Centre for the Promotion of Imports from developing countries Europe orientation Arno van der Maden June 2014
Dec 18, 2014
Centre for the Promotion of Imports from developing countries
Europe orientation
Arno van der Maden
June 2014
Key facts of the EU
• 28 member states as per July 2013
• 510 million consumers
• Euro (€) common currency for 17 member states (excl. UK, Denmark,
Sweden, 8 new EU countries)
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Europe and EFTA countries
Europe:
28 member states
EFTA:
- Iceland
- Liechtenstein
- Norway
- Switzerland
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• Largest trading bloc in the world
• Euro (€) second trading currency after US$
• Vastly different standards of living,
consumption habits and cultures between and within
EU countries
• Different distribution structures
• 22 different languages
• (over) regulated markets
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• an ageing population (2020 – 45% over 55 years)
• growing 1 and 2 persons households
(singles, ‘dinkies’, divorcees, etc.)
• increase of non-European population
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Europeans
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Cultural diversity in the EU
• In Germany everything is forbidden unless it
is allowed
• In the UK everything is allowed unless it is
forbidden
• In France everything is allowed even if it is
forbidden
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Cultural diversity has a great impact on:
• products
• cultural preference for color, size, etc.
• different festivities
• different packing
• trade partners
• business morale (payment, credit terms)
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Different cultural clusters in the EU
1. Anglo/American
› task oriented
› competitive
› direct in communication
› individual
› decentralized
› tough
UK, USA, Australia, New Zealand
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Business implications
› come straight to the point
› take initiative
› sell yourself and your product
› be decisive and assertive
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2. Scandinavian
› Autonomy/individual
› decentralized
› direct in communication
› consensus building
› informal
› little/no hierarchy
The Netherlands, Denmark, Sweden, Finland
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Business implications
› be ‘nice’
› build consensus
› work-life balance
› delegated authority
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3. Pyramid/paternalistic (family)
› strong hierarchy
› centralized (top down)
› formal
› procedures
› follow orders
› relationship important
France, Belgium, Spain, Italy, Portugal, Greece
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Business implications
› follow hierarchy
› formal (written & unwritten)
› relationship oriented
› no delegated authority
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4. German
› autonomy
› need for structures
› formal
› focused on processes and details
› expertise important
Germany, Austria, Poland, Hungary,
Czech Republic
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Business implications
› facts and figures
› proven expert
› precision and detail
› reliability
› punctuality
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Dutch importer:
• informal; quick to use first names
• direct in approach
• expect exporter to take initiative
• empowered to make decisions
• task oriented; no extensive social talk
• quick to ask price
• dislikes display of wealth
• adheres to strict deadlines
• no lunches or dinners
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French importer:
• formal; not too direct
• likes shaking hands
• buyer often not empowered to take decisions
• chauvinistic; requires French to be spoken
• rather arrogant; treats seller as lower in status
• building of relationship essential
• patience is important virtue
• dress correctly and conservatively
• first names are not used
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British importer:
• rather formal; direct approach
• beware of understated use of language
• treats sellers as equal
• gives opportunity to impress and sell yourself
• interested in track record of exporter
• irritated by small talk and formalities
• appreciates own opinion, initiatives and
assertive communication
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Italian importer:
• polite, formal; no first name basis
• address with title and last name
• like formal dress and etiquette
• expect you to sell yourself; exaggerate a bit
• loves style, quality and design
• foreign languages sometimes weak point
• often not empowered to make decisions
• relationship very important in Italian business
• lunch and dinner important
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German importer:
• very formal, never use first names
• addressed by title, Herr/Frau and last name
• quick to come to the point; little time
• offer German counterpart certainties: assurances, references, expertise, track record
• dress correctly and formally; no bracelets
• be strictly on time
• requires detailed planning + preparation
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Latin American exporter must be:
• Punctual
• Assertive
• Informative
• Complete
• Realistic
AND MUST……..
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Communicate!!
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