How to export to Norway
Håvard Figenschou Raaen
Kiev – 9 October 2012
Quick facts about Norway
• Area: 384 802 km2
• Population: 5 million
• Languages: Norwegian and Sami
• Capital city: Oslo
• GDP: 349 bill. EURO (2011)
• GDP per capita: 70 400 EURO (2011)
• Currency: Norwegian Krone (NOK)
• 1 EUR = 7,4 NOK
• 1 UAH = 0,71 NOK
Norway in international trade
• 0,07 % of world population
• Share in world total exports and imports (2010)
• 0,9 % of merchandise export (no. 31)
• 0,5 % of merchandise import (no. 36)
• 1 % of services exports (no. 24)
• 1,2 % of services imports (no. 24)
• 73 % of GDP consists of trade
• Total value of imports: 90 billion Euro
• Total value of exports: 130 billion Euro
Energy
Maritime
Environmental
technology
Marine
Tourism
Norway’s imports from the World
(mill. EURO)
HS
Product label
Value in 2010
% of total import
84
Boilers, machinery; nuclear reactors, etc
7491
15
87
Vehicles other than railway, tramway
4788
10
85
Electrical, electronic equipment
4063
8
27
Mineral fuels, oils, distillation products, etc
2392
5
89
Ships, boats and other floating structures
2270
5
73
Articles of iron or steel
2221
5
94
Furniture, lighting, signs, prefabricated buildings
1580
3
39
Plastics and articles thereof
1351
3
75
Nickel and articles thereof
1159
2
90
Optical, photo, technical, medical apparatus
996
2
Source: International Trade Centre
Main import countries to Norway in 2011
(mill. Euro)
10000
9000
8000
8753
7823
7000
6000
5000
4000
3000
2000
1000
0
5929
4126
3658 3492
2731 2644
2121
1724
Household Consumption in Norway
Expenditure per household per year, by commodity and service group.
2007-2009.
%
Housing, water, electricity, gas and other fuels
31,2
Transport
16,3
Recreation and culture
12,5
Food and non-alcoholic beverages
11,8
Miscellaneous goods and services
6,3
Furnishings, household equipment and routine maintenance of the house
5,9
Clothing and footwear
5,3
Restaurants and hotels
3,4
Alcoholic beverages and tobacco
2,6
Health
2,5
Communication
1,9
Education
0,2
Source: Statistics Norway, Forbruksundersøkelsen 2007-2009
Ukraine – Norway Business Relations
• Strong increase in trade of goods
• Norwegian exports: 181 mill. Euro
• Seafood (84 %)
• Norwegian imports: 119 mill. Euro
• Inorganic chemicals (50 %)
• Norway Ukrainian Chamber of Commerce
• Established in 2008
• Business cooperation within telecommunications,
ICT and shipbuilding.
Exports of goods from Ukraine to Norway
140
(mill. Euro)
132
122
120
115
119
100
85
80
68
60
44
40
33
29
51
27
20
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Ukraine’s exports to Norway
HS
(mill. Euro)
Description
Value in 2009
Value in 2010
Value in 2011
%
Total exports
122
115
119
100
28
Inorganic Chemicals
13
23
60
50
89
Ships, Boats and floating structures
66
52
13
11
23
Food Industry Residues, animal feed
15
12
12
10
95
Toys, games and sports equipment
6
8
8
7
61
Apparel articels and accessories, knit
4
5
5
4
94
Furniture, bedding, lamps
1
2
4
3
62 Apparel articels and accessories, not knit
3
3
4
3
72
1
1
4
3
Iron and Steel
The Norwegian Market – Export Opportunities
• Groceries
• Fruit and vegetables
• Organic food
• Wine and Spirits
• Tourism
• Textiles and clothing
• Footwear
General grocery store sector
• Market value: 15,4 bill. EURO excl. VAT (2009)
• 4 chains control the market
45
40
40
35
30
24
25
20
20
15
15
10
5
0
Norgesgruppen
Coop
Rema 1000
Ica
Fruits and vegetables
• Total value of imports: 700 mill. Euro (2012)
• High share of F&V consumption are imports:
•
•
•
•
98
50
67
29
%
%
%
%
of
of
of
of
fruits
vegetables
berries
potatoes
• Main importers:
- Bama
- ICA Norge
- Coop
Consumption trend 2002 – 2011
(Kilogram per capita)
160.0
140.0
Fruits
120.0
100.0
80.0
60.0
40.0
20.0
0.0
Berries
Vegetables
Sum F&V
Potatoes
Sum F&V and
potatoes
Main importing countries of F&V
1,400
(mill. NOK)
1,290
1,200
1,000
800
600
400
200
602
511
267
223
218
211
151
124
56
-
Source: The Norwegian Fruit and Vegetables Marketing Board, 2012
Organic Food
• Market value of 158 mill. Euro (2011)
• 10 % increase from 2010
• 1 % market share in 2011
• Political ambition: Market share of 15 % in 2020
• Global level: Consumption of organic food has tripled
in the last ten years
The Norwegian Wine and Spirits Monopoly
• Vinmonopolet has the exclusive right to retail wine, spirits and strong
beer in Norway. (Similar system in Sweden, Iceland and Finland)
• 239 shops with more than 10 000 different products
• The products are purchased from importers holding the required
licence and who have signed a purchase agreement with Vinmonopolet
• Approx. 270 new products are purchased per year.
• New products are launched every second month.
