The Dynamic Bridges to Europe:Belgium - Camille SailerFrance - Robert Connan The Netherlands - Sheryl Pinckney-MaasUnited Kingdom - Stephan Wasylko

Moderator: Ms. Kerri Norris – Staples-Lyreco Co.

Overview

• America’s Trade with the Gateway Markets

• Leading U.S. Exports in 2006

• U.S. Role in the Economies

• Best Prospects For U.S. Business

• Strengths of the Gateway Markets

• Why Export to the Gateway Markets

• Market Entry Strategy

• Achieving Success in the Gateway Markets

• U.S. Commercial Service Country Teams

U.S. Exports to BelgiumI. U.S. Trade with the Belgium

II. Best Prospects for U.S. Business

III. Belgian and Luxembourg Market Strengths

IV. Entering the Market

V. Achieving Success in the Market

01010410-98

Source: FFIOSource: FFIO

Welcome to the Center of

Europe

The U.S. and Belgium

• 11th largest trading partner of the U.S.• ““Total US investment in China last year was just Total US investment in China last year was just

one fourth of total US investment in Belgium in one fourth of total US investment in Belgium in 2005.”--EU Commission President José Manuel 2005.”--EU Commission President José Manuel BarrosoBarroso

• New York was #1 travel destination for Belgian business travelers in 2006

• Only western European country where tourism travel to U.S. has increased over the past year

Leading U.S. Exports

• Chemicals and related products• Machinery and transport equipment • Manufactured Goods• Crude materials• Mineral fuels, lubricants and related materials• Food and live animals• Beverages and tobacco

Best Prospects for U.S. Business

Auto Accessories & Specialty Equipment• 526,141 new cars registered in Belgium in 2006, an all-

time record and an almost 10% increase over 2005 Information & Communications Technology (ICT)• Belgian ICT sector growing faster than Belgium’s

national economy and, combined with Luxembourg, enjoyed turnover of $22.5 billion in 2006

Generic Drugs• Belgian government promoting generic drugs to limit

increase of pharma expenditure, which has doubled over the past 25 years to $4.7 billion in 2006

Best Prospects for U.S. Business

Seafood• Belgium relies heavily on imports—over 200,000 tons

annually, above average per capita consumption in relation to other European countries. Increasing emphasis on high-quality prepared and frozen seafood

Interior Textiles• In 2005, turnover valued at $3.5 billion, represented a

42% share of the textile sector—the largest share. Emphasis on style, performance and high-quality fabrics

Be-Lux as a Gateway to Europe

• Belgium is a distribution hub for the European market • The Port of Antwerp is the second largest port in

Europe• The coastal Port of Zeebrugge is the European hub

port for the automotive industry • Zaventem Airport is one of the top five cargo airports

in Europe (2 million ton capacity)

Regional Division Belgium

Language Distribution: 58 % Dutch, 41 % French, 1% German

Enhancement of regionalization

The Belgian Market

• Ideal Distribution Point/Excellent Infrastructure

• One of the ten highest Per Capita GDP ($31,900) countries in Europe (2006 est.)

• Imports of goods and services grew by 3% in 2006 ($333.5 billion total)

• In 2006, CS Belgium brokered nearly $3.5 billion in goods and services from the U.S.

Strategic Importance for U.S. companies

The Luxembourg Market

Small but not to be underestimated…

• Total population of 474,413 • 2nd Highest Per Capita GDP ($68,800) in the world • One of world’s biggest financial centers with 155 banks and 200 financial service firms• Luxembourg’s investment fund sector is second largest in Europe; third largest in the world

Entering the Market…

CHANNELS:

Importers/Distributors

Wholesalers

Specialized Retailers

FOCUS:

Innovation

Quality

Competitive Prices

• Showcase Europe ICT Coordinator• Quicktake Coordinator• Cover Luxembourg Market• Benelux Cooperation• Cooperation with Major Business

Organizations such as AmCham Belgium, Federation des Enterprises de Belgique (FEB), UNIZO and local Chambers

• Cooperation with Fedex

…With U.S. Commercial Service Belgium

Strategic Partnerships Matter!

CS BelgiumCurrent Initiatives

We generate additional revenue without increasing expenses...

•QuickTake •“Expert Opinion” on the market: on a product’s or service’s potential in these markets; targeted feedback on the product or service and advice on where to start in Europe; information on current demand, future demand, competition and more; suggested next steps; insight on relevant European Union regulations, standards and legislation included.

•Results:•14 QTs delivered in the ICT sector•8 Success stories•Over one million dollars worth of Export Action•2 GKS sold and 2 Platinum Keys pending•Officially launched as a for fee service in April•Already one paying QT delivered and another pending.

