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How to open the Northern European market

Denmark the center of Northern Europe

Denmark is a modern trading nation with an 800-year history. During the last half-century, the country has made impressive advances in several, key, industrial sectors, among them: biotech, healthcare, telecommunications and information technology, transportation and services. As an original member of the European Economic Community (now European Union), Denmark plays a leadership role within the Union and on the world's political and economic stage.

Denmark's natural "home market" (the region comprised by the countries bordering the Baltic and North seas) consists of around 50 million people. Denmark is an excellent distribution platform for this region because of its location and sophisticated infrastructure. Trade between Denmark and Europe continues to expand. Denmark's central position in the new Europe makes it an obvious starting point for regional marketing and distribution.

The Danish infrastructure
The Danish distribution system has, since 1993, been ranked among the two best in the world by the highly regarded "World Competitiveness Yearbook" of the Institute of Management Development. Denmark's long-standing tradition of trade, transport and distribution, combined with government investments and private business initiatives have developed the Danish transport, distribution and logistics system into one of the most efficient in Europe.

Denmark's top-ranked distribution infrastructure includes:

  • Two international airports
  • Ten international ports with free port and trade zone facilities
  • Extensive road and rail networks
  • International freight forwarders and integrators with bonded warehouse facilities
  • Multi-modal distribution solutions
  • Oresund bridge connecting Denmark to Sweden

Copenhagen
Copenhagen is strategically placed in the center of the Northern region. Its importance is emphasized by being the most densely populated area in northern Europe (3.5 million inhabitants within a 50-km radius.) Thus, it is considered an ideal location for international companies planning to establish regional headquarters for Scandinavia and the Baltic area. Copenhagen is currently developing a whole new town about one mile from the city center. This new town project is called the "Orestad," and is the largest single project in all of Scandinavia. The Orestad includes a fully-developed infrastructure of roads and railways, all close to the airport. Orestad stretches three miles from the outskirts of Copenhagen to the doorstep of Copenhagen's international airport which was voted the "best airport in the world" by IATA in 2000. This ranking is the result of a huge investment program including both passenger and cargo related investments. Copenhagen Airport is considered the hub of the Nordic region with more than 85 airlines operating scheduled flights with direct connections to more than 140 destinations.

Virtual Infrastructure
Denmark's virtual infrastructure is also extremely advanced with a government dedicated to making Denmark "The world's most advanced IT nation." The goal set by the Government is to construct the most modern infrastructure with inexpensive broadband access to as many users as possible. Danish companies are fully computerized. A recent survey by the Green's Institute shows that 98% of all Danish companies have access to the internet.

Present telecommunication infrastructure consists of copper, co-axial, optical fiber and also various radio-based techniques which enable PSTN, ISDN, xDSL, ADSL, and GSM services to be offered. Cable TV companies are also beginning to offer broadband services via their cables. Denmark's infrastructure is based on the infrastructure of the original national telephone companies which later became known as TDC (Tele Danmark, now controlled by U.S.-based SBC Communications). Since the liberalization of the market, new cable and systems have been added to the present TDC infrastructure.

Test Market
The Danish market is, in many ways, a perfect test market. It is relatively small, and all corners of Denmark can be reached within four hours from Copenhagen. The population of 5.3 million people is very homogeneous, and the Danes are receptive to new products and features. The purchasing power among consumers is substantial, and the demand for quality and design is equally high. Danes are selective consumers, and goods and services of lower quality often face difficulties in the Danish market. However, products proven successful in Denmark will probably find good opportunities in the rest of northern Europe.

Language skills
The language skills of the Danish population are generally considered to be among the best in Europe. Denmark is a small and open country with a long history as a trading nation. High linguistic capabilities have been an essential competence for the Danes in order to compete and cope in the international environment. According to a survey made by the E.U., 76% of the Danes speak English and 52% speak German, making Denmark the most language-proficient country in Northern Europe.

Professional Agents & Distributors
Denmark has a wide variety of professional agents and distributors who are highly experienced in trading with international clients. This agent/distributor community has developed over centuries, and is today a very select and competitive group of businesses. Many also cover the Nordic region and parts of Germany and the Baltic Region. The average agent is a well-qualified user of IT technology and has a good understanding of the market situation and future prospects and developments. Danish agents and distributors also have a widespread reputation of providing commendable service which is another advantage in facilitating market access to the greater Nordic market for foreign suppliers.

U.S. companies in Denmark
Past years have seen an increasing trend among foreign companies to establish branch offices and regional headquarters in Denmark. This is also the case for American companies. There are more than 350 U.S. subsidiaries or wholly-owned companies here. The United States is Denmark's largest trading partner outside the E.U., and the newly established American Chamber of Commerce in Denmark already boasts more than 200 members and is actively promoting U.S. business interests in Denmark