This is Part 3 of “Learning the Business Cultures of and Conducting Business in the European Union.
If your company wants help and advice to expand into the EU or wants help with specific countries, contact David Keenan at: david.keenan@lafayette-consulting.com or call (+1) 720-583-4650
In the first two blogs in this series; I discussed knowing your markets, conducting business in the EU, establishing your Channel Partners and then talked about the business meeting etiquette and cultural nuances of the Nordic and Baltic Countries/States.
This week, we look at conducting business in more of the Northern European Countries and their cultures that differ a lot from those of the Southern ones. The focus is on conducting business in the Benelux and the German speaking Countries which differ widely in the level of English spoken and understood at meetings, have various cultures even within the same Country yet, in many ways, have a similar business meeting etiquette.
Benelux:
The three Countries that comprise the Region are: Belgium, Netherlands and Luxembourg.
The Region is, essentially, the most centrally located one in the EU and because its’ two primary capital cities – Amsterdam and Brussels – are both less than a 2 hour flight from anywhere in the EU (if flights are on schedule, they can be 90 minutes away) many companies have set up their European Head Offices in the region for ease of conducting business in Europe.
Of course, Brussels is home to the European Parliament. Because of the EU Parliament and the plethora of foreign companies with head offices in the region, you will find an extraordinary rich business cultural potpourri, possibly unmatched anywhere else in the world and most certainly in Europe that allows an easy introduction to conducting business in the region. While the region has its unique cultures, the business meeting etiquette should be easy to assimilate.
Belgium - Is roughly the same size as Maryland. Besides English, there are three primary languages spoken; French, German and Flemish. The Belgian people are excellent linguists with English being widely spoken in business. The Country is a parliamentary democracy under a constitutional monarch and the current monarch is King Albert II.
The Netherlands – Is the largest Country in the region and about half the size of South Carolina. Dutch is the official language and spoken by about 90% of the population. The Country has a long history conducting global business and while English is widely spoken in business, in the more rural areas, you may find that it is not the case. It is also a parliamentary democracy under a constitutional monarch, in this case Willem-Alexander who is the King Regnant of the Kingdom of The Netherlands that includes Aruba, Curaçao, and Sint Maarten. He succeeded his Mother, Queen Beatrix who abdicated on April 30, 2013 after a 33-year reign.
Luxembourg – Is the smallest of the Benelux Countries, slightly smaller than Rhode Island, and the only one that is land-locked. Its ‘official designation is the Grand Duchy of Luxembourg and it is a parliamentary representative democratic monarchy.
The Grand Duke, currently, Grand Duke Henri, is the Ceremonial Head of State. The Prime Minister is the Head of Government, which is the Legislative Branch of the Government and there are currently 6 Parties represented. They are the Christian Social People’s Party (CSV), Socialist Workers’ Party (LSAP), Democratic Party (DP), Green Party, Alternative Democratic Reform Party (ADR) and The Left Party. As with other advanced nations, Luxembourg has the Judicial Branch, which is called the Superior Court.
While Luxembourgish, which is classed as a High German Language, is the national language, French & German are the official languages and English is spoken in business, so conducting business there should pose no problems . The per Capita Income is over $100,000 a year with Banking and Financial Services (as we have heard in our Political News recently) accounting for more than 70% of the Country’s GDP.
Overall, Benelux is one of the easiest regions in Europe for conducting business and, as mentioned, is very central to enable ease of conducting business elsewhere in Europe.
The German Speaking Countries:
Germany – Is a federal republic and, for many industries, is either the #1 or one of the top three markets in the EU. It is about the size of Montana. German is spoken by over 95% of the population with Turkish being the 2nd most spoken (about 2%) and in most instances, English is acceptable in meetings.
However, in my experience of conducting business in all parts of the Country, there are a number in which you will need someone like a Channel Partner to either translate for you or make the presentation in German.
You will need some form of localization of your products and your Channel Partner can often do this for you in return for extra discounts or sole rights to sell the localized version of the product. This will make conducting business in the Country much easier for you.
Austria - Is also a federal republic and is slightly smaller than Maine. The official language, German, is spoken by more than 97% of the population but there are many distinctive regional dialects and a localized product is advisable. If your primary German Channel Partner has localized the product, your Austrian Partner(s) will buy that version from them. So, again, a localized version will make conducting business much easier.
Switzerland – Is a confederation of 26 Cantons, in 17 of which German (Deutsche Schweiz) is the official language. In 3 other Cantons, it is co-official with French and shares with two other languages in one Canton (Graubünden) where it is spoken by about 50% of the population.
In the majority of cases, your product’s English version will be acceptable but, if a localized German version is required, be aware the German-speaking Swiss do not always feel in-sync with their neighbors to the north, even though the Alemannic dialects are similar. You may encounter some resistance if you ask your Swiss Partner to buy from a German Company.
Even within Switzerland, there are differences between the Cantons. The Swiss Federalism System of Government and the resultant political subsidiarity, enables a lot of political decisions to be made at a Municipal or Canton level and essentially encourages and supports this situation.
Luxembourg – As discussed under Benelux, Luxembourg is a Country in which German is spoken.
Liechtenstein – Is an Independent Principality and, while it does not border Germany, its’ official language is German. It is the only Country that lies entirely within the Alps and shares the Swiss postal and customs systems and the protection of its army, as well as the Swiss franc.
While tiny at 62 sq. miles, its’ population of approximately 35,000 enjoys the second highest GDP per Capita in the World and according to the CIA World Fact Book, Luxembourg is 3rd in the GDP/Capita table.
The predominant businesses in Liechtenstein are financial services or fiduciaries (Treuhandbüros) that register letterbox companies. There is more than one registered company for each inhabitant and Liechtenstein is considered a tax haven.
While languages and cultures vary, the Benelux and German speaking Countries have a commonality with business practices and etiquette. The common factors to consider when conducting business in these Countries and Regions are:
- Dress should be business formal for both men and women, consistent with what is conventional in most European Countries.
- Ensure your pre-meeting research is thorough and accurate – see last bullet point below.
- Make appointments and be punctual. If you have equipment to set up, let your host know that you need to arrive earlier to set up. In most cases, they will provide you with help in setting up and ensuring the equipment is working.
- Prepare an agenda, allow for Q&A, which most prefer to be interactive, and adhere to the agenda in the meeting.
- Keep your presentations precise and make sure the information is accurate.
- High pressure tactics can work against you, no matter how good your product may be.
- Whatever you do, avoid any hint of being argumentative or confrontational if questioned about your product’s performance or the accuracy of the content of your presentation.
- Be patient because you probably will not “close” the deal at a first meeting.
- Make sure you cover ALL your bases because once a decision is made, it is unlikely to be changed and you probably will not be given a second opportunity.
These are my observations based on conducting business globally for over 25 years’ internationally in all regions of the World including all the Countries and Regions of Europe.
Are they consistent with your experiences? I would love to hear from you about your experiences conducting business in these Countries/Regions.
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