• Showcase Europe ICT Coordinator• Quicktake Coordinator• Cover Luxembourg Market• Benelux Cooperation• Cooperation with Major Business

Organizations such as AmCham Belgium, Federation des Enterprises de Belgique (FEB), UNIZO and local Chambers

• Cooperation with Fedex

…With U.S. Commercial Service Belgium

Strategic Partnerships Matter!

CS BelgiumCurrent Initiatives

Some Client Feedback on QuickTake:

• "All of our major goals were met. . . The success of the entire program is a tribute to the close cooperation and support we enjoyed with the US Commercial Service, the Baltimore US Export Assistance Center, and the individual analysts and specialists with whom we have had the pleasure of working. We have been very pleased with the relationships and with the results we have enjoyed. . . Bring on those customer satisfaction surveys!!!!”

• “We have found the QT to be invaluable, with Ireland, the Netherlands, and Poland markets which make the most sense to enter for powerplant optimization. (…) As author of the QT which started it all your name will surely not be forgotten... and we look forward to lifting a glass in your honor with the first contract signed for business in the Czech Republic!”

• “Just a quick note to say that your QT report was not only professional but also immensely helpful... and with any luck its timely delivery (yes, I spent my weekend thinking things over after devouring the text on Friday) will lead to a Gold Key in Ireland, the Netherlands, or Poland.”

We generate additional revenue without increasing expenses...

CS BelgiumCurrent Initiatives

• Fedex and other CS company partners• Outreach :

• “Moving Forward” Antwerp, Outreach Mons and other Flemish and Walloon Regional Business Centers

• Ambassadorial Outreach to U.S. companies based in Belgium/Luxembourg

• Minority Outreach : Women@Work and Muslim Outreach

• “BelgiuMomentum” Market Research • NATO tenders

We generate additional revenue without increasing expenses...

How CS Belgium Helps the Bottom Line

In FY 2006, CS Belgium and Luxembourg achieved over

$3.5 billion

in Export Success Stories, helping large and small firms alike including Lexmark International, Knit

Rite, Derco Aerospace, Lake Country Manufacturing, Dell, Subway, Emissions Products International, Boeing, D’San Corporation, General

Dynamics, ProMax…

Distribution and sales channels

• Excellent network of distributors

• Belgian distributors tend to be small and specialized

• Risk averse

• High social cost for employees

• Highly Competitive market

• Importers look for best quality at the lowest price

• Sales territory: regional/country wide/Benelux wide/neighboring countries

Cultural differences• Strong influences of American culture• Cultural differences are in the nuances,

which are difficult to decipher• Belgium has three main cultures• Examples:

- French/Dutch/English? - Used to more bureaucracy, exercise more patience- Decision-making process tends to be longer- Different customer behavior

Achieving Success in the Gateway Market

CS BelgiumMajor Trade Events

• January– Antwerp Travel Fair– Heimtextil, Frankfurt, Germany– ISE, Amsterdam, Netherlands (Information Technology)

• February– Brussels Holiday Show– International Builders Show, Orlando, FL

• March– Visit USA Workshop (Tourism), Brussels– CeBIT (ICT), Hannover, Germany

• April– European Seafood Exhibition, Brussels– Med-e-Tel, Luxembourg (Pharma)

• May– International Pow Wow, Las Vegas, NV (Tourism)

• July– Farnborough International Airshow, U.K.

Commercial Service BelgiumE-mail: brussels.office.box@mail.doc.gov

Tel: +32-2-508-24-25Fax: +32-2-512-36-44

American Embassy - FCSRegentlaan 27, Blvd. du Régent,

BE-1000 BrusselsBelgium

Thank You!

U.S. Exports to France

• U.S. exports of goods to France in 2005 was 2.45 percent of worldwide U.S. exports of goods

•  U.S. exports of services to France in 2005 was 3.5 percent of worldwide U.S. exports of services

•  U.S. income receipts from France in 2005 was 3.98 percent of worldwide U.S. income receipts

 

Leading U.S. Exports to -France in 2006

10th largest market - $24 billion

Machinery - $6.42 BillionElectrical Machinery - $1.83 BillionOptic, Medical, Scientific Instruments - $2.40

BillionAircraft and Parts - $3.52 BillionOrganic Chemicals - $1.71 BillionPharmaceuticals - $1.22 Billion

French affiliates of U.S. firms rank the U.S. as top foreign direct investment

country in Europe

• Major players in the French Economy• *Cumulative Direct Investment Position: $61

billion• Total Assets ranks 1st with $256 billion• Income in France ranks 1st with $9.6 billion• French Exports ranks 1st with $4.5 billion• Employment in France ranks 1st with 603,400• 2500 French companies with U.S. investments

Best Prospects Sectors

• Aircraft and Parts• Computer Services• Computer Software• Industrial Chemicals• Travel and Tourism• Safety and Security Equipment• Computer and Peripherals• Telecommunications Equipment• Books & Publishing• Water Resources Equipment and Services

Best Prospects Sectors

• Medical Equipment• Automotive Parts Equipment• Telecommunications Services• Plastics• Agricultural Machinery and Equipment• Construction Equipment, Cosmetics• Education Services• Textile• Direct Marketing and E-Commerce

Business to Consumer.

