5 Reasons why your Business Fails in Europe!
Probably you saw it before. You offer a fantastic product or service, but it seems that in Europe no-one is interested in your business. You tried on different platforms, different strategies but without results. We see this happening all the time. Companies who are reaching out to us struggle always about the same issue. Why is no-one interested? Your business is growing in the US and Canada, but somehow in Europe it seems that your message is not reaching his full potential.
Don’t give up. Europe loves US products. Did you know that many European companies do research in the US to discover the latest trends, and create from these findings an Europe fit solution? Below you find 5 tips and strategies how to be successful in Europe.
1. There are 24 languages in the Europe Union!
The Europe Union has with 28 countries 24 official languages. Never forget that a language has a very important cultural impact. A word, a frase or a comment has a crucial impact on the outcome you try to accomplish. For example, in the US it is for a company normal to advertise: OUR PRODUCTS ARE THE BEST YOU CAN FIND! If you would translate this for example into German, you will sound arrogant, untrustworthy and probably people think its a scam. If you would translate this to Dutch, people would ignore you. The Dutch always looking for facts. The French are proud to be French, and see that statement as in insult. It is important to work with individuals who are familiar with your target country and are able to use strong headlines in their own language.
2. Political Landscape
The founding of the European Union started with 7 countries. In the early days the union was called EEC (European Economic Community) and was based on free trading between these 7 nations. Through the years more members where added and the European Union was founded. At this moment there are 28 members in the European Union. Many economic guidelines are signed in the EU headquarters in Brussels. Everything from import and export rules to competitors and taxation is stated in several trading bills designed in Brussels. If a foreign company wants to sell products in Europe, it has to comply within these guidelines. I.e. Children toys need to comply against particular standarts. Not knowing what is allowed to export to the EU, is very risky. If a product exceed a particular value, one needs to pay different type of import tax. From normal VAT (19% to 23%) to luxury tax (up to 41% depending on the value and materials). When a product is new and unknown in the EU, it needs to have import clearance first. Avoiding this can be very expensive for your company and your client.