• For information about importers:
• The Association of Norwegian Wine & Spirit Suppliers.
• Website: www.vbf.no
Wine
35
31.7
30
25
20
16.6
16.6
15
10
5
0
10
10
%
3.9
3
2.5
1.5
1.3
Wine consumption
(1000 litres)
80000
70000
60000
57842
61022
63286
65874
68721
50000
40000
litres
30000
20000
10000
0
2004
2005
2006
2007
2008
Source: Statistics Norway
Tourism
• Norwegian expenditure on holidays abroad: 7 bill. Euro (2010)
• New direct flight between Oslo and Kiev (Norwegian.no)
Textiles - main importing countries
Total value of imports: 1,9 bill. Euro (2010)
60
50
49
40
30
20
10
0
20
%
8
5
4.5
4.1
2.3
1.8
1.8
Main clothing retailers
Market value: 3,5 bill Euro excl. VAT (2008)
30
25
20
15
10
5
0
%
Sports equipment retail chains
Market value: 1,2 bill. Euro excl. VAT (2008)
30
25
20
15
10
5
0
%
Footwear
Market value: 400 mill. euro excl. VAT (2009)
Companies
Annual turnover (mill. NOK)
Number of shops
2009
2008
2009
2008
1480
1441
233
239
Skoringen
703
702
116
120
Garant *
420
412
84
82
Økonomisko
331
312
86
83
Nilson Group **
278
255
41
40
Bianco Footwear
235
220
60
57
Dna
233
217
51
52
SUM
3 680
3 559
671
673
Footwear market
4 295
4 252
970
970
Eurosko
* Estimated annual sales
** Nilson Group consists of the chains Din Sko, Skopunkten og Nilson
Source: Kvarud Analyse
How to access the Norwegian market
• Market research
• Market access strategy
• Importer requirements
• Standards and safety
• Business Culture
Importer requirements
• Quality
• Health safety
• Traceability
• Reliability: Adherence to contracts and deadlines
• Corporate social responsibility / Ethical Trade
• Price
Standards and safety
Corporate Social Responsibility (CSR)
•
Report to the national assembly in 2009:
•
The Norwegian Government’s position is that CSR involves companies
integrating social and environmental concerns into their day-to-day
operations, as well as in their dealings with stakeholders.
•
CSR means what companies do on a voluntary basis beyond complying with
existing legislation and rules in the country in which they are operating.
•
Companies should promote positive social development through value creation
and responsible business conduct, and by taking the local community and
other stakeholders into consideration.
•
For more information: See Report No. 10 (2008-2009) to the Storting –
Corporate Social Responsibility in a global economy:
• http://www.regjeringen.no/en/dep/ud/dok/regpubl/stmeld/20082009/report-no-10-2008-2009-to-the-storting.html?id=565907
Business culture
• Rules before relations
• The business contract is considered irrevocable
• Flat business hierarchy
• Punctuality
• Open and straightforward negotiations of terms
• Not common for business partners to exchange gifts
•
See more in the report ”Exporting to Scandinavia” available here:
http://www.virke.no/dav/63a3a73a57.pdf
Useful information for Ukrainian exporters
•
Where can I find information about Norwegian exporters, products and
suppliers?
• The Norwegian Trade Portal: http://www.nortrade.com/
•
How do I find out about trade fairs and exhibitions in Norway?
• Norway Trade Fairs: http://www.messe.no/en/
•
Where can I obtain information on how to establish a business in Norway?
• Altinn: http://www.altinn.no/en
•
How do I obtain information on Norwegian companies?
• The Brønnøysund Register Centre: http://www.brreg.no/english/
•
Available market reports:
• How to export to Scandinavia: http://www.virke.no/dav/63a3a73a57.pdf
• Organic food: http://www.virke.no/dav/7912a92b93.pdf
• Interior decoration: http://www.virke.no/dav/0c721e08c5.pdf
• Fresh fruit and vegetables: http://www.virke.no/dav/29e5631bee.pdf
Virke – The Enterprise Federation of Norway
•
Virke is the principal enterprise organisation in Norway within the trade and
service industry
•
In trade, Virke covers all sectors and sales activities, i.e. retailers,
wholesalers, agents and importers within all sectors.
•
15 500 member companies with more than 200 000 employees
•
Most Norwegian imports are dealt with by member companies of Virke
•
Virke - Department of International Trade Cooperation (DITC)
•
Established according to an agreement between Virke and NORAD
(Norwegian Agency for Development Cooperation)
•
DITC provides: Market information, capacity building, advice on market
access, company matchmaking
•
Website: www.virke.no
Websites with more information
1. Virke – The Enterprise Federation of Norway:
Website: http://www.virke.no
2. Virke - Department of International Trade Cooperation:
Website: http://www.virke.no
3. Norwegian Directorate of Customs and Excise
Website: http://www.toll.no/
4. Norwegian Ministry of Trade and Industry
Website: www.nhd.no
6. Oslo Chamber of Commerce
Website: www.chamber.no
5. International Trade Centre (ITC)
Website: http://www.intracen.org/
ITC is the joint agency of the WTO and the UN working to help developing and transition
countries achieve sustainable development through exports.
7. Centre for the Promotion of Imports from Developing Countries (CBI)
Website: http://www.cbi.eu/
The CBI is a Dutch Government Agency providing services such as market information,
export coaching and a European company database.
Thank you for your attention!
E-mail: hfr@nhd.dep.no