Strengths of France

• France is world’s sixth largest economy• Largest West European country• France GDP represents 15% of E.U. GDP• France GDP represents 20% of U.S. GDP• France GDP was slightly over $2.1 Trillion• Population – 63 Million• Annual growth rate for 2006: 2.1%• Inflation low: at 1.5% for 2006• Per capita GDP was about $ 33,800 in

2005

Strengths of France

• Highly versatile industry basis in all sectors with global companies as well as cutting-edge SMEs

• Strong high tech sector and R&D• Sophisticated Consumer Industries and

Distribution Logistics• Good Financial Services Industry• State of the art Infrastructure in all

domains • Excellent and Skilled, Educated Work

Force

CS Belgium

Major Trade Events – 2007(rest of year)

• June– Power-Gen, Madrid

• September– Aquatech, Amsterdam (Environment)

– DecoContract, Brussels (Fabrics & Furnishings)

– LabelExpo, Brussels

• October– Frankfurt Book Fair, Germany– IFAI, Charlotte, NC (Industrial Fabrics)

• December– Pollutec, Lyon, France (Environment)

Market Entry Strategy

• The commercial environment in France is highly competitive

• Sales of U.S. goods and services is well received

• Marketing products and services in France is comparable to the approach in the U.S.

•Sophisticated marketing approaches are used in most sectors

Factor for Success in France• Sophisticated offering

– Elegant or trendy design in consumer products

– Brand names– Higher end—can’t compete with Asia

on low

• High technology– Not the place for rejects– Must be state-of-the-art

• Services / Consumer Goods /Travel & Tourism Operation Team:

Olivier.Collette@mail.doc.gov

• High Technology Operation Team:

Myrline.Mikal.Goide@mail.doc.gov

•  Heavy Industries Operation Team:

Cara.Boulesteix@mail.doc.gov

 

Phone: (33) 1 43 12 21 97 - Fax: (33) 1 43 12 21 72

Contact us: Slide 24 http://www.buyusa.gov/france/en/

US Exports tothe Netherlands

• Value of US exports to the Netherlands in 2006 was $31.1 billion

• The US enjoys it’s largest worldwide TRADE SURPLUS with the Netherlands - $13.8 billion in 2006

Leading US Exports tothe Netherlands in 2006

7th largest export market for US - $31.1 billion

• Pharmaceuticals - $4.6 billion• Computers and accessories - $2.3 billion• Medical Equipment - $2.3 billion• Telecommunications Equipment - $2 billion• Aircraft and Parts - $2 billion• Organic Chemicals - $1.9 billion

US Role in the Dutch EconomyThe US is a major player in the economy• Cumulative Direct Investment Position:

$181 billion• Total US assets rank 1st at $650 billion• 2,300 US companies have a presence in

the Netherlands• They contribute 5 percent to total GDP• They employ 200,000 people• Dutch investment in the US ranks 3rd with

$171 billion (only UK and Japan rank higher)

Best Prospects•Aircraft and Parts•Computer Services and Software

•Travel and Tourism•Computers and Peripherals•Telecommunications Equipment•Pharma & medical Equipment•All Services•Consumer Goods•Chemicals•Automotive

Strengths ofthe Netherlands

• World’s 16th largest economy• The Netherlands GDP contributes 5

percent to EU GDP and is the 6th largest EU economy

• GDP was $688 billion in 2006• Population – 16.3 Million• Annual growth rate for 2006: 3

percent• Inflation low: at 1 percent in 2006• 2006 per capita GDP was $42,200

Why Export There

• GATEWAY TO EUROPE• Cutting-edge logistics and

distribution infrastructure• 160 Million European consumers

within a 300 mile radius of Amsterdam

• Ideal test market – population of 16.3 million, affluent consumers who speak English

• Highly-skilled work force

Market Entry Strategy•The Dutch are traders by nature

•U.S. products are highly-regarded

•A local partner is essential – usually a distributor

•The market is transparent and competitive

•Dutch consumers are well-traveled, highly educated, sophisticated, wired, pro-US

Factors for Success inthe Netherlands

• Good price/quality ratio and (after sales) service are prerequisites

• Be flexible regarding product and price

• High-maintenance relationship with distributors essential

• Take the long view, invest, commit• Consider establishing European

distribution in the Netherlands

•Sheryl Maas – Senior Commercial Officer

•Alan Ras – Medical, Pharma, Biotech

•Carlanda Hassoldt - InfoTech, Telecom

•Bram Groen - Energy, Logistics, Packaging

•Natasha Keylard – Automotive, Defense

•Jane Zoutendijk – Tourism, Franchising

•Jennifer Ritfeld - Environment, Consumer Goods

Contact us:

