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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