New Strategies for International Trade

 

Many exporters on the West Coast tend to do business with Asian countries. But are they missing opportunities in the European Union?

Probably. And, as in all aspects of business to maximize profits, it’s important to pick the right trading partners in the EU. That’s a reminder from Seena Sharp, a competitive intelligence expert, speaker and author, www.sharpmarket.com.

Ms. Sharp authored the noteworthy book: “Competitive Intelligence Advantage: How to Minimize Risk, Avoid Surprises, and Grow Your Business in a Changing World.” (The publisher is John S. Wiley & Sons, Inc., www.wiley.com.)

Competitive intelligence leads to smarter business decisions and reduced risks. That means more profits.

“The 24 million consumers in Denmark, Norway, Sweden, and Finland are quicker to accept new products than are their western European counterparts,” Ms. Sharp said. “In a study of 137 products, new product ‘time-to-take-off’ is shorter by roughly 50 percent in Nordic countries, with Danes emerging as the fastest adopters.”

Even though some U.S. companies have been successful domestically, they mistakenly believe the same strategies are applicable in Europe.

“Doing business in Europe is very different and you need a European partner – for introductions, which is very important for the way they do business,” she said. “For example, they still put a lot of stock in face-to-face meetings.”

Ms. Sharp says picking the right countries, of course, depends on quality research: “It depends on the product or service, type of customer (wholesale or retail), and distribution channels.”

As you might expect, mistakes are costly: “I don’t mean to sound self-serving, but when companies don’t do their homework, it shows,” she said. “They learn on the job and it’s often not pretty – loss of millions of dollars, frustration in dealing with the unknown, redoing their efforts and then spending more money on the second try.”

Hence, she recommends baby steps in capitalizing on EU opportunities.

“Success in the Scandinavian countries can help you expand to other markets throughout Europe,” she added. “Even well traveled Americans tend to forget that Europeans routinely visit other countries – just to shop.”

In the wake of geopolitical events prompting turbulent times in our competitive, globalized economy, Sharp’s reminder about building trust and developing partnerships would seem more important than ever.

For example, Nordic countries were caught off guard after Iran cut off $280 million in trade with Denmark because of alleged indifference to publication of cartoon caricatures of the Prophet Mohammed.

Danish companies have lost millions of dollars each day in Saudi Arabia, Syria and Lebanon, and 20 other Muslim countries. EU lawmakers promised solidarity with Denmark in diplomacy and trade.

The Muslim rancor perplexed EU countries. Considering their relative size to the U.S., two of the Nordic countries, Norway and Sweden, have been more generous in foreign aid, and it appears they are quietly more active in outsourcing and international trade.

If you’ve done your research you know that the terms, Scandinavian and Nordic, aren’t synonymous in Northern Europe because they’re not interchangeable terms. Despite the unity of five EU countries – Denmark, Finland, Iceland, Norway and Sweden – they’re somewhat nationalistic and are proud of their distinct differences.

Therefore, Ms. Sharp’s points about exploring Scandinavian opportunities appear timely. (I’m familiar with her outstanding work as we’re both members of Consultants West, www.consultantswest.com. That’s a roundtable of consultants that meets regularly in Los Angeles.)

For more information on EU trading, visit: http://ec.europa.eu/trade/

From the Coach’s Corner, on a different subject, security and identity theft remain huge issues.

To take the government’s identity-theft quiz: www.onguardonline.gov/quiz/.

For tips on preventing identity theft, visit: www.consumer.gov/idtheft/.