US Commercial Service

Lange Voorhout 102

2514 EJ The Hague

The Netherlands

Tel: 31-70-310-9427

Fax: 31-70-363-2985

Internet: www.buyusa.nl

U.S. Exports to the UK(Billions of $US)

2003 2004 20052006

33.9 36.0 38.6 45.4

42.7 46.4 51.0 53.4

Bilateral Trade (Billions of $US)

2003 2004 20052006

76.6 82.4 89.6 98.8

Up 7.5% Up 8.7% Up 10.2%

Leading U.S. Exports to the UK in 2006(Billion $US)

2nd Largest Export Market in Europe – 5th in the World

(America’s 2nd Largest Supplier in Europe – 6th in the World)Nuclear Reactors, Boilers, Machinery: 9.2 Billion

Nat Pearls, Prec Stones, PR Met, Coin: 5.6

Electric Machinery, sound equipment, etc: 4.2

Pharmaceutical Products: 3.6

Optic, Photo, Medical/Surgical Instru: 3.1

Aircraft, Spacecraft and parts: 2.8

Vehicles, except Railway or Tramway: 1.7

All others: 15.1

U.S. Role in the UK’s Economy

• The U.S. – UK “Special Relationship”

• Nearly $200 Billion in Mfg Goods and Services Trade

• U.S. Leading Investor in the UK - $324 Billion in 2006

(37% of U.S. total FDI and 33% of U.S. FDI in Europe)

• UK Leading Investor in the U.S. - $282 Billion in 2006

(45% of UK outward investment)

• 40,000 U.S. Companies Doing Business with the UK

• 7,000 U.S. Companies invested/500 with EUR HQs

• Employ over 1 million workers in each country

Best Prospects For U.S. Business

• Aerospace

• Agricultural products

• Apparel

• Computers and peripherals

• Drugs and pharmaceuticals

• Medical Equipment

• Oilfield and drilling equipment

• Renewable energy equipment

• Telecommunications equipment

• Travel and Tourism

Strengths of the United Kingdom • World’s 5th Largest; Europe’s 2nd Largest

• GDP: $2,124 billion – GDP per capita: $35,760

(>Germany, France or Italy)

• Services: 73%; Industry: 26%; AGR: 1%

• Average Annual Real Growth (1994-2006): 2.8%

(over 55 consecutive quarters of economic growth)

• Average Annual Rate of Inflation (2000-05): 2.4%

• Unemployment: 5.4% vs EU 7.4%

• Population: 59.4 million

• Size: State of Oregon

• United Kingdom: England, Scotland, Wales and Northern Ireland

Why Export to the United Kingdom

Aerospace/Defense: 2nd only to the U.S.

Electronics: 1st and 2nd in Europe for market size and production in nearly all sub-sectors

Telecom: Europe’s largest market

Pharmaceutical’s and Biotech: 5th largest market in the world; 2nd largest exporter; among top 3 in R&D

Automotive: 9th in the world by market size; 7 major manufacturers; 17 top component manufacturers

Software/Computer Services: 8% of world market

Travel and Tourism: #1 for U.S. overseas arrivals

Financial Services: Where the world banks, 45% of global equities trading

Franchising: One third of retail sales

Market Entry Strategy• Four Hundred Years of History

• Commitment to Open Markets and Fair Trade

• Mature and highly competitive market place

• Two Nations Divided by Common Languages

• UK and the EU Factor

• Cost of Doing Business

• Labor Laws and Regulations

• Trains, planes and congestion fees

• Diaries, agendas and holidays

Achieving Success in the UK

• A clear and sustainable competitive advantage, such as cost or product differentiation.

• Quality, efficacy, value, superior design, branding

• Market research is essential• Determine market size and growth, key segments and trends, distribution and channel economics (margin structure), major competitors and their product positioning, pricing and promotion, and any market access or regulatory issues.

• Recognize significant cultural differences.

• Partner with an experienced and established local distributor.• Visit the country to meet potential partners and to understand the market first hand.

U.S. Commercial Service London

U.S. Embassy London

24 Grosvenor Square

London W1A 1AE

Tel: +44 (0) 20 7894 0419

Fax: +44 (0) 20 7894 0020

Email: London.Office.Box@mail.doc.gov

Website: www.buyusa.gov/uk & www.Export.gov

The Dynamic Bridges to Europe:Belgium - Camille SailerFrance - Robert Connan The Netherlands - Sheryl Pinckney-MaasUnited Kingdom - Stephan WasylkoModerator: Ms. Kerri Norris – Staples-Lyreco Co.

We thank you for your attention…Time for questions from the audience…