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PORTUGAL: HOW TO ENTER THE MARKET Andrea Petrić, Croatian Chamber of Economy 19th February 2018
PORTUGAL: HOW TO ENTER THE MARKET
Andrea Petrić, Croatian Chamber of Economy
19th February 2018
Country %
Spain 32.9
Germany 13.4
France 7.7
Italy 5.4
Netherlands 5.1
UK 3.1
China 2.9
Belgium 2.8
Brazil 1.7
MAJOR IMPORT COUNTRIES
Total imports 2016: 61.2 bil. EUR
Product %%Vehicles and parts, other than railway and trams 12Mineral fuels, mineral oils and products of their destilation 10Boilers, machinery and mechanical appliancies and parts 9
Electrical machinery and equipment 8
Plastics and articles 5
Pharmaceutical products 4
Iron and steel 3Fish and other sea food products 3
MAJOR IMPORTPRODUCTS
Total Number of Households (in million)
4.0
Average Size of the Households
3.0 Persons
Percent of Households of 1 Person
21.4%
Percent of Households of 2 Persons
31.6%
Percent of Households of 3 or 4 Persons
40.5%
Percent of Households of 5 Persons and More
6.5%
REACHING THE CONSUMER
Household FinalConsumptionExpenditure
2014 2015 2016
Household Final Consumption Expenditure(Million USD, Constant Price 2000)
144,303 147,608 150,694
Household Final Consumption Expenditure(Annual Growth, %)
2.3 2.3 2.1
Household Final Consumption Expenditure per Capita(USD, Constant Price 2000)
13,874 14,251 14,596
Household Final Consumption Expenditure(% of GDP)
65.9 65.5 65.5
REACHING THE CONSUMER
REACHING THE CONSUMERConsumption Expenditure in Portugal by productcategory as % of total expenditure (2016)
Housing, water, electricity, gas and other fuels 24.2%
Food and non-alcoholic beverages 18.9%
Transport 10.0%
Recreation and culture 7.7%
Alcoholic beverages, tobacco 6.5%
Furnishings, household equipment and routine maintenance of the house
4.5%
Health 4.4%
Clothing and footwear 4.2%
Communication 2.9%
Restaurants and hotels 2.8%
Education 1.2%
Growing sectors:
• IT services, sectorial software (medical, transport, etc.)
• travel and tourism• products and services for senior
citizens• telecommunications• books • automobile parts• cosmetics• education services• high value added textiles• top range footwear
CONSUMPTION IN PORTUGAL
CONSUMER BEHAVIOUR
Social status and brand names are significantfor clothing, fashion items and cars.
For consumables, such as food and hygieneproducts, price is a major factor.
Consumers are returning to small,neighbourhood shops, because they offerproximity, convenience, personalised serviceand fresh and local products.
Another trend is growing consumer interest inomni-channel retailing that combines Internetsales with physical shops.
253
7
7
8
9
10
11
11
11
13
14
15
16
22
23
31
40
42
77
0 50 100 150 200 250 300
Total
Pet Care
Petrol
Books Magazines
Telecom
DIY Gardening
Jewellery Watches
Optical
Car Parts Accessories
Sport Leisure
Food
Baby Ware
Toys Games
Personal Care
Consumer Electronics
Footwear Leather
Home Ware
Furniture Decoration
Fashion & Clothing
Number of retail chains in Portugal in 2016, by sector
You can approach the Portuguese market in several ways:
•export directly•set up an agency•appoint a distributor•form a joint venture•manufacture under licence•acquire all or part of a Portuguese company
In the case of direct exports, you are advisedto have a local representative either on acommission basis, or as an importer ordistributor.
Personal contact with potential and existingclients and regular visits to the market arevery important.
APPROACHING THE MARKET
Future investment
The government is planning many projects to be carried out by 2020. The biggest investment is planned for infrastructure, especially transport.
Around 85% of funds are allocated to railways and ports:•2.8 billion EUR into railways•1.5 billion EUR into ports•800 million EUR into roads and airports
◗ Greet with a firm handshake, a smile and a lot of enthusiasm.
◗ Exchange business cards at the end of the meeting, never at thebeginning.
◗ Don’t be too punctual. Portuguese don’t consider time as a strict fact. It’s actually rude to be on time, arrive 5 to 20 minutes late.
◗ Be informal at the first encounter, but refrain from asking personal questions. Portuguese are very proud of their culture, so compliment thecountry or their food e.g.
BUSINESS CULTURE IN PORTUGAL
◗ It’s common to receive gifts from your host, normally alreadyunwrapped. Show your appreciation, and in addition send a thank younote after the meeting.
◗ Send a follow up letter after a business meeting with the minutesincluding the key points and commitments to ensure an effective nextmeeting.
◗ Portuguese value a trusting relationship as much as a signed contract.
◗ Doing business in Portugal is time consuming, don’t rush it. For example, a business lunch could take all afternoon.
BUSINESS CULTURE IN PORTUGAL
CROATIA –PORTUGAL Trade (2016) = 74.8 Mio Eur (+17%)
Cro export to Portugal: 50.7 Mio EUR (+5%) Cro import from Portugal: 24.1 Mio EUR (+54%)0.4% of total Croatian export (32th export partner) 0.1% of total Croatian import (44th import partner) partner)
-40.000
-20.000
0
20.000
40.000
60.000
80.000
2003. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011. 2012. 2013. 2014. 2015. 2016.
mil. EUR
Export Import Total Saldo
Croatian exports to Portugal:
• articles of leather (26%)• socks (21%)• medicaments (7%)• underwear (6%)• machinery for processing rubber or plastics (5%)
Croatian imports from Portugal:• uncoated paper and paperboard (17%)• new pneumatic tyres (15%)• meat of swine (5%)• leather (4%)• motor vehicles for the transport of ten or more
persons (4%)
PORTUGUESE TOURISTS IN
CROATIA
Economic relations –tourism
0
10
20
30
40
50
60
2013 2014 2015 2016 2017
Tho
usa
nd
s
No. of arrivals of Portuguese tourists
0
0,01
0,02
0,03
0,04
0,05
0,06
2013 2014 2015 2016 2017
Mill
ion
s
No. of overnight stays of Portuguese tourists Tourism (2017)
48,879 Portuguese tourists = +30% 121,464 Mio overnight stays = + 21% 0.12% of total foreign tourist overnight stays 2.4 days – average stay
HOW CAN WE HELP YOU FIND A BUSINESS PARNER?
BUSINESS DELEGATIONS AND B2B MEETINGS
Trade missions and brokerage events
home and abroad 2012 – 2016
→ 742 business delegations
→ 8,593 participants
ANNOUNCEMENT:
Visit of Croatian business
delegation to Portugal
11th May 2018
MORE CCE SERVICES:
Trade fairs
Brockerage events
List of potential business partners
Partnering opportunities databasewww.een.hr
Public tenders – tenderi.hgk.hr
CROATIAN CHAMBER OF
ECONOMY
Sector for International Affairs and EU
Tel.:+385 1 4828 382Fax:+385 1 4828 379
Rooseveltov trg 210000 Zagreb, Croatiae-mail: [email protected];
