 |
 |
|
|
|
|
| |
| The State of the (European) Union |
| |
| |
Is there one, cohesive European market?
Definitely not. Things didn't
change simply because politicians decreed that Europe
is one market. Europe remains very diversified.
|
Europe might be one big trade zone, but penetrating Europe
successfully takes place one country
at a time. You have to understand the differences between
the various markets — differences in price structure,
and differences in the retail and wholesale environments.
For example, the margins required by German wholesalers
are considerably higher than those required in Italy
or Spain. As a result, imported products in Germany
are much more expensive than elsewhere in Europe.
|
| A Nation of Shopkeepers
|
The United Kingdom is not comparable to any market in continental
Europe, and it is one of the most difficult to penetrate.
The similarities to the U.S. market often leads Americans
to believe that if they can make it into the U.K., it
should be relatively simple to enter other European countries
and it's simply not the case.
|
| Vive le Difference
|
 Two
other markets that present a challenge to the prospective
marketer are Germany and France. Most consumers and buyers
are very focused on local products due to a strong
feeling of nationalism and belief in the superiority of
German and French products. On the other hand, markets in
Scandinavia are more liberal and open to imported products.
|
| Buying Blue and White
|
Contrary to what we might expect, some believe there
isn't really sensitivity to a product's country of origin,
as long as the product satisfies the local demand. A
'Made in Israel' label is neither an advantage or disadvantage.
The popularity of Soda Club is a case in point. In fact,
some locals are not even aware that Soda Club is
an Israeli product when researching a related market.
There has been a clear change in consumer buying patterns.
A few years ago consumers would have bought unique products
with clear advantages regardless of the price. Today the
market is extremely price sensitive. Quality is simply not
enough.
|
| If It's Tuesday, It Must be Belgium |
So how do you go about deciding which market to penetrate
first? To a large extent, it depends on the type of product
you're selling and the local market conditions. For example,
Germany's healthcare system spends a great deal on medical
products, but the sector has been hit by budget cuts and
is under pressure. Consumer products are a hard sell in
any country. As with marketing to any country, success
depends on understanding the market dynamics, gaining
knowledge of country-specific regulations related to safety
or other standards, and making the right contacts.
You may need initial market data or a complete market
study. In some cases, sales and marketing
strategies need to be redefined because the distribution
channels are different. Identifying and contacting agents,
distributors, or strategic partners — something that
is difficult to achieve without conducting regular "reconnaissance
missions" to Europe — is undertaken by the Trendlines
team, whose on-the-spot advice is also available for identifying
suitable locations for a European office.
The benefits of selling to Europe are clear: its proximity, its size, and its status as the second largest free trade zone in the world make it an attractive proposition to prospective entrepreneurs.
For more information on marketing to Europe, contact
Tina Ornstein (04.958.3323) at Trendlines.
|
The Trendletter team welcomes your comments.
|
|
|
|
|
©2002–2008 Trendlines International Ltd. All rights reserved.
Phone: +972.4.958.3323 | postmaster@trendlines.com
Directions |
Privacy Policy |
Site Map
This site contains material copyrighted by third parties.
This site
is best viewed in Internet Explorer version 5 or higher.
|
| |
| |
|
|
|
|
