasons was the protection of our IP. I personally listed the countries that we could ensure the highest level of protection on our patents and trademarks and work back from there. 

Countries such as China and Russia were at the bottom of the list, as they have little or no respect for the international patent treaty and we would have no protection for our valued IP.

The challenges

Last year NomadiX Media signed one of the company’s most lucrative licensing deals since its creation, with AdExperiences, one of Colombia's biggest suppliers of advertising space. The deal enabled the introduction of NomadiX Media’s i-Walker and i-Projector products into Colombia’s fast-growing "Digital Out-Of-Home" (DOOH) market.

Colombia has been a challenging business environment in the past, but it's opening up very quickly and we're keen to position ourselves advantageously in what will be very exciting markets.

Firstly there is the issue of finding potential countries that have double tax agreements which can directly affect any royalty-based incomes for us. And for the likes of Latin America we had to understand the tax thresholds and manage expectations.

Secondly, there's the issue of import tax, by the partner or distributor. Outside Europe and common free-trade partners, this tax can be prohibitive for the partner or distributor to import. 

We also have to take into consideration the cost of warranty and repairs to equipment. Needless to say, that the cost of shipping to and from, say Colombia, is enormous compared to the likes of Spain or France. 

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This has to be factored into contracts and fully understood by the new partner as it can have a time and response factor with service levels.

There's no doubt, entering new markets has challenges. But these can be overcome with support and guidance from Scottish Enterprise and SDI. They helped NomadiX with one-to-one support on everything from tax, IP, legal and contractual issues and export documentation to preparing to export training workshops.

NomadiX Media is one of the very few Scottish companies operating in Colombia (apart from whisky distillers) and we anticipate that our presence will lead to other significant opportunities for our marketing expertise in Latin America.

We've been marketing internationally, but the Latin countries, with their emerging economies, present opportunities which fit very well with our style of operation.

Everything is risky in business. International trade being no exception. For me, it's all about calculated risk rather than complete gamble.

At least if you conduct solid research and believe 100% in your product or service, you can say you've covered as many of the obvious risks as possible.

New overseas markets have plenty of new hungry entrepreneurs looking for products to make them money and success. They have little or no preconceptions. They embrace change.

The UK, on the other hand, is a tough market to crack in the media as we have a very cluttered media landscape. And for me that provides a heck of a lot of push-back from people who are used to doing the same thing and won’t change their minds. 

It was more of a realisation for me, once I started to export, with so many unforeseens and currency fluctuations, that there is a huge drain on manpower and capital to fire-fight the issues that pop up now and again from new markets.

The key to export success

My advice to others? Get to know the opportunities which lie outside of Scotland.

I knew my product and I knew the global market could find space for technology that delivers advertising and branded content on the move. For me a successful export product should be scalable and disruptive. i-Walker is this and more.

We received huge help from SDI on getting the prototypes into overseas events and for supplying consultative advice on exporting and marketing and developing our export model. 

We also had help from SDI’s contacts at Department for International Trade (DIT) and international embassies in arranging introductions with high level leads in places such as India. When we received our first export order we had guidance on duty, export documentation and the contractual issues of doing business in these markets.

Academic research was supported by Strathclyde University Masters 'works' programme. 

And, now that we are a managed account through Scottish Enterprise with a dedicated Account Manager we have had additional support in employing key staff and protecting IP.

Benefits of exporting

Overseas trade has created an international feel to the business, opened up additional revenue streams and introduced some interesting challenges that drive new skills.

Exports now represent 70% of sales for NomadiX Media.

Perhaps in hindsight, at the beginning of our exporting journey, we might have set up a distribution that assembles overseas and can maintain the product, rather than shipping to and fro.

My top tip for any Scottish business taking their first steps into international trade is to be careful of pegging products on alternative currencies from Sterling. We pegged on the dollar and have lost some margin on revenues recently due to the stronger pound to dollar exchange.

Innovation support

Have we needed to develop or adapt our products/services for our overseas target markets?

Workshops provided third party expert input on strategy and honing insight. This, in turn, helped with the value proposition and from my point it provided a valuable sounding board for early ideas.

We also received technical support from Scottish Enterprise on targeting innovation. This support allowed is to translate the value proposition along with market research into two new products. 

One is the NX1 version of the i-Walker which is used by police and security forces as an autonomous security and public messaging system – we've adapted the screen size from 17" format to a 19" format with extra ventilation for warmer climates. The other is PixAngels, the world's leading photo-marketing service and a brand new company in its own right.

Want to know if your products or services are suitable for international markets? Or unsure of what steps you need to take? 

Talk to an export adviser

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