THE international market beckons SMEs looking to grow their business. But faced with limited capital, manpower and other resources, they have to be careful to approach overseas opportunities without over-stretching themselves. This is where infocomm can play a role.

SMEs worldwide are using the Internet to increase their reach. According to a poll of US marketers by Bredin Business Information, 17 per cent of SMEs want to boost their online activity to make a bigger impact without a much of budget risk.

In the UK, according to a survey by Web hosting provider Fasthosts Internet, the average business reported that its website contributed 10 per cent of total revenue and this is expected to increase to 21-30 per cent in the coming year.

Smart use of the Internet can help SMEs gain an international foothold by creating awareness of their products and services even before they set up a physical presence in target markets.

Jumping on the online bandwagon

Tevo Asia-Pacific is one Singapore company that has been quick to jump on the online bandwagon.

Tevo, which supplies accessories such as carry cases and pouches for portable electronic gadgets such as MP3 players, personal digital assistants and mobile phones, is using the Internet to reach out to the global market.

Last year, it spent more than $6,000 on a content management system (CMS) for its website. The system allows users to subscribe to Tevo's e-newsletter which clues them up on upcoming events and the latest product launches. It also allows Tevo staff to update the online product catalogue using a simple template, without having to go to a service provider to make the changes.

Tevo's effective Internet presence has enabled prospective customers to find out more about the company's offerings and get in touch directly. Besides potential clients, Tevo has received enquiries from original equipment manufacturers in China that supply earphones and other accessories.

Tevo director Eric Ho estimates that there has been a 30-50 per cent surge in sales leads and enquiries - about a quarter of them from overseas - since the website was set up. 'Previously, it was almost nothing,' says Mr Ho. 'The website has enabled us to become more globalised without having to go out there to knock on doors.'

Encouraged by the positive results, Tevo aims to launch direct-to-consumer e-commerce services by next year, starting with Indonesia, Vietnam and Thailand. Tevo's website is already e-commerce enabled, but Mr Ho wants to ensure that operational issues are sorted out before he seizes this opportunity.

'We have to find the most efficient way to embark on e-commerce,' he says. This means sourcing for a logistics partner who can provide cost-effective rates for delivery of Tevo's products overseas. It also means gaining a better understanding of the effect that foreign currency exchange rate mechanisms can have on pricing and profit margins.

'E-commerce is definitely in our plans because Singapore is a very small market,' says Mr Ho. 'We need to globalise to create a presence and brand ourselves overseas. During a downturn, when many businesses are not doing anything, it's the time to build up awareness. You will definitely gain ground on your competitors.'

Like Tevo, Anggun International is making use of the Internet - especially social media platforms such as Facebook, Twitter and Multiply to generate greater awareness of its programmes and grow regionally.

Anggun is in the nutrition education, health and weight management business, offering programmes to help people manage their health. Clients also include corporate organisations, public sector agencies, community clubs, mosques and non-profit organisations.

As founder and director Suria Mohd points out, using social media is about 'growing our brand and bringing it to the next level without having to put in the kind of budget that other established brands have had to put in'.

With social media, she says, all businesses are pressing the 'reset button'. Everyone is starting from the same point. 'How we position ourselves will be really important. Businesses that are not tapping this big trend will lose out big time.'

For a start, Anggun has used social media platforms to create fan pages and events, and have people enrol in these events. Since March, it has built up a base of almost 3,000 followers - close to 1,100 each on Facebook and Twitter and over 750 on Multiply.

Interestingly, about 20 per cent of the company's Facebook followers come from outside Singapore - for example, from countries such as the US, Malaysia and India. The overseas base of followers using Twitter is even more significant, at about 90 per cent. Riding on this momentum, Anggun aims to build a base of 10,000 followers by the end of the year.

Converting leads to paying clients

It is developing a 'Million Dollar Online & Social Media Marketing Blueprint' to convert leads obtained through these online interactions to paying clients.

Ms Suria estimates that if she can convert just 20 per cent into purchasing clients for, say, a US$500 health management programme, this will translate to US$1 million in revenue.

As well as social media marketing efforts, Anggun is building a network of licensees to take its programmes overseas. It is also training these licensees to make use of the same social media tools to support their own marketing efforts.

To support anticipated growth in business, Anggun is investing in an IT system that will help with leads management and customer relationship management, as well as streamline and automate operations and processes.

For example, the system will help Anggun to track licensees in terms of sales and get real-time information on their projects without having to send e-mail messages back and forth. When a licensee organises an event in another part of the world, Anggun will be able to go to a portal to find out the sales achieved and compute the revenue within a matter of hours.

The system will also capture client data such as names and progress with wellness or weight loss programmes, as well as payment status. It will send out material such as newsletters and programme updates to clients, and host videos and tele-seminars that clients can access online.

By investing in such a system, Ms Suria believes that Anggun will be able to expand its business locally and globally without having to add to its current headcount of 20.

Best of all, from the perspective of an SME, the whole infocomm project can be executed without a huge expense. Ms Suria estimates that she will need just $10,000 to set up the system, including generating content such as the videos and tele-seminars.

On an ongoing basis, she has set aside about $1,500 a month for a 'virtual assistant' - an outsource partner who will help with tasks such as monitoring the social media platforms and updating the content.

'It's almost a shoestring budget,' she says. 'Subscribing to a blog is free. Facebook is free. That is the crazy thing about the Internet world. And the reach is just incredible.'

This article was contributed by the Infocomm Development Authority of Singapore.

Visit www.ida.gov.sg/sme to find out how the Infocomm@SME programme can help you adopt infocomm for your business

This article was first published in The Business Times.