1. Centre for the Promotion of Imports from developing countries
Europe orientation
Arno van der Maden
June 2014

2. 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)
June 20141 Centre for the Promotion of Imports from developing countries

3. Europe and EFTA countries
Europe:
28 member states
EFTA:
- Iceland
- Liechtenstein
- Norway
- Switzerland
June 20142 Centre for the Promotion of Imports from developing countries

4. • 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
June 20143 Centre for the Promotion of Imports from developing countries

5. • an ageing population (2020 – 45% over 55 years)
• growing 1 and 2 persons households
(singles, ‘dinkies’, divorcees, etc.)
• increase of non-European population
June 20144 Centre for the Promotion of Imports from developing countries

6. Europeans
June 20145 Centre for the Promotion of Imports from developing countries

7. 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
June 20146 Centre for the Promotion of Imports from developing countries

8. 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)
June 20147 Centre for the Promotion of Imports from developing countries

9. Different cultural clusters in the EU
1. Anglo/American
› task oriented
› competitive
› direct in communication
› individual
› decentralized
› tough
UK, USA, Australia, New Zealand
June 20148 Centre for the Promotion of Imports from developing countries

10. Business implications
› come straight to the point
› take initiative
› sell yourself and your product
› be decisive and assertive
June 20149 Centre for the Promotion of Imports from developing countries

11. 2. Scandinavian
› Autonomy/individual
› decentralized
› direct in communication
› consensus building
› informal
› little/no hierarchy
The Netherlands, Denmark, Sweden, Finland
June 201410 Centre for the Promotion of Imports from developing countries

12. Business implications
› be ‘nice’
› build consensus
› work-life balance
› delegated authority
June 201411 Centre for the Promotion of Imports from developing countries

13. 3. Pyramid/paternalistic (family)
› strong hierarchy
› centralized (top down)
› formal
› procedures
› follow orders
› relationship important
France, Belgium, Spain, Italy, Portugal, Greece
June 201412 Centre for the Promotion of Imports from developing countries

14. Business implications
› follow hierarchy
› formal (written & unwritten)
› relationship oriented
› no delegated authority
June 201413 Centre for the Promotion of Imports from developing countries

15. 4. German
› autonomy
› need for structures
› formal
› focused on processes and details
› expertise important
Germany, Austria, Poland, Hungary,
Czech Republic
June 201414 Centre for the Promotion of Imports from developing countries

16. Business implications
› facts and figures
› proven expert
› precision and detail
› reliability
› punctuality
June 201415 Centre for the Promotion of Imports from developing countries

17. 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
June 201416 Centre for the Promotion of Imports from developing countries

18. 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
June 201417 Centre for the Promotion of Imports from developing countries

19. 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
June 201418 Centre for the Promotion of Imports from developing countries

20. 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
June 201419 Centre for the Promotion of Imports from developing countries

21. 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
June 201420 Centre for the Promotion of Imports from developing countries

22. Latin American exporter must be:
• Punctual
• Assertive
• Informative
• Complete
• Realistic
AND MUST……..
June 201421 Centre for the Promotion of Imports from developing countries

23. Communicate!!
June 201422 Centre for the Promotion of Imports from developing countries