Market Overview
- Switzerland’s population of 7.4 million is affluent and cosmopolitan
- GDP of about USD 378 billion; forecast growth of 2% for 2008
- 17th largest U.S. export market and fourth fastest growing (16%) in the world
- Annual U.S.-Swiss trade in goods in 2007 of USD 31.8 billion
- U.S. exports in goods to Switzerland in 2007 valued at about USD 17.03 billion
- Bilateral trade comparable to U.S. trade with Italy and with Spain
- World-class infrastructure, business-friendly legal and regulatory environment
- Highly educated, reliable, and flexible work force
- Consumer and producer of high quality, value-added industrial/consumer goods
- Manufacturing sector is highly automated and efficient
- Strong market demand for U.S. components and production systems
- Strong demand for high quality products with competitive prices
- Highest per capita IT spending in the world
- Multilingual/multicultural European test market and business environment
- U.S. suppliers benefit from the strong Swiss franc (USD 1 = 1.20 Swiss francs)
- Many U.S. firms with European and regional headquarters in Switzerland
(Trade figures based on U.S. Census Bureau statistics.)
Market Challenges
- Market is sophisticated, quality-conscious, high tech and competitive
- An epicenter of European and global competition
- Must enter Swiss market early to be competitive throughout Europe
- EU regulations and standards as well as packaging and labeling
- Unique Swiss requirements for medications, cosmetics, detergents, and chemicals
Market Opportunities
- Products with relatively advanced technologies are best prospects
- Switzerland is strategically placed as a gateway to EU markets
- Ideal test market for introduction of new high tech and consumer products
- Excellent platform for marketing into Europe, Middle East and Africa
- High concentration of computer/Internet usage per capita
- Sophisticated market for U.S. medical devices
- Growing demand for specialty chemicals
- Switzerland is becoming a European center for business aviation
- Fast growing demand for highly sophisticated security equipment/systems
- One of world’s top countries for R&D
- Excellent opportunities for partnerships in biotech and nanotech
- Venture capital funds highest in Europe
Market Entry Strategy
- Express commitment to the market and establish long-term relationships
- Work directly with a Swiss importer/distributor for maximum market penetration
- Be prepared to meet customers’ needs and willing to sell in small volumes
- Offer high quality and environmentally friendly products
- Enter the market early to gain and maintain competitive edge
- Evaluate carefully prospective partner’s technical qualifications and ability to cover the German, French and Italian regions