EXPORTING AND SELLING HOT TUBS IN

SWEDEN

Hot Spring Portable SpasSelf contained, portable hot tubsMeets California requirements for energy

efficiencyFirst to receive the ENVY (environment

friendly) award in Germany for energy efficiency

Manufactured in Vista, CA by Watkins MFGEstablished in 1977Watkins is part of MASCO Corp., a Fortune 500

Company

Prior to Entering the MarketContact the Seattle U.S.

Export Assistance Center for assistance:Identifying and evaluating

international partnersNavigating international

documentation challengesCreating market entry

strategiesOther export related

guidanceContact Mr. Pru Balatero

with the Small Business Association (SBA) for help with trade finance

Contact one of the many trade organizations in Washington State for additional experience and adviceTrade Development

Alliance World Trade Club Washington Council on

International Trade State of Washington

Department of Community, Trade and Economic Development

Market AnalysisAlthough the Scandinavian countries of Sweden, Finland,

and Norway are well known for saunas, they also love hot tubs

Products sold in Sweden must be of high quality and competitively priced - Hot Spring Spas have one multiple awards for quality and Consumer’s Digest best buy awards for value

Environmentally friendly and energy efficient products are a must in all of Europe – Hot Spring spas have one national and international awards for both environmental compliance and efficiency.

The market appears to be saturated, however, Hot Spring Spas is the world’s number one selling brand and should be able to find a niche in Sweden

Market Entry StrategiesConduct market research to find “niche”

Size & necessary featuresEnergy consumptionCompetitive pricing is important

Locate existing dealers looking to expand their offeringCreate subtle, but informative website that will appeal

to Swedish cultureHighlight Energy efficiencyIdentify length of warrantyAvoid claims for relaxation and family gathering as these

are already knownProduct must be ETL listed for safety

Inventory ManagementProprietary design and technology restrict licensing and

franchisingUse 3M style approach

Build product in US and enter market slowlyWhen demand and revenue meet goals, begin Greenfield

Investment within European UnionEstablish local manufacturing to minimize trade barriers

and transportation costs

Sweden’s Import LawsGoods must be classified prior

to declarationSubmit declaration of goods

Electronic is preferred May use Single Administrative

Document (SAD) Use of an agent is acceptable

and may help processBe prepared to supply

additional documentation Commercial invoice Customs value declaration 5 Freight bill Certificate of origin Packing list

Pay fees Customs duties Value added tax

(VAT) Any other

applicable taxesApply for customs

clearance immediately upon arrival of goods

U.S. Export LawsU.S. export laws are

complex and difficult to navigate

Partnering with an experienced international freight forwarder or the use of a Shippers’ Association would provide freedom from the majority of these issues.

Freight Forwarder optionsNCBFAA.orgFreightGate.comFreightNet.com

Shippers’ Association optionsShippers.orgISASHIP.orgPACBOT.org

Swedish CultureSociety

EgalitarianHumbleFamily orientedNot flashy or ostentatious

BusinessFlat management styleConsensus approach to decisions

Takes time Gives value to all opinions

Proper attire is semi formal to business casual

Political ConcernsConstitutional Monarchy with a parliamentary systemStable democratic style of governmentElections are held every four years for major positionsJudicial system does NOT rely on judicial precedent as in

the U.S.The Swedish government’s official stance is that the power

comes from the people and every one has the same rights and opportunities including free speech, freedom of the press, and freedom of self expression

Well managed economy with sound fiscal policy and tight control over their money supply. Sweden has been able to keep the consumer price index to generally less than two percent annual growth

Geography of Sweden• Slightly larger than the

state of California • Located in northern

Europe between the country of Norway and the Gulf of Bothnia

• Northern most quarter of the country falls within the Arctic Circle.

• Two zone climate• subarctic climate in

the north• temperate climate in

the south

• Terrain is generally flat with some gently rolling hills, with mountains to the west along the border with Norway

• Approximately 2000 miles of coastline

ConclusionHot tubs fit perfectly into the family oriented

lifestyle that is the Swedish CultureThe award winning, energy efficient and

innovative designs from Hot Spring Spas should easily capture the imagination of the high technology society in Sweden

Even though the market is saturated, Hot Spring Spas are a high quality product and when priced right, they will sell in Sweden.

References Bureau of European and Eurasian Affairs. (2012, April 5). Sweden. Retrieved from State.gov:

http://www.state.gov/r/pa/ei/bgn/2880.htm

CDA Media. (2012). Business Structures in Sweden and Doing Business in Sweden :: World Business Culture. Retrieved from

worldbusinessculture.com: http://www.worldbusinessculture.com/Swedish-Business-Structures.html

CDA media. (2012). Doing Business in Sweden - Swedish Business Culture - Swedish Culture - World Business Culture. Retrieved

from worldbusinessculture.com: http://www.worldbusinessculture.com/Swedish-Business-Style.html

Central Intelligence Agency. (2012, April 12). CIA - The World FactBook: Sweden. Retrieved from cia.gov:

https://www.cia.gov/library/publications/the-world-factbook/geos/sw.html

Export.gov. (2010, Aug 5). Export.gov - Center Content - Trade Finance Partners Washington State. Retrieved from Export.gov:

http://export.gov/washington/exportfinanceresources/index.asp

Export.gov. (2010, Aug 8). Export.gov - Center Content - WA State Trade Resources for Spokane Section. Retrieved from

Export.gov: http://export.gov/washington/Seattle/washingtontraderesources/index.asp

References cont. Export.gov. (2012, Feb 2). Export.gov - International Logistics. Retrieved from Export.gov:

http://export.gov/logistics/index.asp

Globaltrade.net. (2012). International Trade in Sweden: Resources for your Trade in Sweden. Retrieved from

Globaltrade.net: http://www.globaltrade.net/m/c/Sweden.html

Prysm Group. (2010). Marketing a Business in Sweden : Startup Overseas. Retrieved from startupoverseas.co.uk:

http://www.startupoverseas.co.uk/starting-a-business-in-sweden/marketing-a-business.html

Sweden.se. (Unknown). Business culture in Sweden. Retrieved from Sweden.se:

http://www.sweden.se/eng/Home/Business/Business-culture/

Swedish Chambers. (2011). Sweden imports - swedishchambers.se. Retrieved from chamber.se:

http://www.chamber.se/swe-imports.aspx

References cont. Swedish Customs. (Unknown). Importing goods to Sweden from countries outside the EU. Retrieved from tullverket.se:

http://www.tullverket.se/en/startpage/keywordsaz/az/importinggoodstoswedenfromcountriesoutsidetheeu.4.230c8d84122d2a4008e

80006078.html

Swedish Institute. (2012). Swedish Economy. Retrieved April 7, 2012, from Sweden.se:

http://www.sweden.se/eng/Home/Business/Economy/

The Heritage Foundation. (2012). Sweden Economy: Facts, Data, & Analysis on Economic Freedom. Retrieved from Heritage.org:

http://www.heritage.org/index/country/sweden

U.S. Customs and Border Protection Agency. (2011, May 31). Tips for New Importers and Exporters - CBP.gov. Retrieved from

cbp.gov: http://www.cbp.gov/xp/cgov/trade/trade_outreach/diduknow.xml

Watkins Manufacturing. (2008, March 24). Watkins Manufacturing Earns First European ENVY Award For Energy-Efficient Hot

Spring Spa | Hot Spring Spas. Retrieved from hotspring.com: http://www.hotspring.com/press-releases/watkins-manufacturing-

earns-first-european-envy-award-energy-efficient-hot-spring-spa