RUSSIAN-OWNED MEGAPHOTON INC. TAKES ON THE UK

In 2001, a Russian businessman established Megaphoton Inc in China. The company started off by producing greenhouse artificial lighting systems, and eventually evolved into a total solutions provider for modern facility agriculture artificial lighting systems – expanding services to cover street, industrial, horticulture and fishing lighting systems. 

The parent company already had a fully functioning manufacturing plant in China, where the LED and HPS lamps were mass-produced, and for nearly two decades, Megaphoton participated in major greenhouse artificial lighting projects around Europe, Russia, the United States, Canada, Australia, and China. However, their management team felt it was time to establish a presence in the UK marketplace.

The main reason for this was to diversify their portfolio and expose themselves to a different clientele. They would import the products to the UK and commence sales and distribution within the new market. 

THE BUSINESS LANDSCAPE

With rising international political tensions and the Covid-19 pandemic, many industries are increasingly leaning towards a domestic approach when it comes to buying and selling of goods. This means that it would have been more difficult for Megaphoton to penetrate the UK market from the outside.

 

Simultaneously, Brexit played a significant role in the recent influx of foreign investment into the UK. Cutting ties with the EU forced the UK to forge closer links with other strategically important bilateral partners like China – which is where Megaphoton was originally listed.

WHY NOW IS THE BEST TIME TO PENETRATE THE UK MARKET

  • The UK is known to be liberal and open to foreign trade and investment. This guarantees global visibility and ensures that companies are operating in a stable economy that wields considerable influence in international politics, science, technology, and culture.

  • The tax advantages of setting up a UK business cannot be overlooked. At Summer Budget 2020, the UK government announced legislation setting the corporation tax main rate (for all profits except ring fence profits) at 19% for the years starting 1 April 2020 and 2021. It is worth pointing out that the corporate tax rate is 25% in China and 21% in the US.

  • There is also the strategic benefit of business legitimacy. UK-based businesses can command a higher price, create better brand awareness, and boost their public image.

GROWTH OPPORTUNITIES FOR MEGAPHOTON

  • From 2020-21, the LED lighting retail industry grew at a compound annual rate of 2% to reach £2.4 billion
  • The grow lights market is projected to grow from USD 1.2 bn in 2021 to USD 4.9 bn by 2026, at a CAGR of 32.2% during the forecast period
  • Of the top six leading importers in Europe, the UK ranks highest in terms of imports of decorative lighting from foreign countries, accounting for with 78% of these imports

HOW HORIZON IMMIGRATIONS WAS OF ASSISTANCE

Business expansion can be daunting if you don’t have a solid plan in place. Megaphoton already had a functioning manufacturing plant and had conducted business in several locations around the world, but they wanted a soft landing in the UK – a market where they had relatively limited experience in. 


This is where we stepped in. We provided end-to-end support to the management team, addressing every doubt and questions they had, to make sure they felt comfortable and confident about the expansion strategy. We provided them with a strategic plan, detailing exactly how they would penetrate the UK market and start maximizing revenue in no time. 

 Included in that plan was:

  1. Details of the proposed business activities in the UK branch

  2. Organisational framework and management structure

  3. Industry outlook

  4. Market analysis

  5. Competitor analysis

  6. Marketing and advertising strategies

  7. Pricing and revenue strategies

  8. Financial projections

We provided MEGAPHOTON with a detailed handbook of how to successfully run a profitable business in the UK. And an additional benefit for the sole representative of the company and their family is that they get UK residency immediately, with eligibility to apply for citizenship in 5 years.

THE BENEFITS OF INTERNATIONAL EXPANSION FOR MEGAPHOTON

  • Considerably higher potential for revenue maximization
  • Access to new clientele
  • Reduced exposure to one currency, market, and political environment

• Revenue generation in another stable currency

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