By CHUANG PECK MING

WHAT it takes for Singapore companies to make it abroad may be summed up this way: Building a strong brand for their products or services that are also well-designed and protected from copy-cats; and having the right people to push and sell these products and services in already crowded markets.

Beefing up these four areas - brand, design, intellectual property and manpower - is indeed essential, according to Khoo Wee Lin of International Enterprise (IE) Singapore, which is pushing Singapore companies to venture overseas.

'They can help companies to differentiate themselves from competitors and assist them to better sustain their businesses in the long run,' she says. 'Many companies all over the world may offer similar products and services. Hence these capabilities will serve as a differentiating factor or value proposition.'

Ms Khoo, who is assistant director at IE Singapore's capability development group, says that branding's key goal is to make a difference - and thus shape consumer behaviour. It ensures steady sales and profit growth, plus lower acquisition or retention cost. 'The cost to acquire a new customer is always high as you have to invest in a customer anew and resources are needed,' she says. 'When you build a brand with high customer loyalty, it is easier and less costly to retain their loyalty compared to convincing a new customer.'

According to Ms Khoo, branding also ensures a premium price over weaker brands; strong barriers to entry for competitors; and staff retention. 'In (a recent) survey, branding has been strongly identified as one of the critical success factors for sustaining overseas operations as companies begin to find their niche among strong competitors in overseas markets,' she says. 'This is especially true for the retail sector where more than a quarter of the respondents attribute their success in the international arena to branding.'

This, Ms Khoo says, suggests that more local companies have accepted that branding is important for overseas business development. To cement a company's brand identity, she says that design is crucial when it's aligned properly with the company's brand values. Design is also crucial in communicating brand values, creating new market segments and strengthening emotional bonding with consumers.

Design will also make a difference and help Singapore companies gain a competitive edge in overseas markets already flooded with similar products and services.

'Design moves beyond aesthetics to solving problems, realising potential and creating new value and markets.'

Ms Khoo says that many Singapore companies recognise the value of design but are less aware of how to adopt design into their business strategies. 'For a number of companies, design is still perceived as a cost, rather than an investment, because its returns are not immediately visible to management.'

Strong and strategic management in intellectual property is valuable in tie-ups abroad. It 'will enable companies to confidently enter into collaborations with overseas partners, consider licensing and franchising', Ms Khoo says.

Intellectual property also give companies an added competitive edge - and companies can secure financing against the value of their intellectual property.

'Local companies are already aware of the protection aspect of intellectual property management and are dutifully registering their trademarks and filing their patents in targeted markets. However, they also need to be more forward-planning and be tuned in to future piracy threats in other territorial markets that may not be on their immediate radar screen.'

Ms Khoo says that despite the current global economic slump, talent - especially in leadership - remains key in breaking into new markets abroad. 'As with any downturn, an advantage goes to the company that is pro-active and targets the right talent areas to focus on when preparing for the upturn. Hence, our Singapore-based companies should continue to invest in talent and talent development to create a 'talent edge' for the eventual upturn in the economy.'

Citing a recent survey, Ms Khoo says manpower constraint continues to be one of three hurdles Singapore companies face in operating overseas.

This article was first published in The Business Times.